Module One - Performance Analysis Gerald McGill Grand Canyon University FIN 504 - Finance Principles Time Value Methodology 12/22/2010 I) P4-18 A) 1) CASE A= CASE B CASE C CASE D CASE E 2) CASE A= CASE B= CASE C= CASE D= CASE E= Annuity Interest Rate Numb
FIN 504 - Finance Principals Gerald McGill Grand Canyon University Module Three - Mathematics of Risk and Return P5-5 A) Range of Rate of Returns (Camera R) = Range of Rate of Returns (Camera S) = 10% 20% Camera S Rate of Return (After 10 Years) Pessimist
Module One - Performance Analysis Gerald McGill Grand Canyon University FIN 504 - Finance Principles 12/15/2010 P2 - 11 A) B) C) D) P2 - 26 A) Mountain Air Ski Resort's net income for 2009 was $7,500,000. Mountain Air Ski Resort Inc authorized the sale of
FIN 504 - Finance Principals Gerald McGill Grand Canyon University Module Six - Working Capital and Financial Forecasting
P14-3 Garret Industries turns over its inventory 6 times each year; it has an average collection period of 45 days and an average pay
1).Thedemandcurveisgivenby
Qd=5005Px+05I+10Py2Pz
Where
Qd=quantitydemandedofgoodX
Px=priceofgoodX
I=consumerincome,inthousands
Py=priceofgoodY
Pz=priceofgoodZ
a.Basedonthedemandcurveabove,isXanormaloraninferiorgood?
Coefficient of consumer income is posit
P8-1
a. Calculate the expected rate of return on investments X and Y using the most recent year's data.
X= 21000-20000 + 1500 / 20000 = 12.5%
Y= 55000 - 55000 + 6800 / 55000 = 12.36%
b. Assuming that the two investments are equally risky, which one should
1). Suppose the demand and supply curves for a product are given by
Qd = 500 2P
Qs = - 100 + 3P
a. Graph the supply and demand curves.
By using given demand and supply functions, following table can be generated
(See into cells for formulas)
P
100
110
120
P3-5 Calculation of EPS and retained earnings
a. Earnings per share:
Net Profit before taxes
$436,000
Less: Taxes at 40%
174,400
Net profit after tax
$261,600
Less: Preferred stock Dividends
Earnings available to common stockholders
64,000
$197,600
Earnin
FIN 504 - Finance Principals Gerald McGill Grand Canyon University Module Five - Capital and Dividends P11-2 (575) Warren Industries 15-year, $1,000 par value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates, the bo
Calculation of EPS and Retained Earnings
Everdeen Mining, Inc., ended 2015 with a net profit before taxes of $436,000. The
company is subject to a 40% tax rate and must pay $64,000 in preferred stock
dividends before distributing any earnings on the 170,0
A) 1) PRESS A
+ Cost of asset A Installation costs Installed cost of asset A Change in net working capital Tax on sale of old asset (40%) After-tax proceeds from sale of old assets Installed Cost of asset A After-tax proceeds from sale of old assets Initi
P6-1
Real rate of return= 5.5%- 3%= 2.5%
P6-10
a. What dollar amount of interest per bond can an investor expect to receive each year from Charter?
$70.00
$2,500,000/2500= 1000
1000 x .07= $70.00
b. What is Charters total interest expense per year associa
P13-5
a. Calculate the breakeven point for the device in months.
$500 / (35-20) = 33.33 = 33 months is the break even point
b. Based on a, should Paul have the tracker installed in his car?
Yes, because the break even point is less than the amount of time
P3-5
a. Calculate Philagems 2012 earnings per share (EPS).
EPS= $1.16
218,000 *40%= 87,200
218,000 - 87,200= 130,800
130,800 - 32,000= 98,800
98,800 / 85,000= 1.16
b. If the firm paid common stock dividends of $0.80 per share, how many dollars
would go to
1.5 The following information is collected from students upon exiting the campus
bookstore during the first week of classes.
a. Amount of time spent shopping in the bookstore- Numerical; Continuous
b. Number of textbooks purchased- Numerical; Discrete
c.
Exercise 4.3
4.3) Given the following contingency table:
What is the probability of
a. event A?
b. event A'?
c. event A and B?
d. event A or B?
a. The total number is 10+20+20+40=90. there are 10+20 of them with event A. Therefore, the probability: 30/90=
Week 1 disscusion1
Reconcile high standards of ethical business practices with the concept of shareholder
wealth maximization and stakeholder theory. What responsibility do executives have to
their shareholders and their stakeholders?
The concept of share
P5-2
A
B
C
D
1*(1+.12)2= 1.254
1*(1+.06)3= 1.191
1*(1+.09)2= 1.188
1*(1+.03)4= 1.125
P5-3
You have $100 to invest. If you can earn 12% interest, about how long does it take for your $100 investment to grow to $200?
Approximately 6 periods
100*(1+.12)6= 19
Uma Corp.
Present Value of Expected Future Savings
Period: 2016 through 2026
Discount rate for years 2016 - 2021
Discount rate for years 2022 - 2026
Annual
Year Period Savings
PV Lump Sum
2016 1 $ 110,000
102803.7383
2017 2
120,000
104812.6474
2018 3
130,
a. Calculate Philagems 2012 earnings per share (EPS).
EPS= $1.16
218,000 *40%= 87,200
218,000 - 87,200= 130,800
130,800 - 32,000= 98,800
98,800 / 85,000= 1.16
b. If the firm paid common stock dividends of $0.80 per share, how many dollars
would go to reta
Douglas Keel
Orange Industries
Investment
X
Y
Previous year
market value
$
$
Genderated
cash flow
20,000 $
55,000 $
Investment X
Expected rate of return
($1,500+$21,000-$20,000)/$20,000
12.50%
1,500
68,000
Current year
market value
$
$
21,000
55,000
Inves
Forecasted Returns, Expected Values, and Standard Deviations for
Assets A, B, and C and Portfolios AB, AC, and BC
Year
2015
2016
2017
2018
2019
2020
2021
Statistics:
Expected valu
Standard devi
A
10%
13%
15%
14%
16%
14%
12%
Assets
B
10%
11%
8%
12%
10%
15%
Chapter 6 Interest Rates and Bond Va
Given Data:
CSM Corporation
Coupon-inte 6%
Par Value #
Maturity
15 years
Current bon #
Assume that interest on the CSM bond is paid
Compound p 2
Modified n = 30
Modified pa #
Annual r
#
modified r = #
Trial and Error m
My Reflective Research Paper
Grow up as a child I didnt have this labyrinth and exciting childhood, like others did. I
didnt crawl our way up from sewers also. Life, in its entirety, is a complex journey that we
endure from the moment we are conceived. Fr
Future Plans and Goals
Throughout my years of high school, I have made mistakes over and over, and then I
made goals in order to get them back on the right track again. My past needs changes, my present
has its ups and downs, and my future needs some help
a. Calculate the breakeven point for the device in months.
$500 / (35-20) = 33.33 = 33 months is the break even point
b. Based on a, should Paul have the tracker installed in his car?
Yes, because the break even point is less than the amount of time Paul
nper
pmt
pv
fv
i
2 years and 4 months
100
200
0.12
100
200
0.06
FV=
PV x (1+r)^n
It takes 6.11 years to double money at 12%
At 6% it takes 11.89 years, not twice but almost. The monetary amounts compound shrinking
the number of years to a little less than
EBIT
I
EBT
T@40%
EAT
PS
EACS
SHARES
EPS
$
$
$
$
$
$
$
$
218,000
218,000
87,200
130,800
32,000
98,800
85000
1.16
Reatined Earnings
$
17,000
a)
b)
c)
d)
All the companies Robert is evaluating are not from the same industry so they really
aren't extremely co
SolutionstoProblems
P11.
Liabilitycomparisons
LG2;Basic
a. Ms.Harperhasunlimitedliability.
b. Ms.Harperhasunlimitedliability.
c. Ms.Harperhaslimitedliability,whichguaranteesthatshecannotlosemorethansheinvested.
P12.
Accrualincomevs.cashflowforaperiod
LG4;