公司理财习题及答案汇总

Corporate Finance
Assignment 1
Assignment 1
Due date: 24 Oct. 2011 (Monday)
This assignment is to be completed independently by each student. Please write legibly and show all the steps. Please put your student ID, official name on your work to submit. 1. Cash flows and financial analysis: Income Statement of 2007 and Balance Sheet of 2006 and 2007 for Nabors Inc. are shown below. Nabors, Inc. 2007 Income Statement ($ in millions) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income $9,610 6,310 1,370 1,930 630 $1,300 455 $845
1
Corporate Finance
Assignment 1
2. You hope to buy your dream house six years from now. Today your dream house costs $189m900. You expect housing prices to rise by an average of 4.5 percent per year over the next six years. How much will your dream house cost by the time you are ready to buy it? 3. You would like to give your daughter $40,000 towards her college education thirteen years from now. How much money must you set aside today for this purpose if you can earn 6.3 percent on your funds? 4. Alpha, Inc. is saving money to build a new factory. Six years ago they set aside $250,000 for this purpose. Today, that account is worth $306,958. What rate of interest is Alpha earning on this money? 5. Your older sister deposited $5,000 today at 8 percent interest for five years. You would like to have just as much money at the end of the nest five years as your sister. However, you can only earn 6 percent interest. How much more money must you deposit today than your sister if you are to have the same amount at the end of five years? 6. You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $50,000 today or receive payments for $641 a month for ten years. You can earn 6.5 percent on your money. Which option should you take and why? 7. The McDonald Group purchased a piece of property for $1.2 million. They paid a down payment of 20 percent in cash and financed the balance. The loan terms require monthly payments for 15 years at an annual percentage rate of 7.75 percent compounded monthly. What is the amount of each mortgage payment? 8. Today, you signed loan papers agreeing to borrow $4,954.85 at 9 percent compounded monthly. The loan payment is $143.84 a month. How many loan payments must you make before the loan is paid in full?
2
Corporate Finance
Assignment 2
Assignment 2
Due date: 14 Nov. 2011 (Monday)
This assignment is to be completed independently by each student. Please write legibly and show all the steps. Please put your student ID, official name on your work to submit. 1. You recently filed suit against a company. Today, you received three settlement options as follows: Option A: $10,000 on the first day of each year for 25 years Option B: $900 on the first day of each month for 25 years Option C: $119,830 as a lump sum payment today You can earn 7.5 percent on your investments. You do not care if you personally receive the funds or if they are paid to your heirs should you die within the next 25 years. Which option do you prefer? 2. Your insurance agent is trying to sell you an annuity that costs $100,000 today. By buying this annuity, your agent promises that you will receive payments of $384.40 a month for the next 40 years. What is the rate of return on this investment? 3. You should like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 2.75% percent. How much money must you deposit today to fund this gift for your heirs? 4. Today, you are retiring. You have a total of $413,926 in your retirement savings and have the funds invested such that you expect to earn an average of 3 percent, compounded monthly, on this money throughout your retirement years. You want to withdraw $2,500 at the beginning of every month, starting today. How long will it be until you run out of money? 5. Party time, Inc. has a 6 percent coupon bond that matures in 11 years. The bond pays interest semiannually. What is the market price of a $1,000 face value bond if the yield to maturity is 12.9 percent? 6. A 12-year, 5 percent coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield rises to 6 percent from the current yield of 4.5 percent?