Section 1: Fill in the Blanks (2 points each) Complete each sentence, formula or phrase with the answer that best completes the sentence: FILL IN ANSWER IN 1 A company has a market value of Debt of $5,000,000 and outstanding Equity Valued at $50,000,000. The company has a WACC of 10%. The company's NOPAT is $7,500,000 and its EBITDA is $8,200,000. What is the Economic Value Added (EVA) 2 Two projects are said to be if choosing one project prevents you from doing another project. You cannot accept both projects. 3 Relative to the Nick Leeson / Barings Bank case, the main concept was Baring's Bank use of descentralized management allowing Nick complete autonomy on trades. 4 One standard deviation around the mean observation of returns for a given stock, measures or explains approximately % of the risk 5 When a bond is priced lower or higher than its par value, the market interest rate on bonds of similar risk is not equal to the coupon rate of the bond. To calculate the yield to investors of the bond in consideration of the coupon payments plus the amorization of the bond discount/premium, we calculate the 6 Paul Tudor Jones is an investment manager that takes fairly large risk positions in primarily contracts that speculate on the future prices of many underlying commodities and indexes such as Oil and Stock Index 7 Unlike Common Stock which may or may not pay a dividend, and unlike common stock which may or may not go up or down in valu this security considered equity ancing, is more stable and generally pays a fixed dividend which does not have growth from year to year: 8 The Real Rate of Interest calculated by taking the Nominal Rate and subtracting 9 is a financial statistic that measures the interralationship between two securities 10 2 Project analysis techniques which existed in the 1950's but were used less as better techniques developed like the NPV and IRR approaches are the Payback Method and the