Chapter 4: Time Value of Money Questions Book Title: Financial Management: Theory and Practice (4-2) What is an opportunity cost rate? How is this rate used in discounted cash flow analysis, and where is it shown on a time line? Is the opportunity rate a single number that is used to evaluate all potential investments? © 2017 Cengage Learning, Cengage Learning Chapter Review Questions (4-1) Define each of the following terms: a. PV; I; INT; ; PMT; M; ; ; b. Opportunity cost rate c. Annuity; lump-sum payment; cash flow; uneven cash flow stream d. Ordinary (or deferred) annuity; annuity due e. Perpetuity; consol f. Outflow; inflow; time line; terminal value g. Compounding; discounting h. Annual, semiannual, quarterly, monthly, and daily compounding i. Effective annual rate (EAR or EFF%); nominal (quoted) interest rate; APR; periodic rate j. Amortization schedule; principal versus interest component of a payment; amortized loan (4-3) An annuity is defined as a series of payments of a fixed amount for a specific number of periods. Thus, $100 a year for 10 years is an annuity, but $100 in Year 1, $200 in Year 2, and $400 in Years 3 through 10 does not constitute an annuity. However, the entire series does contain an annuity. Is this statement true or false? (4-4) If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain. (4-5) Would you rather have a savings account that pays 5% interest compounded semiannually or one that pays 5% interest compounded daily? Explain. Chapter 4: Time Value of Money Questions Book Title: Financial Management: Theory and Practice Printed By: Kristina Mack ([email protected]) © 2017 Cengage Learning, Cengage Learning © 2020 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder. BUS625: Data & Decision Analytics Week 1 Response 1 Guided Response: Your initial response should be a minimum of 300 words in length. Respond to at least two of your classmates by commenting on their posts. Do you see any additional value in their data? Though two replies are the basic expectation for class discussions, for deeper engagement and learning you are encouraged to provide responses to any comments or questions others have given to you. Continuing to engage with peers and the instructor will further the conversation and provide you with opportunities to demonstrate your content expertise, critical thinking, and real-world experiences with the discussion topics. Below there are two of my classmate’s discussion that needs I need to response to their names are Joann Newelland Farshad Farzad Joann Newell Discussion I currently work for JP Morgan Chase, and was surprised at how easy it was to fine financial information with a.

1. Chapter 4: Time Value of Money Questions
Book Title: Financial Management: Theory and Practice
(4-2)
What is an opportunity cost rate? How is this rate used in
discounted cash flow analysis, and where is it shown on a time
line? Is the opportunity rate a single number that is used to
evaluate all potential investments?
© 2017 Cengage Learning, Cengage Learning
Chapter Review Questions
(4-1)
Define each of the following terms:
a. PV; I; INT; ; PMT; M;
;
;
b. Opportunity cost rate
c. Annuity; lump-sum payment; cash flow; uneven cash flow
stream
d. Ordinary (or deferred) annuity; annuity due
e. Perpetuity; consol
f. Outflow; inflow; time line; terminal value
g. Compounding; discounting
h. Annual, semiannual, quarterly, monthly, and daily
compounding
i. Effective annual rate (EAR or EFF%); nominal (quoted)
interest rate; APR;
periodic rate
j. Amortization schedule; principal versus interest component of
a payment;
amortized loan
(4-3)
An annuity is defined as a series of payments of a fixed amount

2. for a specific number of periods. Thus, $100 a year for 10 years
is an annuity, but $100 in Year 1, $200 in Year 2, and $400 in
Years 3 through 10 does not constitute an annuity. However, the
entire series does contain an annuity. Is this statement true or
false?
(4-4)
If a firm’s earnings per share grew from $1 to $2 over a 10-year
period, the total growth would be 100%, but the annual growth
rate would be less than 10%. True or false? Explain.
(4-5)
Would you rather have a savings account that pays 5% interest
compounded semiannually or one that pays 5% interest
compounded daily? Explain.
Chapter 4: Time Value of Money Questions
Book Title: Financial Management: Theory and Practice
Printed By: Kristina Mack ([email protected]) © 2017 Cengage
Learning, Cengage Learning
© 2020 Cengage Learning Inc. All rights reserved. No part of
this work may by reproduced or used in any form or by any
means graphic, electronic, or mechanical, or in any other
manner - without the written permission of the copyright holder.
BUS625: Data & Decision Analytics Week 1 Response 1
Guided Response: Your initial response should be a minimum of
300 words in length. Respond to at least two of your classmates
by commenting on their posts. Do you see any additional value
in their data? Though two replies are the basic expectation for
class discussions, for deeper engagement and learning you are
encouraged to provide responses to any comments or questions
others have given to you. Continuing to engage with peers and
the instructor will further the conversation and provide you with
opportunities to demonstrate your content expertise, critical
thinking, and real-world experiences with the discussion topics.
Below there are two of my classmate’s discussion that needs I

3. need to response to their names are Joann Newelland Farshad
Farzad
Joann Newell Discussion
I currently work for JP Morgan Chase, and was surprised at how
easy it was to fine financial information with a quick google
search. Within the document for the 2018 annual report were
many sets of data, but what I found important and condensed
was a 10 year look of where we were and where we are now.
The Annual Report was specifically addressed to the
Shareholders, however the information could be useful to many.
https://www.jpmorganchase.com/corporate/investorrelations/doc
ument/annualreport-2018.pdf (Links to an external site.)
(Links to an external site.)
TEN-YEAR
RETROSPECTIVE
($ IN BILLIONS)
2008
2018
10-YEAR CAGR
REVENUE
$4.8
$9.1
7%
NET INCOME
$1.4
$4.2
11%
AVERAGE LOANS
$82
$206
10%
AVERAGE DEPOSITS

4. $103
$171
5%
The data points of Revenue, Net Income, average loans and
average deposits are Categorical, nominal variable, as they are
the names of the categories (De Veax, Sharpe, & Velleman,
2019, p. 9) and the years of 2008 and 2018 are also categorical
as they too are names of categories but are ordinal variable as
they possess an order (De Veax, Sharpe, & Velleman, 2019, p.
15). The data within the chart, the financial change over the ten
years, would be quantitative.
What are the important factors in the data set? How would you
handle missing data?
The important factors in the data set provided are the growth
over a ten-year time span and breaking that down further to
show the percentage of that change. Missing data in this chart
includes what makes up the revenue and net income, and if there
were any factors like promotions to consider in the growth. In
this case for the data that isn’t provided in the chart above there
are correlating documents in the annual report with more depth,
however in the case that the information wasn’t provided and I
were an analyst within the company I would pull the
information and create other charts or list of what exactly
contributed to the increases.
Explain the value of the data who might find this useful and
why?
The data is valuable as it shows a positive result in whatever
was changed from 2008 to 2018 in practices be that promotions
or other marketing, improved customer service, or simply a
change in economics during that time in order to prepare to do
better for the upcoming years. Many would find this useful like
stockholders making decisions on how to best invest; marketing
teams to generate “buzz” to obtain new customers or an increase
in activity for existing customers; executive positions need the
information to make accurate decisions on programs to approve,
or spending in certain areas over others; those looking to invest

5. would appreciate the data in anticipation of the next ten years
looking similar or better.
Farshad Farzad Discussion
($ MIllions)
4Q19
3Q19
4Q18
Net Revenue
$14,040
$14,259
$13,695
Consumer and Business
6,442
6,688
6,567
Home Lending
1,250
1,465
1,322
Card, Merchant Services, Auto
6,348
6,106
5,806
Noninterest Income
7,233
7,290
7,065
Provision for Credit Losses
1,207
1,311
1,348
Net Income

6. $4,231
$4,273
$4,028
https://www.jpmorganchase.com/corporate/investor-
relations/document/684e995c-fa63-4031-9da4-
7e2eb76218ab.pdf (Links to an external site.)
JP Morgan Chase and Company recently posted their fourth
quarter earnings for fiscal year 2019. The data points under
review are specific to Consumer and Community Banking
section of JP Morgan. The specific data points are, Net
Revenue, Noninterest Expense, and Provision for credit losses.
This time-series analysis is reviewed through two lenses,
quarter over quarter and year over year. According to Sharpe
(2019) “[a] time series is an ordered sequence of values of a
single quantitative variable measured at regular intervals…” (p.
10).
The data is reviewed by looking at third quarter 2019 results
measured against fourth quarter 2019 results. Net Revenue is
broken down by the different lines of businesses under the
Consumer and Community. The lines of businesses are:
Consumer and Business Banking, Home Lending, and Card,
Merchant Services and Auto. Net revenue in the fourth quarter
is slightly down compared to the third quarter. However, year of
year growth shows an overall growth for the line of business.
There is missing data that could be included such as, an
itemized breakdown of both the Consumer and Business
Banking to identify a weak spot in either line of business. In
addition, Home Lending is shown as one category, it does not
break it down between purchase and refinance businesses.
Lastly, Card, Merchant Services and Auto, are listed as one,
whereas if they were individualized on the results, one could
identify which one of these lines of business are carrying the
overall revenue. The data listed is represented in millions of
dollars indicated by the ($ millions), which makes the data
quantitative. As Sharpe (2019) explains “…quantitative
variables, the units tell how each value has been measured” (p.

7. 9).
When shareholders are making decisions on whether they would
like to buy, retain, sell, their stocks, they would review this
data to be able to make an informed decision. However, data
does not tell the whole story, it is just a glimpse of what is
going on in the business. Unless the data is verified by a third
company, you should always ensure you are making decisions to
buy, retain, or sell stock, based on many factors. Sharpe (2019)
argues “[a]lways be skeptical. One reason to analyze data is to
discover the truth” (p. 12).
BUSBUS 624 Law & Ethics in the Business Environment Week
1 Response 1
Guided Response: Respond to at least two of your peers’ posts
(as well as any comments made by your instructor) in a
substantive manner and provide information or concepts that
they may not have considered. Each response should have a
minimum of 150 words. Support your position by using
information from the week’s readings. You are encouraged to
post your required replies earlier in the week to promote more
meaningful and interactive discourse in this discussion forum
Below there are two of my classmate’s discussion that needs I
need to response to their names are Jairo Murillo and Racquel
Hood
Jairo Murillo Discussion
Why does it make a difference whether the speech in which
Coors was engaged (disclosure of the alcohol content) was
commercial speech or noncommercial speech?
If it fell under commercial speech, he would have had the right
to provide that information, while still being protected under

8. the First Amendment with few restrictions since it was not
misleading or called for any form of illegal activity. In the case
where it was noncommercial speech, he would have gotten full
protection from the First amendment just like if he were in court
as an individual party.
What type of speech (commercial or noncommercial) did the
Supreme Court determine that Coors was engaged in?
In this case they determined he was engaged in commercial
speech. This ruling was mostly in part because the attempt at
putting that information on the bottle was to set Coors apart
from its competitors in a way where they were being
informative to their customers on what was in their drinks and
what made them different. The goal was to make a profit from
this distinction causing the commercial speech ruling.
Suppose Coors started to sell cocaine and wanted to disclose the
purity of their cocaine on the packaging and in their
advertisements. What type of speech would this be? Would
disclosure of the purity of the cocaine be protected under the
First Amendment?
If they were to make a statement like that, they would fall under
commercial speech, this is because they are attempting to give
information to the public about the purity of their product to
gain an advantage over their competitors promoting sales and
higher profits. In this situation they would void any of their
protections they have completely due to it being unlawful to sell
cocaine in the United States at the time regardless of how they
present it.
Racquel Hood Discussion
· Why does it make a difference whether the speech in which
Coors was engaged (disclosure of the alcohol content) was
commercial speech or noncommercial speech?
According to the text, commercial speech is communicated "by
or on behalf of a company or individual for the purpose of
promoting a product, service, or business" (Langvardt et al.,

9. 2019, p. G3). Additionally, commercial speech is economically
focused and is intended to convince a target audience to
participate in a specific action, which is usually purchasing a
particular product (Langvardt et al., 2019, p. G3). The type of
speech makes a difference because although commercial speech
is afforded certain First Amendment protection, it does not have
the same amount of protection as non-commercial or political
speech; therefore, Coors would not receive full protection and
their constitutional right to free speech was not violated
(Langvardt et al., 2019, p. 82).
· What type of speech (commercial or noncommercial) did the
Supreme Court determine that Coors was engaged in?
The Supreme Court determined that Coors had engaged in
commercial speech because the profit motive outweighed any
additional value (Langvardt et al., 2019, p. 82).
· Suppose Coors started to sell cocaine and wanted to disclose
the purity of their cocaine on the packaging and in their
advertisements. What type of speech would this be? Would
disclosure of the purity of the cocaine be protected under the
First Amendment?
Although this type of speech would be considered commercial
speech, because cocaine is illegal to consume or sell, the
disclosure of cocaine purity would not be protected by the First
Amendment.
Chapter 5: Bonds, Bond Valuation, and Interest Rates Questions
Book Title: Financial Management: Theory and Practice
2017 Cengage Learning, Cengage Learning
Chapter Review Questions
(5-1)
Define each of the following terms:
a. Bond; Treasury bond; corporate bond; municipal bond;
foreign bond
b. Par value; maturity date; coupon payment; coupon interest
rate

10. c. Floating-rate bond; zero coupon bond; original issue discount
bond (OID)
d. Call provision; redeemable bond; sinking fund
e. Convertible bond; warrant; income bond; indexed bond (also
called a purchasing power bond)
f. Premium bond; discount bond
g. Current yield (on a bond); yield to maturity (YTM); yield to
call (YTC)
h. Indentures; mortgage bond; debenture; subordinated
debenture
i. Development bond; municipal bond insurance; junk bond;
investment-grade
bond
j. Real risk-free rate of interest, ; nominal risk-free rate of
interest,
k. Inflation premium (IP); default risk premium (DRP);
liquidity; liquidity premium (LP)
l. Interest rate risk; maturity risk premium (MRP); reinvestment
rate risk
m. Term structure of interest rates; yield curve
n. “Normal” yield curve; inverted (“abnormal”) yield curve
(5-2)
“Short-term interest rates are more volatile than long-term
interest rates, so short-term bond prices are more sensitive to
interest rate changes than are longterm bond prices.” Is this
statement true or false? Explain.
(5-3)
The rate of return on a bond held to its maturity date is called
the bond’s yield to maturity. If interest rates in the economy
rise after a bond has been issued, what will happen to the
bond’s price and to its YTM? Does the length of time to
maturity affect the extent to which a given change in interest
rates will affect the bond’s price? Why or why not?
(5-4)
If you buy a callable bond and interest rates decline, will the
value of your bond rise by as much as it would have risen if the

11. bond had not been callable? Explain.
(5-5)
A sinking fund can be set up in one of two ways. Discuss the
advantages and disadvantages of each procedure from the
viewpoint of both the firm and its bondholders.
Chapter 5: Bonds, Bond Valuation, and Interest Rates Questions
Book Title: Financial Management: Theory and Practice
Printed By: Kristina Mack ([email protected]) © 2017 Cengage
Learning, Cengage Learning
© 2020 Cengage Learning Inc. All rights reserved. No part of
this work may by reproduced or used in any form or by any
means graphic, electronic, or mechanical, or in any other
manner - without the written permission of the copyright holder.