HW#3
Please write your answers clearly. If you are required to solve the problem, show all the
appropriate steps for your answer. Otherwise, you may not receive the full points.
1. As the treasurer of a financial institution, your task is to forecast the
HW#4
1. Basedonthefollowinginformation,answerthequestions.
Korean Electronics
2015 Income Statement
Sales
Costs of goods sold
EBIT
Taxes (50%)
Net income
1,000,000
800,000
200,000
(100,000)
(100,000)
2015 Balance Sheet
Assets
Current assets
Net fixed asse
Stock Valuation
Chapter
Seven
Objectives
How stock prices depend on future dividends and dividend growth
Stock prices using the dividend growth
model
Zero growth vs. Constant growth vs. Nonconventional growth
Cash Flows for Stockholders
If you buy a share
Introduction to Valuation:
The Time Value of Money
Chapter
Three
Objectives
Time value of money
Future Value and Compounding
Present Value and Discounting
More on Present and Future Values
Basic Definitions
Time value of money
$10 today is worth more tha
Capital Budgeting
Chapter
Eight and Nine
Objectives
Payback & discounted payback
Average Accounting return
Internal rate of return
Net present value & Profitability Index
How to determine the relevant cash flows
Compute depreciation expense for tax
Good D
Interest Rates
Chapter
Five
Chapter Objectives
Explain Interest Rate Determination
Identify Major Factors Affecting the Level of
Interest Rates
Review and evaluate the key functions of
investment banking firms
Evaluate the key functions of brokerage
firms
Discounted Cash Flow
Valuation
Chapter
Four
Objectives
Future and Present Values of Multiple Cash
Flows
Valuing Level Cash Flows: Annuities and
Perpetuities
Comparing Rates: The Effect of Compounding Periods
Loan Types and Loan Amortization
Multiple Cash
HW #2
1)
Firm A issued 12-year bonds with a par value of $1,000 two years ago at a 9
coupon rate, paid semiannually. The yield to maturity on these bonds is 8
percent.
a) What is the current bond price?
BP=C[1-1/(1+r)^t]/r +FV/(1+r)^t
=(1000*0.09/2)[1-1/(
Financial Analysis
Chapter
Two
Objectives
Know how to standardize financial
statements for comparison purposes
Know how to compute and interpret
important financial ratios
Be able to compute and interpret the Du
Pont Identity
Understand the problems and p
HW #1
1.
Suppose company A expects to increase unit sales of i-phone by 15% per year for
the next 5 years. If you currently sell 3 million i-phones in one year, how many
phones do you expect to sell in 5 years?
FV= 3(1+.15)^5=6.034072 million units
2.
The
Michelle Banks
HW #1
1.
Suppose company A expects to increase unit sales of i-phone by 15% per year for the
next 5 years. If you currently sell 3 million i-phones in one year, how many phones
do you expect to sell in 5 years?
In 5 years, I will expect to
1.
Award: 3.57 out of 3.57 points
Show my answer
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year,
and had an ending share price of $66.
Compute the percentage total return. (Do not round intermedia
1.The Starr Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to grow at
a constant rate of 6 percent per year indefinitely. Investors require a return of 14 percent on the
company's stock.
What is the current stock pric
Capital Budgeting
Chapter
Five and Six
Payback & discounted payback
Average Accounting return
Internal rate of return
Net present value & Profitability Index
How to determine the relevant cash flows
Compute depreciation expense for tax
Ask ourselves the f
Solutions to Chapter 8 Problem Assignments
Check Your Understanding
1. 1. [LO 8.1] Asset Classification
How are assets classified to determine their tax treatment on disposition? What are other ways
to classify assets?
Solution: Assets are first classifie
Solutions to Chapter 9 Problem Assignments
Check Your Understanding
1. [LO 9.1] Gain/Loss Deferral
How are gain and loss deferral usually accomplished? How is holding period affected by gain
or loss deferral?
Solution: Gain or loss on disposal of an asset
Douglas-Roberts Industries
E17-16
Recording:
Pension Expense
Funding
Gains and
Losses
E17-16 Text Data
year
year
year
year
1. DETERMINE PENSION EXPENSE
($ in millions)
Service cost
$80
Interest cost
42
Expected return on plan assets ($32 actual, plus $
City of Monroe
Street and Highway Fund - General Ledger
DUE FROM
reference
Account Titles
Debits
Credits
bb
CASH
21,000
INVESTMENTS
59,000
bb
bb
STATE GOV'T
109,000
type debit accounts in this column
type credit accounts in this column
3-C
Estimated Reven
Solutions to Chapter 8 Problem Assignments
Check Your Understanding
1. 1. [LO 8.1] Asset Classification
How are assets classified to determine their tax treatment on disposition? What are other ways
to classify assets?
Solution: Assets are first classifie
Complex Gym
Your cleaning person, Abe Able, has managed to inadvertently foul up the programming
on all your fitness machines, by dusting their keypads with a static-filled rag. This
means, for example, that the stair climbers have only two positions-"off
Solutions to Chapter 7 Problem Assignments
Check Your Understanding
1. [LO 7.1] Basis
Linda inherited a car from her Uncle Ted, who had purchased the car two years ago for
$38,000. The cars value was $30,000 at the date of Teds death. What is Linda's basi
Exam-type questions
Chapter 9
1.
2.
Stock A has a required return of 10 percent. Its dividend is
expected to grow at a constant rate of 7 percent per year. Stock B
has a required return of 12 percent. Its dividend is expected to
grow at a constant rate of
City of Monroe - General Fund Journal Entries
reference
Account Titles
Posted? X type debit accounts in this column
type credit accounts in this column
3-Ca
Estimated Revenues
Estimated Other Financing Uses
Appropriations
Budgetary FB
4-Ca1
Encumbrances
B
Chapter 13 1. Jane's Donut Co. borrowed $200,000 on January 1, 2009, and signed a twoyear note bearing interest at 12%. Interest is payable in full at maturity on January 1,
2011. In connection with this note, what amount should Janes report as interest e
Chapter 11 U. S. Social Security Program
A. Basic Principles of Social Insurance
OASDI : Old-Age, Survivors, and Disability Insurance
OASDHI= OASDI + HI (Health Insurance, Medicare)
I. Basic Principles and Characteristics of OASDI
1. Compulsory program by
Ch. 1 & 2 Introduction to Retirement Income Planning
What Makes Our Life Happy?
Claudia Wallis, The New Science of Happiness, Time, January 9, 2005,
http:/www.time.com/time/magazine/article/0,9171,1015832,00.html
Tom Rath and Jim Harter, Well Being: The F