Finance: HOMEWORKSpring 2013 THE BOOK USED FOR THIS ASSIGNMENT IS ROSS, JAFFE AND WESTERFIELD AND JAFFE, CORPORATE FINANCE, 9th Edition IN THESE PROBLEMS, All payments occur at the end of the period unless stated otherwise. Interest is compounded annually unless stated otherwise. Face value of all bonds is $1000. FORMAT: You can use a Word document, an Excel spreadsheet or both. Please do not embed Excel into a Word document. Please use single-spaced, 11 pt. or 12 pt. font. _____________________________________________________________________________________ Multiple Choice: MUST ADD COMMENTS TO EXPLAIN YOUR REASONING. Expected return on a project; it is the rate that makes net present value (NPV) break even. Payback period Cost of capital Profitability index Internal rate of return The bond contract is known as the Indenture Debenture Covenant Which of the following cash flows would you exclude from the current analysis of a project? Cannibalism of future sales in existing product lines Additional use of electricity and water Last year’s survey of market demand All of the above are included When a stock trades in the secondary market, the firm gets additional cash. True False Finance: HOMEWORKSpring 2013 THE BOOK USED FOR THIS ASSIGNMENT IS ROSS, JAFFE AND WESTERFIELD AND JAFFE, CORPORATE FINANCE, 9th Edition IN THESE PROBLEMS, All payments occur at the end of the period unless stated otherwise. Interest is compounded annually unless stated otherwise. Face value of all bonds is $1000. FORMAT: You can use a Word document, an Excel spreadsheet or both. Please do not embed Excel into a Word document. Please use single-spaced, 11 pt. or 12 pt. font. ___________________________________________________________________________________ Multiple Choice: MUST ADD COMMENTS TO EXPLAIN YOUR REASONING. Which of the following makes a market operate less efficiently? Easier access to...
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