1.
Arredondo, Inc., has current assets of $2,320, net fixed assets of $10,800, current liabilities of $1,425, and longterm debt of $4,130. Requirement 1: What is the value of the shareholders equity a
1.
award:
1 out of 1 point
Assume the total cost of a college education will be $385,000 when your child enters college in 15 years. You presently have $63,000 to invest.
Required: What annual rate of
.
award:
1 out of 1 point
Crabtree, Inc., had additions to retained earnings for the year just ended of $626,000. The firm paid out $125,000 in cash dividends, and it has ending total equity of $7.21
1.
The Timberlake-Jackson Wardrobe Co. has 10.2 percent coupon bonds on the market with eleven years left to maturity. The bonds make annual payments.
Required: If the bond currently sells for $1,165.
1.
Patience, Inc., just paid a dividend of $2.90 per share on its stock. The dividends are expected to grow at a constant rate of 4.75 percent per year, indefinitely. Assume investors require an 9 per
1.
Kings of Leon, Inc., has a book value of equity of $64,500. Long-term debt is $57,500. Net working capital, other than cash, is $22,300. Fixed assets are $92,100 and current liabilities are $7,300.
1.
Requirement 1: Fill in the missing numbers in the following income statement (Do not include the dollar signs ($):
Sales Costs Depreciation EBIT Taxes (35%) Net income
$
644,100 345,600 96,300
$ $
1.
You have $36,300 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $3,800 and then deposit a check for $7,200.
Required: What are your disbursement, collect
1.
Find the EAR in each of the following cases (Do not include the percent signs (%). Use 365 days in a year. Round your answers to 2 decimal places (e.g., 32.16):
Stated Rate (APR) 11.7 % 5 14.2 5 17
1.
Offshore Drilling Products, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year 0 1 2 3 4 Cash
1.
Suppose a stock had an initial price of $95 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $114.
Requirement 1: Compute the percentage total return.
1.
You own a portfolio that has $2,700 invested in Stock A and $3,800 invested in Stock B. Assume the expected returns on these stocks are 12 percent and 18 percent, respectively.
Required: What is th
1.
Use the information below to answer the following questions. U.S. $ EQUIVALENT 0.3053 1.3166 0.0761 0.8847 0.001738 0.6619 0.5752 CURRENCY PER U.S. $ 3.3707 0.7595 13.1406 1.1326 575.37 1.5108 1.73
FBE 529: Financial
Analysis & Valuation
Lecture 3
Value Drivers - Continuation
Value Drivers
We have seen that the key to value creation is having high ROIC and being
able to grow, without compromisin
FBE 529: Financial
Analysis & Valuation
Lecture 6
Estimating a Firms Cost of Capital
Firms Cost of Capital
We have seen how to measure and forecast firms free cash
flows.
The discounted value of the
FBE 529: Financial
Analysis & Valuation
Lecture 6
Estimating a Firms Cost of Capital Continuation
Cost of Equity (re)
The cost of equity is the rate of return investors expect from
investing in the f
FBE 529: Financial
Analysis & Valuation
Lecture 4
Free Cash Flows
Introduction
We have seen that we will focus on valuing the operations of
companies
Once we have valued their operations, we can est
FBE 529: Financial
Analysis & Valuation
Lecture 8 Enterprise Valuation in the
Context of Leveraged Buyouts (LBOs)
LBOs Overview
In a leveraged buyout, a company is acquired by a specialized
investmen
FBE 529: Financial
Analysis & Valuation
Lecture 10 - Continuation
Relative Valuation Using Market
Comparables
Motivation
The right comparable companies need to have a similar
business risk (risk of t
FBE 529: Financial
Analysis & Valuation
Lecture 9 - APV Approaches
APV Approaches
We have seen so far that in many examples we cannot
use the WACC
We have seen how to estimate enterprise value using
FBE 529: Financial
Analysis & Valuation
Lecture 10
Relative Valuation Using Market
Comparables
Introduction
Relative valuation using market comparables: technique
used to value businesses and busines
FBE 529: Financial
Analysis & Valuation
Lecture 11
Relative Valuation in the Context of
IPOs
Relative Valuation for Initial
Public Offerings
The market comparables approach plays an important
role in
FBE 529: Financial
Analysis & Valuation
Lecture 5 Forecasting Financial
Performance
Forecasting Firms Cash Flows
Three key steps:
(1) Using historical financial statements, figure out how to compute f
FBE 529: Financial
Analysis & Valuation
Lecture 2
Fundamental Analysis Intrinsic Value
Fundamental (Intrinsic)
Value
What is the fundamental value of a company ?
CF1
CF2
DCF CF0
.
2
1 r1 (1 r2 )
whe
FBE 529: Financial
Analysis & Valuation
Lecture 5 Forecasting Financial
Performance - Continuation
Forecasting Financial Performance
As we have seen last time, there are two key components to this ana
2. McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $820 per set and hav
$155,000 for a marketing study that determined the company will sell 21,000 sets per year for
Describe Splunks business:
Splunk provides innovative software solutions for searching, collecting, monitoring and analyzing the machine-generated big data. Their main product is Splunk Enterprise, a
ACCT 416: Financial Reporting and Analysis
Course Outline
Course Description
The objective of this half semester class is to provide you with a framework for analyzing a firms
past performance to prov
eVal
Version 5.00
Russell
Russell Lundholm
Lundholm
Richard
Richard Sloan
Sloan
2017, Russell Lundholm and Richard Sloan.
STEPS:
1) enter financial data on the Financial Statements sheet,
2) examine