Given Information:
Shares of Stock
Total Dividend Paid
EPS
Return on Equity
Required Return
EPS without the write-off
150000
$320,000
5.35
0.21
0.18
$2.07
Blue Ribband Motors Corp.
Bon Voyage Marine Inc.
Nautilus Marine Engines
Industry average
EPS
$1.09
Team Analysis of Mini Case:
East Coast Yachts Goes International
Team Member:
Yayuan Chen
Ruoyan Wang
Suzanne Rhodes
2014/11/30
EAST COAST YACHTS GOES INTERNATIONAL
Larissa Warren, the owner of East Coast Yachts, has been in discussions with a yacht
deale
Question 2:
The Best Manufacturing Company is considering a new investment. Financial projections for the
investment are tabulated here. The corporate tax rate is 34 percent. Assume all sales revenue is received in
cash, all operating costs and income tax
1. Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine.
According to the cash flows, cumulative cash flows are easy to calculate.
Year
Cash Flows
0
It is possible to build a fairly efficient portfolio using 5 stocks, but also possible
to have a totally inefficient portfolio by combining the wrong 5 stocks. Explain.
Efficient portfolio is a portfolio that can provides the greatest expected rate of ret
1. You recently went to work for Vanguard Mutual Funds and were assigned the
task of watching for potential agency issues at 50 of the companies in which
Vanguard owns a significant percentage of stock and also making
recommendations for corporate changes
1. Tom believes the company should use the extra cash to pay a special onetime dividend. How will this proposal affect the stock price? How will it affect
the value of the company?
The company should be very careful when they dispense its extra cash as di
PV
Y
R
PM
T
PM
T
Y
1
Y2
PMT
PM
T
Y2
0
Y
3
WefirstcalculatetheRetiremntcorpusreqdonDayofRetirementasbelow.
Amttowithdraweachyear
PMT
$90,000
Yeartowithdrawinretirment nper
20
Intrate
Rate
8%
PVofCorpusatRetirement
PV
PV(Rate,nper,PMT)
soPV=
$883,633
(a)
(b
Chapter 7 Homework
1. If the yield to maturity is 7.2 percent, what is the current price of the bond? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Price
901.07 1%
Explanation:
The price of any bond is th
Chapter 8 Homework
The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.90 per share on its stock. The
dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a
return of 10 percent on the company's
Chapter 9 Homework Must use IRR excel Function to locate IRR for certain NPV problems
What is the payback period for the following set of cash flows? (Round your answer to 2 decimal
places, e.g., 32.16.)
Year
0
1
2
3
4
Cash
Flow
$4,600
1,225
1,425
1,825
1
COURSE SYLLABUS
COLLEGE OF BUSINESS
SUMMER SEMESTER, 2017
FI 630-I03
MANAGERIAL FINANCE
INSTRUCTOR:
Brett A. King, Ph.D.
Professor, Department of Finance
OFFICE HOURS:
By appointment (please email for an appointment)
OFFICE LOCATION:
Keller Hall #142
OFFI