Questions for Chapter 2 and 3
1.
Joe Scavones brewery had operating revenue of $150,000,000 this year. Their total expenses
were 73% of sales, and they are in the 35% tax-bracket. Scavone brewery had $342,000,000 in total
assets at year-end last year but
Questions for Chapter 2 and 3
1.
2.
3.
Joe Scavones brewery had operating revenue of $150,000,000 this year. Their total expenses
were 73% of sales, and they are in the 35% tax-bracket. Scavone brewery had $342,000,000 in
total assets at year-end last yea
2009-08-31
Disney to buy comic book powerhouse
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Mon, Aug 31, 2009, 10:32AM ET
Why Share-Owner Value?
At The Coca-Cola Company, our publicly stated mission is to create value over time for the
owners of our business. In fact, in our society, that is the mission of any business: to create
value for its owners.
Why? The answer can be
Chapter 9: Net Present Value and Other Investment Criteria
1. An investment project requires an initial investment of $400 and produces a cash inflow
of $460 in 1 year. The internal rate of return (IRR) on this project is 15%. If the
cost of capital is 10
Chapter 10: Making Capital Investment Decisions
Problem: Summer Tyme, Inc., is considering a new 6-year expansion project that requires an
initial fixed asset investment of $2.214 million. The fixed asset will be depreciated straight-line to
zero over its
Chapter 9: Net Present Value and Other Investment Criteria
1. An investment project requires an initial investment of $400 and produces a cash inflow of
$460 in 1 year. The internal rate of return (IRR) on this project is 15%. If the cost of capital is
10
Bond Sam:
Coupon rate
Initial yield to maturity
Settlement date
Maturity date
Face value
# of coupons per year
10%
10%
1/1/2005
1/1/2007
1,000
2
Bond Dave:
Coupon rate
Initial yield to maturity
Settlement date
Maturity date
Face value
# of coupons per yea
The assignment will be collected at the beginning of final exam. You should turn in the Excel
workbook for this assignment with your report.
1. Use http:/finance.yahoo.com to obtain daily closing prices for your company. Use Excel to
calculate daily retur
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Warren Buffett opposes Kraft's deal for Cadbury
Jan. 20, 2010
(Reuters) Warren Buffett said Kraft Foods Inc's proposed $19.6 billion acquisition of Cadbury PLC is a "bad
d
Fundamentals of Corp Fin, CH 10 Select Solutions 2. Sales due solely to the new product line are: 19,000($13,000) = $247,000,000 Increased sales of the motor home line occur because of the new product line introduction; thus: 4,500($53,000) = $238,500,000
Chapter 8
Problems 1-24
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
NOTE: Some functions used in these spreadsheets may require that
the "Analysis ToolPak" or "Solver Add-In" be installed in Excel.
To
Chapter 9: Net Present Value and Other Investment Criteria
3.
In the case of mutually exclusive projects, we have to choose the best project.
6.
We always differentiate financial sector from operation sector. So the financial cost
should be incorporated i
Chapter 7:
1.
If interest rates go up, bond prices _.
(A) go down
(B) go up
(C) stay the same
(D) it is impossible to predict what will happen
2.
Higher interest rates lead stock investors to demand _ return from stock
investment, which in turn result in
Chapter 10
Making Capital Investment
Decisions
CHP 9-BIG PICTURE
How do we value a project?
Where do we budget our capital (CAPITAL
BUDGETING)?
What makes a good valuation criteria?
What are people actually doing?
Why?
Key Concepts and Skills
Unders
Chapter
5
Introduction to Valuation:
The Time Value of Money
Key Concepts and Skills
Be able to compute the future value of an
investment made today (FV)
Be able to compute the present value of cash to
be received at some future date (PV)
Be able to co
Chapter
6
Discounted Cash Flow
Valuation
.
Key Concepts and Skills
Be able to compute the future value of
multiple cash flows
Be able to compute the present value of
multiple cash flows
Be able to compute loan payments
Be able to find the interest rat
Chapter
8
Stock Valuation
Key Concepts and Skills
Understand how stock prices depend on
future dividends and dividend growth
Be able to compute stock prices using the
dividend growth model
Understand how stock markets work
Chapter Outline
Common Stock
Chapter
9
Net Present Value and Other
Investment Criteria
McGrawHill/Irwin
Capital Budgeting
9-2
Key Concepts and Skills
Be able to compute payback and understand
their shortcomings
Understand accounting rates of return and
their shortcomings
Be able t
Last Name
First Name
Company
AMATO
MATTHEW
3m Co
ANDERSON
BRANDON
Boeing Company (The) Common Sto
CASAZZA
GIOVANNA
Mattel, Inc.
CHAN
WAI CHING
Caterpillar, Inc. Common Stock
CUZYDLO
KYLE
Cisco Systems, Inc.
DALAL
DHARA
Chevron Corporation Common Stoc
ESCA
Equation sheet for Chapter 3.
This equation sheet will be attached to the exam 1.
TotalCurrentAssets
TotalCurrent Liabilities
Quick Assets (total CA - Inventory)
Quick Ratio =
Total Current Liabilities
Current Ratio =
Total Operating Revenues
T
Financial Calculator
Definitions:
PV: Present Value (Always put the FV as -)=> otherwise Error5
FV: Future Value
I/Y: Interest per Year (Always should be Yearly base by definition)
N : Number of Period (Could be Monthly base or Yearly base)
P/Y: Period pe
Chapter 7:
7.
Bond price is NEGATIVELY related to interest rate, and its sensitivity to the
changes in interest rate INCREASE as the maturity of bond becomes longer.
8.
This question is about the concept of interest rate risk in bond valuation. Holding al
Chapter
3
Working With Financial
Statements
.
Key Concepts and Skills
Two approaches: ratio vs. value analysis
Know how to compute and interpret important
financial ratios
Understand the problems and pitfalls in financial
statement analysis
3-2
Sample
Chapter 2
Problems 1-26
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
NOTE: Some functions used in these spreadsheets may require that
the "Analysis ToolPak" or "Solver Add-In" be installed in Excel.
To
Chapter 3
Problems 1-30
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
NOTE: Some functions used in these spreadsheets may require that
the "Analysis ToolPak" or "Solver Add-In" be installed in Excel.
To
CHAPTER 10
Properties of Stock Options
Practice Questions
Problem 10.8.
Explain why the arguments leading to putcall parity for European options cannot be used to
give a similar result for American options.
When early exercise is not possible, we can argu