Questions on Finance - 1947 Words

FIN 3403 SAMPLE MIDTERM EXAM II 1. A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 percent rate of return, what is the current dividend on this stock? a. $3.00 b. $3.81 c. $4.29 d. $4.75 e. $6.13 ANS: A = $4.40 = D0 (1.10) D0 = $3.00. DIF: Easy OBJ: TYPE: Problem TOP: Constant growth stock 2. The last dividend paid by Klein Company was $1.00. Kleins growth rate is expected to be a constant 5 percent for 2 years, after which dividends are expected to grow at a rate of 10 percent forever. Kleins required rate of return on equity (ks) is 12 percent. What is the current price of Kleins common stock? a. $21.00 b. $33.33 c. $42.25 d. $50.16 e. $58.75†¦show more content†¦(In other words, what is P3?) a. $40.00 b. $42.35 c. $45.67 d. $46.31 e. $49.00 ANS: E Step 1 Calculate ks: ks = kRF + (RPM)ï  ¢ = 6% + (5%)1.2 = 12%. Step 2 Calculate g: 7% = g Step 3 Calculate : = (1 + g)3 = $40(1.07)3 = $49.00 7. The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year10. This investment will cost the firm $150,000 today, and the firms required rate of return is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment? a. 5.23 years b. 4.86 years c. 4.00 years d. 6.12 years e. 4.35 years ANS: B Using the even cash flow distribution assumption, the project will completely recover initial investment after 30/35 = 0.86 of Year 5: DIF: Easy OBJ: TYPE: Problem TOP: Payback period 8. The capital budgeting director of Sparrow Corporation is evaluating a project which costs $200,000, is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $44,503 per year. If the firms required rate of return is 14 percent and its tax rate is 40 percent, what is the projects IRR? a. 8% b. 14% c. 18% d. -5% e. 12% ANS: C Tabular solution: $200,000 = $44,503 (PVIFAIRR,10) PVIFAIRR,10 = 4.49408 IRR ï‚ » 18% Financial calculatorShow MoreRelatedFinance Questions723 Words   |  3 Pages Provide detailed descriptions and show all calculations used to arrive at solutions for the following questions: 1. Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for six days on average. The hospital is exploring a lockbox arrangement that promises to cut the six days to one day. If these funds released by the lockbox arrangement can be invested at 8 percent, what will the annual savings be? Assume theRead MoreQuestion Finance950 Words   |  4 PagesEXERCISE 5 (RISK AND RETURN) 1. Perry purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the year, Ferro, Inc. paid cash dividends of $2 per share. The stock is currently selling for $30 per share. If Perry sells all of his shares of Ferro, Inc. today, what rate of return would he realize? Answer: Realized return = = 28% 2. Tim purchased a bounce house one year ago for $6,500. During the year it generated $4,000 in cash flow. If Time sells the bounceRead MoreQuestions on Finance2789 Words   |  12 Pagesï » ¿FIN 301 HW Chapter 1 (Odds 1-17) 1. Define shareholder wealth. Explain how it is measured Shareholder wealth is represented by the market price of a firm’s common stock. It is measured by the market value of the shareholders’ common stock holdings 2. Which type of corporation is more likely to be a shareholder wealth maximizer -one with wide ownership and no owners directly involved in the firms management or one that is closely held. A closely held corporation 3. It has been argued that shareholderRead MoreFinance Questions4007 Words   |  17 Pagesmaturity date. If bonds of similar risk are currently earning 8 percent, the firms bond will sell for ________ today. A) $1,000 B) $805.20 C) $851.50 D) $1,268.20 74. On January 1, 2002, Zheng Corporation will issue new bonds to finance its expansion plans. In its efforts to price the issue, Zheng Corporation has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon rate that is due January 1, 2017. This firms bonds currently are sellingRead MoreFinance 320: Questions on Finance910 Words   |  4 Pages1. What are the key financial innovations that were developed during the 1980s. This is open-ended so there can be many answers. There are a myriad of financial innovations that were created throughout the 1980s were the result of the proliferation of credit instruments, types of securities, interest rates and rapid adoption of technologies that provided for greater accuracy and speed of trading. The five predominant catalysts of financial innovations during the 1980s including increased accuracyRead MoreAccounting Finance Questions1228 Words   |  5 PagesQuestion 1 Listing on a stock exchange might be highly desirable for a company, but there are a number of requirements, conditions and costs associated with becoming a publicly listed corporation. a) Discuss the ASX profit test and asset test requirements. b) Analyse the advantages and costs that are incurred when a company becomes a publicly listed corporation. a) To meet the profit test requirements of admission, an entity must satisfy each of the following conditions: * The entityRead MoreBusiness Finance: Questions1612 Words   |  7 Pagesï » ¿Question 1 Reliable Gearing currently is all-equity financed. It has 10,000 shares of equity outstanding, selling at $100 a share. The firm is considering a capital restructuring. The low-debt plan calls for a debt issue of $200,000 with the proceeds used to buy back stock. The high debt plan would exchange $400,000 of debt for equity. The debt will pay an interest rate of 10%. The firm pays no taxes. a. What will be the debt-to-equity ratio after each possible restructuring? b. If earningsRead MoreFinance and Investment Questions1714 Words   |  7 Pagesï » ¿Finance and Investment Questions Analyze how you, as the Chief Financial Officer (CFO) of a big box store that has potential pollution, environmental-disposal, or demolition problems, would handle †¦ Public expectations of our private enterprises are shifting. After a decade of scandal and corporate collapses, the public recognizes the direct connection between positive corporate citizenship and the public good. This is highlighted by a growing push for greater corporate transparency in aspectsRead MoreFinance and Question Essay1396 Words   |  6 PagesQuestion 1 (5 points) In a world with no frictions (i.e., taxes, etc.), having debt is always better because it increases the value of the firm/project. 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The Criminal Justice System Is Locking Our Young Men And...

The criminal justice system is locking our young men and young women under the age of sixteen in prison for the rest of their lives. These are children who are just becoming teenagers and still have the possibility of living production lives. These are children who make the wrong decision because of impulse or persuasion. Have we lost hope in our youth of tomorrow.? Do we just give up on our kids because they make a mistake? Does placing a child in an adult prison decrease crime among juveniles? How can a 13-year-old understand the Miranda rights? The system now focuses on the punishment of crime committed, when we need to focus on the child. We need to provide our youth offenders with options other than prison. Juveniles under the†¦show more content†¦Most of the kids were afraid of going to juvenile detention. Then the crack era hit and the areas in the neighborhood began to change. The kids that were growing up in the low-income communities, began to sell and use crack cocaine. By this time juvenile offenders were characterized as â€Å"super predators, ruthless sociopaths†. â€Å"Kids with no moral conscience who see crime as a rite of passage and who are unconcerned about the consequences of their actions. The argument went that violence juvenile crime was increasing and would continue to increase because this small group of juvenile super predators commits more vicious crimes with higher frequency than delinquents of past generations† (Snyder 966). Those who support placing juveniles in adult prison indicate juveniles should be able to distinguish right from wrong. The loved one of those affected by juvenile crime are looking for someone to be accountable for the loss of their family member. â€Å"Protecting the public from these vicious juvenile criminals became the primary concern of juvenile justice policymakers. The decline in the crack market in the mid-1990s removed much of the drug s influence on the U.S. violent crime rate, with one exception. While crack left the inner cities, the weapons remained in the hands of juveniles and young adults† (Snyder 967). Beginning in the 90’s more and more youth offenders were being charged as adults. The crimes committedShow MoreRelated Hope for Rehabilitation for Institutionalized Youth Offenders4628 Words   |  19 Pages â€Å"You do the crime, you pay the time,† is a common phrase uttered throughout our society in regard to juvenile delinquency. It has been suggested that a punitive response to the problem of youth violence in America is an effective means of solving the issue of youth crime, and would also deter future offenders. As a result, the existence of rehabilitation strategies within the system available to offenders is under threat. A harsh and punitive response to youth violence was, in part,Read MoreCrime in the United States4022 Words   |  17 Pagespopulation size compared to the other 49 states[1]. Youth age 19 years and under represent 27 percent of the total population in Massachusetts with youth ages 11 to 15 comprise 26 percent of the youth population, youth ages 16 to 17 represent 10 percent of youth, and youth ages 18 to 19 encompass an additional 10 percent of the youth population1. The Census Bureau approximates that by 2002, the population of youth aged 17 years and under will increase by 5 percent, representing an increase of almost 70,000Read MoreDeath Penalty3871 Words   |  16 Pagessome people who argue against it on certain grounds. How can society look to make a difference or tell individuals that violence is not the key if their killing individuals because of a mistake? For America to be called a land of freedom and equal justice, the death penalty is not the way to handle thing s because you’re getting, â€Å"eye for an eye and tooth for an tooth†. This brings the topic to ask, â€Å"What if someone kills your mother or any family member, would you want that victim to face the penaltyRead MoreAmerica Is The Land Of The Free2667 Words   |  11 Pagesworld. America is at war. We have been fighting drug abuse for almost a century. In 1972 president Nixon declared a war on drugs. Unfortunately, we are not winning this war. Drug users are still filling up our jails and prisons, now more than ever. The drug war causes violent crime and criminal activity due to prohibition, not the drugs themselves. Children in all of this are left neglected or without parents. The only beneficiaries of this war are organized crime members and drug dealers. TheRead MoreCorrectional Administration Reviewer18383 Words   |  74 PagesCORRECTIONAL ADMINISTRATION CHIVAS GOCELA DULGUIME, R.C I. INTRODUCTION PENOLOGY - the study of punishment of crime. - a branch of Criminology dealing with prison management, and the deterrence and reformatory treatment of criminals. SOURCES OF THE TERM PENOLOGY: a. Peno was derived from Greek word â€Å"piono† and from the Latin word â€Å"poena†, both terms mean punishment. b. Logy was from the Latin word â€Å"logos†, meaning science. c. Penology distinguish from Penitentiary Science- Penology deals

Personal Assessment Of The School Year - 1743 Words

1. Write a letter to parents explaining at least 4 ways (2 informal and 2 formal) of how you will assess your students. Justify your response. Parents, I would like to inform you that during the school year I will be implementing four different types of assessments on your children. These assessments will be in place to find out how they are performing in reading. There will be two informal and two more formal assessments that I will be doing throughout the year. One of the informal ways that I will assess your child will be by something called a running record. The running record is performed while in their reading groups. I will simply write down any mistakes or corrections that your child makes as they read. The second informal†¦show more content†¦The second formal way that your child will be assessed is through standardized testing. This test will be given towards the end of the school year. â€Å"Standardized reading tests are machine-scored instruments that sample reading performance during a single administration† (Vacca, J., Vacca, R., Gove, Burkey, Lenhart, McKeon, 2015, p. 149). This will be in a quieter and more controlled atmosphere that the whole class will participate in at the same time. All of these processes will help you and me to see how your child is reading, if they are on the appropriate level, and even how much they have progressed through the year. I look forward to a very exciting year with you and your child. If you have any questions about any of the information that I have shared with you please do not hesitate to email, call, or even set up a conference to discuss. 2. A student in your class hesitates between words while she reads. You notice that she looks around the page while she hesitates. Discuss your intervention plans in order to develop reading fluency. A student in my class is hesitating between words while she reads. I have noticed that she looks around the page while she hesitates. The first thing I would do would be to start with the echo reading method, where I will read and she will repeat what I say. â€Å"This strategy allows the teacher to provide learner’s with a great deal of support† (Vacca, J., Vacca, R., Gove, Burkey,

The Oriental Contingent free essay sample

The Story â€Å"The Oriental Contingent† by Diana Chang, Lisa Mallory is a major character as important as Connie Sung, although the story is about Connie. Her personality is exactly like that most Chinese. However she is not a genuine Chinese, she is a Chinese American but she never been to China. As Connie said Lisa is a person inscrutable and mysterious. At the first meet of them, Lisa is dressed in â€Å"one-of-a- kind kimono dress †¦ and her hair was drawn back tightly in a braid which stood out from close to the top of her head horizontally† (329). Connie realizes that Lisa has a Chinese face and an authoritative behavior when Lisa appears saying â€Å"well, now, Connie Sung† (329). Also Lisa becomes a little bit repetitive because she loves saying that she has a musician family like Paul Wu, her cousin who studies with two other guys. The Lisa’s behavior has an extremely influence on Connie’s life. We will write a custom essay sample on The Oriental Contingent or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It is possible to see when they become good friends. Connie has some habit of noticing how people talk, act and dress to try to guess which place the people from. So, Lisa and Connie begin to compare with each other about their histories, such as backgrounds, hometowns and even jobs. Connie however, in the first moment, feels that she is less Chinese than Lisa Mallory. On other hand she started to check all past of Lisa, and find out that â€Å"But now Connie knew only too clearly that her own background made her decidedly inferior. Her father was a second generation gynecologist who spoke hardly any Chinese. † (330). In fact Lisa’s behavior caused effect on Connie, but in some moment Connie can see that she is more Chinese than Lisa and do not need concern about Lisa’s life. â€Å"I was adopted by Americans. My full name is Lisa Warren Mallory. † (333), â€Å"Incredulous, Connie said, â€Å"I’m more Chinese than you! †. †(333).