Question 1
(5 points) $50 today is worth MORE than $50 tomorrow.
Your Answer Score Explanation
True ✔ 5.00 Correct. You understand Time value of money. Total 5.00 / 5.00
Question Explanation

We have assumed time value of money is positive.
Question 2
(5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years. Your Answer Score Explanation
True ✔ 5.00 Correct; it is compounding!
Total 5.00 / 5.00
Question Explanation

All about compounding!
Question 3
(5 points) Shawn wants to buy a new telescope. He estimates that it will take him one year to save the money and that the telescope will cost $200. At an interest rate of 6%, how much does Shawn need to set aside today to purchase the telescope in one year? (Enter just the number without the $ sign or a comma) Answer for Question 3

You entered:
189
Your Answer Score Explanation
189 ✔ 5.00 Correct, You know it has to be less than $200. Total 5.00 / 5.00
Question Explanation

Simple PV calculation.
Question 4
(10 points) Jeff has $1,000 that he invests in a safe financial instrument expected to return 3% annually. Marge has $500 and invests in a more risky venture that is expected to return 7% annually. Who has more after 20 years? And how much does he/she have in FV terms? Your Answer Score Explanation

Marge; 1935 ✔ 10.00 Correct. You know how to calculate FVs! Total 10.00 / 10.00
Question Explanation

FV calculations of simple one-shot cash flows. Shows power of compounding. Question 5
(10 points) Don has just received a cash gift of $50,000 from his rich eccentric uncle. He wants to set it aside to pay for his daughter Cynthia’s college education. Cynthia will begin college in 10 years and Don’s financial advisor says that she can earn 7% interest on an investment in a special college fund. How much will Don have in the fund when Cynthia begins college? (Enter just the number without the $ sign or a comma; round to...

...Question 1
(5 points) $50 today is worth MORE than $50 tomorrow.
Your Answer Score Explanation
True ✔ 5.00 Correct. You understand Time value of money.
False
Total 5.00 / 5.00
Question Explanation
We have assumed time value of money is positive.
Question 2
(5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years.
Your Answer Score Explanation
True ✔ 5.00 Correct; it is compounding!
False
Total 5.00...

...Question 1
(5 points) $100 today is worth the SAME as $100 tomorrow.
Your Answer
Score
Explanation
True
False
Correct
5.00
Correct. You understand time value
Total
5.00 / 5.00
Question Explanation
We have assumed that time value of money is positive.
Question 2
(5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years.
Your Answer
Score
Explanation
True
Correct
5.00
Correct; it is compounding!
False
Total
5.00 / 5.00
Question...

...1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)
2 important things financial planning skills can help you do is one, it can help you create budgets.
creating budgets can help you save your money. Another thing it can help with is setting goals. this goes along with saving and creating budgets so you can afford, for example a car, or a house in...

...Question 1
(5 points) $50 today is worth MORE than $50 tomorrow.
Your Answer Score Explanation
True Correct 5.00 Correct. You understand Time value of money.
False
Total 5.00 / 5.00
Question Explanation
We have assumed time value of money is positive.
Question 2
(5 points) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest.
Your Answer Score Explanation
True Correct 5.00 Correct. You know the...

...MBA Decision
Quent Mikeal
BUS650: Managerial Finance
Instructor: Rick Kwan
February 22, 2013
MBA Decision
1. Age is obviously an important factor. The younger an individual is, the more time there is for the (hopefully) increased salary to offset the cost of the decision to return to school for a MBA. The cost includes both the...

...elicits the attention and the respect of all the employees, by explaining the objectives that should be reached within a time frame mainly selling a number of products within a set time frame and try to attract clients namely in the range of hundred a week. The manager appreciates the talents of the employees and tells them so specifically; “I know that you can succeed; I have full trust in all of you. However in case you need clarification or information or direction I am at...

...1. Calculate TRUST’s company after-tax WACC. The risk-free rate was 4.21%, the market risk premium was 6% and the company tax rate was 30%. The WACC should be rounded to four decimal places.
After-tax WACC = rD (1-Tc) D/V + rE E/V
rE = rf + βequity(rm – rf)
rE = 0.0421 + 0.81(0.06)
rE = 0.0907
E = number of outstanding shares x current share price
E = 60 million x $3.43
E = $205.8 million
D = $44 million bank loans + $1.2 million short-term hire...

...
Cash Distribution Plan
Advanced Accounting ACC 407
Assignment1Week1
LO2-16-8 Cash Distribution Plan
Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows:
Assets
Liabilities and Equities
Cash $40,000
Liabilities $50,000...