Balance Sheet:
Market Value Measures:
Income Statement:
PriceEarning (PE) Ratio (Higher = Better):
Current Ratio (Higher=More Liquid=Good for
Creditors):
Quick Ratio/Acid Test (Amount of inventory on
hand):
Present Value (One Lump Sum/Single Period):
Pre
1.)
A.) $1000(1.629) =1,629
Total: $1,629 Interest: $629
B.) $1000 x 10 x 0.05 = 500
Interest: $500
C.) A & B are different because of the compounding. A is allowing interest to be compounded
annually and B is preventing compounding from happening by with
3.) Assets
Current Assets
Cash
Accounts Receivable
($1,340.00 less
Allowance for doubtful
Accounts of $20,000)
Inventory
$250,000
$1,320,000
1,340.0020,000=1,320,000
$1,410,000
Total Current Assets
$2,980,000
250,0001,320,0001,410,000=2,980,00
Land
$30
3.)
a.) 90 x =45 New price is $45
b.) cash dividend/ earning per share
6/9.50 = 0.63
3/9.50 = 0.32
4.)
28,000,000 2,000,000 = 26,000,000
62,000,000 2,000,000 = 60,000,000
a.) cash $26,000,000
Retained Earnings $60,000,000
Additional paidin capital $10,00
Ch 25
3.) A.) EOQ = (2 x 5 x 5000/3.50) = 119.52 =120
=120 units
B.) 120 x 365/5000 = 8.76 =9
=9 days
5000/120 =41.67 =42
=42 orders per year
C.) (2 x 5 x 5000/1.80) =166.67=167
New EOQ =167 units
5000/167 =29.94 =30
Annual Objection =30 orders
4.) A.) (2
Discussion Forum 4
Problem 1
A firm's cost of capital is 12 percent. The firm has three investments to choose among; the cash
flows of each are as follows:
Cash Inflows
Year
A
B
C
1
$395

$1,241
2
$395


3
$395


4

$1,749

Each investment requires
The companies I chose to compare are Walmart and Target. I used their 2015 fiscal year
reports.
Current Ratio
Current Ratio = Current
Assets / Current Liabilities
Quick Ratio
Quick ratio = (Current
Assets Inventory) /
Current Liabilities
Inventory Turnove
1.)
A.) $1000(1.629) =1,629
Total: $1,629 Interest: $629
B.) $1000 x 10 x 0.05 = 500
Interest: $500
C.) A & B are different because of the compounding. A is allowing interest to be compounded
annually and B is preventing compounding from happening by with
3.)
a.) 90 x =45 New price is $45
b.) cash dividend/ earning per share
6/9.50 = 0.63
3/9.50 = 0.32
4.)
28,000,000 2,000,000 = 26,000,000
62,000,000 2,000,000 = 60,000,000
a.) cash $26,000,000
Retained Earnings $60,000,000
Additional paidin capital $10,00
Ch 25
3.) A.) EOQ = (2 x 5 x 5000/3.50) = 119.52 =120
=120 units
B.) 120 x 365/5000 = 8.76 =9
=9 days
5000/120 =41.67 =42
=42 orders per year
C.) (2 x 5 x 5000/1.80) =166.67=167
New EOQ =167 units
5000/167 =29.94 =30
Annual Objection =30 orders
4.) A.) (2
Written Assignment 1
FIN 301
1. You invest $1,000 in a certificate of deposit that matures after 10 years and pays 5 %
interest, which is compounded annually until the certificate matures.
a. How much interest will you ear if the interest is left to accum
Discussion Forum 5
Yulia Inotayev
FIN 301
For six years in a row Enron has been named by Fortune Magazine Americas Most Innovative
Company and 100 Best Companies to work for in USA by Times Magazine. What had to happen
that within a period of a few months
Monica LopezAlas
Ch. 10 & 14: 3,4,5,7 & 4
Chap. 10:
3) Jersey mining earns $9.50 a share, sells for $90, and pays a $6 per share dividend. The stock is
split two for one and a $3 per share cash dividend is declared.
a. What will be the new price of the s
Monica LopezAlas
Ch. 7: 13, 57, 1213
1) You invest $1,000 in a certificate of deposit that matures after 10 years and pays 5 percent
interest, which is compounded annually until the certificate matures.
a) How much interest will you earn if the intere
FIN301: PRINCIPLES OF FINANCE
Study Notes for Chapter 11
The value of a share of stock to an investor is based on both the rate of return that the investor expects
(k) and the cash flow that comes from the stock. For preferred stock, the cash flow is mos
WA #4
7/25/14
I have graded this work assignment as a 90. To understand this grade and the solution to missed
problems I would refer you to the attached worksheet upon which I have appended my comments
in RED with Yellow Highlight and the Selected Solutio
FIN301: PRINCIPLES OF FINANCE
Study Notes for Chapter 9
Chapter 9 begins with a brief description of financial statements. If you have had at least one accounting
course, you may omit the first sections of this chapter or just review them. However, if yo
FIN301: PRINCIPLES OF FINANCE
Study Notes for Chapters 12 and 13
Chapters 12 and 13 deal with corporate bonds. It is important to remember that all bonds (for the sake of
this course and most bonds in the "real" world) have a maturity value of $1,000. Th