SHERRY BROWNS DISCUSSION POST WEEK 2 (FI360)
Chap 3, Question 3
You are considering two investment plans. Plan A requires you to save $100 per month for 10 years.
Plan B requires you to save $200 per month for 5 years. Assuming that both plans earn the sa
Chapter 1 Q1-1. Why must a financial manager have an integrated understanding of the five basic finance functions? Why is the corporate governance function considered a finance function? Has the riskmanagement function become more important in recent year
P11-1. West Coast Manufacturing Company (WCMC) is executing an initial public offering with the
following characteristics. The company will sell 10 million shares at an offer price of $25 per
share, the underwriter will charge a 7% underwriting fee, and t
FI363 Final Examination Student Study Guide
Final Examination 1.05 This is a two-hour, closed book and closed notes test. Therefore, it cannot be a take-home test. Students are not allowed to use a computer during the test. Students are not allowed to bri
a. Payback on this bond is 25 years. You pay $1,000. You receive $40 a year for 25 years, a total of
b. The bond is not necessarily a bad investment. Payback does not take time value of money into account,
nor does it account for cash flows r
End of Chapter 1 Questions, Problems and Solutions CORPORATE FINANCE Professor Megginson Spring Semester 2003
Questions 1-1) Why must a financial manager have an integrated understanding of the five basic finance functions? Has the risk management functio
Q3-2. From a time-value-of-money perspective, explain why maximizing shareholder wealth and maximizing profits may not offer the same result or course of action. A3-2. Maximizing profits might not be the same as maximizing shareholder wealth. Profits are
Dividend Policy and Internal Financing
In determining the firm's dividend policy, two issues are important: the dividend payout ratio and the stability of the dividend payment over time. In this regard, the financial manager
Q9-1. In capital budgeting analysis, why do we focus on cash flow rather than accounting profit? A9-1. Accounting numbers may not accurately reflect when revenues are received or when payments are made. Net present value focuses on when money is actually
Q4-11. If the yield curve typically slopes upward, what does this imply about the long-term path
of interest rates if the expectations theory is true?
This would imply that investors should expect rates to rise (page 140 141, text)
Q5-2. How do you estima
Chapter 1: Problem 1-1
Less Corporate profits tax (Tc = 0.35)
Cash dividends or partnership distributions
Less: Personal tax on dividends (Tdiv = 0.15)
Less: Personal tax on partnership income (Tp =
Here is a basic study guide for the final. It is not all inclusive but it will definitely cover a majority of the topics. Know the different types of business forms. Know where different types of securities are sold and their related costs. Know what
Chapter 11: An Overview of Long-Term Financing
Answers to End of Chapter Questions
In the U.S., common stock can be sold with and without a par value. Par value has little real
economic significance. Most firms set a very low par value. Many states
Preface Description of Supplements Chapter 1: An Introduction to the Foundations of Financial ManagementThe Ties That Bind Living and Dying With Asbestos: Ethics Case Chapter 2: Chapter 3: Chapter 4: Chapter 5: Chapter 6: Chapter 7: Chapter 8: Ch
WEEK 1 HOMEWORK
A. Calculate the tax disadvantage to organizing a US business today as a corporation, as compared to a
partnership, under the following conditions. Assume that all earnings will be paid out as cash dividends.
FI - 360
P4-1) A best-selling author decides to cash in on her latest novel by selling the rights to
the books royalties for the next six years to an investor. Royalty payments arrive once per
year, starting one year from now. In the first year,
A Calculate the tax disadvantage to organizing a US business today as a corporation, as
compared to a partnership, under the following conditions. Assume that all earnings will
be paid out as cash dividends. Operating income (operat
You have $1,500 to invest today at 7% interest compounded annually.
How much will you have accumlated in the account at the end of the number of following years?
PV * (1.07)^3
End of Chapter 2 Questions, Problems and Solutions CORPORATE FINANCE Professor Megginson Spring Semester 2003 Questions
2.1) What information (explicit and implicit) can be derived from financial statement analysis? Does the standardization required by GA
FI360 - Financial Management
Week Six Homework
Chapter 11: Problems 11-1, 11-2
Problem 11-1 West Coast Manufacturing Company (WCMC) is executing an initial public
offering with the following characteristics. The company will sell 10 million
Appendix A: Financial Tables
APPENDIX A: FINANCIAL TABLES Table A1 Future Value Factors for One Dollar Compounded at r Percent for n Periods FVFr %,n = (1+ r ) n
4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732
P3-1) You have $1,500 to invest today at 7 percent interest compounded annually.
A - How much will you have accumulated in the account at the end of the following
number of years?
1). Three years
PV x (1.07)^3
$1,500 x (1.07)(1.07)(1.07)
FI360 - Financial Management
Week 3 Homework
Problem 3-1 you have $1,500 to invest today at 7% interest compounded annually.
a. How much will you have accumulated in the account at the end of the following number of
Future Value: FVn
Chapter 2Financial Statement and Cash Flow Analysis
1. Which of the following items can be found on an income statement?
a. Accounts receivable
b. Long-term debt
REF: 2.1 Financial Statements
2. If you o
A. Indicate whether each bond was sold at a discount, at a premium, or at its par value.
B. Determine the total discount or premium for each issue.
Premium/Discount (per Bond
Q2-2. Distinguish among the types of financial information contained in the various financial statements. Which statements provide information on a companys performance over a reporting period, and which present data on a companys current position? What s
Week 5 Homework
4 July 2013
P8-1. Chapter Suppose that the thirty year US Treasury bond offers a 4% coupon rate, paid semiannually.
The market price of the bond is $1,000, equal to its par value.
a. What is the payback period for this bond
Answers to End-of-Chapter Questions
Q8-2. In statistics, you learn about Type I and Type II errors. A Type I error occurs when a statistical test rejects a hypothesis when the hypothesis is actually true. A Type II error occurs when a test fails to reject
Initial responses are due by Thursday 11:59 PM CT.
Response to at least two peers are due by Sunday 11:59 PM CT.
Q8-1. Can you name some industries where the payback period is unavoidably long?
4-1. A best-selling author decides to cash in on her latest novel by selling the rights to the books
royalties for the next six years to an investor. Royalty payments arrive once per year, starting one
year from now. In the first yea
2 / 2 pts
Dale, a manager, is assessing possible alternatives for the solution of a quality problem in
his department. As Dale does so, he attempts to determine if a possible alternative will
threaten other company projects. Which of the follow
Based on information in our book ratio analysis is calculating and interpreting financial ratios to
assess a firms performance and status. (Smart and Graham pg. 40)
Additional articles viewed on this subject are referenced below.
What is 'Ratio Analy
1-1 Calculate the tax disadvantage to organizing a U.S. business today as a corporation,
as compared to a partnership, under the following conditions. Assume that all earnings
will be paid out as cash dividends. Operating in