( Answers to Mini-Case Questions BioCom Inc. This mini-case provides a review of the methodology and rationale associated with the various capital budgeting evaluation methods such as payback period‚ discounted payback period‚ NPV‚ IRR‚ MIRR‚ and PI. 1. Compute the payback period for each project. |Time of Cash Flow |Nano Test Tubes |Microsurgery Kit | |Investment |−$11‚000.00 |−$11‚000.00
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User | Long Yang | Submitted | 9/8/11 6:45 PM | Name | Midterm Exam I | Status | Completed | Score | 69 out of 75 points | Time Elapsed | 3 hours‚ 28 minutes‚ and 53 seconds out of 3 hours and 30 minutes allowed. | Instructions | Good luck! | | * Question 1 1 out of 1 points | | | Both New York Stock Exchange and NASDAQ are examples of secondary markets.Answer | | | | | Selected Answer: | True | Correct Answer: | True | | | | | * Question 2 1 out of
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Planning Multiple Choice Questions 1. One key reason a long-term financial plan is developed is because: A. the plan determines your financial policy. B. the plan determines your investment policy. C. there are direct connections between achievable corporate growth and the financial policy. D. there is unlimited growth possible in a well-developed financial plan. E. None of the above. 2. Projected future financial statements are called: A. plug statements. B. pro forma statements. C. reconciled statements
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Chapter 9 Practice Questions 1. The total market value of the common stock of the Okefenokee Real Estate Company is $6 million‚ and the total value of its debt is $4 million. The treasurer estimates that the beta of the stock is currently 1.5 and that the expected risk premium on the market is 6 percent. The Treasury bill rate is 4 percent. Assume for simplicity that Okefenokee debt is risk-free and the company does not pay tax. a. What is the required return on Okefenokee stock? requity
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CGA-CANADA ADVANCED CORPORATE FINANCE [FN2] EXAMINATION June 2011 Marks Notes: 1. Questions 1 and 2 are multiple choice. For these questions‚ select the best answer for each of the unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example‚ if the best answer for item (a) is (1)‚ write (a)(1) in your examination booklet. If more than one answer is given for an item‚ that item will not be marked. Incorrect answers will be marked as zero
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currently traded at $20. The next year’s dividend will be $0.20. The dividend growth rate is forecasted to be 6% forever. Risk-free rate is 3%‚ and market risk premium is 4%. Assume that Constant Dividend Growth Model and CAPM give you the same estimate of the cost of capital for equity‚ what is the beta of its stock? By the Constant Dividend Growth Model: Cost of Equity = D/P+g = 0.2/20+6%=7% By CAPM‚ cost of equity = R(f)+ beta * market risk premium = 3% + beta* 4%‚ Set this to be equal to 7%
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1 Solutions and Solubility Chapters 4+13 2 The Solution Process • A solution is a homogeneous mixture of solute (present in the smallest amount) and solvent (present in the largest amount) State of Solution State of Solvent State of Solute Example Gas Gas Gas Air Liquid Liquid Gas O2 in water Liquid Liquid Liquid Alcohol in water Liquid Liquid Solid Salt in water Solid Solid Gas H2 in Pd Solid Solid Liquid Hg in Ag Solid Solid Solid Ag in Au 3 The Solution Process
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to purchase a new BMW immediately. The car costs about €21‚000. The bank quotes an interest rate of 15 percent APR for a 72-month loan with a 10 percent down payment. What will your monthly payment be? What is the effective interest rate on the loan? 6. A bond has a 10 percent coupon rate and a €1‚000 face value. Interest is paid semiannually‚ and the bond has 20 years to maturity. If investors require a 12 percent yield‚ what is the bond’s value? What is the effective annual yield on the bond? 7.
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Mallory Harris Ch 6 questions 1. A) a lesser emphasized separation of powers is that between the federal government and governments at state and local levels. The separation is known as federalism. B) State government may no limit the federal government’s exercise of powers. Congress may not impair the ability of state government to function in the federal system. 2. Yes‚ because the federal law has the final say. If the federal law comes back and states that they can sell insurance because
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CASE: LARRY ROSS 1. Does Larry Ross provide an accurate and realistic picture of how organizations operate? If you think so‚ is it true of all‚ most‚ some or only few organizations? Why did you answer as you did? Yes‚ Larry Ross provides a very real‚ vivid and accurate picture of how organizations generally operate‚ especially the organizations that have been around for years such as the DuPont and the General Motors. What Ross describes as “organization operations” is true for most organizations
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