1. Please complete all 3 tabs. "Amortization", "Bond and Stock Valuation, and "Capital Budgeting" (7 problems in a
2. Please leave all formulas in the spreadsheet.
3. You may use the formulas in the formulas tab (or textbook) or Excel functions.
4. You ma
2/14/17
45 open ended question, we answer 34
ex. Requirements for good database
these notes are NOT on test on Thursday
Types of Flowcharts



Document
o Illustrates the flow of documents through an organization
o Useful for analyzing internal contro
3/23/2017
(skip 21st and one 17)
How many performance Obligations?
Make : Sell Printers
Printer
Installation
maint. Agree
Friday, 12/31/17
BE4
80,000
4,000
10,000
Sell Printer and deliver it
BE5
Contractor: Build a Hospital
BE6
build apartment building fo
3/28/2017
Building paths
Basic construction price
Bonus for on time
Bonud for one week late
Bonus for two weeks late
Bonus for three weeks late
Bonus for four or more
200,000
40,000
30,000
20,000
10,000
0
Basic Price
Expected Bonus
Price
55%
30%
15%
0%
22
2/23/2017
Exercise 23
2017 NI 1,540,000 40% tax rate
1/1/2017 800,000 shares o/s
4/1/2017 issued 400,000 for cash
7/1/2017 Issue 600,000 20 year 8% bonds @ par
Each $1000 bond can convert to 40 shares common
W/A shares o/s
Basic EPS
JanMar
AprilDec
Dilu
2/23/2017
Exercise 23
2017 NI 1,540,000 40% tax rate
1/1/2017 800,000 shares o/s
4/1/2017 issued 400,000 for cash
7/1/2017 Issue 600,000 20 year 8% bonds @ par
Each $1000 bond can convert to 40 shares common
W/A shares o/s
Basic EPS
JanMar
AprilDec
Dilu
2/21/17
Expenditure Cycle
1. Place Order
Reorder Point
EOQ: Reduce ordering, shipping, carrying costs
MRP: Based on sales forecasts
JIT: Based on customer orders
Purchase Requisition (Purchasing department)
\/
Approval Process (Managements signature/
2/23/2017
Exercise 23
2017 NI 1,540,000 40% tax rate
1/1/2017 800,000 shares o/s
4/1/2017 issued 400,000 for cash
7/1/2017 Issue 600,000 20 year 8% bonds @ par
Each $1000 bond can convert to 40 shares common
W/A shares o/s
Basic EPS
JanMar
AprilDec
Dilu
1/14/2017
Ex. 15
Stock $10 par > 500,000
50,000 shares
a.)
5% stock dividend when the FMV per share is $39
(less than 25% divided is small)
50,000 "old shares"
x 5%
2,500 "new shares"
R/E
97,500
Stock $10 par
APIC
25,000
39 $ per share
975000
25,000
72,5
FIN 3010
FINANCIAL MANAGEMENT
FORMULA PAGE FOR Time Value of Money & Capital Budgeting Problems
FV
FVA
PV
PVA
K
K
n
T
m
PMT
FVIF (Has to be 1 or greater)
FVIFA
PVIF (Has to be 1 or lower)
PVIFA
Future Value
Future Value of an Annuity
Present Value
Present
Example of Net Present Value
Years
Initial cost $
Inflows
Outflows
Net Inflows
Salvage
Net Cash Flo $
Cost of Capita
PVIF
PV of FCF (fut
Sum of PV's
NPV
$
Common Shar
Per Share Imp$
0
30.00
1
$
$
$
20.00 $
14.00 $
6.00 $
2
20.00 $
14.00 $
6.00 $
3
20.
Setp 1
Step 2
9.5 MIRR
Find the future value of each cash flow as of the end of period 5
Find the MIRR that equates the NPV to zero
Step 1
Year
0
1
2
3
4
5
CF's
$ 125,000.00
$
35,000.00
$
35,000.00
$
35,000.00
$
35,000.00
$
25,000.00
Cost of Capita
$
$
9.5 Internal Rate of Return
IRR: Breakeven analysis, when does this project breakeven?
If your project costs more than this rate, you are financially in trouble
Definition: Rate of return which equate the NPV to zero when it is used as the discoun
Step 1
Chapter 9
Stocks and Their Valuation
Answers to EndofChapter Questions
91
a. The average investor of a firm traded on the NYSE is not really interested in
maintaining his or her proportionate share of ownership and control. If the
investor wanted to in
161 Primrose Corp has $15million of sales, $2 million of
inventories, $3 million of receivables and $1 million of payables. Its cost of goods sold is 80% of
sales and it finances working capital with bank loans at an 8% rate. What is
Primrose's cash conv
Chapter 10
Determining the Cost of Capital
ANSWERS TO ENDOFCHAPTER QUESTIONS
101
a. The weighted average cost of capital, WACC, is the weighted average of the
aftertax component costs of capitaldebt, preferred stock, and common
equity. Each weighting
161 Cash Conversion Cycle.Primrose Corp has $15 million of sales, $2 million of
inventories, $3 million of receivables, and $1 million of payables. Its cost of goods sold is
80% of sales, and its finances working capital with bank loans at an 8% rate. wh
At the heart of marketing there is a transaction.
The reason why a consumer buys a product is because it has value.
A marketing campaign will not be successful with out value
Can Market:
Product
Service
Places
People
Events
Ideals
Where Does Value lay?
Al
Because it is given
Each angle has one unique angle
bisector
An angle bisector is a ray whose endpoint is the vertex of the
angle and which divides the angle into two congruent angles.
Reflexive Property. A quantity is congruent to itself.
SAS  If two si
Chapter 001 Introduction to Corporate Finance
Multiple Choice Questions
1. The person generally directly responsible for overseeing the tax management, cost
accounting, financial accounting, and data processing functions is the:
a. treasurer.
b. director.
*Data given is in blue and calculated numbers are in red
Chapter 8  Section 1
Common Stock Valuation
Constant Dividend Growth
Unlike bond pricing, Excel does not have builtin functions for stock pricing, so we need to create our own equations. We will b
*Data given is in blue and calculated numbers are in red
Chapter 7  Section 1
Bonds and Bond Valuation
As with any financial instrument, the price of a bond is just the present value of the future cash flows. What is the price of a bond with semiannual c
*Data given is in blue and calculated numbers are in red
Chapter 7  Section 7
Determinants of Bond Yields
Figure 7.7 in the textbook shows a current Treasury yield curve, as well as the yield curve for last month and last year. Of course, we would like t
*Data given is in blue and calculated numbers are in red
Chapter 8  Section 3
The Stock Markets
Whenever a stock market is open, stock prices will most likely be changing. While we have used Excel in a way that we can change the inputs, Excel will also g
*Data given is in blue and calculated numbers are in red
Chapter 7  Section 5
Bond Markets
How many days are there between July 17th and September 1st? When you are dealing with bond prices, the answer depends on who issued the bond! We discussed the a m
*Data given is in blue and calculated numbers are in red
Chapter 6  Section 4
Loan Types and Loan Amortization
Pure Discount Loans
Pure discount loans are relatively simple since they are nothing more than a lump sum. Suppose we have a pure discount loan