Answer the following true/false

1.A permanent mortgage is one on which interest only has to be paid

2.A pro‑forma income statement is an income statement calculated on a cash basis

3.The best way to evaluate feasibility study financial projections is to convert the projected cash flow figures using net present value (NPV) or internal rate of return (IRR).

4.The concepts of financial management are basically the same for both profit and non-profit organizations

5.Funds raised through proper financial management should never be invested in assets such as food and beverage inventories

Prior to the 1980 presidential election, Candidate Reagan emphasized a supply-side approach to dealing with the inflationary problem. Using the AD-SRAS-LRAS, show and explain how a supply-side approach to lowering inflation (putting downward pressure on the price level or P) was supposed to operate.

3) If you have a 40% probability of winning at a game of roulette, how many games can you expect to win after playing 30 games?

4) Calculate the variance of the problem above.

5) If Sarah rolls a 6-sided number cube, how many times can she expect to roll a 4 if she plays 18 games?

FIN322 Corporate Finance Homework Assignment I

Answer All Questions but my professor is picking two random to grade Show all your work (use of formula, etc.) in solving the problems. You still need to show your work even if you use the financial calculator to get the answers.

1. Suppose you wish to plan for your newborn’s college tuition payment. You intend to make equal semiannual deposits into an account offering 4% compounded semiannually on the child’s 3rd through 13th birthdays. You expect that tuition payments will be $50,000 semiannually by the time the child is ready to enter college. Therefore, your goal is to make eight semiannual withdrawals of $50,000 each starting on the child’s 18th birthday, each withdrawal to be used for semiannual tuition. Assume the account continues to offer 4 percent per year compounded semiannually throughout the entire period of deposits and withdrawals. How much must each of the semiannual deposits be such that there will be enough money accumulated in the account to exactly meet the goal? [Suggestion: Draw the cash flow diagram to aid you in solving this problem.]

2. You are planning to save for retirement over the next 40 years. To do this, you will invest $500 per month in a stock account and $2,500 semiannually in a bond account. The return of the stock account is expected to be 6 percent per year, and the bond account will pay 4 percent per year. When you retire, you will combine your money into an account with a 5 percent per year return. How much can you withdraw each month from your account assuming a 25-year withdrawal period?

3. You are taking out a four-year loan of $30,000 from your bank. The interest rate is 5 percent per year, and the loan calls for equal monthly payments. How much principle is paid in the second month? How much total interest is paid after five months? (Draw an amortization table to answer the questions. Use of excel is highly encouraged.)

4. Bond J is a 4 percent coupon bond. Bond K is a 7 percent coupon bond. Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 6 percent. If interest rate (YTM) changes from 6 percent to 8 percent, what is the percentage price change of these bonds? What if the YTM suddenly falls from 6 percent to 4 percent instead? What does this problem tell you about the interest rate risk of lower-coupon bonds?

5. Rizzi Co. is growing quickly. The company just paid a $2 per share dividend and dividends are expected to grow at a 15%, 8% and 4% rate respectively for the next three years, with the growth rate falling off to a constant 3 percent thereafter. If the required return is 10 percent, what is the current share price?

1. Why do you think Edward Snowden made the decision to come forward? What was his motivation? Was he compelled to blow the whistle on the surveillance program or should he have looked the other way? How would you have reacted if you had discovered the extent of the Prism surveillance program?

Consider the asymmetric 1/2 harmonic oscillator. use the Variational Principle to estimate the ground state energy of this potential. Use as your trial function Axe^bx^2

What are drug therapies? What explains their effectiveness? What criticisms have been leveled against their use?

What is the basic view of Behavioral Therapy? Describe several of the specific behavioral therapy techniques discussed in your text.

What is the difference between primary markets and secondary markets?Explain

What is the difference between money markets and capital markets?Explain

What are three (3) of the seven (7) types of financial institutions? Include a description of the main services offered by each. Explain

Why would the U.S. government, local governments, and corporations issue bonds? Explain

Provide the definitions of a discount bond and a premium bond. Give examples.

As owners, what rights and advantages do shareholders obtain? Explain

Why might the Standard & Poor's 500 Index be a better measure of stock market performance than the Dow Jones Industrial Average?Why is the DJIA more popular than the S&P 500? Explain

What are the differences between common stock and preferred stock? Explain

Pandemic is an outbreak of a disease prevalent over a country or the world. If left unchecked, the number of infected population C is growing at an exponential rate and can be modeled as a function of time T as C=2?, where T is measured in days. 1) What is the infected population after ten days if the pandemic is left unchecked? After 20 days? 2) If left uncheck, how many days will it take for the pandemic to infect the whole world 7 billion? 3) Refer to the websites and compare the model forecast with real world data. Does this model predict well the trend of infected population (confirmed cases) during the COVID-19 outbreak? 4） Based on this exponential growth model, what factors are missing in predicting the trends in different countries or regions? Do all countries follow the same trend? Explain. 5) According the official data, both total COVID-19 confirmed cases and total deaths double every seven days. What is the average daily growth rate and death rate of the pandemic in the world? 6) To slow down the pandemic, the most effective way in the short run is to quarantine and testing, which must be enforced by the public policy. What are the economic benefits and costs of these measures to individual and to other social members? How to measure these benefits and costs? 7) To eradicate the most lethal virus in human history, the most effective way in the long run is to vaccine. What are the economic benefits and costs of vaccination to individual and to other social members? Will you expect a worldwide COVID vaccination? Explain.

1. Titan Mining Corporation has 8 million shares of common stock outstanding, 5 million shares of preferred stock outstanding, and 100,000 units of 9 percent semiannual bonds outstanding, par value $1,000 each. The preferred stock pays a dividend of $6 per share. The common stock currently sells for $32 per share and has a beta of 1.15, the preferred stock currently sells for $67 per share, and the bonds have 15 years to maturity and sell for 91 percent of par. The market risk premium is 10 percent, T-bills are yielding 5 percent, and Titan Mining’s tax rate is 35 percent.

1. If Titan Mining is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows?

Answer: Rate of return firm should use in 13.51%

LEFO Company uses the periodic inventory system to account for inventories. Information related to LEFO Company's inventory at March 31 is given below:

Date - Description - Units - Unit Cost

March 1 - Beg. Inventory - 10 units - $100

March 8 - Purchase - 10 units - $110

March 17 - Purchase - 10 units - $120

March 24 - Purchase - 10 units - $125

March 30 - Purchase - 10 units - $130

a. Calculate the value of ending inventory using the FIFO cost assumption if 15 units remain on hand at March 31. Calculate COGS.

b. Calculate the value of ending inventory using the LIFO cost assumption if 15 units remain on hand at March 31. Calculate COGS.

c. Calculate the value of ending inventory using the weighted-average cost cost assumption if 15 units remain on hand at March 31. Calculate COGS.

Critically assess the business environment and ethics present in an existing a local non-profit environment protection organisation