EMGT6350
FALL 2014
ASSIGNMENT # 9
Weighted Average Cost of Capital (WACC) & 4 methods of Capital Budgeting
Dear Participants of Financial Management for Engineers Course:
Please solve the following 2 problems.
THERE IS A TOTAL OF (10) POINT FOR THIS ASSI
NORTHEASTERN UNIVERSITY
COLLEGE OF ENGINEERING
*
FINANCIAL MANAGEMENT FOR ENGINEERS (EMGT6305)Sec: 02 & 35
INSTRUCTOR: H. NOORIAN
FALL 2015
Class Meeting Times: Wednesday 6:009:30 p.m. Location:Room 309 Kariotis Hall
Office Hours: By appointment only
P
31. We are given the following information for the Pettit Copporation.
Sales$3,OOO,OOO
Cash$150,OOO
Inventory850 ,000
Current liabilities7oo,OOO
Asset turnover1.25 times
Current ratio2.50 times
Debttoassets ratio40%
Receivables turnover6 times
A
EMGT6305
2014
ASSIGNMENT # 10
FALL
THIS ASSIGNMENT HAS 4 PROBLEMS AND PLEASE SOLVE ALL OF THEM
1. Each of two mutually exclusive projects involves an investment of $ 104,000.
Net cash flows for the projects are as follows:
Year
Project A
Project B
1
$32
EMGT6305
ASSIGNMENT # 5
FALL 2014
Please solve the following 2 problems.

1. Using the DuPont method, evaluate the effects of the following relationships for the Star
corporation.
Star Corporation has a profit margin of 5 percent and its return on asset
EMGT6305Fall 2014
Assignment # 7
The assignment has two problems with 5 points each; for a total of 10 points
1. You are about to purchase a 10year bond, ($1,000 face value) with 4% annual coupons.
If the current market rate is 6%, at what price shou
EMGT6305
FALL 2014
Please solve the following 2 problems.
1. XYZ Chocolate Company has $280,000 of 6% bonds outstanding along with 10,000
shares of $2.80 preferred stock and 200,000 shares of common stock. Assuming the
firm has a 36% tax rate, compute th
EM GT6305
Assignment #3
Question 1 (Problem 411, Page 125 from text book)
Indicate the effects of the transactions listed in the following table on total current assets, current ratio, net income and cash flow.
Use (+) to indicate an increase, H to indi
84 Part2 Financial Analysis and Planning
inventory will still be charged off at $5 per unit. Also assume selling and
administrative expense will be 5 percent of sales and depreciation will
be unchanged. The tax rate is 30 percent. Compute aftertax income
Financial Statements
Outdoors, lino, publishes magazines for skiers and hikers. The rm has the following adjus
trial balance at December 31:
3'
dz?!
' OUTDOORS, INC.
3' r . . Adjusted Trial Balance
i i i December'31, 2010 '
,. Debit
i
Assignment #1 Pooja Ghosh
Current Assets: Current Liabilities:
Cash Accounts payable
A / R Unearned Service Fees
Supplies . Total Current Liabilities
Prepaid advertizing Total Liabilities
Total Current Assets
Fixed Assets: Stock Holders Equity:
Trucks 28,
ASSIGNMENT # 8
Super Normal Stock valuation
Dear Participants of Financial Management for Engineers Course:
PROBLEM # 1 (6 points)
ABC Company currently pays a dividend of $4.50 per share, D0=4.50 It is estimated that the
companys dividend will grow at a
k:
Huazong Liu EMGT 6305 Fall 2014 NU ID: 001909983
Questionl:
New Horizon Inc. is considering investing in a new project. New Horizon feels that its optimal
capital structure is composed of 60% equity (common stocks); 30% longterm debt and 10%
short ter
I“
P
Financial Statements
Outdoors, Inc., publishes magazines for skiers and thCI‘S. The ﬁrm has the following adjust ‘K
trialvbalance at December 31:
an mmylmmw4 . n» .ﬂm.w. ~me~<bl w.. ». "Am w»\»— __ w.,~_m_
I ourooons‘, Inc,
It Adjusted Trial
EMGT 6305
Financial Management for Engineering
Assignment#10
Hange Meng
NUID: 001731107
EMGT 6305
Assignment#10
Hange Meng
1. New Horizon Inc. is considering investing in a new project. New Horizon feels that its optimal capital
structure is composed of 6
EMGT 6305
Financial Management for Engineering
Assignment#09
Hange Meng
NUID: 001731107
EMGT 6305
Assignment#09
Hange Meng
1. ABC Company currently pays a dividend of $4.25 per share,
D0 =4.25. It is estimated that the
companys dividend will grow at a rat
EMGT 6305
Financial Management for Engineering
Assignment#08
Hange Meng
NUID: 001731107
EMGT 6305
Assignment#08
Hange Meng
1. You are about to purchase a 15year bond, ($1,000 face value) with 3% annual coupons. If the
current market rate is 5%, at what p
EMGT 6305
Financial Management for Engineering
Assignment#07
Hange Meng
NUID: 001731107
EMGT 6305
Assignment#07
Hange Meng
1. Calculate the total tax liability, average tax rate, and marginal tax rate for ABC Company, with a
taxable income of $880,000
Tax
EMGT 6305
Financial Management for Engineering
Assignment#06
Hange Meng
NUID: 001731107
EMGT 6305
Homework 06
Hange Meng
1. You wish to retire after 35 years, at which time you want to have accumulated enough money to
receive an annuity of $110,000 a year
EMGT 6305
Financial Management for Engineering
Assignment#05
Hange Meng
NUID: 001731107
EMGT 6305
Homework 05
Hange Meng
Q1: XYZ Chocolate Company has $680,000 of 4% bonds outstanding along with 20,000 shares of $1.60
preferred stock and 2,000,000 shares
EMGT 6305  Financial Management for Engineers
Indicate the effects of the transactions listed in the following table on total current assets, current ratio, net income and
cash flow. Use (+) to indicate an increase, () to indicate a decrease, and (0) to
TRIAL BALANCE AND FINANCIAL MANAGEMENT
Statement of Retained Earnings
For The Month Ended March 31
P: 2
Beginning Retained Earnings
Net income
Less Dividends
Net increase in revenue
Ending Retained Earnings
6,000
11,100
900
10,200
16,200
TRIAL BALANCE AND
ASSIGNMENT7
1. Calculate the total tax liability, average tax rate, and marginal tax rate for ABCD Company,
with a taxable income of $720,000
Taxable Income
Tax Rate
$0 to $50,000
15%
$50,000 to $75,000
25%
$75,000 to $100,000
34%
$100,000 to $335,000
39
34.
PETTIT CORPORATION
BALANCE SHEET
CURRENT ASSETS
Cash
Accounts Receivable
Inventory
Marketable Securities
Total Current Assets
150,000
500,000
850,000
250,000
CURRENT DEBT
700,000
LONG TERM DEBT
TOTAL DEBT
NET WORTH EQUITY
260,000
1,750,000
FIXED ASSET
ASSIGNMENT8
1. You are about to purchase a 20year bond, ($1,000 face value) with 4% annual coupons. If the current
market rate is 5%, at what price should you be willing to buy this bond, assuming that this bond pays
interest on an annual basis?
Sol: Gi