Solution
Chapter:
Problem:
7
22
Valuation of Stocks and Corporations
Selected data for the Derby Corporation are shown below. Use the data to answer the following questions.
INPUTS (In millions)
Year
Current
0
Free cash flow
Marketable Securities
Notes pa
Chapter 5. Solution to Ch05 P24 Build a Model
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The
bond sells for $1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Yea
Solution
Chapter:
Problem:
7/16/2015
6
15
a. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then
calculate average returns over the five-year period. (Hint: Remember, returns are calculated by
subtracting the
12/7/2012
Chapter:
Problem:
4
35
a. Find the FV of $1,000 invested to earn 10% annually 5 years from now. Answer this
question by using a math formula and also by using the Excel function wizard.
Inputs:
Formula:
Wizard (FV):
PV =
I/YR =
N =
FV = PV(1+I)^
8/16/2016
Chapter:
Problem:
6
15
a. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then
calculate average returns over the five-year period. (Hint: Remember, returns are calculated by
subtracting the beginnin
Chapter:
Problem:
7
23
Selected data for the Derby Corporation are shown below. Use the data to answer the following questions.
INPUTS (In millions)
Year
Current
0
Free cash flow
Marketable Securities
Notes payable
Long-term bonds
Preferred stock
WACC
Num
12/7/2012
Chapter:
Problem:
10
23
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash
flows are as follows:
Time
0
1
2
3
4
5
6
7
Expected Net Cash Flows
Project A Project B
($375)
($575)
($300)
$190
($200)
Chapter:
Problem:
5
24
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040.
The bond sells for $1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Years to maturity:
Periods
12/7/2012
Chapter:
Problem:
11
18
Webmasters.com has developed a powerful new server that would be used for corporations Internet activities. It
would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would
r
12/7/2012
Chapter:
Problem:
4
35
a. Find the FV of $1,000 invested to earn 10% annually 5 years from now. Answer this
question by using a math formula and also by using the Excel function wizard.
Inputs:
Formula:
Wizard (FV):
PV =
I/YR =
N =
FV = PV(1+I)^
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
B
Chapter:
Problem:
C
D
E
F
G
H
12/7/2012
7
22
Hamilton Landscaping's dividend growth rate is expected to be 30% in the next year, drop to 15% from Year 1
to Year 2, and drop to a constant 5% for
12/7/2012
Chapter:
Problem:
2
15
a. Using the financial statements shown below, calculate net operating working capital, total net
operating capital, net operating profit after taxes, free cash flow, and return on invested capital for
the most recent year
The market value of any real or ﬁnancial asset. including stocks, bonds. or art work purchased in hope of selling it at a profit. may be estimated by determining future cash
ﬂows and then discounting them back to the present.
0 True False
QUESTION 2 1.5po
Sample email response format for BUS539 Financial Management homework
RE: Report on impact of expansion
Mr. Meissner,
Recently you asked me to investigate the financial impact of our recent expansion. A careful
review of the current financial statements r
12/7/2012
Chapter:
Problem:
4
35
a. Find the FV of $1,000 invested to earn 10% annually 5 years from now. Answer this
question by using a math formula and also by using the Excel function wizard.
Inputs:
Formula:
Wizard (FV):
PV =
I/YR =
N =
FV = PV(1+I)^
12/7/2012
Chapter:
Problem:
6
15
a. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then
calculate average returns over the five-year period. (Hint: Remember, returns are calculated by
subtracting the beginnin
3/27/2012
Chapter:
Problem:
5
24
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040.
The bond sells for $1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Years to maturit
1
COMPANY ANALYSIS PROJECT OF TESLA MOTORS INC.
Financial Management
Professor
BUS539
June 1, 2015
2
COMPANY ANALYSIS PROJECT OF TESLA MOTORS INC.
Executive Summary
The objective of this analysis it to discover the importance of financial ratios involving