PROBLEM SET 1
Chapter 1 - Introduction to Healthcare Financial Management
Assigned Problem 1
Johnson Family Care Inc. is a large ambulatory care center that provides comprehensive 24-hour
primary and specialty care to a large suburban population in
-Creditors: look for trustworthy if payback
-Shareholders: return of investments
GAAP: Generally Accepted Accounting Principles
The rules used in the US to report to calculate and report information in the financia
Homework Set 1 Scratch Paper (Chapters 1, 2, and 3)
(1) This homework set has 50 questions worth one (1) point each.
(2) Print out this scratch paper and start working on the homework as each chapter is covered.
(3) Submit your a
Homework Set 2 Scratch Paper (Chapters 4, 5, 6, and 7)
(1) This homework set has 60 questions and is worth a total of 50 points. Each concept question
is worth half (0.5) point and each quantitative question one (1) point.
Homework Set 4 (Not graded)
Final exam preparation
Answers are in italics
Before the exam
Read the chapters; Specifically review the definitions provided in the textbook
Review the definition of each financial ratio
Review the sl
Chapter 2 MiniCase
Financial Statement and Cash Flow Analysis
You have been hired by First Citizens Bank as a financial analyst. One of your first job assignments
is to analyze the present financial condition of Bradley Stores, Incorporated. You are provi
What is Depreciation?
Buildings, machinery, equipment, furniture, fixtures, computers, outdoor lighting, parking lots,
cars, and trucks are examples of assets that will last for more than one year, but will not last
indefinitely. During each accounting pe
Corporate Income Tax
$50,000 x 0.15 = $7,500
($75,000 - $50,000) x 0.25 = $6,250
($100,000 - $75,000) x 0.34 = $8,500
($150,000 - $100,000) x 0.39 = $19,500
Tax bill = $41,750
Average tax rate = $41,750/$150,000
= 0.2783 or 27.83%
If the firm earns $1 mor
Double Taxation Example 1
If a corporation has pre-tax earnings of $110,000
while the corporation is subject to a 35% income
tax rate and an investor is subject to a 35%
personal tax rate and a 15% capital gains tax
rate, then what is the after-tax income
Chapter 01 Introduction to Corporate Finance Answer Key
Multiple Choice Questions
1. This book is mainly about:
financial decisions made by corporations.
B. financial decisions made by households.
C. financial decisions made by governments.
FINA 3385.01 Fall 2014 Exam 3
1) Which of the following statements is (are) true regarding renters insurance?
I. Renters insurance is needed if you rent a house, but is not needed if you rent an
II. The ISO renters policy provides a
Cash Flow Analysis and Capital Budgeting
The capital budget of a firm is the cash a firm has to purchase capital goods or to invest in capital
In economics and finance capital is defined as plant and equipment, tools, machines, and intellectual
a. Robert Williams should not retire early because the
present value of his cash flows is $1,713 greater than the $500,000
c. Ruth should take the second offer for the series of
payments because it has a higher present value than the $1,000,0
INTRODUCTION TO FINANCE TVM Handout
1. What is the FV in 5 years of $1,500 deposited today in a CD paying 6.5% compounded annually?
a. Compounded semiannually?
b. Compounded quarterly?
c. Compounded daily?
2. How much should you deposit today in a savings
Zero coupon bonds: these bonds have a coupon rate of zero, i.e. they do not pay coupon
payments over the life of the bond.
Zero coupon bonds always sell for a discount, i.e. for less than par value.
Calculate the price of the following zero coupon
FINANCE CH 2
LIQUIDITY RATIOS: show the ability to meet short-term obligations.
1. Current Ratio: Current assets
2. Quick Ratio: Current Assets Inventory
3. Cash Ratio: Cash
Solutions to 20160901 Practice problems =
The real question
Tax disadvantage or
corporate tax wedge
Tips to solve
(Op. Inc.) * [1-Tc] = after tax disposable
1) Calculate Firm A (Partnership)s after-ta
FINA3380 suggested practice problems keys
Tips to solve
FV = PV * (1+r)n
Interest earned = (future value in year X_new) (future value in year
In what manner do interests grow - linearly or expon