Finance 100
Section 002
Chapter 1 Problems 1-10 HW
1: What are the three types of financial management decisions? For each type of decision, give
an example of a business transaction that would be relevant.
Capital Budgeting The process of planning and ma
Chapter 12 HW
Finance 100
4/29/2014
1)Given:
Suppose a stock had an initial price of $72 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $79.
Compute the percentage total return.
Equation:
% total return = (
JohnLoughery
Homework3
Disc Q 1
If we divide users of financial ratios into "short-term lenders", "long-term lenders", and
"stockholders" which ratios would each group be MOST interested in? Explain your
rationale.
Shorttermlenderswouldbeinterestedinliqui
Chapter 3 Homework Problems
Finance 100
3/5/2014
1)Given:
SDJ, Inc., has net working capital of $2,710, current liabilities of $3,950,
inventory of $3,420. What is current ratio? What is quick ratio?
Equation:
Current ratio = Current assets / Current Liab
Muhammad Alvi
FIN 301 R 6:10
02/22/2016
Chapter 6 Homework
1. As you increase the length of time involved, what happens to the present
value of an annuity? What happens to the future value?
Assuming positive cash flows, both the present and the future val
HW 12
Problem 7 & 8
the standard deviations for X and Y.
7)Given
Returns
Year
1
2
3
4
5
X
17%
22%
8%
(15%)
10%
Y
23%
34
11
(32%)
21
Equation:
Average Return = Summation/t
Variance = Summation of square deviation /(t-1)
Standard Deviation = Square Variance
Chapter 5 Problems
Finance 100
2/20/2014
1)Given:
First City Bank pays 7% simple interest on its savings account balances, whereas Second City Bank pays
7% interest compounded annually. If you made a $6,000 deposit in each bank, how much more money
would
Chapter 7 Homework
Finance 100
3/17/2014
1)Given:
Is the yield to maturity on a ond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10% coupon bond sells at
par. Two years from now, the required return on t
Chapter 2 Homework Problems
1)Given:
Penguin Pucks has CA of $4,800, NFA of $27,500, CL of $4,200, and LTD of $10,500.
Equation:
Assets = Liabilities + Owner's Equity
NWC = CA-CL
Solution:
CA
NFA
$4,800
$27,500
CL
$4,200
LTD
$10,500
O.E.
$17,600
Total L+O
Chapter 6 HW
Finance 100
2/24/2014
1)Given:
Wainright Co. has identified an investment project with the following cash flows
If the discount rate is 10% what is the present value of these cash flows?
What is the present value at 18%? At 24%?
Year
Cash Flo
Chapter 4 Homework Problems
Finance 100
2/15/2014
1)Given:
The company prediced a sales increase of 15%. It has prdicted that every item on the balance sheet
will increase by 15% as well. Create the pro forma statements and reconcile them. What is the plu
Chapter 2
Questions and Problems
1. Building a Balance Sheet
Swedish Pucks AB has current assets of 3
5,000 kroner, net fixed assets of 161,000 k
roner, current liabilities of 30,100 kroner, a
nd long-term debt of 91,000 kroner. What i
s the value of th
Chapter 2 Homework Problems
1) Given:
Penguin Pucks has CA of $5,100, NFA of $23,800, CL of $4,300, and LTD of $7,400.
Equation:
Assets = Liabilities + Owner's Equity.
NWC = CA-CL
Solution:
CA
NFA
$5,100
23,800
Total Assets
$28,900
NWC =
CL
LTD
O. E.
Tota
Muhammad Alvi
FIN 301 R 6:10
02/16/2016
FIN CHP 5 HW
1. As you increase the length of time involved, what happens to future values?
What happens to present values?
PV = FV / (1+r)^t
FV = PV (1+r)^t
PV: as time increases, PV decreases
FV: as time increases
Finance Project:
By: Muhammad Alvi
Industry, Products & Sales
What is the companys industry?
Automotive, High-End electric cars
What are its primary products?
High-Performance electric cars; Model S, Model X, soon to produce Model 3, and Energy Storage
pr
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Suppose you are reviewing a bond that has a 10%
annual coupon and a face value of $1000. There are
20 years to maturity, and the yield to maturity is 8%.
What is the pr
Muhammad Alvi
FIN 301 6:10PM
04/18/2016
CH 14 HW
1. On the most basic level, if a firms WACC is 12 percent, what does
this mean?
It is the minimum rate of return the firm must earn overall on its existing
assets. If it earns more than this, value is creat
Muhammad Alvi
Finance Chapter 2 HW
1. Why might the revenue and cost figures shown on a standard
income statement not be representative of the actual cash inflows
and outflows that occurred during a period?
Two reasons. First, some of the cash flows dont
Andrew Alexandrou
Finance 301
Extra Credit Assignment Exam #1
Chapter 3 Number 23
a. What is Shareholders Equity in 2010 and 2011?
Assets liabilities = Equity
2010 Equity = $890 - $650 = $240
2011 Equity = $1040 - $810 = $230
b. What is the Net Working Ca
DQ 2 -
What factors would cause a difference in the use of FINANCIAL LEVERAGE for a Utility
Company as opposed to an Automobile Manufacturer?
A utility is in a stable, predictable industry and therefore can afford to use more financial
leverage than an au
Finance 100
Group 10
Chapter 5
Example 5.3 & 5.4
Given 5.3
To further illustrate the effect of
compounding for long horizons, consider
the case of Peter Minuit and the American
Indians. In 1626, Minuit bought all of
Manhattan Island for about $24 in goods