FINA 3620 Example of Short Answer Questions for Exam 1 Chapter 11 1. Define cost of capital and investors’ required return respectively. Explain the relationship between these two. Cost of Capital is the required rate of return on the various types of financing. The overall cost of capital is a weighted average of the individual required rates of return (costs). It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the
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Class: Name: Date: ’lr\\0 ID: A Exam #1 Spring 2007 Multiple Choice Identify the letter of the choice that best completes the statement or answers th ^ question. r £2. 1. One example of the way theatre can educate is? a. Making people see plays (c) Making peoj le aware of an is ;;ue b. Making people laugh d. Making peo] le take theatre clusses 2. is the process by which we learn about our culture by watching and imitating the behaviors of others and listening to their
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Local literature The system of education in the Philippines was patterned both from the education systems of Spain and United States. However‚ after the liberation of the Philippines in 1946‚ the system has changed radically and move at its own (Isidro 2003). Education is defined as preparation for effective participation in social relations. Sociologically speaking‚ education is the consciously controlled process whereby changes in behavior are produced in the person and through the person in the
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Exam I -REVIEW-CH 1-4Exam I -REVIEW-CH 1-4 Student: ___________________________________________________________________________ 1. If Chrysler raises the prices of its new models of pickup trucks by 4 percent and General Motors and Ford follow by raising prices by a similar amount‚ then this is evidence of A. a monopoly. B. an oligopoly. C. pure competition. D. monopolistic competition. E. supply and demand. 2. Because the US government regulates business to ensure competition and protect
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PART A Courts all over the world have set precedence’s of treating directors as trustees which means in the performance of their assigned legal and corporate duties‚ they stand in a fiduciary relation to the shareholders of the company. A director as a trustee shall act in the best of his ability to benefit the company and not in furtherance of his own interest. Each of the four directors of the company stand in a fiduciary position to the company and thus liable for their acts of omission and
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Hieu Nguyen – FIN 5309 Section 1 Assignment 1 2.3 Table 2.2 X=0 X=1 Total Y=0 0.15 0.07 0.22 Y=1 0.15 0.63 0.78 Total 0.30 0.70 1.00 With W = 3+6X and V = 20-7Y‚ we have: (W|X=0)=3 (W|X=1)=9 Total (V|Y=0)=20 0.15 0.07 0.22 (V|Y=1)=13 0.15 0.63 0.78 Total 0.30 0.70 1.00 a. E(W) = 3 x 0.3 + 9 x 0.7 = 7.2 E(V) = 20 x 0.22 + 13 x 0.78 = 14.54 b. = (3 – 7.2)2 x 0.3 + (9 - 7.2)2 x 0.7 = 7.56 = (20 – 14.54)2 x 0.22 + (13 – 14.54)2 x 0.78 = 8.4084 c. cov
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Q.1a) The following graph is EOQ model with planned shortages. Let the parameters from the basic EOQ model. d = constant demand rate K = setup cost for placing one order Q = order quantity h = inventory holding cost per unit of product per unit of time p = shortage cost per unit of product per unit of time S = inventory level just after an order of size Q arrives So‚ Q– S = Shortage in inventory just before an order of Q units is added Production or ordering cost per
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Problems Q.1 Consider a five-year coupon bond with a face value of $1000 paying an annual coupon of 15%. (i) If the current market yield is 8%‚ what is the bond’s price? (ii) If the current market yield increases by 1% what is the bond’s new price? (iii) Using your answers to part (i) and (ii) ‚ what is percentage change in the bond’s price as a result of 1% increase in interest rates. Q.2 Consider the following FI balance sheet: M. Match Ltd Assets | Liabilities | 2 –year Treasury bond
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The Financial Detective‚ 2005 proportion Financial characteristics of companies vary for many reasons. The two most promi_ nent drivers are industry economics and firm sfategy. Each industry has a financial norm around which companies within the industry tend to operate. An airline‚ for example‚ wourd naturary be expected to have a high of fixed assets (airplanes)‚ manufacturer would be expected to have a lower gross margin than a pharmaceutical manufacturer because commodities such as
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1. The simplest and least expensive way to conduct international business is through: a. foreign licensees. b. the World Wide Web. c. joint ventures. d. trade intermediaries. 2. In a ________‚ two or more AMERICAN small businesses form an alliance for the purpose of exporting their goods abroad. The companies get antitrust immunity and share responsibility for the business equally. a. foreign joint venture b. trade intermediary c. export ventures d. export management company
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