Facebook Prospectus Project
Review the Facebook Prospectus and answer the following questions.
1. How many total shares of stock are being offered by Facebook?
2. How many shares are new shares, and how many are existing shares being sold by c
Final Exam, Part B
1.) Pine Tree Farms Corporation (PTFC) has a target capital structure of 20% debt, 10% preferred stock, and 70% comm
debt is 4.5%. The preferred stock has a par value of $100 per share, a $5 per share dividend
Week 9 Homework
1.) Define the following terms:
a. Current Assets: consists of those assets of the business that are expected to be "turned into cash" w
b. Current Liabilities: are those obligations of the firm (debts) which ar
Week 8 Homework
1.) The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they want you to help them with
To begin with, FAC is sure sales will grow 20% next year. Assume that is true. Then
Week 6 Homework
1.) List the three steps that make up the general approach to capital budgeting.
1.) Identify projects that look promising
2.) Forecast the incremental cash flows associated with the projects
3.) Evaluate the pro
Week 7 Homework
1.) When analysts use the term capital structure, what are they referring to?
Captial structure refers to the proportion of debt and equity being used to finance a firm's assets.
Assets = Debt + Equit
Midterm Exam Part B
Question 1: (Financial Statement Analysis) 10 points
Consider the following sets of financial statements and answer the questions that follow:
a.) Which firm is the most liquid? Why? (Justify your answer wit
Week 5 Homework
1.) What does it mean when people refer to a firms cost of capital?
A firm's cost of capital is the minimum average rate of return it must earn on investments because it m
2.) What are the three compo
Week 4 Homework
1.) What are the two kinds of stock corporations issue to finance their assets? List the main cha
The two kinds of stock corporations issue are:
1.) Common Stock
- Represents ownership. The holders of a company
a. Face Value - the amount that the bond promises to pay its owner at some date in the futu
b. Maturity Date - the date on which the issuer is obligated to pay the bondholder the bond
c. Coupon Interest - the interest paym
It is necessary to know about the time value of money concepts in order to make better judgements about projects
Future value (FV) is the value of one or more cash flows that you expect to receive at a designated time or times in t
1.) Finance and accounting are very similar. Accounting is figuring out how much money someone has and finance is d
2.) The three forms of business generally encountered in the US are sole proprietorship, partnership, and corporation.
Homework Assignment for Week 1:
Each week you will have a set of homework problems to complete. They are due by the
following Sunday night at 11:59 pm, US central time.
For Week 1, please turn in the answers to the following questions: