RSM332H1 Study Guide - Midterm Guide: Weighted Arithmetic Mean, Current Yield, Money Market Fund
Document Summary
Rsm332 summer 2014 - midterm exam solutions (exam is out of 50) Time value of money 2: ,827. 91 (3 marks, ,827. 91 (3 marks, price at t=7 = ,669. 31 (1 mark) total cfs = (1 mark), total return. = 34. 71% (1 mark), annualized return = 4. 35% (1 mark) Bonds 2: see solution (2 marks, see solution (2 marks, see solution (6 marks) Stocks 1: 3 marks for the right answer. 1 mark off for a calculation mistake but the right idea (i. e. , sum of two prices). 1 mark for getting the price of the two divisions correct but not summing them: 3 marks for the right answer. 2 marks for correct growth rate: 4 marks for the right answer. 3 marks for computing pveo and pvgo for the international subsidiary, but not multiplying by shares outstanding. 1 mark for correctly computing pveo for the international subsidiary but not multiplying by shares outstanding.
