Name:_______________________________ Financial Management (BUSI 640) Professor Faulkender Midterm Exam: Fall 2012 1) The exam is open book and open notes. You may use Excel and a calculator. 2) Point totals for each question are specified in parentheses. There are 220 total points. 3) Circle your numerical answers. This makes it easier for me to find them. Show all calculations and the inputs of all values solved for using your calculator or Excel. This allows me to determine
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Chapter 2 Time Value of Money MINI CASE Assume that you are nearing graduation and that you have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination which covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions. a. Draw time lines for (a) a $100 lump sum cash flow at the end of year 2, (b) an ordinary
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Objective Questions and Answers of Financial Management 1. State whether each of the following statements is True (T) or False(F) (i) Financial statements are an important source of information to shareholders and stakeholders. (ii) Both the BS and the IS shows the financial position of fen at the end of the year. (ii) BS of a company must be prepared in the horizontal format only. (iv) Preparation of Profit & Loss Appropriation A/c is a requirement under the Companies Act, 1956. (v) Ratio
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MERCURY ATHLETIC FOOTWEAR Problem statement: West Coast Fashions, Inc a large business of men’s and women’s apparel decided to dispose of one of their segments; Mercury Athletic. John Liedtke, head of the business development for Active Gear, Inc saw it has a possible opportunity for them to acquire it. The footwear industry is very competitive, with low growth and stable profit margins. AGI is very profitable but it is smaller than its competitors, which is becoming a disadvantage. Therefore
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Time Value of Money: Simple Interest versus Compound Interest Outline I. Applications of Time Value of Money 1.1 Example One 1.2 Example Two 2. Interest 2.1 What is Interest? 2.2 Three Variables of Interest 1. Principal 2. Interest Rate 3. Time 2.3 Why is Interest Charged? 3. Simple Interest 3.1 What is Simple Interest? 3.2 Simple Interest Formula 4. Compound Interest 4.1 What is Compound Interest? 4.2 Compound Interest Formula
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FI 3300 THPS 3 Click Link Below To Buy: http://hwaid.com/shop/fi-3300-thps-3/ FI 3300 - CORPORATION FINANCE Take-Home Problem Set Three (THPS-3) Fall 2015 All questions are equally weighted. PART I: MULTIPLE CHOICE – Choose the letter of the most correct answer for each question. Record only one answer per question. 1. Which of the following investment options is most valuable? Assume a positive interest rate, and that all options have the same risk. a. receiving $20
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Guillermo Furniture Store Concepts * Guillermo Furniture Store (GFS) in the late 1990s faced a financial crisis because of changes in the furniture industry. By going from a leader in the field down to a company that can hardly survive amongst its current competition, different financial concepts for GFS need to be evaluated and incremental financial decisions need to be made in order for GFS to survive (Guillermo Furniture Store Scenario, 2011). This paper will contain a discussion of the weighted
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FV = $16,105.10 4.2 – What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually? N = 20 I = 7% FV = $5,000 PV = $1,292.10 4.7 – An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is this investment’s present value? It’s future value? Yr1-3 = $100 Yr4 = $200 Yr5 = $300
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explanation of how to compute the yield on any investment. COMPUTING THE YIELD OR INTERNAL RATE OF RETURN ON ANY INVESTMENT The yield on any investment is the interest rate that will make the present value of the cash flows from the investment equal to the price (or cost) of the investment. Mathematically, the yield on any investment, y, is the interest rate that satisfies the equation. ------------------------------------------------- P = -------------------------------------------------
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* / ► Self-Test Chapter 2 * / ► Review of attempt 5 Self-Test Chapter 2 Review of attempt 5 Top of Form Bottom of Form Started on | Saturday, September 7, 2013, 01:24 PM | Completed on | Saturday, September 7, 2013, 01:25 PM | Time taken | 1 min 2 secs | Grade | 15 out of a maximum of 15 (100%) | Question 1 Marks: 1 Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when
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