Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 5
Ch 13 1. A $1,000 bond has a coupon of 6 percent and matures after 10 years
a) What would be the bonds price if comparable de
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
500
Ch 21
1.)
A.) AfterTax Cost of Debt
Kd = i(1t)
8.5%(10.30)=5.95%
B.) Cost of Preferred Stock
Kp= dp
Pp
9 =9.9%
91
C.) Cost of Common Stock
D0(1+g) +g
p
0.75(1+0.06) +0.06 = 11.3%
15
D.) K=w1kd+w2kp
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
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
$
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
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
500
FINANCE WRITTEN ASSIGNMENT #4
1
A.
FV = $1,000
I/Y= 8%
N= 10
PMT = $60
PV= ? 865.78
The bonds price is equal to the present value. The current price is $865.79 or $866 rounded up
B.
FV= $1,000
I/Y= 8%
WRITTEN ASSIGNMENT #1
Ch 7 Question #1
a. PV = $1,000
I = 5%
N = 10 years
PMT = 0
FV = ?
FV = $1,628.89
The interest earned in 10 years is $628.89 (Future Value Present Value)
b. Since the interest is
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 10
Ch 26.3 You can borrow $5,000 for 60 days with an interest payment of $125.
What is the simple rate of interest? What is the
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 8
Ch 22. 1 You purchase machinery for $23,958 that generates cash flow of
$6,000 for five years. What is the internal rate of r
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 7
Ch 21. 1 HBH, Inc. has the following capital structure:
Assets
$400,000
Debt
Preferred Stock
Common Stock
$140,000
20,000
240
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 9
Ch 25.5 Taylor Glass has annual sales of $1,750,000. Although it extends
credit for 30 days (n30), the receivables are 20 day
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 1
Ch7
1. a. How much interest will the saver earn if the interest is left to
accumulate?
PV = $1000 PMT = 0
I = 5% N = 10
P10 =
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 4
Ch 11 1. The dividendgrowth model may be used to value a stock:
V= [D0(1 +g)] / (kg)
a) What is the value of stock if : D0=
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 3
Ch 10 3. a) What will be the new price of the stock?
$90 x 2/1 = $25 The new price of the stock is $45.00
b) If the firms tot
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 6
Ch 19 2. A The management of a firm wants to introduce a new product. The
product will sell for $4 a unit and can be produced
Mattie McKeith
Principles of Finance
FIN 301
Jun 2017
Written Assignment 2
Ch 9 3. Fill in the (_) with the correct entries.
Assets
Liabilities and
StockholdersEquity
Current assets
Current liabilitie
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
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
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
Ch 9 #3
ASSETS
Current Assets
Cash
Accounts Receivable
1,340,000 (1,320,000 + 20,000)
less allowance for
doubtfull accounts
of $20,000
Inventory
Total Current Assets
Land
Plant and Equipment
($2,800,0
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:
A
Cash Inflows
B
C
$395

$1,241
2
395


3
395


4

$1,749
Written Assignment #3
Written Assignment #3
ALL CALCULATIONS ARE SHOWN IF COLUMN H IS CLICK
Ch 10 #3
A. Since this is a two for one split, the new price is found by multiplying the current price by th
Written Assignment #7
Chapter 25
3
Answers In This Color
A. What is the EOQ for a firm that sells 5,000 units when
the cost of placing an order is $5 and the carrying costs
are $3.50 per unit?
Units S
Assignment #6
ANSWERS (in this color)
Chapter 21
Assets
$400,000
Debt
Preferred Stock
Common Stock
$140,000
20,000
240,000
1
The common stock is currently selling for $15 a share, pays a cash dividend