October 17, 2013
Answer 5 of the following 7 questions. They each count 20%. Clearly label which question you are answering.
You have decided on a great business idea. To start the business you will need to purchase equipment (to be deprec
Great Ideas Manufacturing Company is located in Atkins, AR. They currently manufacture pens to haul
chickens from local farms to processing plants nearby. The Company has historically had consistent sales,
as well as a positive gross profit margin. Howeve
Corporate Financial Management
Dr. Philip Tew
Corporate Financial Mgmt Fall, 2013
The focus of this course will be utilizing quantitative measures to aid in the decision making and
problem solving of financial managers.
Students will apply qua
EFFICIENT MARKET HY POTHESIS
Reasons for illegality
Violation of strong form efficiency
Behavioral Finance (or antiEMH)
Humans do not always act in the best interests, or in their
ROI (Return on Investment)
Amount Recd (total) less Amount Paid (total) = $ Return
Amount Recd (total) = selling price, dividends, interest
payments, rental receipts, any form of $ directly related to
Amount Paid (total) =
We discuss the topic of capital budgeting
under the general topic of valuations. What
are we determining values of?
Publicly traded companies required to
Your psychic has informed you that next year, the economy will be great, good, average, or poor.
There is a 10% chance of it being great, 10% chance of it being good, 20% chance of being poor,
and the remaining amount it being average. If the economy is g
COMPANY ALPHA is currently looking at purchasing CHI INC. The initial purchase price
would be $500,000,000. CHI is expected to add $125,000,000 in free cash flows for years 1-4,
then $130,000,000 per year for the rest of time. Looking at Alphas