Intermediate Corporate Finance 3023 (Spring 2014)
Homework 2
Note: Show your work and solution thoroughly in all problems using time value of
money formulas and equations. Please do not report financial calculator inputs and
outputs.
1) What is the presen

Intermediate Corporate Finance 3023 Spring 2014
Homework 9
Show your work explicitly in all problems. No points if you just write down the final
numerical answer even if the answer is correct.
1. The total market value of Cylon Real Estate Company is $6 m

Intermediate Corporate Finance 3023
Homework #8
1) You are hired as a manager for AT&T. You are asked to make a presentation as to
whether they should undertake the following project. For the purpose of this question,
assume that AT&T is all equity financ

Intermediate Corporate Finance 3023
Homework #7
I strongly recommend using Excel to answer the following questions.
1) (3 points) Here are inflation rates, US Stock market and Treasury bill
returns between 1999 and 2004:
Year
1999
2000
2001
2002
2003
2004

Intermediate Corporate Finance 3023 - Spring 2014
Homework Assignment #5
1) What is the value of a stock which pays a $3 dividend/year (first dividend in one
year), growing at 5% forever, if the discount rate is 13%?
Just apply the Gordon growth model:
P0

Intermediate Corporate Finance 3023 Spring 2014
Homework #3
Note: Show your work and solution thoroughly in all problems using time value of
money formulas and equations.
1) What is the present value of receiving $5,000/year forever starting in one year (

Intermediate Corporate Finance 3023 Spring 2014
Homework #6
1) You have been asked to evaluate a project. An investment of $10,000,000 today
will generate cash flows of $900,000/year in perpetuity.
a. What is the payback period for this investment?
b. Wha

Intermediate Corporate Finance 3023 - Spring 2014
Homework #4
Each question is worth 2.5 points. The bonus question is worth 1.5 points
1) What is the price of a bond with a coupon rate of 7%, a maturity of 15 years, and
a yield to maturity of 9% if the b

Intermediate Corporate Finance 3023 (Spring 2014)
Homework 1
Question 1 (2.5 points): South Sea has the following (incomplete) balance sheet and
(incomplete) income statement.
BALANCE SHEET, AS OF END OF YEAR (figures in millions of dollars)
Liabilities a

Has the company drastically increased or decreased its use of debt?
ConAgra Foods has not drastically decreased their debt but they have; in 2012 they started with
3.68 and by 2014 they had decreased to 2.58.
2. Has the company liquidity position changed