FIN325 AN Extra WACC and NPV
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
These were the problems I said I would post on the site. Look them over before the test. Good look.
Calculator Preview
Your numbers will vary.
These were the problems I said I would post on the site. Look them over before the test. Good look.
Your numbers will vary.
Calculate the prices of bonds given their coupon rates, maturities, and yield to maturity (YTM) for bonds with annual coupon payments and a specific par value.
Your numbers will vary.
Determine the present value of incremental cash inflows over a specified time period for an investment project when given the cash inflow amounts and the cost of capital.
Your numbers will vary.
Determine the ending investment balance after a specified time period, considering regular annual contributions and an average return rate, and the first investment is made immediately.
Your numbers will vary.
Determine the future value of a given investment amount after 3 years for different interest rate scenarios with an EAR, quarterly compounding APR, and monthly compounding APR.
Your numbers will vary.
Calculate the Effective Annual Rate (EAR) for a money market account with a given APR at different compounding intervals, including annual, monthly, weekly, and daily.
Your numbers will vary.
Assess the financial implications of assisting a relative through medical school, considering their yearly financial needs, repayment amounts during residency, and subsequent repayments after becoming a qualified doctor, given a specific interest rate and assuming no risk.
Your numbers will vary.
A foundation plans to offer an annual scholarship indefinitely, starting a year from now. Upon receiving the scholarship, a student will get a certain amount annually for a set period. After this period, the student must repay the total amount received in equal yearly installments without interest, starting a year after the scholarship ends. Essentially, the foundation is providing an interest-free loan disguised as a scholarship. Given a constant interest rate for all maturities, the task is to determine the initial investment amount the foundation needs to fund all future scholarships.
Your numbers will vary.
Determine the total rate of return from holding a bond for a year, given its par value, coupon rate, and initial yield to maturity. Evaluate the return under scenarios where the yield to maturity remains constant and when it changes upon selling.
Your numbers will vary.
Determine the required coupon rate for treasury bonds to sell at par value, given a change from semiannual to annual coupon payments.
Your numbers will vary.