BusM 401
Problem Set #3
Financial Forecasting/Managing Growth
Solutions
1. Do Higgins, Chapter 3, #1.
Answer provided in the back of the book.
2. Do Higgins, Chapter 3, #9.
Answers provided in the back of the book.
3. Do Higgins, Chapter 4, #1.
Answers pr
Robert Andersen
Nguyen Bui
Mike Burton
Reed Crandall
February, 23, 2011
Intel Case Study
1. Why has Intel been so successful in recent years? What are the pros and cons of
Intels current competitive position?
One of the major competitive advantages of Int
Fin 401
Problem Set #1 Checkpoints
Review of Financial Functions
Note: These checkpoints are short answers intended to help you check your work as you go
along. They are not full solutions, which will be posted on Learning Suite after the problem set is
t
Fin 401
Problem Set #1
Review of Financial Functions
Solutions
1. You are buying a new minivan for $22,000. You will finance the purchase over 4
years making monthly payments, and you wont pay off the loan early. You are putting
$0 down. The dealer offers
Fin 401
Problem Set #3
Financial Forecasting/Managing Growth
Instructions: Complete all questions. This problem set is worth 10 points. Problems sets are graded on
effort and completeness; you must show your work in order to get full credit. Short answers
Fin 401
Problem Set #3 Checkpoints
Financial Forecasting/Managing Growth
Note: These checkpoints are short answers intended to help you check your work as you go along. They
are not full solutions, which will be posted on Learning Suite after the problem
Fin 401
Problem Set #2 Checkpoints
Evaluating Financial Performance
Note: These checkpoints are short answers intended to help you check your work as you go
along. They are not full solutions, which will be posted on Learning Suite after the problem set i
Fin 401
Problem Set #2
Evaluating Financial Performance
Instructions: Complete all questions. This problem set is worth 10 points. Problems sets are
graded on effort and completeness; you must show your work in order to get full credit. Short
answers (che
Fin 401
Problem Set #3
Financial Forecasting/Managing Growth
Solutions
1. Do Higgins, Chapter 3, #3.
Answer provided in the back of the book.
2. Do Higgins, Chapter 3, #11.
Answers provided in the back of the book.
3. Do Higgins, Chapter 4, #3.
Answers pr
systematic risk determines volatility
asset beta takes debt out of the equation
use when our target debt equity ratio is going to change
assume that asset beta is styaing the same
apply new d/e ratio to determine new equity ratio
\financial risk exists be
Pinnacle BusM 401
Venture Capital
Venture capital funding
Venture capital is an important source of financing, particularly for firms that
are high risk and that require substantial investment
A fairly small percentage of startups receive VC financing les
BusM 401
Problem Set #4
Financial Instruments
Solutions
Use the following financial statements from Roxbury Corporation to answer questions 1
and 2.
Financial Statements for Roxbury Corporation
2005 and 2006, in $millions
INCOME STATEMENT
2005
2006
Net sa
BusM 401
Problem Set #5
Financial Markets
Solutions
1. A venture capital firm wants to invest $5 million in Rosita Corp., a startup
biotechnology firm. Rosita is expected to go public in 5 years. Earnings will be negligible
until year 5, but are projected
BusM 401
Problem Set #2
Evaluating Financial Performance
Solutions
1. Do Higgins, Chapter 1, #6.
a. R&E Supplies, Inc. Sources and Uses Statement 2005-2008 ($000).
Sources of cash:
Decrease in cash and securities
$259
Increase in accounts payable
2,205
In
BusM 401
Problem Set #1
Review of Financial Functions
Solutions
1. You are buying a new minivan for $22,000. You will finance the purchase over 4
years making monthly payments, and you wont pay off the loan early. You are putting
$0 down. The dealer offer
Fin 401
Problem Set #1
Review of Financial Functions
Instructions: Complete all questions. This problem set is worth 10 points. Problems sets are
graded on effort and completeness; you must show your work in order to get full credit. Short
answers (checkp