Financial Analysis
Chapter 3
Integrated Case
DLeon
Part I of this case, presented in Section 3, discussed the situation that DLeon Inc., a regional snack foods producer, was in after a 1994 expansion program. Like Borden, Inc., DLeon had increased
Chapter 2
Problems 1-22
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 2
Question 1 Input area:
Current assets Net fixed assets Current liabilities Long-term debt
$2,800 6,000 $1,600 5,200
Chapter 4
Problems 1-25
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 4
Question 1 Input area:
Interest rate Deposit # of years
6% $5,000 10
Output area:
Compound interest (Deposit) (1
Chapter 5
Problems 1-56
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 5
Question 1 Input area: Output area:
Discount rate Year 1 2 3 4
10% Cash flow $700 300 1,200 1,600 $2,878.70
Chapte
Chapter 6
Problems 1-30
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 6
Question 1 Input area:
Coupon Required rate of return
10% 8%
Output area:
The yield to maturity is the required r
Chapter 7
Problems 1-25
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 7 Question 1 Input area:
Dividend paid Dividend growth rate Required return # of years
$2.00 5% 12% 0
Output area:
Chapter 8
Problems 1-29
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
B
C
D
E
Chapter 8 Question 1 Input area:
Year 0 1 2 3 4
Cash flow $(2,
Chapter 9
Problems 1-25
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 9
Question 1 Input area:
Purchase price Appraised value Cost to build Grading costs
$6,000,000 6,800,000 10,000,000 5
Chapter 11
Problems 1-38
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 11
Question 1 Input area:
Shares of A Share price of A Shares of B Share price of B
80 $42.00 40 $68.00
Output area
Chapter 12
Problems 1-30
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 12 Question 1 Input Area:
Dividend per share Growth rate Stock price
$1.90 6% $38.00
Output Area:
Cost of equity
Chapter 13
Problems 1-19
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 13 Question 1 Input Area:
Market value EBIT Debt issue Interest rate Shares outstanding Expansion-EBIT Recession-EBIT
Chapter 14
Problems 1-18
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 14 Question 1 Input Area:
Number of shares Stock price Dividend per share
200 $105.00 $1.50
Output Area:
Ex-divide
Chapter 15
Problems 1-7
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 15 Question 1 Input Area:
Undervalued IPO Overvalued IPO Price Number of shares
$6 $3 $30 1,000
Output Area:
If you
Chapter 16
Problems 1-18
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 16 Question 1 Input Area:
Increase Decrease No change
I D N
Output Area:
a. b. c. d. e. f. g. h. I. j. k. l. m. n.
Chapter 17
Problems 1-16
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 17 Question 1 Input Area:
Amount on deposit Check amount
$200,000 $118,000
Output:
This is disbursement float. Ava
Chapter 18
Problems 1-16
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 18
Question 1 Input Area:
a. Cash $ per zloty b. Euro value per $ c. $ value per euro Euro amount f. SFr per $
$100
Introduction to Financial Management
This chapter has introduced you to some of the basic ideas in business finance. In it, we saw that: 1. Business finance has three main areas of concern: a. Capital budgeting. What long-term investments should the
Answers to Concepts Review and Critical Thinking Questions
1. Capital budgeting (deciding on whether to expand a manufacturing plant), capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt), and worki
CHAPTER2 FINANCIALSTATEMENTS,TAXES,AND CASHFLOW
Answers to Concepts Review and Critical Thinking Questions
1. Liquidity measures how quickly and easily an asset can be converted to cash without significant loss in value. Its desirable for firms to ha
CHAPTER3 WORKINGWITHFINANCIAL STATEMENTS
Answers to Concepts Review and Critical Thinking Questions
1. a. b. c. d. If inventory is purchased with cash, then there is no change in the current ratio. If inventory is purchased on credit, then there is a
CHAPTER4 INTRODUCTIONTOVALUATION:THE TIMEVALUEOFMONEY
Answers to Concepts Review and Critical Thinking Questions 1. 2. The four parts are the present value (PV), the future value (FV), the discount rate (r), and the life of the investment (t). Compou
CHAPTER5 DISCOUNTEDCASHFLOWVALUATION
Answers to Concepts Review and Critical Thinking Questions 1. 2. 3. 4. 5. 6. 7. 8. 9.
10.
The four pieces are the present value (PV), the periodic cash flow (C), the discount rate (r), and the number of payments,
CHAPTER6 INTERESTRATESANDBOND VALUATION
Answers to Concepts Review and Critical Thinking Questions 1. 2. 3. No. As interest rates fluctuate, the value of a Treasury security will fluctuate. Long-term Treasury securities have substantial interest rate
CHAPTER7 EQUITYMARKETSANDSTOCK VALUATION
Answers to Concepts Review and Critical Thinking Questions 1. 2. 3. The value of any investment depends on its cash flows; i.e., what investors will actually receive. The cash flows from a share of stock are t
CHAPTER8 NETPRESENTVALUEANDOTHER INVESTMENTCRITERIA
Answers to Concepts Review and Critical Thinking Questions
1. A payback period less than the projects life means that the NPV is positive for a zero discount rate, but nothing more definitive can be
CHAPTER9 MAKINGCAPITALINVESTMENT DECISIONS
Answers to Concepts Review and Critical Thinking Questions
1.
In this context, an opportunity cost refers to the value of an asset or other input that will be used in a project. The relevant cost is what t
CHAPTER10 SOMELESSONSFROMCAPITAL MARKETHISTORY
Answers to Concepts Review and Critical Thinking Questions 1. 2. 3.
4.
They all wish they had! Since they didnt, it must have been the case that the stellar performance was not foreseeable, at least not
CHAPTER11 RISKANDRETURN
Answers to Concepts Review and Critical Thinking Questions 1. Some of the risk in holding any asset is unique to the asset in question. By investing in a variety of assets, this unsystematic portion of the total risk can be el