Corporate Finance
Problem Set #1-1 Solutions
#1.
D/E=0.25
D/(D+E) = 0.2 E/(D+E) = 0.8
WACC = [.8 x .12] + [.2 x .07 x (1-0.4)] = .1044 or 10.44%
5
NPV - $30 million
t 1
#2.
(a)
$8 million
= $11,535 Reject the project
(1 0.1044) t
average rD = (-0.05 + 0

64. Morrison's Corner Bakery has beginning long-term debt of $23,509 and ending long-term debt of
$19,847. The beginning and ending total debt balances are $26,847 and $24,613, respectively.
The interest paid is $1,988. What is the amount of the cash flow

Corporate Finance - Problem Set #1
1. [10 points] Sydney Industries, Inc., is considering a new project that costs $30 million. The project
will generate after-tax (year-end) cash flows of $8 million for five years. The firm has a debt-to-equity
ratio of

57.
Given the tax rates as shown, what is the average tax rate for a firm with taxable income of
$218,740?
A. 25.38 percent
B. 28.43 percent
C. 30.67 percent
D. 31.34 percent
E. 39.00 percent
Tax = .15($50,000) + .25($25,000) + .34($25,000) + .39($118,740

Marriott Corporation
The Weighted Average Cost of Capital
5/4/2015
Paul H. Malatesta
1
The Pillars of Marriotts
Corporate Strategy
Invest to increase shareholder value
Optimize the use of debt
Manage rather than own hotels
Repurchase undervalued shares
5/

Optimal Leverage
Case Discussion: American Home
Products
Paul H. Malatesta
1
What is the business of American
Home Products?
1981 sales exceed $4 billion
Prescription drugs
Proprietary drugs
Food, house wares, household products
Well known brands inc

Seasonal Financing
Case Study: Polar Sports, Inc.
4/8/2015
Paul H. Malatesta
1
Polar Sports Business
Very competitive
Unpredictable demand. Sales of individual
product items volatile.
Highly seasonal demand. 80% of sales
occur from September through Ja

Cross tabulation
Multivariate technique used to study relationship between two categorical variables
The test generates cross tabulation table with cells for every combination of categories of
the two variables
Each categorical variables has two levels

RES202 MARKETING RESEARCH
Quarter 4 2016
Unit Guide
RES202 MARKETING RESEARCH
QUARTER 4 2016
About Marketing Research
Contacts
Below is a list of contacts for this unit. Please liaise directly with your unit instructor regarding
appropriate consultation t

Running head: EXERCISE FOR SIMULATION PARTICIPANTS -W6
Exercise for Simulation Participants -W6
Corporate Strategy - BUSM 6753
Yousuf Syed
Simon Ryu
Alia Ibrahim
Ashmita Panda
Dr. John Green, Professor
Northwest University
Feb 09, 2017
1
EXERCISE FOR SIMU

Correlation and Regression
Product Moment Correlation
The product moment correlation, r, summarizes the
strength of association between two metric (interval or
ratio scaled) variables, say X and Y.
It is an index used to determine whether a linear or
st

Step 1: State the null hypothesis
Step 2: State the alternative hypothesis
Step 3: Decide on the significance level
Step 4: Give your decision rule (e.g. if p-value is less than 0.05 then
Reject Null Hypothesis OR if t-value is > Critical value then Reje

Marketing Research
Final Exam - Topic List
Chapter 1:
The Marketing Research Process
Ethics in Marketing Research
Chapter 2:
The Problem Formulation Process
Research Proposal
Chapter 3:
Types of Research Designs
Types of Exploratory, Descriptive and Causa

49.
A firm has net working capital of $820. Long-term debt is $3,260, total assets are $5,920 and
fixed assets are $3,410. What is the amount of the total liabilities?
A. $2,440
B. $4,080
C. $4,130
D. $4,230
E. $4,950
Current assets = $5,920
$3,410 = $2,5

Chapter 2 Key
1.
The financial statement summarizing the value of a firm's equity on a particular date is the:
A. income statement.
B. balance sheet.
C. statement of cash flows.
D. cash flow statement.
E. dividend statement.
Ross - Chapter 002 #1
SECTION:

Running head: EXERCISE FOR SIMULATION PARTICIPANTS -W1
Exercise for Simulation Participants -W1
Corporate Strategy - BUSM 6753
Alia Ibrahim
Yousuf Syed
Ashmita Pande
Simon Ryu
Dr. John Green, Professor
Northwest University
Jan 13, 2017
1
EXERCISE FOR SIMU

Running head: EXERCISE FOR SIMULATION PARTICIPANTS -W5
Exercise for Simulation Participants -W5
Corporate Strategy - BUSM 6753
Alia Ibrahim
Ashmita Panda
Simon Ryu
Yousuf Syed
Dr. John Green, Professor
Northwest University
Feb 05, 2017
1
EXERCISE FOR SIMU

Running head: EXERCISE FOR SIMULATION PARTICIPANTS -W7
Exercise for Simulation Participants -W7
Corporate Strategy - BUSM 6753
Yousuf Syed
Simon Ryu
Alia Ibrahim
Ashmita Pande
Dr. John Green, Professor
Northwest University
Feb 19, 2017
1
EXERCISE FOR SIMU

Running head: EXERCISE FOR SIMULATION PARTICIPANTS -W2
Exercise for Simulation Participants -W2
Corporate Strategy - BUSM 6753
Ashmita Pande
Simon Ryu
Alia Ibrahim
Yousuf Syed
Dr. John Green, Professor
Northwest University
Jan 19, 2017
1
EXERCISE FOR SIMU

Running head: EXERCISE FOR SIMULATION PARTICIPANTS -W3
Exercise for Simulation Participants -W2
Corporate Strategy - BUSM 6753
Yousuf Syed
Ashmita Panda
Simon Ryu
Alia Ibrahim
Dr. John Green, Professor
Northwest University
Jan 26, 2017
1
EXERCISE FOR SIMU

Running head: EXERCISE FOR SIMULATION PARTICIPANTS -W4
Exercise for Simulation Participants -W4
Corporate Strategy - BUSM 6753
Yousuf Syed
Ashmita Panda
Simon Ryu
Alia Ibrahim
Dr. John Green, Professor
Northwest University
Feb 02, 2017
1
EXERCISE FOR SIMU

Walmart
Walmart
Save
Savemoney.
money.Live
Livebetter.
better.
B y : Te a m E
Ashmita
Alia
Simon
Yo u s u f
Agenda
Walmart
Walmart
Company Highlights
Mission & Vision
Com
p e t money.
i t i v e ALive
d v abetter.
ntage
Save
Save money. Live better.
Strat

Case Study -13
Corporate Strategy- BUSM 6753
B y : Te a m E
Alia
Yo u s u f
Ashmita
Simon
agenda
Company Highlights
Mission & Vision
Competitive advantage
Ve r a b r a d l e y s s t r a t e g i c p l a n
SWOTT analysis
Financial analysis
Tr e n d a n a l

7.
The current ratio is measured as:
A. current assets minus current liabilities.
B. current assets divided by current liabilities.
C. current liabilities minus inventory, divided by current assets.
D. cash on hand divided by current liabilities.
E. curre

51. Your firm has total assets of $1,400, fixed assets of $600, long-term debt of $700, and short-term
debt of $100. What is the amount of net working capital?
A. $0
B. $100
C. $600
D. $700
E. $800
52. Knight Insurance has shareholders' equity of $136,900

71.
What concerns might a loan officer have when loaning funds to a sole proprietor that he or she
might not have when loaning funds to a corporation?
The existence and viability of a sole proprietor is dependent upon one individual. Should that
individua

SECTION: 3.3
TOPIC: ASSET UTILIZATION RATIOS
TYPE: DEFINITIONS
20.
The inventory turnover ratio is measured as:
A. total sales divided by inventory.
B. inventory divided by total sales.
C. cost of goods sold divided by inventory.
D. inventory divided by c

85. Big Foot Wholesalers has sales of $1,387,400, costs of goods sold of $891,400, inventory of
$188,936, and accounts receivable of $94,800. How many days, on average, does it take the firm
to sell its inventory assuming that all sales are on credit?
A.

75.
A firm has sales of $1,640, net income of $135, net fixed assets of $1,200, and current assets
of $530. The firm has $280 in inventory. What is the common-size statement value of
inventory?
A. 15.01 percent
B. 15.68 percent
C. 16.18 percent
D. 30.42 p