Chapter 6
Bonds interest-only loans (interest will be paid every period, but none of the principal
will be paid off until the end)
o Issued by corporations or governments
The government issues Treas
Chapter 5: Discounted Cash Flow Valuation
Multiple cash flows (General cases): given the periods & periodic rate, compute PV or FV.
Apply the single-CF formula to each cash flow & sum them at t = 0 (P
Chapter 9 Making Capital Investment Decisions
arguably most important chapter
Capital budgeting: firm-level investment decision-making process
Deterministic DCF approach by identifying/estimating all
Chapter 3 Working with Financial Statements
common - size financial statemetn analysis
financial ratio analysis
ROE decomposition or Du Point analysis
Growth Rate (of TA) analysis
Sustainable growth
Chapter 10 Some Lessons from Capital Market History
Risk-return tradeof
There is a reward for bearing risk: the presence of risk premium (or additional return) in risk-adjusted return
High (perceive
Chapter 4 Introduction to Valuation: The Time Value of Money
Intertemporal choice of consumption
Simple interest vs. compound interest
Simple interest balance = principal + total interest = prinicipal
Chapter 8 Net Present Value and Other Investment Criteria
Net Present Value (NPV)
NPV = PV(Cash inflow) - PV(Cash outflow)
If NPV > 0 (or PV of inflow > PV of outflow), accept the
Compute PV(Cash infl
Chapter 7 Equity Markets and Stock Valuation
Stock price as the sum of discounted future dividends: Dividend Discount Model
Suppose buying a dividend-paying stock at P 0 and selling it at P1 with D1 p
Chapter 7:
1. Average Accounting Return (AAR) = Average net income/Average investment
P.201
2. Accept the project if IRR is greater than the discover rate. Reject the project if IRR is less than
the d
Chapter 2:
1. Assets = Liabilities + Stockholders equity
2. Revenue Cost of Goods Sold Other expenses Depreciation = Operation Income
3. Operation Income + Other Income = Earnings before Interest and
Background
Accounting has a long history and a close association with the development of Chinese culture.
As a Communist country, Chinas accounting environment is different from other countries,
espec
Chapter 5: Discounted Cash Flow Valuation
Multiple cash flows (General cases): given the periods & periodic rate, compute PV or FV.
Apply the single-CF formula to each cash flow & sum them at t = 0 (P
Business Finance Mid-Term Take Home Problems
Chapter 3
Coogan Development Common Size Balance Sheet
2009
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Total
Fixed Assets
Net plant and equip
.Ial. "an. airman-:meum: airmail: chre'Imn Mainm.
of end Mar shesKs ilmi an -
What Is 1112 eauatlon for ml relurn
s," .ermm. mi. 1| mm Ilw-wvrrir lilsagmdrtaldwiubnt-ImeWIassemcI
Kyle Electric has three positive net present value opportunities. Unfortunately, the firm has not been able to find nancing for any of these projects.
Which one of the following terms best ts the situ
Chapter 5: Discounted Cash Flow Valuation
Multiple cash flows (General cases): given the periods & periodic rate, compute PV or FV.
Apply the single-CF formula to each cash flow & sum them at t = 0 (P
You are scheduled to receive $7,500 in three years. When you
receive it, you will invest it for eight more years at 7.5 percent
per year. How much will you have in eleven years?
NPER
8
FV =
RATE
7.50%
April Quarles
Dr. Moore
Finance
February 6, 2017
Module 2
Chapter 3
3.1 Briefly describe the major third-party payers
(Answer) The major third party payers are Private insures, commercial and self-ins
April Quarles
Dr. Moore
Finance
February 25, 2017
Module 4
Chapter 7
7.1 What is the revenue cycle? Why is it important to healthcare organizations?
(Answer) The revenue cycle is defined as the set of
April Quarles
Dr. Moore
Finance
March 22, 2017
Module 5
Chapter 9
9.1 Find the following values for a single cash flow:
(a) The future value of $500 invested at 8 percent for one year
(Answer)FV= $500
April Quarles
Dr. Moore
Finance
February 19, 2017
Module 3
Chapter 5
5.1 (a) Using a hospital to illustrate your answer, explain the difference between a price setter and a
price taker.
(answer) Price
April Quarles
Dr. Moore
Finance
January 29, 2017
Module 1
Chapter 1
1.1 What is meant by the term healthcare finance as it is used in this book?
(Answer) Healthcare finance refers to the accounting an
Solutions Manual
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
9th edition
01/03/2016
Prepared by
Brad Jordan
University of Kentucky
Joe Smolira
Belmont University
CHAPTER 1
INTRODUCTI