Analytical Methods_PreCourse_Questions 090308

# Analytical Methods_PreCourse_Questions 090308 - Analytical...

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Analytical Methods Pre-Course Problems 1. Briefly define Future Value and answer the following questions: a. (5 points) At the end of three years, how much is an initial deposit of \$2000 worth, assuming an annual interest rate of 5%. b. (5 points) At the end of six years, how much is an initial \$10,000 deposit followed by 5 year-end, annual payments of \$500 worth assuming a compound annual interest rate of 10%? 2. Define Present Value and answer the following questions: a. (5 points) \$5000 at the end of three years is worth how much today, assuming a discount rate of 5%? b. (5 points) \$10,000 is received at the end of year one, \$2000 is received at the end of year two, and \$3000 is received at the end of year 3. What is the aggregate present value of these receipts, assuming a discount rate of 10% 9/6/2011 0:00 a9/p9 1

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Analytical Methods Pre-Course Problems 3. You have just obtained financial information for the past 2 years for Allied Corporation. Develop a Cash Flow Statement from the income statement and balance sheet. SHOW YOUR WORK. Income Statements for the Year Ending December 31 (Millions of dollars) 2005 2004 Sales \$3,000. 0 \$2850.0 2616.2 2497.0 EBITDA \$ 383.8 353.0 Depreciation and Amortization 100.0 90.0 EBIT \$ 283.0 \$ 263.0 Interest 88.0 60.0 EBT \$ 195.8 \$ 203.0 Taxes (40%) 78.3 81.2 Net Income \$ 117.5 \$ 121.8 Dividends \$ 57.5 \$ 53.0 Balance Sheet for the Year Ending December 31 (Millions of dollars)
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## This note was uploaded on 09/05/2011 for the course FIN 4405 taught by Professor Cowan during the Spring '11 term at Fairleigh Dickinson.

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Analytical Methods_PreCourse_Questions 090308 - Analytical...

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