1. Given the following recipe card, what is the cost of one batch of chili? ITEM. AMOUNT. UNIT COST. ITEM

1. Given the following recipe card, what is the cost of one batch of chili? ITEM. AMOUNT. UNIT COST. ITEM COSTGround beef. 5 lbs. $3.00/lbDiced tomatoes. 27 oz. $1.29/13.5 oz canGarlic, granulated. 4 oz. $8.00/lbCumin, ground 1 oz. $8.00/lbChili powder 2 oz. $8.00/lbChili beans 40 oz. $0.89/13.5 oz canTotal cost2. If the above batch of chili makes 20 bowls of chili and a bowl of chili includes 2 ounces of shredded cheddar, 1 ounce of chopped red onion, and 2 packages of saltine crackers, what is the plate cost for a bowl of chili given:ITEM. AMOUNT UNIT COST ITEM COSTChili 1 bowlCheese, cheddar, shredder. 2 oz. $6.00/lbOnions, red, diced. 1 oz. $3.00/lbSaltines, package. 2 $0.06/packTotal plate cost, Bowl of Chili1. Given that the sale price of a bowl of chili is $6.00, what is the food cost percentage for a bowl of chili?

1. If a person focuses their budget on “spending” vs ” saving”, it is more likely they will a) Oversave
1. If a person focuses their budget on “spending” vs ” saving”, it is more likely they will a) Oversave c) Save just the right amountb) Overspend d) All of these2. Retirement planning should begina) When you retire c) well before you retireb) Shortly after you retire d) at any time3. Personal finance does not include the process of planning youra) Spending c) Investingb) Financing d) Spirituality4. Which item is not one of the components of a personal financial plan ?a) Setting aside money for season ticket for PBA gamesb) Investing your moneyc) Planning your retirementd) Budgeting5. Estate planninga) Protects your wealth against unnecessary taxesb) Shelters your wealth against all taxesc) Ensures that your wealth is distributed in the manner that you determined) “a” and “c” are correct6. A personal financial plan specifies financial goals and describesa) saving, investing and asset valuationb) spending, saving, and credit card financingc) spending, financing and investment plansd) saving and spending only7. The first step in developing your financial plan isa) Establish your financial goals c) Buy a cool car then begin saving moneyb) Pay off all your credit cards d) Get a good job8. All of the following are true with regard to the demand for financial advisers, excepta) many people lack an understanding of personal financeb) many people prefer to rely on advisers rather than making their own decisionsc) many people are just not interested in making their own financial decisionsd) only financial advisers can purchase mutual funds for a person9. “Big spenders” focus their budgeting decisions ona) Reducing expenses c) Spending most of their incomeb) Increasing income d) Saving most of the income10. “Big savers” focus their budget decisions ona) Reducing expenses c) Spending most of their incomeb) Increasing income d) Saving as much of their income as possible11. Which of the following is not an asset ?a) Your house that you rentb) Your car that you financedc) Your coin collection given to you by your grandfatherd) Your textbooks12. The process of forecasting future expenses and savings isa) Budgeting c) Predictingb) Planning d) Fortune-telling13. It involves having access to funds to cover any short-term cash needsa) Investment c) Liquidityb) Money d) Risk14. Which of the following is a credit management decision ?a) Purchasing a used car in cashb) Investing your savings in the stock marketc) Obtaining a student loan to attend colleged) Putting money into your retirement account15. Your net worth will not be increased by which of the following actions ?a) Increasing your savings from 10% to 15% of your earningsb) Receiving a P1,000 birthday present from your grandmotherc) Buying a new home entertainment system and putting the entire amount on your credit cardd) Receiving an inheritance16. Which of the following is an example of money management ?a) Putting your money in a savings account at your bankb) Shopping around for the credit card with the best interest ratec) Deciding to delay buying a new car until you can pay cashd) Paying off a loan early to reduce the interest charges17. What is the core purpose of buying insurance ?a) Protect your wealth and assetsb) Make sure you make money on any claimc) Insurance is an expense a careful investor needs to minimized) Make sure you leave an estae when you are gone18. Which of the following items is not a liability ?a) The balance due on your credit card c) The wages you give up to take a classb) Your college loans d) An IOU to your roommate19. To increase your svings,a) Income must be increased or expenses decreasedb) Expenses must be increasedc) Income must be decreasedd) Net worth must be decreased20. A measure of your wealth isa) The highest level of education you’ve attainedb) The amount of your annual incomec) The current market value of what you own minus the value of what you owed) Your tax bracket

Reuth Corporation plans to raise $2 million to pay off its existing short-term bank loan of $600,000 and to increase
Reuth Corporation plans to raise $2 million to pay off its existing short-term bank loan of $600,000 and to increase total assets by $1,400,000. The bank loan bears an interest rate of 10 percent. The company’s president owns 51.5% percent of the 4,000,000 shares of common stock and wishes to maintain control of the company. The company’s tax rate is 20 percent. Balance sheet information is shown below. The company is considering two alternatives to raise the $2 million: (1) sell common stock at $10 per share, or (2) Sell bonds at a 10 percent coupon, each $1,000 bond carrying 50 warrants to buy common stock at $15 per share. Current Balance Sheet Current Liabilities$900,000Common Stock, Par $0.25 1,000,000 Retained earnings700,000Total Assets$2,600,000Total claims$2,600,000Alternative 1: Common stock$10FACTSAlternative 1: Common stock# new shares 200,000 Tax rate 20%# new sharesPar value per share$0.25New financing$2,000,000Par value per shareExisting Loan$600,000Alternative 2: Debentures Interest rate10%Alternative 2: DebenturesExercise price per warrant$15Interest amount – old$60,000Exercise price per warrant# bonds to raise new capital 2,000 Interest amount – new$200,000# bonds to raise 2M# new shares 100,000 # new shareswarrants per bond 50 President owns51.5%warrants per bondNew money raised 1,500,000 Shares outstanding4,000,000New money raisedAddition to par 25,000 Addition to parAdditional paid-in capital 1,475,000 Additional paid-in capitala. Show the new balance sheet under both alternatives. For Alternatives 2, show the balance sheet after exercise of the warrants.b. Calculate the president’s ownership position for both alternatives. He doesn’t buy any of the additional shares.c. Calculate earnings per share for both alternatives, assuming that EBIT is 11% of total assets.d. Calculate the debt ratio under both alternativese. Which alternative do you recommend and why?

Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three
Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects available to the company. Assume the discount rate for all projects is 9 percent. Further, the company has only $18 million to invest in new projects this year. Cash Flows (in $ millions)YearCDMA G4 Wi-Fi 0-$5 -$13 -$18 1 7 10 15 2 4.5 24 31 3 2.5 18 18 a.Calculate the profitability index for each investment. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)b.Calculate the NPV for each investment. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89)

A developer is financing the construction of a mid-rise multifamily structure that will be sold at the end of ten
Finance Assignment Writing ServiceA developer is financing the construction of a mid-rise multifamily structure that will be sold at the end of ten years. The developer’s goal is to collect rent from the multifamily structure for ten years after construction and then flip (i.e., sell) the property. Construction of the multifamily structure will take approximately 2 years to complete. The developers cannot collect rent while the mid-rise is being constructed. This, the developer decides to take out an interest-only loan with a two-year maturity at an interest rate of 5% to finance the construction costs and avoid having to pay the amortization component of a counterfactual 30-year fixed-rate mortgage. Furthermore, the developer plans to refinance the interest-only mortgage when the outstanding loan balance becomes due. The balloon mortgage will feature a 30-year amortization schedule at an annual interest rate of 4.5% but with a maturity of 10 years. To construct the multi-family structure, the developer needs $8.5 million. What is the developer’s combined effective cost of borrowing? Assuming the loan will be held to maturity. For simplicity, ignore upfront refinancing costs (e.g., points).A. 4.6%B. 4.7

Assignment Questions Compute the NPV and IRR of each project. If there were no budget constraint, which projects would you
Assignment Questions Compute the NPV and IRR of each project. If there were no budget constraint, which projects would you recommend? Which projects would you recommend with the €75M budget? Assume first that if CCR sells the land, it will NOT use the proceeds to increase its capital budget. Which projects would you recommend with the €75M budget? Assume now that if CCR sells the land, it will use the proceeds to increase its capital budget to 97.5 (=75 22.5). Discussion Questions In words, describe how the analysis might change if the opportunity to invest in the machinery of the bankrupt competitor expired after this year. Can you think of reasons not included in our analysis why CCR should not take projects with cash flows only in the distant future even when the projects are positive NPV (e.g. the expansion in Latin America)?

Cool Rinks builds and operates outdoor ice skating facilities. They are in the process of evaluating expansion opportunities. -The first
Cool Rinks builds and operates outdoor ice skating facilities. They are in the process of evaluating expansion opportunities. -The first option is a new location in Indiana. For the business to be profitable, the average daily temperature needs to be below 32° more than 75% of the time during the 90‐day skating season. At the site being considered, the average daily temperature during the season is normally distributed with a mean of 25° and a standard deviation of 11°. Is Indiana a promising market for Cool Rinks? -Now assume Cool Rinks has a second location under consideration in Utah. It is colder, with the average daily temperature during the season normally distributed with a mean of 14° and a standard deviation of 10°. In addition to the 32° requirement, the company projects that a site will not be profitable if more than 40% of the days have an average temperature below 10°. How does the Utah site compare to Indiana as a potential location for a new rink?

The effective annual yield, also known as the rate of return, of an investment may be different from the nominal
The effective annual yield, also known as the rate of return, of an investment may be different from the nominal interest rate because of:choose correct answer :a) the different methods of quoting interest ratesb) one is a yearly rate and the other is an annual rate.c) the effective annual rate id for periods longer than a yeard) The effect of compounding and the number of compounding periods in a year

Q2 ABC private limited as given the dividend of $5 last year and has promised to increase the dividend by
Q2 ABC private limited as given the dividend of $5 last year and has promised to increase the dividend by 8% each year for the next four years. a. Find out the dividend of each of the next four years. [2 marks]b. If the stocks are selling at $120 at the end of fourth year, find out the price of stock today, assuming expected return as 12%. [2 marks]c. Write detailed comment on what will happen to the today’s selling price of the stock if the expected return is increased from 12% to 16%. [3 marks]d. If the stocks are selling at $90 today, find out the price of stock at the end of fourth year, assuming expected return as 12%. [2 marks] e. Write detailed comment on what will happen to the selling price of the stock at the end of fourth year if the expected return is decreased from 12% to 8%. [3 marks]