...conditions justify a 14 percent required rate of return. PV = CF^n / (1 +i) ^n PV = CF n / (1 + i)^4 PV = 70 / (1 + .14) ^4 PV = 70 / (1.14) ^4 PV = 70/ 1.14 + 70/ 1.30 + 70/ 1.48 + 70/ 1.69 PV = 61.40 + 53.85 + 47.30 + 41.42 = $203.97 PV of the par value = 1,000 PV = $203.97 + 1,000 = $1203.97 b. Now, suppose Twin Oaks' four-year bond had semiannual coupon payments. What would be its current value? (Assume a 7 percent semiannual required rate of return. However, the actual rate would be slightly less than 7 percent because a semiannual coupon bond is slightly less risky than an annual coupon bond). PV = 35/ (1+ i/2) ^n*2 PV = 35/ (1 + .7/2) ^4*2 PV = 35/ (1 +.035)^8 PV = 35/ 1.035 ^8 PV= $240.44 PV of the par value = $1,000 + $240.44 = $1,240.44 c. Assume that Twin Oaks' bond had a semiannual coupon but 20 years remaining to maturity. What is the current value under these conditions? (Again, assume a 7 percent semiannual required rate of return, although the actual rate would probably be greater than 7 percent because of increased price risk). PV= CFn/ (1 + i/2) ^n*2 PV= 35/ (1+.7/2) ^20*2 PV= 35/ (1.035)^40 PV= $746.26 PV = $1,000 + $746.26 PV of the par value = $1746.26 Week 6: Discussion 11.2 Assignment #3 Thank you for your questions. (A) 2(1.05)/(1.15-1.05) = $21 (B) 2(1.05)/(1.13-1.05) = $26.25 (C) 2(1.07)/(1.15-1.07) =...
Words: 298 - Pages: 2
...Video Summary Timetable General Information Assignment Requirements for each assignment (refer to the template example below) 1. Watch video clips from the Video Mentor DVD or using the online link. o http://media.pearsoncmg.com/pcp/itt_media/1256386782/index.html 2. Write summaries of the information presented in each clip. (2-3 sentences is fine) 3. Create a bulleted list of the topics presented in the video clips. 4. Create a bulleted list of terms used in the video clips with their definitions. 5. Provide a summary of your thoughts on the information presented in the video clips, including what you learned from the presentation, what may have been confusing, and where you might use the information. Note: To receive full credit the paper must be turned in as an MS Word document that includes ALL items. Partial credit will be given to handwritten submissions Summary # Unit Due Assignment 1 3 Wk 4 Video clips: 1.07 – Ports and Connectors, 1.09 – Video, & 1.11A – Printers Hardware and 1.11B – Printers Configs 2 4 Wk 5 Video clip 1.04 – Motherboards 3 5 Wk 6 Video clip 1.05 – CPUs 4 6 Wk 7 Video clips 1.06 – Storage Devices and 1.08 – Memory 5 7 Wk 8 Video clips 1.01 – BIOS and 1.02 – System Resources 6 8 Wk 9 Any four of the video clips in Part 3 (Operating Systems) 7 9 Wk 10 All the video clips in Part 5 (Computer Security) (ALT-Poster) 8 10 Wk 11 Four video clips from both Parts 2 and 4 (eight clips in all) ALT: Pick a topic that is equivalent...
Words: 307 - Pages: 2
...Bonus Assignment Managerial Accounting Pages 427-428 1-10 1. a) FV= 7000(1+.12)^2=$8,780.8 b) FV=7000(1+.12)^3=$9,834.50 c) FV=7000(1+.12)^8=$17,331.70 2. a) FV= 3000(1+.08)^10=$6,476.77 b) FV= 3000(1+.08)^20=$13,982.90 c) FV=3000(1+.08)^40=$65,173.60 3. a) FVA= (1+.06)^5 – 1 x 1000 = $5,637.09 .06 4. a) FVA= (1+.12)^30 – 1 x 4000 = $965,331 .12 5. a) PV= 1______ x 20,000 =$16,792.40 (1+.06)^3 b) PV= 1______ x 20,000 =$14,099.20 (1+.06)^6 6. a) PVA= Payment * (1- [1/(1+r)^n])/r PVA= $8,000 * (1- [1/(1+.09)^5])/.09= $31,117.21 7. Option 1 is to receive one off payment of $15,000 Option 2 is to receive $30,000 in 20 years. Assuming 8% compounded annually the $30,000 NPV= 30,000 * 1_____ (1+.08)^20 NPV=$6,436.45 Since Option 1 is a greater amount of $15,000, Mr. Lewis should take the $15,000 now. 8. PV of lump sum payment of $30,000 = 1 _ * $30,000= $6,989.96 (1+.06)^25 PVA of $1,000 every month for 25 years= = 1000 * 1- ( __1____) (1+.06)^25 .06 =$12,783.35 Therefore, the maximum amount to invest to make it worthwhile is $6,989.96 + $12,783.35= $19,773.31 9. FVA of $75,000 every year for the next 10 years at 6% 75,000 * (((1.06)^10)-1) .06 =$988,560 Gift to reach goal= $1,000,000- $988,560 =$11,440 10. FVA of $150,000 every year for the next 20 years at 7% 150,000 * (((1.07)^20)-1) .07 =$6,149,324 Amount to...
Words: 324 - Pages: 2
...Craig Roxbury Unit 3 Assignment 1 Erica Lanier Video Summary 1 In video 1.07 the lesson is on ports and connectors. There are three different types of ports, those are serial port, parallel port and game port. The serial port is usually male and have 9 or 25 pins. The parallel port is usually female and has 25 pins. The game ports are female and have 15 pins. All of those ports have been replaced by USB ports. The video also discusses how the modem connects to a phone line and converts digital to analog. It explains there are two types of SCSI narrow and wide SCSI, the narrow SCSI has 50 pins and the wide has 68 pins. Video 1.09 teaches that there are two types of monitors, you have CRT and LCD. CRT stands for cathode ray tube and LCD stands for liquid crystal display. The CRT is similar to an old television and the LCD uses thin film transistors and the back lighting is through polarized panels. Your specifications of a monitor include screen size, contrast ratio, refresh rate, response time, interfacing, dot pitchand pixel pitch. Video 1.11 focuses on types of printers and the types of problems that come with each. There is the Dot Matrix, Ink Jet and the laser printers. Overall the videos covered your computer basics and the parts that make it productive. I could comprehend the objective of the videos but they all covered a plethora of information in a matter of minutes, so I feel there was a lot that I missed. Fortunately what I did not catch in the video chapter...
Words: 322 - Pages: 2
...HANH DANG ID 1236466 ASSIGNMENT 1 CHAPTER 4 4-8 Present Value (PV) = $20,000 Time : 5 years = 60 months Interest Rate : 12% = 1% per month The monthly loan payment is FV = PV (1+I)^N = $-20000 (1+ 0.01) ^60 = $444.89 EFF% = (1+I/M)^M – 1 = (1 + 0.12/12)^12 – 1 = 1.1268 – 1 = 0.1268 The loan’s EFF % = 12.68% 4-10 a. FV = PV (1 + I)^N = $500 (1+ 0.06) ^ 10 = $895.42 b. FV = $500 (1+0.12)^10 = $1552.92 c. PV = $500 / (1+0.06)^10 = $279.20 d. PV = $500 / (1+ 0.12)^ 10 = $867.13 4-11 a. At 7% FV = PV ( 1+ I) ^N 400 = 200 (1+0.07)^N 2 = (1+0.07)^N Ln 2 = Nln (1.07) N = ln 2 / ln 1.07 = 10.2448 = 10 years b. At 10% 400 = 200 (1+0.1)^N 2 = (1.1)^N N = ln 2 / ln 1.1 = 7.2725 = 7 years c. At 18% 400 = 200 (1+0.18)^N N = ln2 / ln 1.18 = 4.1847 = 4 years d. At 100% 400 = 200 (1+1)^N N = 1 year 4-12 a. PV = 400 N = 10 I = 10% FVA = PMT 1+0.1N0.1- 10.1 = $400 (15.93742) = $6374.97 b. PV = $200 N = 5 I = 5% FVB = $200 (5.5256) = $1105.13 c. PV = $400 N = 5 years I = 0% FVC = $400 (5) = $2000 d. Annuities Due (a) FV = FVA (1+I) = $6374.97 (1+0.1) = $7012.46 (b) FV = $1105.13 (1+0.05) = $1160.38 (c) FV = $2000 (1) = $2000 4-14 a. PV of cash stream A and B PVA = 100(1+0.08)+ 4001+0.082+4001+0.083+ 4001+0.084+ 300(1+0.08)^5 = $92.59 + $342.93 + $317.53 + $294.01 + $204.175 = $1251.25 PVB = 300(1+0.08)+ 4001+0.082+4001+0.083+ 4001+0.084+1001+0.085...
Words: 1029 - Pages: 5
...HSA 525-Health Financial Management Assignment # 4 – Medical Associates November 27, 2011 Medical Associates: Equity cost of capital, DCF, CAPM, risk, capital budgeting Medical Associates is a large for-profit group practice. Its dividends are expected to grow at a constant rate of 7% per year into the foreseeable future. The firm's last dividend (D0) was $2, and its current stock price is $23. The firm's beta coefficient is 1.6; the rate of return on 20-year T-bonds currently is 9%; the expected rate of return is 13%. The firm's target capital structure calls for 50% debt financing, the interest rate required on the business's new debt is 10%, and its tax rate is 40%. 1. Calculate Medical Associates' cost of equity estimate using the DCF method. Using the DCF method Cost of Equity = D1/P0 + g D1 = expected dividend= D0 X (1+g) = 2 X 1.07 = 2.14 P0 current price = $23 g = growth rate = 7% Cost of equity = 2.14/23 + 7% = 16.30% 2. Calculate the cost of equity estimate using CAPM. Using CAPM Cost of equity = Rf + (Rm-Rf) beta Rf = risk free rate = 9% Rm = return on market = 13% beta = 1.6 Cost of equity = 9% + (13%-9%) 1.6 = 15.4% 3. On the basis of your answers to #1 & #2, what is your final estimate for the firm's cost of equity? We take the average of the two costs as the final estimate Final estimate is the average of the two = (16.3%+15.4%)/2 = 15.85% 4. Calculate the firm's estimate for corporate cost of capital. Cost...
Words: 550 - Pages: 3
...Corporate Finance BAO3307 Assignment Semester 2 2013 Introduction This assignment focuses on risk, return and equity analysis. The expectation is that students will develop skills in measuring returns, risk assessment and analysis and valuation. Students are required to use the data provided in the case problem and exhibits to answer a series of questions. Assignment Components The exhibits contain financial information on Swagman Ltd, Gaslight Ltd and Airspace Ltd. It also contains return information and dividend information for two Stocks Axel Ltd, Titan Ltd, and the share market index. Required: You will be required to complete this assignment in teams of two or three. It is important that you form your teams as soon as possible. WebCT can be used to identify other students who are seeking partners for a team. W can make announcements prior to the lecture to alert other students without a team to meet after the class. Team members do not need to be in the same tutorial. Please note that under NO circumstances will we allow assignments to be submitted by individuals (This is a group assignment). Note that marks will be deducted for poor presentation. Assignments should be stapled in the top left hand corner. Please do not submit assignments in folders. It is also a requirement that all assignments be submitted with a cover sheet. This cover sheet is now specific to this subject and a copy will be provided on WebCT. Assignments will not be accepted...
Words: 1659 - Pages: 7
...Unit 3 Assignment 1 Video Clip 1.07 Serial Parallel & Game Ports * Serial ports – 9 or 25 pins (male) * Parallel ports – 25 pins (female) * Game ports – 15 pins (female) Mouse – serial connector (old), PS/2, or USB/wireless Keyboard – 5-pin DIN (old), PS/2 or USB/wireless Network Inteface card – converts parallel communication to serial (RJ-45 connector) Modem – connects to phone line (56k), converts analog to digital & vice versa (RJ-11 connector). Video – VGA, DVI, or S-video SCSI – narrow (50-pin Type A), wide (68-pin, type P) IEEE 1394 (firewire) – serial, fast, hot swappable, used for streaming media, expected to replace SCSI Multimedia – Microphone, speakers, earphones, color coded. Video 1.09 CRT Monitor (old) & LCD Monitor (new) CRT – Cathode Ray Tube LCD – Liquid Crystal Display Contrast Ratio – Ratio of purest white to purest black Dot pitch – CRT – Distance between phosphorescent dots Pixel Pitch – LCD – Addressable pixels on screen, same as resolution. Resolution – Both CRT & LCD – Addressable points on screen. PCI Express – twice as fast as AGP Video 1.10 RAID – Redundant Array of Independent Disks Fault tolerance – real time copies of data, and data is not lost if hard drive fails. RAID – protect data in real time. RAID 0 – Striped Volume – faster speeds, no fault tolerance. Requires two or more drives, max 32 drives, CPU writes data evenly among drives, each disk has partial copy. RAID 1 – Mirrored Volume...
Words: 487 - Pages: 2
...In this assignment, the referencing system used is the Harvard Referencing System. The whole report is segmented into three sections and is addressed in order of the suggested format. Section 1 In the first section, the legal issue that can be raised is whether Roxanne can be recognised as an employee at common law. At this day and age, determining the distinction at common law between an employee and a self employed independent contractor can be an issue. In the context of Australia, I have decided to use the multi-factor test because it branches across a number of aspects covered in the other tests by considering a wider range of factors such as a case by case approach (Van der Waarden 2010). One of the relevant factors that contribute to distinguishing between an employee and an independent contractor is the mode of remuneration showed by the employers of the company towards the worker as seen in the case of Building Workers Industrial Union of Australia v Odco Pty Ltd (Trouble Shooters case) 37 IR 380. If the person is an employee, the employer is required to deduct income tax from salary and wages and that normally there is no obligation to deduct income taxation from payments to independent contractors (Sappideen et al 2009). Apart from these, factors that help distinguish an employee from an independent contractor are if the place and hours of work are at the discretion of the worker, if there is a deduction in income tax from the earnings of the worker, if the worker...
Words: 2700 - Pages: 11
...Assignment #2 Question 1 (a) How much money will Kevin need at retirement? (12 points) EAR = .10 = [1 + (APR / 12)]12 – 1; EAR = .07 = [1 + (APR / 12)]12 – 1; APR = 12[(1.10)1/12 – 1] = .0957 or 9.57% APR = 12[(1.07)1/12 – 1] = .0678 or 6.78% PVA = $20,000{1 – [1 / (1 + .0678/12)12(25)]} / (.0678/12) = $2,885,496.45 PV = $900,000 / [1 + (.0678/12)]300 = $165,824.26 $2,885,496.45 + 165,824.26 = $3,051,320.71 (b) How much will he have to save each month in years 11 through 30? (20 points) His savings after 10 years: FVA = $2,500[{[ 1 + (.0957/12)]12(10) – 1} / (.0957/12)] = $499,659.64 After he purchases the cabin: $499,659.64 – 380,000 = $119,659.64 When he is ready to retire, this amount will have grown to: FV = $119,659.64[1 + (.0957/12)]12(20) = $805,010.23 When he is ready to retire, based on his current savings, he will be short: $3,051,320.71 – 805,010.23 = $2,246,310.48 This amount is the FV of the monthly savings he must make between years 10 and 30. So, finding the annuity payment using the FVA equation, we find his monthly savings will need to be: FVA = $2,246,310.48 = C[{[ 1 + (.1048/12)]12(20) – 1} / (.1048/12)] C = $3,127.44 Question 2. (18 points) a. The payback period for each project is: A: 3 + ($180,000/$390,000) = 3.46 years B: 2 + ($9,000/$18,000) = 2.50 years The payback criterion implies accepting project B, because it pays back sooner than project A. b. The discounted payback for each project is: A: $20,000/1.15 + $50,000/1.152 + $50,000/1.153 =...
Words: 748 - Pages: 3
...Week 4 – Forecasting Assignment – Background Info Click Link Below To Buy: http://hwcampus.com/shop/week-4-forecasting-assignment-background-info/ Week 4 - Forecasting Assignment - Background Info. Follow the instructions below to come up with a forecasted budget which will be used to answer the questions at the bottom. Once you have calculated the answers for each question click on the link that says "Week 4 - Forecasting Assignment" where you will encounter these same questions that can be answered and recorded in the gradebook. Background information and instructions Below represents the business conditions expected to carry the company over into 2015. The role of the financial manager in real life is to determine how these scenarios will translate into the budget/finances of an organization. That is exactly what we are doing here. Forecasting what is likely to happen in 2015. Be sure to reference the text in the case (and the data in the tables at times) to form the best logic to predict a profit and loss (aka P&L aka income statement) for 2015. Prepare the annual budget for the Zeeco Corporation. This is recent budget history and information from its strategic and functional/departmental plans. Financial History (Given) Present day ACCOUNT 2011 2012 2013 2014 % Change over 4 years Sales $2,193,000 $2,245,600 $2,350,000 $2,450,192 11.73% Cosft of Goods $1,315,800 $1,347,360 $1,410,000 $1,470,115.20 11.73% Gross Margin (Gross Profit) $877...
Words: 1181 - Pages: 5
...Corporate Finance & Asset Markets M1 – Finance & Economics Track Solutions to Assignment 5: Section 8 - Interest Rates and Bonds Solutions to Part A: Practice Problems 1. When you are paying out money, you prefer not to pay interest on interest. Thus, you would prefer a low compounding frequency, which is monthly. 2. If the term structure is flat and a 2-year bond with a face value of $1,000 and a 3.5% annual coupon (paid semi-annually) is selling at par, this means that the annual discount rate (compounded semi-annually) is 3.5%, since 4 1, 000 = t=1 1, 000 17.50 + . t (1 + 0.0175) (1 + 0.0175)4 But then it is straightforward to value bonds with any coupon rate and maturity: (a) 10-year bond with a 2% coupon: 20 V = t=1 10 1, 000 + t (1 + 0.0175) (1 + 0.0175)20 1− 1 (1 + 0.0175)20 + 1, 000 (1 + 0.0175)20 = 10 0.0175 = 874. (b) 10-year bond with a 6% coupon: 20 V = t=1 1, 000 30 + t (1 + 0.0175) (1 + 0.175)20 1− 1 (1 + 0.0175)20 + 1, 000 (1 + 0.0175)20 = 30 0.0175 = 1, 209. 3. Expressing the present values bond prices B(0, t), we get A : 92.70 B : 102.10 C : 111.25 of the coupon bonds in terms of the pure discount = 103 B1 = 6 B1 + 106 B2 = 12 B1 + 12 B2 + 112 B3 Solving sequentially, the solution is B1 = 0.900, B2 = 0.912, and B3 = 0.799. 1 4. (a) The discount factors B1 and B2 implicit in the bonds prices should satisfy: 82.0 = 100 B2 92.5 = 6 B1 + 106 B2 102.5 = 12 B1 + 112 B2 Solving for B1 and B2...
Words: 712 - Pages: 3
...Week 4 – Forecasting Assignment – Background Info Click Link Below To Buy: http://hwcampus.com/shop/week-4-forecasting-assignment-background-info/ Week 4 - Forecasting Assignment - Background Info. Follow the instructions below to come up with a forecasted budget which will be used to answer the questions at the bottom. Once you have calculated the answers for each question click on the link that says "Week 4 - Forecasting Assignment" where you will encounter these same questions that can be answered and recorded in the gradebook. Background information and instructions Below represents the business conditions expected to carry the company over into 2015. The role of the financial manager in real life is to determine how these scenarios will translate into the budget/finances of an organization. That is exactly what we are doing here. Forecasting what is likely to happen in 2015. Be sure to reference the text in the case (and the data in the tables at times) to form the best logic to predict a profit and loss (aka P&L aka income statement) for 2015. Prepare the annual budget for the Zeeco Corporation. This is recent budget history and information from its strategic and functional/departmental plans. Financial History (Given) Present day ACCOUNT 2011 2012 2013 2014 % Change over 4 years Sales $2,193,000 $2,245,600 $2,350,000 $2,450,192 11.73% Cosft of Goods $1,315,800 $1,347,360 $1,410,000 $1,470,115.20 11.73% Gross Margin (Gross Profit) $877...
Words: 1181 - Pages: 5
...| Unit 3 Assignment 1 Video Summary 1 | NT1110 | | | 4/9/2013 | | 1.07 Ports and Connectors There are three types of ports used in computers. They are as follows: Serial Ports, Parallel Ports, and Game Ports. Serial Ports are male and may contain 9 or 25 pins. The serial port transfers data 1 bit at a time. Parallel ports are female connectors with a total of 25 pins and can transfer data 8 bits at a time. Game ports are female connectors also and contain two rows of pins that equal 15 total pins. On modern computers the Game Ports have been replaced by USB connectors. A Network Interface Card (NIC) converts parallel communication serial. The NIC connects to the network by a RJ-45 connector. Another option of connecting to the internet is with the use of a modem. A modem connects to a phone line with standard speeds of 56 Kbps. A V-92 modem supports faster speeds to get your tasks done. The modem converts analog to digital. This is the slowest way to connect to the internet. 1.09 Video There are two types of monitors used for computers. They are the CRT (Cathode Ray Tube) and the LCD (Liquid Crystal Display). The CRT is very similar to that of a television. The LCD on the other hand is very much different. The LCD uses TFT (Thin Film Transistor) also referred to as active matrix. The backlighting of the LCD screen is illuminated by polarized panels. The screen size of a monitor is one of the first things noticed when purchasing a computer. Screen size...
Words: 826 - Pages: 4
...Assignment 4 Questions 4-3 An annuity is defined as a series of payments of a fixed amount for a specific number of periods. Thus, $100 a year for 10 years is an annuity, but $100 in Year 1, $200 in Year 2,and $400 in Year 3 through 10 does not constitute an annuity. However, the entire series does not contain an annuity. Is this statement true or false? A: The above statement is true because annuity is a series of payment at fixed intervals over a fixed number of years or over a life time. To be annuity it is necessary to be fixed amount. The second series is irregular cash flow but still constitute series of an annuity. 4-4 If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than10%.True or false? Explain. A: The above statement is true because annual growth rate is 7.18%. In calculation: FV= PV (1+r)^n 2 = 1 (1+r)^10 (1 + r) = 2^(1/10) (1 + r) = 1.0718 r = 1.0718 – 1=0.0718=7.18% 4-5 Would you rather have a savings account that pay 5% interest compounded semiannually or one that pays 5% interest compounded daily? Explain. A: I would rather have a saving account that pays 5% interest compounded daily than compounded semiannually because effective rate of semiannual interest rate is 5.063% while effective rate of daily compounding is 5.13%. Calculation of interest compounded semiannually = (1+ Interest of semiannual)^2-1 = (1 + 0.05/2)^ 2 - 1 = 1.050625 – 1=5.063% Calculation of interest...
Words: 760 - Pages: 4