Time Value of Money
Module 2
Session Long Project
Oren Jones
Finance 501
Time Value of Money - Bonds
With bonds there are a number of risks involved. Risks such as inflation, interest
rates, etc. correlate with the time value of money. Essentially, todays
Time Value of Money - Bonds
TUI University
November 22, 2011
Time Value of Money - Bonds
Issues concerning bonds, risks involved such as inflation, interest rates and the
like correlate with the time value of money. Essentially, todays dollars is worth mo
The Cost of Equity
_
TUI University
December 18, 2011
The Cost of Equity
The current Beta for Visa as recorded with NASDAQ on December 14, 2011 is as
follows:
Beta of
Visa=
0.89 (NASDAQ, 2011)
Yield to
Maturity
(Risk free
rate)=
11.00%
Risk
premium=
5.5%
Running head: NET PRESENT VALUE
1
Net Present Value, Mergers, and Acquisitions
Mikel A. Stovall
TUI University
January 5, 2012
NET PRESENT VALUE
2
Net Present Value, Mergers, and Acquisitions
The purpose of this essay is to address possible merger candida
1Running Head: SLP MODULE 1
GAME STOP
FINANCE 501
SESSION LONG PROJECT MODULE 1
TRIDENT UNIVERSITY
Oren L. Jones
2Running Head: SLP MODULE 1
Introduction
This particular project involves the financial analysis a publicly traded company. I
chose to focus o
Running head: REFLECTIVE ESSAY
1
Reflective Essay Integration and Reflection
Mikel A. Stovall
TUI University
3/26/12
REFLECTIVE ESSAY
2
Reflective Essay Integration and Reflection
Some major concepts and knowledge I gained as a result of the Finance 501
c
Game Stop (GME)
FY 10
FY 11
FY 12
Assets
Current Assets
Cash And Cash
Equivalents
Net Receivables
Inventory
Other Current Assets
655,000
710,800
905,400
109,100
1,137,500
95,700
94,300
1,257,500
92,200
85,200
1,053,600
83,100
Total Current Assets
1,997,30
Running head: Module 1 Case Study
Case Study
AVG Initial Public Offering
Oren L. Jones
Trident University International
FIN 501
1
Running head: Module 1 Case Study
2
In a traditional IPO, a company hires an investment bank to underwrite the
IPO. The compa
The Capital Structure Decision and the
Cost of Capital
TUI University
January 7, 2012
The Capital Structure Decision and the
Cost of Capital
The purpose of this essay is to review Visas liabilities and equity and compare
Visas debt ratio with a couple of
Time Value of Money Present and Future Values
TUI University
November 22, 2011
Time Value of Money Present and Future Values
The idea behind the concept of present value or time value of money is that $1
received today is greater than a $1 received in som
Net Present Value, Mergers, and Acquisitions
TUI University
January 5, 2012
Net Present Value, Mergers, and Acquisitions
Part 2
The possibility of a merger between wireless providers is always filled with
questions concerning the viability of the newly fo
The Capital Structure Decision and the
Cost of Capital
TUI University
January 5, 2012
The Capital Structure Decision and the
Cost of Capital
The debt ratio of any enterprise is the core concern of its strategic financing.
Various factors contribute to whe
Stock Valuation
1
Stock Valuation
Tawanna Richard
FIN 501 Stocks and Bonds
Trident University
Memorandum
To: Mr. Hillbrandt
From: Tawanna Richard
Date: 18 February 2016
Subject: Solving Present Value and Future Value Problems
Introduction
Calculation of i
Stocks and Bonds
1
Stock Valuation
Tawanna Richard
FIN 501 Stocks and Bonds
Trident University
Part 1 Bonds and Risk
Par value = $1000, Coupon rate = 6.5%, Time to maturity = 20 years
a. PMT = $65
N = 20
FV = $1000
I=8
Present value of bond = present valu
Part 1
Question 1
intrinsic value of the share =3(1.055)/(6/100-5.5/100)=$633
intrinsic value of the share=3(1.055)/(8/100-5.5/100)=$126.6
intrinsic value =3(1.055)/(10/100-5.5/100)=$70.33
Intrinsic value = 3(1.055)/(12/100-5.5/100)=$48.69
Question 2
The
Solution
Cost of Golf Club
Working Capital
Sales Revenue
Operating cost
Depreciation
Cost of Capital
Tax rate
Initial cost
Initial Working Capital
Sales Revenue
Less: Operating Cost
Depreciation
Operating income
Less: Tax expense
Income after tax
Add: Dep
Cash Flow Estimation and Capital Budgeting
Estimating Project Cash Flows
Tawanna Richard
FIN 501 Cash Flow Estimation and Capital Budgeting
Trident University
Memorandum
To: Mr. Hillbrandt
From: Tawanna Richard
Date: 1 March 2016
Subject: Cash Flow Estima
Cash Flow Estimation and Capital Budgeting
Applying Various Capital Budgeting Methodologies
Tawanna Richard
FIN 501 Cash Flow Estimation and Capital Budgeting
Trident University
What are the advantages/disadvantages of NPV, regular payback, discounted pay
If the projects cost of capital (discount rate) is 12.5%,
what is the projects NPV? Should the project be accepted? Why or why not?
First step Calculation of present value of project's inflow
Year
Inflows
1
2,000,000
2
3,500,000
3
13,500,000
4
89,750,000
Capital Structure and Dividends
1
Analyzing the Dividend Policies of Various Companies
Tawanna Richard
FIN 501 Capital Structure and Dividends
Trident University
Apple is one of the analysts favorite dividends stock. With this said, some investors
may won
Solution
Working Notes
Cost of equity
Present EBIT
Less tax@35%
Net operating profit after tax(NOPAT)
3.88 mn
Since at present there is no debt Weighted average cost of capital will be equal to cost of equity
Therfore value of firm without debt
Present va
Capital Structure and Dividends
1
Analyzing a Firms Capital Structure
Tawanna Richard
FIN 501 Capital Structure and Dividends
Trident University
Memorandum
To: Mr. Hillbrandt
From: Tawanna Richard
Date: 5 March 2016
Subject: Analyzing a Firms Capital Stru
The Cost of Equity Capital and the CAPM
TUI University
December 17, 2011
The Cost of Equity Capital and the CAPM
The company selected is Visa, a financial services company whose main product
is payment services. Since 1958 Visa has been a leading pioneer
The Time Value of Money and Financial Statement Analysis
1
Solving Present Value and Future Value Problems
Tawanna Richard
FIN 501 The Time Value of Money and Financial Statement Analysis
Trident University
Apple (AAPL) bulls love to talk about the compan
The Time Value of Money and Financial Statement Analysis
1
Solving Present Value and Future Value Problems
Tawanna Richard
FIN 501 The Time Value of Money and Financial Statement Analysis
Trident University
Memorandum
To: CEO
From: Tawanna Richard
Date: 2
Strategic Corporate Finance
The Capital Structure Decision and the Cost of Capital
Amazon Debt Ratio Calculations (based on the year ending December 31, 2013)
Calculations in millions
Equation
Answer
Debt Ratio =Total liabilities/Total Assets
30,413/40,15
Strategic Corporate Finance
The Capital Structure Decision and the Cost of Capital
eBay assists merchants with growth through a variety of means in accessible solutions.
eBay has the worlds largest online marketplaces for customers through internet connec
Strategic Corporate Finance
Risk and Return, Portfolio Diversification and the Capital Asset Pricing Model; The cost of
Equity
Computation for Amazons Cost of Equity using CAPM - cost of equity computation
used the capital asset pricing model. The risk pr
Strategic Corporate Finance
Risk and Return, Portfolio Diversification and the Capital Asset Pricing Model; The cost of
Equity
In order to effectively satisfy the requirements in finding the best mode to use in
calculating the rate of return we must exami