TIME VALUE OF MONEY FORMULA SHEET
#
TVM Formula For:
Annual Compounding
Compounded/Payments
(m) Times per Year
1
Future Value of a
Lump Sum. (FVIFi,n)
FVn = PV( 1 + i )n
FVn = PV 1 i/m (mn)
2
Present Value of a
Lump Sum. (PVIFi,n)
PV =
FV
1 i n
or
Future
Final Exam-Practice Set #3
Identify the choice that best completes the statement or answers the question.
1. Easy Slider Inc. sold a 15 year $1,000 face value bond with a 10 percent coupon rate. Interest
is paid annually. After flotation costs, Easy Slide
Ch. 4 - DuPont equation
ROE = ROA * equity multiplier
Even though the DuPont equation gives the same ROE as the ROE equation, it helps
shows you WHY their ROE is that high or below an industry average
ROE = (profit margin * total assets turnover) * equ
Ch. 3 Financial Statements, Cash Flow, and Taxes
Financial statements and reports
Annual report a report issued annually by a corporation to its stockholders. It contains the 4
basic financial statements as well as a managements analysis of the firms past
Final Exam Practice Set #1
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Hindelang Inc. is considering a project that has the following cash flow and WACC data.
What is the project's MIRR? Note that a pr
Final Exam-Practice Set #2
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Wagner Inc estimates that its average-risk projects have a WACC of 10%, its below-average
risk projects have a WACC of 8%, and its
1. As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a
project with the following data. What is the Year 1 cash flow?
Sales revenues
$13,000
Depreciation
$4,000
Other operating costs $6,000
Tax rate
35.0%
Sales revenues
$
Practice Problems Solutions
1. Bauer Software's current balance sheet shows total common equity of $5,125,000. The company
has 530,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how
much do the firm's market and book val
Ch 6 Valuing Bonds
Valuing Bonds
A bond is a debt instrument issued by governments or corporations to raise money
The successful investor must be able to:
Understand bond structure
Calculate bond rates of return
Understand interest rate risk
Different
Practice Problems
1) Oak Furnishings is considering a project that has an up-front cost and a series
of positive cash flows. The projects estimated cash flows are summarized
below:
Year
1
2
3
4
5
Project Cash Flow
?
$500 million
300 million
400 million
60
FormulaSheet
FINA2201
(Note:Thissheetdoesnotlistmanyformulasthatareimportantfortheexam)
1.Current Ratio=
3.Debt Ratio =
Current Assets
Current Liabilities
Total Liabilities
Total Assets
5.Days Sales Outstanding =
7.Fixed Asset Turnover=
2.Quick Ratio =
Cu
Ray Cheng
Time Value of Money Problem
PART I
STEP ONE: TOTAL COST OF COLLEGE
TOTAL COST = ($50,000*(1.05^5) + ($50,000*(1.05^6) + ($50,000*(1.05^7) +
($50,000*(1.05^8)
TOTAL COST = $275,046.65
STEP TWO: DEPOSITS
X = DEPOSITS INTO ACCOUNT
$0 = ($7,500+X)*1
NORTHEASTERN UNIVERSITY
FINA-2201 MWR FINANCIAL MANAGEMENT
Fall 2014
Syllabus
Course Description from the 2013-2014 Undergraduate Catalog: Designed to develop
the financial skills and logical thought processes necessary to understand and discuss
financial
Lowell DSouza
FINA-2201 Financial Management
Financial Analysis
20X1
20X2
20X3
20X4
Return on Sales
(Net Profit Margin)
Return on Equity
Average Collection Period
(Days Sales Outstanding)
Inventory Turnover
Current Ratio
Quick Ratio
Times Interest Earned
Ch. 4 - DuPont equation
ROE = ROA * equity multiplier
Even though the DuPont equation gives the same ROE as the ROE equation, it helps
shows you WHY their ROE is that high or below an industry average
ROE = (profit margin * total assets turnover) * equ
(1+0.8/1+1.035)-1
Real loan interest : 4.35%
no need to consider overrun rate for the cheaper design, consider the regulation fee for pesimistic
to get PV, discount the cash flow by real discount rate 10.14%
ion fee for pesimistic Scenario as the toal int
Inflation rate
Discount rate
Refurbishing the plant(10 yrs)
New machinery(5 yrs)
Land sold
Purchase costs of the land
Tax
0.04
0.12
500,000
1,000,000
600,000
10,000
0.35
Year
0
1. Yards sold
2. Price per yard
3. Revenue in (1x2)
4. Cost of goods sold
5. O
million
# of common shares
Financial data, 2011-2015
(in $ millions)
Book Value, start of year
Earnings
Dividends
Retained Earnings
Book Value, end of year
($ per share)
BVPS, start
EPS
DIV
RE per share
BVPS, end
ROE
PE ratio
P0
1,000,000
400,000
2011
62.