兹维博迪金融学第二版试题库5TB

Chapter Five

Household Savings and Investment Decisions

This chapter contains 28 multiple choice questions, 10 short problems, and 9 longer problems.

Multiple Choice

1.Getting a professional degree can be evaluated as ________.

a) a social security decision

b)an investment in human capital

c)an investment in a consumer durable

d) a tax exempt decision

Answer: (b)

2.Suppose you will face a tax rate of 20% before and after retirement. The interest rate is 8%.

You are 30 years before your retirement date and invest $10,000 to a tax deferred retirement plan. If you choose to withdraw the total accumulated amount at retirement, what will you be left with after paying taxes?

a)$51,445

b)$64,000

c)$80,501

d)$100,627

Answer: (c)

3.Suppose you will face a tax rate of 20% before and after retirement. The interest rate is 8%.

You are 30 years before your retirement date and have $10,000 to invest. If you invest this in an ordinary savings plan instead of a tax deferred retirement plan, what amount will you have accumulated at retirement?

a)$51,445

b)$64,000

c)$80,501

d)$100,627

Answer: (a)

4.When your tax rate remains unchanged, the benefit of tax deferral can be summarized in the

rule, “deferral earns you ________.”

a)the after-tax rate of return before tax

b)the pretax rate of return after tax

c)the after-tax rate of return after tax

d)the pretax rate of return before tax

Answer: (b)

5.From an economic perspective, professional training should be undertaken if the ________

exceeds the ________.

a)future value of the benefit; present value of the costs

b)present value of the benefits; future value of the costs

c)future value of the benefits; future value of the costs

d)present value of the benefits; future value of the costs

Answer: (d)

6.Suppose you will face a tax rate of 30% before and after retirement. The interest rate is 6%.

You are 35 years before your retirement date and $2,000 to a tax deferred retirement plan. If you choose to withdraw the total accumulated amount at retirement, what will you be left with after paying taxes?

a)$7,532

b)$10,760

c)$12,298

d)$15,372

Answer: (b)

7.Kecia is currently thirty years old and she plans to retire at age sixty. She is expected to live

to age eighty-five. Her labor income is $45,000 per year and she intends to maintain a

constant level of real consumption spending over the next fifty-five years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Kecia’s human capital?

a)$31,797

b)$35,196

c)$778,141

d)$994,888

Answer: (c)

8.Kecia is currently thirty years old and she plans to retire at age sixty. She is expected to live

to age eighty-five. Her labor income is $45,000 per year and she intends to maintain a

constant level of real consumption spending over the next fifty-five years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Kecia’s permanent income?

a)$31,797

b)$35,196

c)$778,141

d)$994,888

Answer: (b)

9.Oscar is currently thirty-five year old, plans to retire at age sixty-five, and to live to age

eighty-five. His labor income is $40,000 per year, and he intends to maintain a constant level of real consumption spending over the next fifty years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Oscar’s human capital?

a)$884,344

b)$691,681

c)$39,999

d)$32,198

Answer: (b)

10.Oscar is currently thirty-five year old, plans to retire at age sixty-five, and to live to age

eighty-five. His labor income is $40,000 per year, and he intends to maintain a constant level of real consumption spending over the next fifty years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Oscar’s

permanent income?

a)$884,344

b)$691,681

c)$39,999

d)$32,198

Answer: (d)

11.You are currently renting a house for $12,000 per year, and you also have an option to buy it

for $240,000. Maintenance and property taxes are estimated to be $4,320, and these costs are included in your rent. Property taxes ($2,880 of the $4,320) are deductible for income tax purposes. Your tax rate is 35%. You wish to provide yourself with housing at the lowest present value of cost. If the real after-tax rate is 2.52%, should you rent or buy?

a)rent the house; the PV cost of renting is $476,190

b)rent the house; the PV cost of renting is $309,524

c)buy the house; the PV cost of owning is $442,198

d)buy the house; the PV cost of owning is $371,429

Answer: (d)

12.You are currently renting a house for $12,000 per year and you also have an option to buy it

for $240,000. Maintenance and property taxes are estimated to be $4,320, and these costs are included in your rent. Property taxes ($2,880 of the $4,320) are deductible for income tax purposes. Your tax rate is 35%. You wish to provide yourself with housing at the lowest present value of cost. The real after-tax rate is 2.52%. What is the break-even rent?

a)$6,048

b)$9,360

c)$10,128

d)$12,302

Answer: (b)

13.As one gets older, the ________ declines, so ________ falls steadily until it reaches zero at

age 65.

a)future value of remaining labor income; human capital

b)future value of remaining labor income; initial wealth

c)present value of remaining labor income; human capital

d)present value of initial wealth; optimization

Answer: (c)

14.Any lifetime consumption spending plan that satisfies your budget constraint is:

a)an optimal model

b) a feasible plan

c) a model benefit

d) a target replacement

Answer: (b)

15.There is an advantage to tax deferred retirement savings plans for those ________ when the

money is withdrawn.

a)who will be in a lower tax bracket

b)who will be in the same tax bracket

c)both (a) and (b)

d)neither (a) nor (b)

Answer: (c)

16.In the United States, individual retirement accounts (IRAs) are called ________ rather than

________ because any amounts withdrawn from the plan are taxed at the time of withdrawal.

a)tax advantaged; tax deferred

b)tax deferred; tax exempt

c)tax advantaged; tax loopholes

d)tax exempt; tax deferred

Answer: (b)

17.The present value of one’s future labor income is called ________ and the constant level of

con sumption spending that has a present value equal to one’s human capital is called

________.

a)human income; taxable income

b)human capital; permanent income

c)permanent capital; taxable income

d)permanent income; human capital

Answer: (b)

18.The ________ the interest rate, the ________ the value of human capital, but the higher the

level of permanent income.

a)lower; lower

b)higher; lower

c)higher; higher

d)lower; higher

Answer: (b)

19.The ________ states that the present value of one’s lifetime consumption spending and

bequests equals the present value of one’s initial wealth and future labor income.

a)consumption budget constraint

b)spending constraint

c)intertemporal budget constraint

d)income and spending constraint

Answer: (c)

20.According to the text, many experts recommend that in making a savings plan one should aim

for a replacement rate of ________ of pre-retirement income.

a)100%

b)25%

c)50%

d)75%

Answer: (d)

21.Economic costs that are said to be explicit costs include items such as ________.

a)tuition

b)foregone rent

c)foregone earnings

d)all of the above

Answer: (a)

22.Economic costs that are said to be implicit costs include items such as ________.

a)tuition

b)administrative fees while undertaking a professional degree

c)foregone earnings

d)all of the above

Answer: (c)

23.In making lifetime saving/consumption decisions it is considered simpler to do the analysis

________.

a)in nominal terms

b)in inflationary terms

c)in perpetual terms

d)in real terms

Answer: (d)

24.In terms of a lifetime saving/consumption decision such as buying or renting an apartment or

a consumer durable, the alternative you should choose is ________.

a)the one with the lower present value of benefits

b)the one with the lower present value of costs

c)the one with the higher present value of costs

d)the one with the lower present value of benefits and the higher present costs

Answer: (b)

25.Among the approaches you can use for saving for your retirement is/are ________.

a)aiming to maintain the same level of consumption spending before and after

retirement

b)aiming for a target replacement rate of income

c)bypassing graduate school and continuing to consume at the same level

d)(a) and (b)

Answer: (d)

26.In the equation known as the intertemporal budget constraint, ________.

a)the present value of lifetime consumption spending equals the present value of

bequests

b)the present value of lifetime consumption spending and bequests equals the present

value of lifetime resources

c)the present value of lifetime consumption spending equals the future value of labor

income

d)the future value of lifetime consumption spending equals the present value of labor

income

Answer: (b)

27.Salman is currently twenty-five years old and plans to live to age eighty. His labor income is

$75,000 per year and he plans to maintain a constant level of real consumption spending over the next fifty-five years. Salman plans to retire at age 60. Assume the real interest rate is 5% per year and there are no taxes and no growth in real labor income. What is the value of

Salman’s permanent income?

a)$75,000

b)$65,906

c)$85,348

d)$1,228,064

Answer: (b)

28.You are currently renting a house for $25,800 a year and you have an option to buy it for

$350,000. Maintenance and property taxes are $6,150 per year and these costs are included in your rent. Property taxes ($4,150 of the $6,150) are deductible for income tax purposes. Your tax rate is 35%. The real after-tax rate is 3.5%. What is the break-even rent?

a)$16,770.00

b)$16,947.50

c)$21,102.46

d)$24,927.54

Answer: (b)

Short Problems

1.You are currently renting a house for $17,000 a year and you also have an option to buy it for

$300,000. Maintenance and property taxes are $5,040 per year and these costs are included in your rent. Property taxes ($3,360 of the $5,040) are deductible for income tax purposes.

Your tax rate is 40%. You wish to provide yourself with housing at the lowest present value of cost. The real after-tax rate is 3.1% per year. Should you rent or buy? What is the break-even rent?

Answer:

After-tax outflow for property taxes each year is 0.6 x $3,360 = $2,016

Cash outflow in year t = $1,680 + $2,016

= $3,696

PV cost of owning = $300,000 + $3,696/i

= $300,000 + $3696/0.031

= $419,226

PV cost of renting = $17,000/i

= $17,000/0.031

= $548,387

You would be better off buying the house.

Break-even rent: X/0.031 = $300,000 +$3,696/0.031

X = $12,996

The break-even rent is $12,996.

So if the rent is less than $12,996 per year, you would prefer to keep renting.

2.You are currently renting a house for $16,000 a year and you also have an option to buy it for

$250,000. Property taxes and maintenance care is $5,000 per year, and these costs are

included in your rent. Property taxes ($3,200 of the $5,000) are deductible for income tax purposes. Your tax rate is 40%. You wish to provide yourself with housing at the lowest present value of cost. The real before-tax discount rate is 3.5% per year. Should you rent or buy? What is the break-even rate?

Answer:

Real after-tax rate = 0.6 x 0.035

= 0.021

After-tax cash outflow for property taxes each year is 0.6 x $3,200 = $1,920

Cash outflow for year t = $1,800 + $1,920

= $3,720

PV cost of owning = $250,000 + $3,720/i

= $250,000 + $3,720/0.021

= $427,143

PV cost of renting = $16,000/i

= $16,000/0.021

= $761,905

You would be better off buying the house.

To find the break-even rent:

X/0.021 = $250,000 + $3,720/0.021

X = $8,970

So if the rent is less than $8,970 per year, you would be better off renting.

3.Kieran is currently twenty-five years old, plans to retire at age sixty, and to live to age eighty.

His labor income is $45,000 per year, and he intends to maintain a constant level of real consumption spending over the next fifty-five years. Assuming a real interest rate of 3%, no taxes, and no growth in real labor income, what is the val ue of Kieran’s human capital? What is the value of Kieran’s permanent income?

Answer:

n i PV FV PMT Result

35 3 ? 0 45,000 PV = $966,925

n i PV FV PMT Result

55 3 $966,925 0 ? PMT = $36,114

The value of Kieran’s human capital is $966,925.

The value of Kieran’s permanent income is $36,114.

4.Mariana is currently thirty years old, plans to retire at age seventy and to live to age ninety.

Her labor income is $60,000 per year, and she intends to maintain a constant level of real consumption spending over the next sixty years. Assuming a real interest rate of 4% per year, no taxes and no growth in real labor income, what is the value of Mariana’s human capital?

What is the value of Mariana’s permanent income?

Answer:

n i PV FV PMT Result

40 4 ? 0 60,000 PV = $1,187,566

n I PV FV PMT Result

60 4 $1,187,566 0 ? PMT = $52,493

The value of Mariana’s human capital is $1,187,566.

The value of Mariana’s permanent income is $52,493.

5.Your employer, Novocastrian Films, has agreed to make 60 quarterly payments of $1,000

each into a trust account to fund your early retirement. The first payment will be made 3

months from now. At the end of 15 years (60 payments), you will be paid 15 equal annual payments, with the first receipt to be made at the beginning of Year 16 (or the end of Year

15). The funds will be invested at a nominal rate of 10.0%, quarterly compounding, during

both the accumulation and the distribution periods. How large will each of your 15 receipts be?

Answer:

First determine the effective annual rate:

EFF = (1 + 0.10/4)4–1

= 10.38%

Next, determine amount at end of year 15

N I PMT Result_____________

15 10.38 $4000 FV = $130,983.39

At the end of year 15, there will be $130,983.39 in your retirement account.

Since you will be making withdrawals at the beginning of each year, PV = $130,983/(1 +

i), or $118,625.10.

N I PV Result___________

15 10.38 -$118,625.10 PMT = $15,935.89

Each of the receipts will be $15,935.89

6.Mr. Palin has received a job offer from a large investment bank as an assistant to the vice

president and Mr. Palin’s base salary will be $90,000. In addition, he will receive his first annual salary payment one year from the day he begins work. He will also get an immediate $45,000 bonus for joining the company and his salary will grow at 8 percent each year. Mr.

Palin is expected to work for 20 years. What is the present value of the offer if the appropriate discount rate is 11 percent?

Answer:

Simplest approach is to set up a spreadsheet like:

Year PMT PV@11%

0 45,000 45,000

1 90,000 81,081.08

2 97,200 78,889.70

. . .

. . .

. . .

19 359,641.75 49,514.63

20 388,413.10 $48,176.39

Total: $1,310,649.82

The present value of the offer is $1,310,649.82

7.Natalia will face a tax rate of 25% before and after retirement. The interest rate is 9%. She is

35 years from her retirement date and invests $5,000 to a tax deferred retirement plan. If she

chooses to withdraw the total accumulated amount at retirement, what will she be left with after paying taxes?

Answer:

$5,000 x 1.0935 = $102,069

After taxes this leaves $102,069 x 0.75 = $76,552

8.Damian is currently twenty-five years old and plans to live to age eighty. His labor income is

$80,000 per year, and he plans to maintain a constant level of real consumption spending over the next fifty-five years. Damian plans to retire at age 60. Assume the real interest rate is 5% per year and there are no taxes and no growth in real labor income. What is the value of

Damian’s human capital? What is the value of Damian’s permanent income?

Answer:

N I PV FV PMT

Result_________

35 5 ? 0 $80,000 PV =

$1,309,936

N I PV FV PMT Result________

55 5 $1,309,936 0 ? PMT = $70,300

Damian’s human capital is $1,309,936.

Damian’s permanent income is $70,300.

9.You are currently renting a house for $25,800 a year and you have an option to buy it for

$350,000. Maintenance and property taxes are $6,150 per year, and these costs are included in your rent. Property taxes ($4,150 of the $6,150) are deductible for tax purposes. Your tax rate is 35%. The real after tax rate is 3.5%. What is the NPV of the investment in the house?

Answer:

After-tax outflow for property taxes each year is 0.65 x $4,150 = $2,697.50

Cash outflow in year t = $2,697.50 + $2,000

= $4,697.50

PV cost of owning = $350,000 + $4,697/0.035

= $350,000 + $134,214

= $484,214

PV cost of renting = $25,800/0.035

= $737,143

So the NPV of investing in the house instead of renting is $737,143 – $484,214 = $252,929.

10.Carson will face a tax rate of 30% before and after retirement. The interest rate is 6%. He is

32 years from his retirement date and invests $3,000 to a tax deferred retirement plan. If he

chooses to withdraw the total accumulated amount at retirement, what will he be left with after paying taxes? Show how to find the answer using the rule, “Deferral earns you the pretax rate of return after tax.”

Answer:

If Carson paid the initial tax he would have $3,000 x 0.7 = $2,100 to invest.

Investing $2,100 at the pretax rate of 6% would result in $2,100 x 1.0632 = $13,552

Longer Problems

1.Tamara is currently twenty-eight years old, plans to retire at age seventy and to live to age

ninety. Her labor income is $50,000 per year, and she intends to maintain a constant level of real consumption spending over the next sixty-two years. Assume no taxes, no growth in real labor income and a real interest rate of 4% per year.

(a)What is the value of Tamara’s human capital?

(b)What is the value of Tamara’s permanent income?

Answer:

(a) N I PV FV PMT Result

42 4 ? 0 $50,000 PV =

$1,009,281

(b) N I PV FV PMT Result

62 4 $1,009,281 0 ? PMT =

$44,261

The value of Tamara’s human capital is $1,009,281

The value of Tamara’s permanent income is $44,261

2.You have just turned twenty-eight years of age and feel it is necessary to upgrade your

qualifications. After some consideration, you feel that undertaking full-time study for an MBA degree is one alternative. For the two years of full-time study, tuition and living

expenses will be $25,000 per year. In addition, you will have to give up your current job with

a salary of $35,000 per year. Assume all cash flows occur at the end of the year. Assume a

real interest rate of 4% per year, ignoring taxes. Also assume that the salary increase is at a constant real amount that starts after you complete your degree (at the end of the year

following graduation) and lasts until retirement at age sixty-five. In order to justify the

investment, by how much does your salary have to increase as a result of getting the MBA degree?

Answer:

Find the FV of tuition and foregone salary at the end of two years:

N i PV FV PMT Result________

2 4 0 ? 60,000 FV = $122,400

Find the increase in salary that has this amount as its PV:

n i PV FV PMT Result_______

35 4 $122,400 0 ? PMT = $6,558

3.At the age of thirty Terry was earning $30,000 and decided to undertake an MBA to increase

his earning potential. Two years later Terry has his degree and has achieved a constant real increase of $5,898 in his annual salary that will last until he retires at age sixty. If Terry lives to the age of ninety, what will be the value of his human capital and permanent income?

Assume a real interest rate of 2.52% per year, no taxes, and no growth in real labor income.

Answer:

New base salary = $30,000 + $5,898 = $35,898

n i PV FV PMT Result________

28 2.52 ? 0 $35,898 PV = $714,899

n i PV FV PMT Result________

58 2.52 $714,899 0 ? PMT = $23,584

The value of Terry’s human capital is $714,899.

The value of Terry’s permanent income is $23,584.

4.Juliet currently rents an apartment but has the option to buy it for $185,000. Property taxes

are $2,000 per year and are deductible for income tax purposes. Annual maintenance costs are $1,800 per year, but are not tax deductible. Juliet expects that the above taxes will

increase at the rate of inflation. Her income tax rate is 35%, and she can earn a before-tax real interest rate of 5% per year. If Juliet buys the apartment she plans to keep it forever. What is the “break-even” annual rent such that Juliet would buy the apartment if the rent exceeded this amount?

Answer:

Real after-tax rate = 0.65 x 0.05

= 0.0325 (or 3.25%)

After-tax annual outflow for property taxes each year is 0.65 x $2,000 = $1,300

Break-even rent: X/0.035 = $185,000 + $3,100/0.0325

X = 0.035($185,000) + $3,100

X = $6,012.50 + $3,100

X = $9,112.50

So the break-even rent is $9,112.50.

5.Anton’s retirement goal is to set aside an amount of money each year into a savings account

until he retires so that he can withdraw $80,000 each year during his retirement. He expects to retire in thirty years and expects to live for twenty years following his retirement. Anton expects to be able to earn 9 percent per year on his account balance. Calculate the deposit Anton must make for Plan 1 and the amount of the deposit Anton must make for Plan 2.

Plan 1: Anton's first deposit will be one year from today and his last deposit will be

twenty-nine years from today. He intends to make his first withdrawal thirty years from today.

Plan 2: Anton's first deposit will be today and his last deposit will be thirty years from

today. He intends to make his first withdrawal thirty one years from today.

Answer:

Plan 1

N I PMT Result__________

20 9 $80,000 PV = $730,283.65

N I FV Result__________

29 9 $730,283.65 PMT = $5,882.96

Under Plan 1, Anton must deposit $5, 882.96

Plan 2

N I PMT Result__________

20 9 $80,000 PV = $730,283.65

(set to Begin mode)

N I FV Result_______

31 9 $730,283.65 PMT = $4,479

Under Plan 2, Anton must deposit $4,479.

6.Your 68 year old mother plans to retire in 2 years, and she expects to live independently for 3

years. She wants a retirement income that has, in the first year, the same purchasing power as $60,000 has today. However, her retirement income will be of a fixed amount, so her real income will decline over time. Her retirement income will start the day she retires (2 years from today), and she will receive a total of 3 retirement payments. Inflation is expected to be constant at 6%. Your mother has $100,000 in savings now, and she can earn 9% on savings now and in the future. How much must she save each year, starting today, to meet her

retirement goals?

Answer:

First of all, your mother needs the following payments at age 70-72:

Age 70: $67,416

Age 71: $71,460.96

Age 72: $75,748.62

At age 68, the PV of these cash flows = $165,585.90

Your mother has already set aside $100,000

So to calculate what she has to save:

Set calculator to Begin mode

PV N I/Y Result

$65,585.90 2 9 PMT = $34,205.09

7. A relative of yours has just turned 45 years old and plans on retiring in 15 years on her 60th

birthday. She is saving money today for her retirement and is establishing a retirement

account with your office. She would like to withdraw money from her retirement account on her birthday each year until she dies. She would ideally like to withdraw $60,000 on her 60th birthday, and increase her withdrawals 10% a year through her 69th birthday (i.e., she would like to withdraw $141,476.86 on her 69th birthday). She plans to die on her 70th birthday, at which time she would like to leave $400,000 to her descendants. Your relative currently has $100,000. You estimate that the money in the retirement account will earn 11% a year over the next 25 years. Calculate how much your relative should deposit each year (at the end of each year).

Answer:

Between ages 60-70, cash flows look like:

Year CF Get the PV of these withdrawals.

6060,000

6166,00

6272,600

. .

. .

. .

69141,476.90

70400,000

At age 60, PV = $717,124.72

At age 45, PV = $149,882.18

Relative already has $100,000

Solve:

N I PV Result_________

15 11 $49,882.18 PMT = $6,936.88

8.Consider the following retirement plan. Today is January 1 and your employer will make a

$100 contribution to your retirement plan at the end of January and this amount will increase by $100 each month through December 31. Thus in February you get $200 and then up to a $1,200 contribution on December 31. Thus at the end of each January, you will always

receive $100 and the end of each December you will always receive $1,200. The employer will continue this contribution pattern for the next 25 years. You expect to receive a 12% quoted yield, compounded monthly, on your investments. How much money will be in your account when you retire?

Answer:

Determine what the monthly deposits are worth on annual basis:

CF0 = 0, CF1= 100, …, CF12 = $1,200

NPV = $7,182.38 at start of each year.

Determine EFF = 12.68%

Set calculator to Begin mode:

N I PMT Result_____________

25 12.68 $7,182.38 F = $1,198,487

9.Assume that you are planning for your financial future and you would like to fund all of your

financial needs by making monthly payments into an account that will pay 10 percent,

compounded monthly. You plan to make these monthly payments for a total of 30 years with the first payment to be made one month from today. How much should your monthly

payments be?

You need to use the following information:

You have promised your partner that you will take a trip to Europe 3 years from today.

a)You estimate that the trip will cost $10,000.

b)You will retire in 30 years. If you could retire today you estimate that you would

need sufficient funds to purchase a 15 year fixed payment annuity that would pay

$50,000 per year with the first payment to be received one year after you retire. You

assume that the price you will have to pay for the annuity will be based on an interest

rate of 8.5 percent.

Due to inflation, you estimate that the amount of the required annual annuity

payment will increase by 4 percent per year until the date you receive the first

payment, but the annuity payment will remain fixed once you purchase the annuity.

c)Your parents have promised to give you a piece of real estate in 5 years and today the

real estate is worth $12,000. You expect that the real estate will increase in value by

9 percent per year. You plan to sell the real estate as soon as you receive it and to

place the proceeds in your account.

d)You have already saved $15,000, which you will place in your account today.

Answer:

General strategy: get PV of each of the steps and then determine the monthly payment.

Step a: N = 36

I = 10/12 = 0.833

FV = $10,000

PV = $7,417.70

Step b: Find FV of payment expected to increase:

PV = $50,000, I/y = 4, N = 30, FV = $162,169.88

PV at t = 30 of payments (annual compounding)

PMT = $162,169.88, N = 15, I = 8.5

PV = $1,346,697.05

This is the lump sum need at t = 30 to buy the annuity.

PV at t = 0 of the retirement annuity cost (monthly compounding)

FV = $1,346,697.05, N = 360, I = 0.833

PV = $67,886.77

Step c: Value of land: FV = $18,463.49

PV of land = ?

FV = 18,463.49, N = 60, I = 0.833

PV = ($11,222)

Negative since it reduces the value needed

Finally, SUM of all t = 0 present values:

$7,417.40 + $67,886.77 + (11,222) + (15,000) = $49,082.17

PV = $49,082.17

n = 360

I = 0.833

CPT PMT = $430.73

Monthly payment = $430.73

兹维博迪金融学第二版试题库6TB(1)

Chapter Six The Analysis of Investment Projects This chapter contains 41 multiple choice problems, 20 short problems and 8 longer problems. Multiple Choice 1.The objective of a firm's management is to only undertake the projects that ________ the market value of shareholders' equity. a)decrease b)do not decrease c)change d)do not change Answer: (b) 2.The decision rule that management uses with the net present value is to undertake only those projects with ________ NPV. a) a discounted b) a contingent c) a positive d)negative Answer: (c) 3.If a firm decides to invest in automated machines that will allow the firm to reduce labor costs, this is an example of a ________ capital expenditures project. a)new products b)replacement of existing assets c)cost reduction d)advertising Answer: (c) 4.The NPV of a project represents the amount by which it is expected to increase ________. a)the break-even point b)capital budgeting c)capital expenditures d)shareholder wealth Answer: (d)

兹维博迪金融学第二版试题库9TB

Chapter Nine Valuation of Common Stocks This chapter contains 47 multiple choice questions, 17 short problems, and 9 longer problems. Multiple Choice 1.In a quote listing of stocks, the ________ is defined as the annualized dollar dividend divided by the stock’s price, and is usually expressed as a percentage. (a)cash dividend (b)dividend payout (c)dividend coverage (d)dividend yield Answer: (d) 2.According to the discounted-dividend model, the price of a share of stock is the ________ value of all expected ________ dividends per share, discounted at the market capitalization rate. (a)present; current (b)present; future (c)future; future (d)future; current Answer: (b) 3.The value of common stock is determined by which of the following expected cash flows? (a)dividends and interest payments (b)dividends and maturity value of stock (c)dividends and net cash flows from operations of the firm (d)interest payments and maturity value Answer: (c)

2021年兹维博迪金融学第二版试题库TB

Chapter Seven Principles of Market Valuation This chapter contains 30 multiple choice questions，10 short problems and 5 longer problems. Multiple Choice 1.In regard to an asset，the ________ is defined as the process well-informed investors must pay for it in a free and competitive market. (a)analyst value (b)technical value (c)competitive value (d)fundamental value Answer：(d) 2.In corporate finance decision making，an extremely important rule is to choose the investment that ________ current shareholders’ wealth. (a)minimizes (b)maximizes (c)provides zero change in (d)jeopardizes Answer：(b) 3.In asset valuation，the method used to accomplish the estimation depends on the ________. (a)number of participants (b)quality of calculating instruments

《金融学(第二版)》讲义大纲及课后习题答案详解 十二章

CHAPTER 12 CHOOSING AN INVESTMENT PORTFOLIO Objectives ?To understand the process of personal investing in theory and in practice. ?To build a quantitative model of the tradeoff between risk and reward. Outline 12.1 The Process of Personal Portfolio Selection 12.2 The Trade-off between Expected Return and Risk 12.3 Efficient Diversification with Many Risky Assets Summary ?There is no single portfolio selection strategy that is best for all people. ?Stage in the life cycle is an imp ortant determinant of the optimal composition of a person’s optimal portfolio of assets and liabilities. ?Time horizons are important in portfolio selection. We distinguish among three time horizons: the planning horizon, the decision horizon, and the trading horizon. ?In making portfolio selection decisions, people can in general achieve a higher expected rate of return only by exposing themselves to greater risk. ?One can sometimes reduce risk without lowering expected return by diversifying more completely either within a given asset class or across asset classes. ?The power of diversification to reduce the riskiness of an investor’s portfolio depends on the correlations among the assets that make up the portfolio. In practice, the vast majority of assets are positively correlated with each other because they are all affected by common economic factors. Consequently, one’s ability to reduce risk through diversification among risky assets without lowering expected return is limited. ?Although in principle people have thousands of assets to choose from, in practice they make their choices from a menu of a few final products offered by financial intermediaries such as bank accounts, stock and bond mutual funds, and real estate. In designing and producing the menu of assets to offer to their customers these intermediaries make use of the latest advances in financial technology.

兹维博迪金融学第二版试题库5TB(1)

Chapter Five Household Savings and Investment Decisions This chapter contains 28 multiple choice questions, 10 short problems, and 9 longer problems. Multiple Choice 1.Getting a professional degree can be evaluated as ________. a) a social security decision b)an investment in human capital c)an investment in a consumer durable d) a tax exempt decision Answer: (b) 2.Suppose you will face a tax rate of 20% before and after retirement. The interest rate is 8%. You are 30 years before your retirement date and invest $10,000 to a tax deferred retirement plan. If you choose to withdraw the total accumulated amount at retirement, what will you be left with after paying taxes? a)$51,445 b)$64,000 c)$80,501 d)$100,627 Answer: (c) 3.Suppose you will face a tax rate of 20% before and after retirement. The interest rate is 8%. You are 30 years before your retirement date and have $10,000 to invest. If you invest this in an ordinary savings plan instead of a tax deferred retirement plan, what amount will you have accumulated at retirement? a)$51,445 b)$64,000 c)$80,501 d)$100,627 Answer: (a)

兹维博迪金融学第二版试题库4TB(1)

Chapter Four Allocating Resources Over Time This chapter contains 46 multiple-choice questions, 18 short problems and 9 longer problems. Multiple Choice 1.________ is the process of going from present value to future value, whereas ________ is finding the present value of some future amount. (a)Discounting; compounding (b)Compounding; annualizing (c)Compounding; discounting (d)Discounting; leasing Answer: (c) 2.________ refers to the interest rate at which money received before the end of the planning horizon can be reinvested. (a)Internal rate (b)Reinvestment rate (c)Cost of equity (d)Compound interest Answer: (b) 3.The difference between an immediate annuity and an ordinary annuity is ________. (a)the number of periods (b)the amount of the payments (c)the interest rate (d)the timing of the payments Answer: (d)

金融学兹维博迪第二版-第一章答案

CHAPTER 1 – Financial Economics End-of-Chapter Problems Defining Finance 1. What are your main goals in life? How does finance play a part in achieving those goals? What are the major tradeoffs you face? SAMPLE ANSWER: ? ? ? ? ? ? ? Finish school Get good paying job which I like Get married and have children Own my own home Provide for family Pay for children’s education Retire How Finance Plays a Role: SAMPLE ANSWER: ? Finance helps me pay for undergraduate and graduate education and helps me decide whether spending the money on graduate education will be a good investment decision or not. ? ? Higher education should enhance my earning power and ability to obtain a job I like. Once I am married and have children I will have additional financial responsibilities (dependents) and I will have to learn how to allocate resources among individuals in the household and learn how to set aside enough money to pay for emergencies, education, vacations etc. Finance also helps me understand how to manage risks such as for disability, life and health. ? Finance helps me determine whether the home I want to buy is a good value or not. The study of finance also helps me determine the cheapest source of financing for the purchase of that home. Finance helps me determine how much money I will have to save in order to pay for my children’s ? education as well as my own retirement. Major Tradeoffs: SAMPLE ANSWER ? Spend money now by going to college (and possibly graduate school) but presumably make more money once I graduate due to my higher education. Consume now and have less money saved for future expenditures such as for a house and/or car or save ? more money now but consume less than some of my friends Financial Decisions of Households 2. What is your net worth? What have you included among your assets and your liabilities? Would you list the value of your potential lifetime earning power as an asset or liability? How does it compare in value to other assets you have listed?

兹维博迪金融学第二版试题库2TB

Chapter Two Financial Markets and Institutions This chapter contains 49 multiple-choice questions, 20 short problems and 10 longer problems. Multiple Choice 1. A market that has no one specific location is termed a(n) ________ market. (a)over-the-counter (b)geographic location (c)intermediary (d)conceptual Answer: (a) 2. ________ problems arise because parties to contracts often cannot easily monitor or control one another. (a)Payment (b)Counter (c)Incentive (d)Exchange Answer: (c) 3. Incentive problems take a variety of forms and include: (a)moral hazard (b)adverse selection (c)principal-agent (d)all of the above Answer: (d) 4. The ________ problem exists when having insurance against some risk causes the insured party to take greater risk or to take less care in preventing the event that gives rise to the loss. (a)moral hazard (b)adverse selection (c)principal-agent (d)all of the above Answer: (a)

兹维博迪金融学第二版试题库08TB

Chapter Eight Valuation of Known Cash Flows: Bonds This chapter contains 50 multiple choice questions, 18 short problems and 9 longer problems. Multiple Choice 1. A ________ is a quantitative method used to infer an asset's value from market information about the prices of other assets and market interest rates. (a)fixed model (b)perpetual valuation model (c)valuation model (d)variable model Answer: (c) 2.________ are examples of fixed-income securities. (a)Common stock and pension funds (b)Mortgages and pension annuities (c)Mutual funds and common stock (d)Preferred stock and common stock Answer: (b) 3.Consider a fixed-income security that promises to pay $150 each year for the next five years. How much is this five-year annuity worth if the appropriate discount rate is 7% per year? (a)$534.74 (b)$615.03 (c)$802.50 (d)$867.96 Answer: (b) 8-1

博迪《金融学》(第2版)笔记和课后习题详解修订版答案

博迪《金融学》（第2版）笔记和课后习题详解（修订版）完整版>精研学习?>无偿试用20％资料 全国547所院校视频及题库全收集 考研全套>视频资料>课后答案>往年真题>职称考试 第1部分金融和金融体系 第1章金融学 1.1复习笔记 1.2课后习题详解 第2章金融市场和金融机构 2.1复习笔记 2.2课后习题详解 第3章管理财务健康状况和业绩 3.1复习笔记 3.2课后习题详解 第2部分时间与资源配置 第4章跨期配置资源 4.1复习笔记 4.2课后习题详解 第5章居民户的储蓄和投资决策 5.1复习笔记 5.2课后习题详解 第6章投资项目分析 6.1复习笔记 6.2课后习题详解 第3部分价值评估模型 第7章市场估值原理 7.1复习笔记 7.2课后习题详解 第8章已知现金流的价值评估：债券 8.1复习笔记 8.2课后习题详解 第9章普通股的价值评估 9.1复习笔记 9.2课后习题详解 第4部分风险管理与资产组合理论 第10章风险管理的原理 10.1复习笔记 10.2课后习题详解

第11章对冲、投保和分散化 11.1复习笔记 11.2课后习题详解 第12章资产组合机会和选择 12.1复习笔记 12.2课后习题详解 第5部分资产定价 第13章资本市场均衡 13.1复习笔记 13.2课后习题详解 第14章远期市场与期货市场 14.1复习笔记 14.2课后习题详解 第15章期权市场与或有索取权市场 15.1复习笔记 15.2课后习题详解 第6部分公司金融 第16章企业的财务结构 16.1复习笔记 16.2课后习题详解 第17章实物期权 17.1复习笔记 17.2课后习题详解

兹维博迪金融学第二版试题库10TB

Chapter Ten Principles of Risk Management This chapter contains 30 multiple choice questions, 10 short problems, and 5 longer problems. Multiple Choice 1.________ that “matters” because if affects people's welfare. ________ exists whenever one does not know for sure what will occur in the future. (a)Uncertainty is risk; Uncertainty (b)Risk is uncertainty; Uncertainty (c)Risk is uncertainty; Risk (d)Uncertainty is risk; Risk Answer: (b) 2.________ is a measure of willingness to pay to reduce one's exposure to risk. (a)Risk aversion (b)Risk avariciousness (c)Risk predilection (d)Risk inflation Answer: (a) 3.When choosing among investment alternatives with the same expected rate of return, a risk averse individual chooses the one with the ________ risk. (a)surest (b)most uncertain (c)lowest (d)highest Answer: (c) 10-1

博迪《金融学》第2版课后习题及详解(金融学)【圣才出品】

博迪《金融学》第2版课后习题及详解 第1章金融学 一、概念题 1．金融学（finance） 答：金融学是一项针对人们怎样跨期配置稀缺资源的研究。其主要研究货币领域的理论及货币资本资源的配置与选择、货币与经济的关系及货币对经济的影响、现代银行体系的理论和经营活动的经济学科，是当代经济学的一个相对独立而又极为重要的分支。金融学所涵盖的内容极为丰富，诸如货币原理、货币信用与利息原理、金融市场与银行体系、储蓄与投资、保险、信托、证券交易、货币理论、货币政策、汇率及国际金融等。 2．金融体系（financial system） 答：金融体系是金融市场以及其他金融机构的集合，这些集合被用于金融合同的订立以及资产和风险的交换。金融体系是由连接资金盈余者和资金短缺者的一系列金融中介机构和金融市场共同构成的一个有机体，包括股票、债券和其他金融工具的市场、金融中介（如银行和保险公司）、金融服务公司（如金融咨询公司）以及监控管理所有这些单位的管理机构等。研究金融体系如何发展演变是金融学科的重要方面。 3．资产（assets） 答：资产是指个人、公司或者组织拥有的具有商业或交换价值的任何物品，它能在未来产生经济利益，资产有三个非常重要的特征：①能在未来产生经济利益；②由实体控制；③由过去发生的事项或交易产生。

在国民账户体系中，资产是指经济资产，即所有者能对其行使所有权，并在持有或使用期间可以从中获得经济利益的资源或实体。资产可分为金融资产和非金融资产两大类。金融资产是指以价值形态或以金融工具形式存在的资产，它包括金融债权以及货币黄金和特别提款权。非金融资产是指非金融性的资产，它包括生产资产和非生产资产。 在企业财务会计中，资产是指由过去的交易和事项所形成的，并由企业拥有或控制，预期会给企业带来经济利益的资源。按流动性可分为流动资产和非流动资产两大类。流动资产是指企业可以在一年或超过一年的一个营业周期内变现或者耗用的资产。非流动资产是指不能在一年或者超过一年的一个营业周期内变现或耗用的资产。 4．资产配置（asset allocation） 答：资产分配是指将投资在各种资产（如股票、债券、不动产和现金等）中进行分配的过程。根据某人或者某机构特定情况和目标进行资产分配，可使投资的风险—收益组合最优化。资产配置是财务规划和资金管理中的一个重要概念。 5．负债（liability） 答：负债是指一个经济主体对另一个经济主体应尽的偿还义务，即应偿付的债务。常用的负债概念有金融负债和企业负债。金融负债指金融交易中的负债，它与金融债权相对应。金融债权和金融债务产生于一个经济主体向另一个经济主体提供资金时所缔结的契约关系，是同时对应存在的。企业负债指过去的交易、事项形成的现时义务，履行该义务预期会导致经济利益流出企业。企业负债按流动性分为流动负债和长期负债。流动负债指应在一年或者在超过一年的一个营业周期内偿还的债务；长期负债指偿还期在一年以上或者在超过一年的一个营业周期以上的负债。

博迪莫顿版金融学(第二版)课后习题答案

博迪莫顿版金融学(第二版)课后习题答案

金融学（第二版）答案 博迪默顿 第一章课后习题答案 一 . 我的生活目标： ●完成学业 ●找到一份自己喜欢且收入不菲的工作 ●结婚和生养子女 ●拥有我自己的房子 ●供养我的家庭生活 ●供养孩子上学 ●退休 在我实现目标的过程中，金融所扮演的角色： 答案样例：1，金融现在可以为我提供大学本科及研究生教育的学费并帮我完成学业，帮我决定投资于上学是否是一个好的投资决定 2，高等教育可以帮助提高我赚钱的能力以及获得一个我喜欢的工作的能力 3，当我结婚并且有了孩子以后，我就有了额外的金融责任（以具体情况

负债包括：学生贷款 信用卡结余的差额 各种租用金的协定（不包括转租） 应付车款 在计算净值时学生会特别地排除了他们一生潜在的赚钱能力的价值 三．一个单身汉之需要养活他自己，所以他可以独立自主的作出金融决策。如果他不想购买健康保险（而愿意承担由这个决定而带来的金融风险）那么除了这个单身汉自身，没谁会受这个决定的影响。另外，他不需要在家庭成员之间分配收入这件事上做任何决定。单身汉是很灵活自由的，可以选择住在几乎任何地方。他主要是在今天的消费（开支）和为明天储蓄之间做出权衡决策。既然他只需要养活他自己，那么他储蓄的重要性就比对一家之主的重要性小。 有许多孩子的一家之长必须在这些家庭成员中分配资源[或者说是收入].他们必须随时准备着处理各种风险,比如说潜在财政危机的突然发生[诸如家庭成员经历的严重健康问题,或者

因为火灾和其他疏忽导致的保险问题].因为在一般一个家庭里人会比较多,有些人生病或受伤的风险就会更大.并且因为家庭中有许多依赖性的个体,所以薪水收入者得认真地考虑生活和残疾保险.还有,家庭并不像个体那样富有机动性,这是因为有了适龄儿童的缘故,这个家庭会想离所谓好的学校近一点,同时良好的教育会对孩子将来的生活和财政状况有所裨益.因此一家之主的资源配置会更加的复杂:要有更多的钱于目前的消费（这也是他或她需要来抚养成员的）,但是同时又需要更多的钱储蓄起来以支付未来的费用,诸如教育和房屋购置,还有风险投资,比如生活和残障保险. 四．在双收入家庭中,家庭失去全部经济收入的风险比单收入家庭要小,同时,单收入家庭比双收入家庭更愿意购买残疾保险,人身保险.然而,如果单收入家庭需要有人照顾放学后回家的孩子,他们还要再支付照看小孩的额外费用. 五．学生们结合他们具体的经历和看法会给出不同的答案。很多的人很可能会说应该是在完成学业，并获得一份可观收入的工作之后实现经济上的独立。

兹维博迪金融学第二版试题库13TB(1)

Chapter Thirteen Capital Market Equilibrium This chapter contains 43 multiple choice questions, 19 short problems, and 9 longer problems. Multiple Choice 1.If one holds a diversified portfolio in which securities are held in the same relative proportions as in a broad market index, this is referred to as ________. (a)eliminating (b)discounting risk (c)indexing (d)capitalizing Answer: (c) 2.The CAPM provides a way of estimating ________ for use in a variety of financial applications. (a)actual rates of return (b)expected rates of return (c)expected standard deviation (d)actual standard deviation Answer: (b) 3.The CAPM may be used to provide ________. (a)inputs to DCF valuation model for stocks (b)inputs to DCF valuation model for bonds (c)estimation of a “fair” rate of return on invested capital (d)both (a) and (c) Answer: (d) 13-1

《金融学(第二版)》讲义大纲及课后习题答案详解 第十章

CHAPTER 10 AN OVERVIEW OF RISK MANAGEMENT Objectives ?To explore how risk affects financial decision-making. ?To provide a conceptual framework for the management of risk. ?To explain how the financial system facilitates the efficient allocation of risk-bearing. Outline 10.1 What Is Risk? 10.2 Risk and Economic Decisions 10.3 The Risk Management Process 10.4 The Three Dimensions of Risk Transfer 10.5 Risk Transfer and Economic Efficiency 10.6 Institutions for Risk Management 10.7 Portfolio Theory: Quantitative Analysis for Optimal Risk Management 10.8 Probability Distributions of Returns Summary ?Risk is defined as uncertainty that matters to people. Risk management is the process of formulating the benefit-cost trade-offs of risk-reduction and deciding on a course of action to take. Portfolio theory is the quantitative analysis of those trade-offs to find an optimal course of action. ?All risks are ultimately borne by people in their capacity as consumers, stakeholders of firms and other economic organizations, or taxpayers. ?The riskiness of an asset or a transaction cannot be assessed in isolation or in the abstract; it depends on the specific frame of reference. In one context, the purchase or sale of a particular asset may add to one’s risk exposure; in another, the same transaction may be risk-reducing. ?Speculators are investors who take positions that increase their exposure to certain risks in the hope of increasing their wealth. In contrast, hedgers take positions to reduce their exposures. The same person can be a speculator on some exposures and a hedger on others. ?Many resource-allocation decisions, such as saving, investment, and financing decisions, are significantly influenced by the presence of risk and therefore are partly risk-management decisions. ?We distinguish among five major categories of risk exposures for households: sickness, disability, and death; job loss; consumer-durable asset risk; liability risk; and financial asset risk. ?Firms face several categories of risks: production risk, price risk of outputs, and price risk of inputs. ?There are five steps in the risk-management process: risk identification, risk assessment, selection of risk-management techniques, implementation, review. ?There are four techniques of risk management: r isk avoidance, loss prevention and control, risk retention, risk transfer. ?There are three dimensions of risk transfer: hedging, insuring, and diversifying. ?Diversification improves welfare by spreading risks among many people, so that the existing uncertainty matters less. ?From society’s perspective risk-management institutions contribute to economic efficiency in two important ways. First, they shift risk away from those who are least willing or able to bear it to those who are most willing to bear it. Second, they cause a reallocation of resources to production and consumption in accordance with the new distribution of risk-bearing. By allowing people to reduce their exposure to the risk of undertaking certain business ventures, they may encourage entrepreneurial behavior that can have a benefit to society. ?Over the centuries, various economic organizations and contractual arrangements have evolved to facilitate a more efficient allocation of risk-bearing by expanding the scope of diversification and the types of risk that are shifted. ?Among the factors limiting the efficient allocation of risks are transactions costs and problems of adverse selection and moral hazard.