UNIVERSITY OF TORONTO RSM 222 H1S MIDTERM EXAM‚ Winter 2011 Instructions: DURATION: AID ALLOWED: 1 hour 50 minutes Non-programmable calculator. Programmable calculators have to be reset before the exam. Total marks on the exam are 100 allocated as follows: Section I Marks Achieved 9 Multiple Choice Questions 3 marks each for a total of 27 marks II Short Answer Questions 18 marks III Problem 1: Job Costing 13 Marks Problem 2: Process Costing 12 marks Problem 3: CVP Problem 15 marks Problem
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Appendix I C1: Equity = Stock Price x Number of Shares Outstanding = $42.09 X 271.5 = $11‚427.435 million C2: Using Adjusted Beta formula: Adjusted Beta = 0.67* historical Beta + 0.33 = 0.67* 0.69 +0.33=0.79 C3: Using CAPM formula: KE = Krf + ß (Km-Krf) = 3.59%+0.79*6.7%=8.89% C4: Using rearranged DGM formula: KE =D1/P0 +g= 0.48(1+5.5%)/42.09 +5.5%=6.7% C5: Using redeemable bond formula: KD: 95.6= 100/ (1+KD/2)40 + 3.375(1-0.38)/(1+KD/2)n KD=4.52% C6: Using WACC formula: Rwacc =4.52*10.19% + 8
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International Financial Management WILKINSON SWORD TRIALS AND TRIBULATIONS IN TURKEY CASE STUDY NUMBER 2 Performed by: Problematique In 2000‚ Wilkinson Sword-Turkey SA‚ (hereinafter “WST”) won the approval for a $12 million capital expenditure to finance the launch of a new product line‚ the Quattro shaving system‚ from its US-based parent company. Mrs. Ozcan‚ President and GM of the Turkish subsidiary‚ had to chose between two financing options: (1) Extension of the USD denominated intercompany
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Tennessee. King lives on through his inspirational speeches‚ interviews‚ and letters that continue to inspire the public today. In Letter from Birmingham Jail‚ there are paragraphs that show the moves from “Think About It” which are seeking tension‚ justifying your position‚ and assessing your thinking. In paragraph 4 of Letter from Birmingham Jail‚ King detects the tension between the clergymen and the white church’s leadership against the African American civil rights movement.
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Helal Ahmed Professor Smith English 125 October 6‚ 2010 Summary of M.L.K.’s Letters from Bringham Jail Martin Luther King Jr’s “Letter from Birmingham Jail” was written during his 8 day sentence in jail in 1963. He chose to travel and protest in Birmingham due to the fact that it was widely known as one of the most segregated city in the U.S. The letter not only addresses the issues of unjustly being arrested for being an "extremist" of his approach to the protest‚ and of the
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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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