FI.APP.B - appcndix b Problems Answers End-olChopter to We...

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appcndix b We present here some intermediate steps and final answeE to selected end{f-chapter prcblems. Please note that your answer may differ slightly from ours due to roundinS differences. Also, although we hope not, some oI the problems nlay have morc than one correct solution, depending on wlut assumptions are made in working the problem. Finally, many of the prob- lems involve some verbal discussioll as well as numc cal calculations; this verbal materirl is not presented here. (2.11 FVi = $16,105.10. 12-21 PV $1,292.10. l2-3) I/YR 8.017. . {2-41 N : 11.01 years. 12"51 N=11years. 12-6], wA, = 91,725.22, FVAs D," $1,845.99. Q-n PV:$923.94;W = 91,466.24. 12"8) PMT $444.89; EAR = 12.6825%. l2'9) a. $s30. b. $s61.80. c. $471.70. d. $445.00. {2-l0l a. $895.42. b. $1,552.92. c. $279.20. d. $160.99. (2'l l) a. N 10.24 - 10 years. b. N 7.27 :7 c. N 4.19 :4 d.N=1.00-1year. Answers to End-olChopter Problems 12-12]' a.56,374.97. b. $1,105.13. c. $2,000.00. d. \ll $7,012.46. (2) $1,160.38. (3) $2,000.00. (2"I3) a. $2,457.83. b. $865.90. c. $2,000.00. d. (1) $2,703.61. $909.19. l2-t4j a. PV^ $1,251.25. PV8 $1,300.32. b. PV^ $1,600. PVr, l2-t5l a.7ak. b. 7e/a. c.9o/0. d. I5%. (2-16) a. $881.17. b. $895.42. c. $903.06. d. $908.35. 12-17l' a. $279.20. b. $276.U. c. $443.72. 12-18]' a. $5,272.3". b. $5,374.07 . l2.l9i a. Universal, EAR 7%. Regional, EAR 6.14%. 12-201 a. PMT : $6,594.94. inter€stl $2,500. Interest, !i2,090.51. b. xi13,189.87. c. $4,137.27. l2'2tl ^. l:14.87% 157a
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12-221 I=7.188. 12-231 I=98. 12-241 a. $33,872.11. b. (1) $26,243.15. (2) $0. (2-251 N:14.77 = 15 years. (2-261 5 years, $1,106.01. 12-271 $1,428.57. Q) $714.29. 12-281 $893.26. l2-29J $984.88. l2-3O) s7.'r8%. 12"311 a.91432.42. b. $93.07. 12"32) INoM 1s.19%. 12-33) PMT $36,949.61. 12-34) Firct PMT - $9,736.96. {3-r) s.8%. \3"2) 25%. {3-3) $1,000,000. {3.4) $2,500,000. (3.5) $3,600,000. {3-6) $20,000,000. (3"4 Tax $107,855j M : $222,145, Marginal tax rate : 39%i Avera8e tax rate - 333%. (3-8) a. Tax : $3,575,000. b. Tax $350,000. c. Tax $105,000. l3-9) AT&T prcIercd stock = 5.37%; Ro dabond 5%. {3-10) NI $450,000, NCF = $650,000. {3-l I) a. $2,400,000. b. NI $0; NCF : $3,000,000. c. NI $1,350,000, : $2100,000. l3-l2J a. NOPAT $90,000,000. ' b. Nowco6 $210,000,000; NOWC0T $192,000,000. 9a60,000,000, vPcLour,lt LoPr4L07 $492,000,000. d. FcF $58,000,000. Answers to End{f.Chopler Prcblems 1003 13-13) Retund $120,000. Future rax€s = $0, $0, 940,000; 960,000, 960,000. {4-rl AR: $400,000. u-21 D/A- 40V". 14-31 M/B 10. (4-41 P/E - 16.0. (4-51 ROE:12%. (4-61 S/TA 5; TA,/E 1.5. (a"1 CL $2,00O000; Inv = $1,000,000. (4-gl Net profit margin : 2%, D/A= 40%. (4"91 $262,500, 1.19x. l4-r0l TIE:3.86x. (4-l ll A//P $90,000,Inv : $90,000, FA $138,000. (4-l2l Sales $2592,000; DSO : 36.33 days. (4-13) a. Curreni raiio 1.98xt DSO = 75 days; Total assets tumovff = 1.7x; Debt ratio 61.9%. (4-14) a. Quick mtio 0.8xj DSO 37 days, ROE 13.1%; 54.8%. l5^1) $e28.3e. I l5-2) 12.48Ea. l5-3) 8.55%. 15-41 7%;7.33Eo. ls-s) 2.5%. (5"6) 0.3%. {5"71 $1,08s.80. 15'81 YTM- 6.62%YTC 649%. (5-91 a. 5%:VL $1518.98, Vs = fi1,047.62. gEa:YL= $L,1.71.1,Vs: $1,018.52. 12E0:vL $863.7&Ys: $982.14. {5.101 a. YTM ai $829 13.9870, YTM ai $1,104 6.50%. {5-lll 14.82%. l5-t2l a. 10.37%. b.10.91%.
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100,1 Appendix 0 Answ€rs ic Endof-Chopbr Prcbl6ms (5-r 3l 15-r4l |el5l 15"r6) c. -O.547o. d. 10.1570. 9.65%. 10.78Ea. YrC = 6.47%. a. lo-year, 10% coupon = 6.75Eot d. CV^ = 1.84 CVr = 1.E4; CVo = 1 76' (6131 \= 1.3471;\ s.6508.
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This note was uploaded on 06/08/2009 for the course FI 601-602 FI601-602 taught by Professor Prof.geary during the Spring '09 term at New Haven.

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FI.APP.B - appcndix b Problems Answers End-olChopter to We...

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