Lane Litton Finance 354 Hw
1
Chapter 3
1) A) 100 x 17.5 = 1750 1750- 1000 = 750
25% x 1000 = 250 750/250 = 3 or 300%
B) 50% x 1000 = 500 750/500 = 1.5 or 150%
C) 75% x 1000 = 750 750/750 = 1 or 100%
Is this correct? For some reason these numbers seem real
Lane Litton Finc. 354 Hw. 3
Chapter 9
2)
$1(1+.07) = $21.40 , the investor will not find this stock attractive, the investor would be
willing
.12 - .07
to pay $21.40 or less.
4)
k = .09 + (.15-.09) 1.5 = .18 $1(1+.06) = $8.83
.18 - .06
7)
k = .074+ (.12-.
Lane Litton Finc. 354 Hw 4
Chapter 13
3)
Debt/Equity = 700,000/300,000= 2.333
Debt Ratio = 700,000 / (700,000 + 300,000) = .7
4) 500,000/4 = 125,000 200,000 125,000 = 75,000 reduction in inventory would give them
turnover
4x/year
5)
Deb
t
Amount
($)
Inter
Lane Litton Finc. 354 Hw. 7
Chapter 19
1) A) Intrinsic value = 26-25= 1$
B)
Price of
Stock
Value of Call at
Expiration
20
0
25
0
30
5
40
15
calculations
20-25 = -5 (cant be
neg)
25-25 = 0
30-25= 5
40-25=15
C) price of the call rises from 4 to 15$. 11$ inc
McKinsey 30
As you read the McKinsey Book, the 30 key concepts we will focus on are listed below.
1.
Page 18, Exhibit 2.1 Growth and ROIC Drive Value
2.
Pages 29-31 The Math of Value Creation
3.
Page 107, Exhibit 6.3 ROIC of U.S.-Based Nonfinancial Compan