Komissarov Anton.
Number ID: 04174.
Assignment 1
1: c. Investor by public auction
2: c. The higher is the defaults risk the higher is the interest rate required.
3: b. A wholesale market for financial intermediaries to lend and borrow short term deposits
Chapter 14: Capital Structure in a Perfect Market
Mancy Luo
m.luo@tilburguniversity.edu; K933
Chapter 14: Capital Structure in a Perfect Market
Chapter 14: Capital Structure in a Perfect Market
capital structure
Chapter 14: Capital Structure in a Perfect
Werkcollege 6 Financiering 2
Question 26.4
The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20
million. A simplified balance sheet for the firm appears below:
a. Calculate The Greek Connections net working capital in 201
Werkcollege 3 Financiering 2
Question 17.10
Suppose B&E Press paid dividends at the end of each year according to the schedule below. It
also reduced its share count by repurchasing 5 million shares at the end of each year at the exdividend stock prices s
Werkcollege 2 Financiering 2
Question 15.19
Rally, Inc., is an all-equity firm with assets worth $25 billion and 10 billion shares
outstanding. Rally plans to borrow $10 billion and use these funds to repurchase shares. The
firms corporate tax rate is 35%
Werkcollege 4 Financiering 2
Question 23.13
Your firm has 10 million shares outstanding, and you are about to issue 5 million new shares
in an IPO. The IPO price has been set at $20 per share, and the underwriting spread is 7%.
The IPO is a big success wi
Werkcollege 1 Financiering 2
Question 14.3
Acort Industries owns assets that will have an 80% probability of having a market value of
$50 million in one year. There is a 20% chance that the assets will be worth only $20 million.
The current risk-free rate
Chapter 18: Capital Budgeting and Valuation with
Leverage
Yang Zhou
y.zhou@tilburguniversity.nl
Week 7
Three Valuation Methods
Weighted average cost of capital method (WACC)
Adjusted present value method (APV)
Flow to equity method (FTE)
2/8
WACC Valuatio
Chapter 15: Debt and Taxes
Chapter 16: Financial Distress, Managerial
Incentives, and Information
Yang Zhou
y.zhou@tilburguniversity.nl
Week No.7
Capital Structure in a Perfect Market
Modigliani-Miller: capital structure does not matter in perfect
capital
Werkcollege 5 Financiering 2
Question 24.6
On January 15, 2010, the U.S. Treasury issued a five-year inflation-indexed note with a
coupon of 3%. On the date of issue, the consumer price index (CPI) was 250. By January 15,
2015, the CPI had increased to 30
Chapter 14: Capital Structure in a Perfect Market
Mancy Luo
m.luo@tilburguniversity.edu; K933
Feb, 2016
Chapter 14: Capital Structure in a Perfect Market
Chapter 14: Capital Structure in a Perfect Market
perfect market
Chapter 14: Capital Structure in a P
Financiering 2
(323029)
DEEL I Multiple choice vragen (12 vragen, 60 punten, 5 punten per vraag)
Beantwoorden met de schrapkaart (uitsluitend met potlood n antwoord per vraag
aangeven).
DEEL II Open vragen (4 vragen: 40 punten, 10 punten per vraag)
Beantw
Financiering 2
(323029)
DEEL I Meerkeuze vragen / Multiple choice questions: gemengd
Nederlandstalig/Engelstalig (12 vragen, 60 punten, 5 punten per vraag)
Beantwoorden met de schrapkaart (uitsluitend met potlood n antwoord per vraag
aangeven).
DEEL II Op
Financiering 2
(323029)
DEEL I Multiple choice vragen (12 vragen, 60 punten, 5 punten per vraag)
Beantwoorden met de schrapkaart (uitsluitend met potlood n antwoord per vraag
aangeven).
DEEL II Open vragen (4 vragen: 40 punten, 10 punten per vraag)
Beantw
15-5.
Your firm currently has $100 million in debt outstanding with a 10% interest rate. The terms of
the loan require the firm to repay $25 million of the balance each year. Suppose that the marginal
corporate tax rate is 40%, and that the interest tax s
Financiering 2
(323029)
DEEL I Meerkeuze vragen / Multiple choice questions: gemengd
Nederlandstalig/Engelstalig (12 vragen, 60 punten, 5 punten per vraag)
Beantwoorden met de schrapkaart (uitsluitend met potlood n antwoord per vraag
aangeven).
DEEL II Op
15-3.
Suppose the corporate tax rate is 40%. Consider a firm that earns $1000 before interest
and taxes each year with no risk. The firms capital expenditures equal its depreciation
expenses each year, and it will have no changes to its net working capita
14.1
14.3
14-8.
Consider a project with free cash flows in one year of $130,000 or $180,000, with each outcome
being equally likely. The initial investment required for the project is $100,000, and the projects
cost of capital is 20%. The risk-free intere
26-3
Aberdeen Outboard Motors is contemplating building a new plant. The company anticipates that
the plant will require an initial investment of $2 million in net working capital today. The plant
will last 10 years, at which point the full investment in
Mc antwoorden plus antw. Open opg. 1 t/m 4 Financiering 2 Tentamen 1
(Aan deze publicatie kunnen gn rechten worden ontleend)
mc antwoorden
1. a
2. c
3. b
4. a
5. d
6. a
7. d
8. a
9. d
10. c
11. a
12. c
Opgave 1
kev = 32,5% = 20 + (20 5)*2500/3000; of:
kev
Antwoorden mc-vragen en open vragen Financiering 2 Tentamen 2
(Aan deze publicatie kunnen gn rechten worden ontleend)
mc antwoorden
1. b
2. d
3. d
4. c
5. b
6. b
7. b
8. a
9. b
10. d
11. c
12. b
open opg. 1
kev = 0,275 [= 0,20 + (0,20 0,05)*25/50]; IRR =
FIN 419
Test 2
Problem set 2
Homework: 7, 8
Use the following information to answer questions. Assuming short selling is allowed.
( ) = 12%
( ) =6%
( ) =14%
( ) =12%
= 2.83%
= 1.41%
= 4.24%
= 3.27%
= -1
= 1
= 0
= 0.5
1. For securities 1 and 3
FIN 419
Test 1
Problem set 3
Homework: 3. (B,C) 4. (C)
Expected return and variance (Portfolio)
1. You own a portfolio that is 35% invested in stock X, 20% in stock Y, and 45% in stock Z. The
expected returns on these stocks are 9%, 17%, and 13%, respecti
FIN 419
Test 2
Problem set 1
Homework: 7, 8
Use the following information to answer questions. Assuming short selling is not allowed.
( ) = 12%
( ) =6%
( ) =14%
( ) =12%
= 2.83%
= 1.41%
= 4.24%
= 3.27%
= -1
= 1
= 0
= 0.5
1. For securities 1 a
FIN 419
Test 2
Problem set 3
Homework: 2, 3, 6
Use the following information to answer questions. Assuming short selling is not allowed.
( ) = 12%
( ) =6%
( ) =14%
( ) =12%
= 2.83%
= 1.41%
= 4.24%
= 3.27%
= -1
= 1
= 0
= 0.5
1. Assuming that t
FIN 419
Test 1
Problem set 1
Homework: 2. (B)
Measures of return and risk
1. On February 1, you bought 500 shares of stock in the Francesca Corporation for $34 a share
and two years later you sold it for $45 a share. During each year of your holding perio
FIN 419
Test 3
Problem set 1
Homework: 2, 5, 7, 9
Dividend discount model
1. Suppose you are thinking of purchasing the stock of Moore Oil, Inc. You expect the stock to
pay a dividend of $0.75 per share at the end of Year 1 and $1.75 per share at the end
FIN 419
Test 3
Problem set 2
1. Abbey Taylor, CFA, has been directed to determine the value of Sundancis stock using the
Free Cash Flow to Equity (FCFE) model. Taylor believes that Sundancis FCFE will grow at
25% for years 2016 and 2017, and 12% thereafte