BUSN602 All Weeks Homework Assignments

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BUSN602 All Weeks Homework Assignments Click Link Below To Buy: http://hwcampus.com/shop/busn602-all-weeks-homework-assignments/ APU week 1 BUSN602 Week 1Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 1: DQ1-8, DQ1-9, DQ1-10, DQ1-12; E1-2 • Chapter 2: DQ2-7; P2-8; • Chapter 3: DQ3-1; P3-5, P3-6 Name your assignment file as “LastnameFirstinitial-BUSN602-Week1", and submit by midnight ET, Day 7. "What are the six principles of finance? Describe what is meant by ethical behavior. What are the basic requirements of an effective financial system? " Briefly describe the differences between money and capital markets. E1-2. The U.S. financial system is comprised of: (1) policy makers, (2) a monetary system, (3) financial institutions, and (4) financial markets. Indicate which of these components is associated with each of the following “roles”: a. accumulate and lend/invest savings b. create and transfer money c. pass laws and set fiscal and monetary policies d. market and facilitate transfer of financial assets Define money and indicate the basic functions of money. Define money and indicate the basic functions of money. ? Assume that a country estimates its M1 money supply at $20 million. A broader measure of the money supply, M2, is $50 million. The country’s gross domestic product (GDP) is $100 million. Production or real output for the country is 500,000 units or products. a. Determine the velocity of money based on the M1 money supply. b. Determine the velocity of money based on the M2 money supply. c. Determine the average price for the real output. ? ? DQ3-1 Discuss how and why banks suffered financial difficulties during the financial crisis. Following are selected balance sheet accounts for the Third State Bank: vault cash = $2 million; U.S. government securities = $5 million; demand deposits = $13 million; nontransactional accounts = $20 million; cash items in process of collection = $4 million; loans to individuals = $7 million; loans secured by real estate = $9 million; federal funds purchased = $4 million; and bank premises = $11 million. a. From these accounts, select only the asset accounts and calculate the bank’s total assets. b. Calculate the total liabilities for the Third State Bank. c. Based on the totals for assets and liabilities, determine the amount in the owners’ capital account. A bank’s assets consist of: Cash: $1.5 million Loans: $10 million Securities: $4.5 million Fixed assets: $2 million In addition, the bank’s owners’ capital is $1.5 million. a. Calculate the equity capital ratio. b. If $2 million in bad loans were removed from the bank’s assets, show how the equity capital ratio would change. week 2 BUSN602 Week 2 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 5: DQ5-1, E5-2; P5-2, P5-6 • Chapter 7: DQ7-17; E7-3, E7-4, P7-5 • Identify and define five economic indicators. Name your assignment file as “LastnameFirstinitial-BUSN602-Week2", and submit by midnight ET, Day 7. List and describe briefly the economic policy objectives of the nation. Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy, and debt management carried out by the Federal Reserve System, the President, the Congress, and the U.S. Treasury. Describe the responsibilities of the various policy makers in trying to achieve the four economic policy objectives. Assume that Bank A receives a primary deposit of $100,000 and that it must keep reserves of 10 percent against deposits. a. Prepare a simple balance sheet of assets and liabilities for the bank immediately after the deposit is received. b. Assume Bank A makes a loan in the amount that can be “safely lent.” Show what the bank’s balance sheet of assets and liabilities would look like immediately after the loan. c. Assume that a check in the amount of the “derivative deposit” created in Part b was written and sent to another bank. Show what Bank A’s (the lending bank’s) balance sheet of assets and liabilities would look like after the check is written. Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10 percent and there are no leakages in the system. a. What is the size of the money multiplier? b. What will be the system’s money supply? What are the life cycle stages of corporations and other business firms? Match the following financial instruments and securities with their issuers. Instruments/Securities a. corporate stocks b. Treasury bonds c. municipal bonds d. negotiable certificates of deposit Issuers 1. commercial banks 2. corporations 3. U.S. government 4. state/local governments ? Match the following financial instruments and securities with their typical maturities. Instruments/Securities a. corporate stocks b. Treasury bills c. mortgages d. commercial paper Maturities 1. less than one year 2. no maturity 3. up to about 30 years 4. up to one year The components that comprise a nation’s gross domestic product were identified and discussed in the chapter. Assume the following accounts and amounts were reported by a nation last year. Government purchases of goods and services were $5.5 billion; personal consumption expenditures were $40.5 billion; gross private domestic investment amounted to $20 billion; capital consumption allowances were $4 billion; personal savings were estimated at $2 billion; imports of goods and services amounted to $6.5 billion; and the exports of goods and services were $5 billion. a. Determine the nation’s gross domestic product. b. How would your answer change if the dollar amounts of imports and exports are reversed? An economic indicator is data, usually of macroeconomic scale, used by investors to interpret current or future investment possibilities and to judge the overall health of an economy. Identify and define five economic indicators. Use the library or internet sources to complete this exercise. week 3 Assignment Instructions BUSN602 Week 3Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 8: DQ8-2; P8-1, P8-2, P8-7, P8-8 • Chapter 9: DQ9-2; P9-3, P9-17, P9-19 Name your assignment file as “LastnameFirstinitial- BUSN602-Week3", and submit by midnight ET, Day 7. Describe how interest rates may adjust to an unanticipated increase in inflation. Assume investors expect a 2.0 percent real rate of return over the next year. If inflation is expected to be 0.5 percent, what is the expected nominal interest rate for a one-year U.S. Treasury security? ? ? ? A one-year U.S. Treasury security has a nominal interest rate of 2.25 percent. If the expected real rate of interest is 1.50 percent, what is the expected annual inflation rate? Inflation is expected to be 3 percent over the next year. You desire an annual real rate of return of 2.5 percent on your investments. a. What nominal rate of interest would have to be offered on a one-year Treasury security for you to consider making an investment? b. A one-year corporate debt security is being offered at 2 percentage points over the one-year Treasury security rate that meets your requirement in (a). What would be the nominal interest rate on the corporate security? ? Find the nominal interest rate for a debt security given the following information: real rate = 2%, liquidity premium = 2%, default risk premium = 4%, maturity risk premium= 3%, and the inflation premium = 3%. Briefly describe what is meant by the time value of money. Determine the future values (FVs) if $5,000 is invested in each of the following situations: a. 5 percent for ten years b. 7 percent for seven years c. 9 percent for four years a. What is the present value (PV) of $359,000 that is to be received at the end of 23 years if the discount rate is 11 percent? b. How would your answer change in Part (a) if the $359,000 is to be received at the end of 20 years? a. What would be the future value (FV) of $19,378 invested now if the money remains deposited for eight years, the annual interest rate is 18 percent, and interest on the investment is compounded semiannually? b. How would your answer for (a) change if quarterly compounding were used? week 4 BUSN602 Week 4 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 10: DQ10-2, DQ10-8, DQ10-11; E10-1, E10-4, E10-6, E10-23 Name your assignment file as “LastnameFirstinitial- BUSN602-Week4", and submit by midnight ET, Day 7. What are the major sources of long-term funds available to business corporations? Indicate their relative importance. Briefly describe the types of bonds that can be issued to provide bondholder security. Why might a firm want to maintain a high bond rating? What has been happening to bond ratings in recent years? Compute the annual interest payments and principal amount for a Treasury Inflation-Protected Security with a par value of $1,000 and a 3-percent interest rate if inflation is 4 percent in year 1, 5 percent in year 2, and 6 percent in year 3. ? Assume a $1,000 face value bond has a coupon rate of 8.5 percent paid semiannually and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? ? The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16 percent. Assume interest payments are made semiannually. a. Determine the present value of the bond’s cash flows if the required rate of return is 16 percent. b. How would your answer change if the required rate of return is 12 percent? The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe the nominal risk-free rate is 4 percent and that this stock should have a risk premium of 6 percent. What should be the value of this stock? week 5 Assignment Instructions BUSN602 Week 5 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 12: DQ12-9, DQ12-18, DQ12-20; P12-6, P12-7 • Chapter 13: DQ13-13; P13-2, P13-5 Name your assignment file as “LastnameFirstinitial- BUSN602-Week5", and submit by midnight ET, Day 7. Explain what is meant by “market efficiency.” What are the characteristics of an efficient market? ? How does systematic risk differ from unsystematic risk? What is meant by the Capital Asset Pricing Model? Describe how it relates to expected return and risk. Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ? Find the real return, nominal after-tax return, and real after-tax return on the following: Stock Nominal Return Inflation Tax Rate X 13.5% 5.0% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% How are industry-operating differences reflected in a firm’s financial statements? week 6 Assignment Instructions BUSN602 Week 6 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 14: DQ14-1, DQ14-3; P14-11 • Chapter 15: DQ15-1, DQ15-31, DQ15-33; P15-4 Name your assignment file as “LastnameFirstinitial-BUSN602-Week6", and submit by midnight ET, Day 7. week 7 Assignment Instructions BUSN602 Week 7 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 17: DQ17-1, DQ17-26; P17-1, P17-2 • Chapter 18: DQ18-2, DQ18-4; P18-8 Name your assignment file as your “LastnameFirstinitial- BUSN602-Week7", and submit by midnight ET, Day 7.

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BUSN602 All Weeks Homework Assignments Click Link Below To Buy: http://hwcampus.com/shop/busn602-all-weeks-homework-assignments/ APU week 1 BUSN602 Week 1Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 1: DQ1-8, DQ1-9, DQ1-10, DQ1-12; E1-2 • Chapter 2: DQ2-7; P2-8; • Chapter 3: DQ3-1; P3-5, P3-6 Name your assignment file as “LastnameFirstinitial-BUSN602-Week1", and submit by midnight ET, Day 7. "What are the six principles of finance? Describe what is meant by ethical behavior. What are the basic requirements of an effective financial system? " Briefly describe the differences between money and capital markets. E1-2. The U.S. financial system is comprised of: (1) policy makers, (2) a monetary system, (3) financial institutions, and (4) financial markets. Indicate which of these components is associated with each of the following “roles”: a. accumulate and lend/invest savings b. create and transfer money c. pass laws and set fiscal and monetary policies d. market and facilitate transfer of financial assets Define money and indicate the basic functions of money. Define money and indicate the basic functions of money. ? Assume that a country estimates its M1 money supply at $20 million. A broader measure of the money supply, M2, is $50 million. The country’s gross domestic product (GDP) is $100 million. Production or real output for the country is 500,000 units or products. a. Determine the velocity of money based on the M1 money supply. b. Determine the velocity of money based on the M2 money supply. c. Determine the average price for the real output. ? ? DQ3-1 Discuss how and why banks suffered financial difficulties during the financial crisis. Following are selected balance sheet accounts for the Third State Bank: vault cash = $2 million; U.S. government securities = $5 million; demand deposits = $13 million; nontransactional accounts = $20 million; cash items in process of collection = $4 million; loans to individuals = $7 million; loans secured by real estate = $9 million; federal funds purchased = $4 million; and bank premises = $11 million. a. From these accounts, select only the asset accounts and calculate the bank’s total assets. b. Calculate the total liabilities for the Third State Bank. c. Based on the totals for assets and liabilities, determine the amount in the owners’ capital account. A bank’s assets consist of: Cash: $1.5 million Loans: $10 million Securities: $4.5 million Fixed assets: $2 million In addition, the bank’s owners’ capital is $1.5 million. a. Calculate the equity capital ratio. b. If $2 million in bad loans were removed from the bank’s assets, show how the equity capital ratio would change. week 2 BUSN602 Week 2 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 5: DQ5-1, E5-2; P5-2, P5-6 • Chapter 7: DQ7-17; E7-3, E7-4, P7-5 • Identify and define five economic indicators. Name your assignment file as “LastnameFirstinitial-BUSN602-Week2", and submit by midnight ET, Day 7. List and describe briefly the economic policy objectives of the nation. Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy, and debt management carried out by the Federal Reserve System, the President, the Congress, and the U.S. Treasury. Describe the responsibilities of the various policy makers in trying to achieve the four economic policy objectives. Assume that Bank A receives a primary deposit of $100,000 and that it must keep reserves of 10 percent against deposits. a. Prepare a simple balance sheet of assets and liabilities for the bank immediately after the deposit is received. b. Assume Bank A makes a loan in the amount that can be “safely lent.” Show what the bank’s balance sheet of assets and liabilities would look like immediately after the loan. c. Assume that a check in the amount of the “derivative deposit” created in Part b was written and sent to another bank. Show what Bank A’s (the lending bank’s) balance sheet of assets and liabilities would look like after the check is written. Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10 percent and there are no leakages in the system. a. What is the size of the money multiplier? b. What will be the system’s money supply? What are the life cycle stages of corporations and other business firms? Match the following financial instruments and securities with their issuers. Instruments/Securities a. corporate stocks b. Treasury bonds c. municipal bonds d. negotiable certificates of deposit Issuers 1. commercial banks 2. corporations 3. U.S. government 4. state/local governments ? Match the following financial instruments and securities with their typical maturities. Instruments/Securities a. corporate stocks b. Treasury bills c. mortgages d. commercial paper Maturities 1. less than one year 2. no maturity 3. up to about 30 years 4. up to one year The components that comprise a nation’s gross domestic product were identified and discussed in the chapter. Assume the following accounts and amounts were reported by a nation last year. Government purchases of goods and services were $5.5 billion; personal consumption expenditures were $40.5 billion; gross private domestic investment amounted to $20 billion; capital consumption allowances were $4 billion; personal savings were estimated at $2 billion; imports of goods and services amounted to $6.5 billion; and the exports of goods and services were $5 billion. a. Determine the nation’s gross domestic product. b. How would your answer change if the dollar amounts of imports and exports are reversed? An economic indicator is data, usually of macroeconomic scale, used by investors to interpret current or future investment possibilities and to judge the overall health of an economy. Identify and define five economic indicators. Use the library or internet sources to complete this exercise. week 3 Assignment Instructions BUSN602 Week 3Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 8: DQ8-2; P8-1, P8-2, P8-7, P8-8 • Chapter 9: DQ9-2; P9-3, P9-17, P9-19 Name your assignment file as “LastnameFirstinitial- BUSN602-Week3", and submit by midnight ET, Day 7. Describe how interest rates may adjust to an unanticipated increase in inflation. Assume investors expect a 2.0 percent real rate of return over the next year. If inflation is expected to be 0.5 percent, what is the expected nominal interest rate for a one-year U.S. Treasury security? ? ? ? A one-year U.S. Treasury security has a nominal interest rate of 2.25 percent. If the expected real rate of interest is 1.50 percent, what is the expected annual inflation rate? Inflation is expected to be 3 percent over the next year. You desire an annual real rate of return of 2.5 percent on your investments. a. What nominal rate of interest would have to be offered on a one-year Treasury security for you to consider making an investment? b. A one-year corporate debt security is being offered at 2 percentage points over the one-year Treasury security rate that meets your requirement in (a). What would be the nominal interest rate on the corporate security? ? Find the nominal interest rate for a debt security given the following information: real rate = 2%, liquidity premium = 2%, default risk premium = 4%, maturity risk premium= 3%, and the inflation premium = 3%. Briefly describe what is meant by the time value of money. Determine the future values (FVs) if $5,000 is invested in each of the following situations: a. 5 percent for ten years b. 7 percent for seven years c. 9 percent for four years a. What is the present value (PV) of $359,000 that is to be received at the end of 23 years if the discount rate is 11 percent? b. How would your answer change in Part (a) if the $359,000 is to be received at the end of 20 years? a. What would be the future value (FV) of $19,378 invested now if the money remains deposited for eight years, the annual interest rate is 18 percent, and interest on the investment is compounded semiannually? b. How would your answer for (a) change if quarterly compounding were used? week 4 BUSN602 Week 4 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 10: DQ10-2, DQ10-8, DQ10-11; E10-1, E10-4, E10-6, E10-23 Name your assignment file as “LastnameFirstinitial- BUSN602-Week4", and submit by midnight ET, Day 7. What are the major sources of long-term funds available to business corporations? Indicate their relative importance. Briefly describe the types of bonds that can be issued to provide bondholder security. Why might a firm want to maintain a high bond rating? What has been happening to bond ratings in recent years? Compute the annual interest payments and principal amount for a Treasury Inflation-Protected Security with a par value of $1,000 and a 3-percent interest rate if inflation is 4 percent in year 1, 5 percent in year 2, and 6 percent in year 3. ? Assume a $1,000 face value bond has a coupon rate of 8.5 percent paid semiannually and has an eight-year life. If investors are willing to accept a 10 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? ? The Garcia Company’s bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 16 percent. Assume interest payments are made semiannually. a. Determine the present value of the bond’s cash flows if the required rate of return is 16 percent. b. How would your answer change if the required rate of return is 12 percent? The Joseph Company has a stock issue that pays a fixed dividend of $3.00 per share annually. Investors believe the nominal risk-free rate is 4 percent and that this stock should have a risk premium of 6 percent. What should be the value of this stock? week 5 Assignment Instructions BUSN602 Week 5 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 12: DQ12-9, DQ12-18, DQ12-20; P12-6, P12-7 • Chapter 13: DQ13-13; P13-2, P13-5 Name your assignment file as “LastnameFirstinitial- BUSN602-Week5", and submit by midnight ET, Day 7. Explain what is meant by “market efficiency.” What are the characteristics of an efficient market? ? How does systematic risk differ from unsystematic risk? What is meant by the Capital Asset Pricing Model? Describe how it relates to expected return and risk. Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ? Find the real return, nominal after-tax return, and real after-tax return on the following: Stock Nominal Return Inflation Tax Rate X 13.5% 5.0% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% How are industry-operating differences reflected in a firm’s financial statements? week 6 Assignment Instructions BUSN602 Week 6 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 14: DQ14-1, DQ14-3; P14-11 • Chapter 15: DQ15-1, DQ15-31, DQ15-33; P15-4 Name your assignment file as “LastnameFirstinitial-BUSN602-Week6", and submit by midnight ET, Day 7. week 7 Assignment Instructions BUSN602 Week 7 Homework Problems: You will complete your homework in Microsoft Excel, in the template provided in the assignment. Your work must be organized and properly formatted. Short essay answers must include references. • Chapter 17: DQ17-1, DQ17-26; P17-1, P17-2 • Chapter 18: DQ18-2, DQ18-4; P18-8 Name your assignment file as your “LastnameFirstinitial- BUSN602-Week7", and submit by midnight ET, Day 7.

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