FIN 534 Midterm Exam 1 1. Of the following investments‚ which would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. 2. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? 3. Which of the following statements regarding a 20-year monthly payment amortized mortgage with
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Suppose that the current Bid-Offer on the Euro is $1.21/E and $1.23/E‚ and the three-month forward is $1.185/E. 1. If you wish to hedge 100‚000 Euro Revenue due in three months‚ what position would you take? Explain why. a. Buy Euro forward at $1.23/E b. Buy dollars forward at $1.23/E c. Sell Euro forward at $1.185/E d. Sell dollars forward at $1.21/E e. Buy Euro forward at $1.185/E 2. If the Bid-Offer at maturity is $1.17/E and $1.19/E (assume the bank is following the same quote convention)
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Write a 200- to 300-word response describing the goals of financial management. The description should include how earnings are valued‚ how shareholder wealth can be maximized‚ and how management decisions affect stockholder wealth. The goals of financial management include profits. The problem with profits is that if you profit too or too little‚ your company will look bad. The key to having good financial management is having the ability to see that sometimes profit is not everything. Sometimes
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Problem #1‚ Chapter 20 1. Firm A has $10‚000 in assets entirely financed with equity. Firm B also has $10‚000 in assets‚ but these assets are financed by $5‚000 in debt (with a 10 percent rate of interest) and $5‚000 in equity. Both firms sell 10‚000 units of output at $2.50 per unit. The variable costs of production are $1‚ and fixed production costs are $12‚000. (To ease the calculation‚ assume no income tax.) a. What is the operating income (EBIT) for both firms? Units sold*price per unit
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Question 1 Your finance text book sold 53‚250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent for the next three years‚ and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4. (If you solve this problem with algebra round intermediate calculations to 6 decimal places‚ in all cases round your final answers to the nearest whole number.) Number of copies sold after 3 years Number
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Wal-Mart stores INC. WACC analysis Wal-Mart Stores‚ Inc. is one of the biggest American multinational retail companies that operate chains of large discount department stores and warehouse stores. Wal-Mart is the world’s largest company by revenue‚ the biggest private employer in the world with over two million employees and the largest retailer in the world and also one of the world’s most valuable companies in terms of market value and is also the largest grocery retailer in the US. Wal-Mart
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Finance 486 Final Exam 1. Income Statement Preparation - 25 points a. Prepare an income statement for Cathy Chen‚ CPA‚ for the year ended December 31‚ 2009 Cathy Chen‚ CPA Income Statement for the Year Ended December 31‚ 2009 | Sales revenue | | $360‚000 | Less: Operating expenses | | | Salaries | 180‚000 | | Employment taxes and benefits | 34‚600 | | Supplies | 10‚400 | | Travel & entertainment | 17‚000 | | Lease payment | 32‚400 | | Depreciation
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5-year life and sold for $680.58. • The preferred stock has a $2.70 annual dividend. The preferred stock has a price of $30 but issue costs are $3 per share. • Bar knows the Treasury bill rate is 3% and the market risk premium is 9%. The common stock has a beta of 1.20. The tax rate is 30%. • The project has a 5-year planning horizon. It costs $8‚000‚000 and generates $2‚100‚000 in after-tax cash flows every year for 4 years followed by an after-tax cash flow of $4
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CHM 2046 L Scheme of Analysis for Unknown 9A/9B “Fair Game” Unknowns * Cations: Na+‚ K+‚ NH4+‚ Ca2+‚ Mg(H2O)62+‚ Al(H2O)63+‚ Zn(H2O)62+‚ Cu(H2O)2+‚ Ag(H2O)+ * Anions: Cl-‚ NO3-‚ SO4-2‚ HSO4-‚ OH-‚ CO3-2‚ HCO3-‚ S-2 * Insoluble Salts: Ca(OH)2‚ CaCO3‚ CaSO4‚ Mg(OH)2‚ MgCO3‚ Ag2O‚ AgCl‚ Ag2S‚ CuO‚ CuCO3‚ CuS‚ Zn(OH)2‚ ZnCO3‚ ZnS * Alums: [Al(OH2)6]2(SO4)3∙6H2O‚ Na[Al(OH2)6](SO4)2∙6H2O‚ K[Al(OH2)6](SO4)2∙6H2O‚ NH4[Al(OH2)6]2(SO4)2∙6H2O * Hydrated Ions: Na2CO3∙10H2O‚ Na2SO4∙10H2O
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Mrs. S. is an 83 year old woman with multiple medical problems‚ including chronic obstructive pulmonary disease (for which she sees a pulmonologist)‚ atrial fibrillation and systolic heart failure (for which she sees a cardiologist)‚ hypertension‚ diabetes‚ depression‚ and mild dementia. She comes to your provider’s office today with a new list of medications. Her pulmonologist changed her inhaler from one brand/strength to another brand/strength‚ but she is not sure why. Her cardiologist took her
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