Problem Set #3
Financial Forecasting/Managing Growth
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.
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
Problem Set #1
Review of Financial Functions
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
Problem Set #2
Evaluating Financial Performance
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
Increase in accounts payable
Problem Set #5
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
Problem Set #4
Use the following financial statements from Roxbury Corporation to answer questions 1
Financial Statements for Roxbury Corporation
2005 and 2006, in $millions
Pinnacle BusM 401
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
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