Name: Zhizhou Zhang
Business Performance (000s)
EBT
Corporate tax
After-tax net income
Avg exchange rate for the period (FC/$)
Net profits of each subsidiary (US$)
Consolidated earnings
Total shares outstanding (000s)
a. Consolidated earnings
b. Consolida
HOW DO YOU DEPRECIATE AN ASSET?
Step #1 - Determine the cost of the assets.
The actual invoiced price
+X
Shipping & Handling
+X
Installation Costs
+X
Asset Cost
+X
Step # 2 - Determine the life of the asset.
Particular to the use you put it to
Manufacture
Time Value Worksheet
INPUT DATA IN THE YELLOW CELLS
ORDINARY ANNUITY - PAYMENT AT END
Present Value (PV) Calculation
N=
80.00
I=
3.0000%
PV=
($93,977.10)
PMT=
FV=
1,000,000.00
ANNUITY DUE - PAYMENT AT BEGINNING
Present Value (PV) Calculation
N=
80.00
I=
6
Bond Problem Worksheet
Bond Information (On the face of the bond)
Par Value
_ (Normally $1,000)
Coupon Rate
_ (Nominal Rate)
*Payments
_ (Annual, Semi, Quarterly)
Maturity Date
_ (Date Bond Matures)
Callable Bond?
_ (Could have a date the bond can be call
Capital Purchase Example
INFORMATION OLD MACHINE:
Original Purchase Price
Original Life
Remaining Life
Straight line depreciation in use
Salvage Value
Current Fair Market Value
$ 650,000.00
15 YEARS
5 YEARS
$ 50,000.00
$ 300,000.00
INFORMATION NEW MACHINE
Chapter 7
Bond Valuation and Interest Rates
7-1
Bond Definitions
Bond - A debt instrument issued for a period of
more than one year with the purpose of raising
capital by borrowing. The Federal government,
states, cities, corporations, and many other
typ
6
Discounted Cash Flow Valuation
Present Value of Unequal Cash Flows (NPV)
Assume the following cash flows and a 10%
return. What is the present value.
0_ _1_ _2_ _3
200
300
500
N
1
I
10
PV 181.82
PMT 0
FV
200
2
10
247.93
0
300
3
10
375.66
0
500
6-2
Pres
Time Value of Money
Definition of Terms
N = number of periods
I/Y = period interest rate
PV = present value
PMT= payment each period
FV = future value
2
Time Line
N = Periods of Time
0_1_2_3_4_5
PV
FV
I= Interest Rate
3
Excel Worksheet
Open the Time V
Chapter 2 Lecture
Key Concepts and Skills
Know the difference between book
value and market value
Know the difference between
accounting income and cash flow
Know the difference between average
and marginal tax rates
Know how to determine a firms cas
MBA 505 Financial Management
Dr. Daniel E. Fox, LPA, CPA
Jurist Doctorate & Licensed Practicing Attorney
Certified Public Accountant
Assistant Professor of Law, Ashland University
MBA 506, MBA 540, MBA 505, MBA 511
BUS 401, BUS 245, BUS 445
Researc
Zhizhou Zhang
MBA 505
Professor Wang
September 10, 2015
Week 1 Homework
1. Capital Budgeting - Aims for long-term project that generates profit for the company.
Example: McDonalds decide to open a new store in an uncovered area. Capital Structure Financia
Zhizhou Zhang
Professor Wang
MBA 505
International Financial Performance
Luzon is a U.S.-based multinational manufacturing firm, with wholly owned subsidiaries in
Brazil, Germany, and China, in addition to domestic operations in the United States. Luzon i
UESTION 1
Fred, the accountant for XYZ Company forgot to pay a credit card payment that was
due in the amount of $575. He noticed it exactly 1 month later when he was making
the monthly payment. The late fee charged as $35. If you consider the $35 late fe