FIN 380 Take-Home Midterm Examination- Fall, 2019
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
FIN 380 Take-Home Midterm Examination- Fall, 2019
The following pages contain the take home midterm for Finance 380, sections A, B, and C. The exam is due no later than Monday, October 28th at 9AM (for ALL classes). By electronically submitting the final exam, you are attesting to the following. Please READ carefully.
- I understand that this is an examination and attest that the work presented is my own; that it is done without outside assistance of any kind (except that provided by the instructor). I understand that the penalty for cheating or collusion of any kind is a grade of F for the course.
- Spreadsheet solutions will be appropriately formatted and developed in a logical, readable, coherent fashion. Confusing or unformatted spreadsheets may result in a reduction of points.
- I understand that the file tabs are in their original order (as contained in f380.fl19.ex1.data.xlsx and understand that out-of-order problems will not be graded. (Note: it is YOUR responsibility to ensure that what you pass in is ordered correctly. If you need to add worksheets, do so immediately after the problem’s worksheet.)
- I understand that the due date and time for the exam is Monday, October 28th at 9 AM. I understand that the exam must be submitted electronically. I understand that exams passed in after that time will be considered late and will incur a minimum penalty of 1 point lost per minute late.
- The file name should contain both your name and section. For example, if you’re in the 9AM section (Section C), your file name should be something like David.Ketcham.C.xlsx.
- Make sure you pass in the exam, not a homework assignment or your midterm. I don’t have time to hunt you down.
- If you submit your exam early, I’ll try to open the file and make sure I have the right exam and that I can view it. I’ll let you know if I have problems. It is unlikely that I will be able to do so for any exam submitted after Midnight before the due date.
- The exam is being made available to you on October 15th and is due October 28th. That means you have ample time to ask questions in class, during office hours, via email, or through myriad other means. If you don’t understand a question, ask BEFORE the exam is due for clarification. Misunderstood questions leading to wrong answers will count against you.
- I reserve the right to extend the due date.
- Good luck!
Print Your Name Signature
Finance 380
Fall, 2019 – Midterm Exam
The following examination is due no later than 9 AM Monday, October 26th. You are to email me the exam in an XLSX file named after yourself and containing your section. For example, if your name is Leslie King, the file should be called “Leslie.King.A.xlsx”. DO NOT FAIL TO FOLLOW THE INSTRUCTIONS.
The basic set up for the exam can be found in the file: f380.fall19.exam1.data.xlsx. That file contains nine worksheets that you are to complete. Each worksheet is named (and the number in parentheses is the points allotted to the problem). The following information should help you complete the problems:
EARLY [15] The 30 year loan amortization table we developed in class starts:
Loan $ 300,000.00 Life 30 Interest Rate 4.25% Payment $1,475.82 Period Beginning Balance Interest Payment Ending Balance Principal Recovery 1 $ 300,000.00 $1,062.50 ($1,475.82) $ 299,586.68 $413.32 2 $ 299,586.68 $1,061.04 ($1,475.82) $ 299,171.90 $414.78 3 $ 299,171.90 $1,059.57 ($1,475.82) $ 298,755.64 $416.25 4 $ 298,755.64 $1,058.09 ($1,475.82) $ 298,337.92 $417.73 Suppose a borrower decided to pay the loan in the following fashion. In period 1, the borrower pays the regular payment of $1,475.82 + the period 2 interest (assuming the loan IS NOT prepaid) of $1,061.04. In period 2, the borrower pays the regular payment of $1,475.82 + the period 3 interest of $1,059.57, and so on; each period making the regular payment plus the one period ahead interest. Write a spreadsheet that works for any loan amount and annual interest (assume the original loan is a 30 year mortgage with monthly payments). The spreadsheet should return a loan amortization table, the sequence of payments the individual plans to make and the life of the loan to the nearest month and should use only those cells needed.
RETIRE [15] Write a spreadsheet that allows the user to input his (or her) age today, salary today, growth rate in salary (assumed constant throughout his or her working life), initial investment in both the bond and stock fund (which may or may not be $0 and can vary across funds), proportion of salary invested, age at retirement, planned age at death and the inheritance they plan to leave to their heirs one yea after their last retirement payment. The spreadsheet allows the user to invest a portion of his or her salary in two retirement vehicles (or funds) – a bond fund whose return is 4% and a stock fund with a return of 10%. The proportion invested in bonds equals the decade of the individual’s age. For example, in their 20s (i.e. from 20 through 29), they will invest 20% in bonds and 80% in stock. In the 30s, 30% in bonds and 70% in stock and so on. Immediately after retirement, ALL FUNDS will be transferred into an account with a guaranteed constant return of 3% per year. The funds are to be withdrawn starting one year after retirement and ending with the last payment at the age at death. (the balance should equal the amount left to their heirs one year after the last withdrawal). The spreadsheet should return the annual retirement benefit. The spreadsheet should work for all ages from 16 to 100 and use only those cells necessary.
ABALONE [10] This tab contains data on 1,500 abalone (sea snails) The variables are:
Sex (Male, Female, or Indeterminate)
Length in centimeters
Diameter in centimeters
Weight in grams
Age in years
For each numeric variable, calculate mean, median, mode, standard deviation, maximum, and minimum. WITHOUT SORTING THE DATA, count the number of males, females, and indeterminate abalone, and calculate the means of each numeric variable for each sex. Graph the histogram of ages for the entire data set.
CATCH [20 points] The worksheet Catch contains financial data for Catch-Em Company, makers of ankle bracelets for those sentenced to home confinement. You are to forecast balance sheets, income statements, and statements of cash flow for the next 7 years using the percent of sales approach, assuming the following.
- The firm is at full capacity.
- Firm pays 8% interest on long-term debt, 4% on short-term debt, and earns 1% on marketable securities.
- Excess funds are invested in marketable securities. Shortages are made up first with notes payable, and next with additional long-term debt. Notes Payable can be no greater than the firm’s existing line of credit of $2,000.
- Sales growth is expected to be 20% next year, and is expected to fall by 3% per year to a constant rate of 2%.
RAISE [10] This worksheet contains salary levels for twelve employees at Weather-Tite Windows. Each employee is slated to receive a raise that potentially has three components. First, is an across-the-board cost of living adjustment (COLA) (everybody gets an x% raise). Second, is an incentive bonus based on productivity. Each employee is expected to produce 10,000-12,000 windows per year, but can earn an additional one percent raise per 1,000 windows over 12,000 produced. (For example, if you produce 17,000 windows, you would get an additional 5% raise.) Based on past performance, the production manager has provided estimates of the maximum number of windows each worker could produce. Third, each female employee MUST receive an additional raise of $3,500 to correct past pay inequities. (Assume the gender equity raise is NOT affected by the cost of living adjustment). The raise pool for this year must not exceed $95,000. Use solver to determine the maximum cost of living adjustment (COLA) the firm can offer. (Note, the incentive raises are based on this coming year’s salaries, not last year’s.)
NPV [10] This worksheet contains cash flows after tax for two capital budgeting projects. For each project, calculate the NPV assuming a discount rate of 12%, the IRR and the MIRR assuming a reinvestment rate of 12%. For each project, calculate NPVs for whole discount rates from 0% to 15%, and graph both NPV profiles on the same graph. You will notice that the two lines cross. Determine this crossover rate – the rate at which the two projects have the same NPV.
DONE [10] Write a spreadsheet that allows the user to input MONTHLY deposits, an ANNUAL interest rate and the number of months for which the user makes deposits. Allow them also to indicate MONTHLY withdrawals and the number of monthly withdrawals they intend to make. The spreadsheet returns the balance remaining in the account immediately after the last withdrawal (assume deposits and withdrawals are annuities and that the interest rate is held constant) AND the maximum number of months that the individual could make withdrawals at that specified amount. Assume monthly compounding throughout
.
SIM [10] Suppose you deposit $1,000 per year in a bond fund and $2,000 per year in a stock fund and do so for 10 years. The bond fund pays a return each year that is a random draw from a normal distribution with a mean of 4% and a standard deviation of 1%. The stock fund pays a return each year that is a random draw from a normal distribution with a mean of 10% and a standard deviation of 6%. Calculate the terminal value of the total of the two investments in year 10. Simulate the total 100 times. Dynamically graph the histogram of these terminal values using a range of $30,000 to $60,000 using bins of $2,500.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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