Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
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CHAPTER 2
FINANCIAL STATEMENTS, TAXES AND
CASH FLOW
Answers to Concepts Review and Critical Thinking Questions
1.
Liquid
Chapter 6
Bonds
Outline
Bond
Valuation
Dynamic
Behavior of
Bond Prices
Yields
and Prices
Risk-free
Zero Coupon
Bond
2
Risk-free
Coupon Bond
Time and
Bond Prices
Spring 2014
Interest Rate
Sensitivity
Credit Risk
and
Bond Rating
Corporate
Bond
Lynn Pi
Disco
Americas Got Talent
source:
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Please submit your group list through
Assignments in LMES to Ms. Stella Lien
(my TA) by 18 February 2015
(Wednesday)
Ross, S. A., R. W. Westerfield, B. D.
Jordan, J. Lim and R. Tan, Fundamentals
of Corp
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 3
WORKING WITH FINANCIAL
STATEMENTS
Answers to Concepts Review and Critical Thinking Questions
1.
a. If inventory is
Chapter 7
Stock Valuation
Takeaway
Stock value is independent of investors holding period.
Stock value depends on expected cash flows, which are in
turn determined by the amount of future dividends and its
growth rate.
Growth is determined by retention ra
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 7 B-2
CHAPTER 7
INTEREST RATES AND BOND
VALUATION
Answers to Concepts Review and Critical Thinking Questions
1.
No.
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 8
STOCK VALUATION
Answers to Concepts Review and Critical Thinking Questions
1.
The value of any investment depends
More midterm review questions
1. Which of the following would be best considered to be an agency conflict problem in the
behavior of the following financial managers?
A.
Bill chooses to pursue a risky investment for the company's funds because his
compens
Chapter 11 risk and return
1. Rational investors _ fluctuations in the value of their investments.
A) are averse to
B) prefer
C) are indifferent to
D) are in favor of
E) are indifferent from
2. Suppose you invested $60 in the Ishares Dividend Stock Fund (
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 9
NET PRESENT VALUE AND OTHER
INVESTMENT CRITERIA
Answers to Concepts Review and Critical Thinking Questions
1.
A pa
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 6
DISCOUNTED CASH FLOW VALUATION
Answers to Concepts Review and Critical Thinking Questions
1.
The four pieces are t
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 16
FINANCIAL LEVERAGE AND CAPITAL
STRUCTURE POLICY
Answers to Concepts Review and Critical Thinking Questions
1. Bus
FIN2303: Managerial Finance
Spring 2013
Crossover Point for Mutually Exclusive Projects
Crossover point is the discount rate that makes the NPV of the two alternatives equal
Crossover point discount rate that makes NPVproject A NPVproject B = 0
At cros
FIN 2303: Financial Management
Spring 2013
_
Chapter 13
Cost of Capital
Ekkachai Saenyasiri
Page 1
5/9/2013
FIN 2303: Financial Management
Spring 2013
_
Why Cost of Capital is Important?
The return to an investor is the same as the cost to the company
C
FIN 2303: Financial Management
Spring 2013
_
Chapter 16
Capital Structure
(Part 1)
Ekkachai Saenyasiri
Page 1
5/14/2013
FIN 2303: Financial Management
Spring 2013
_
The investment decision
(where to invest)
The financing decision
(where to get the money)
FIN 2303: Financial Management
Spring 2013
_
Chapter 12
Systematic Risk and The Equity Risk Premium
Part 2
Ekkachai Saenyasiri
Page 1
5/7/2013
FIN 2303: Financial Management
Spring 2013
_
Volatility of an Equally Weighted Portfolio vs. # of stocks
Ekkacha
FIN2303: Managerial Finance
Spring 2013
Chapter 8: Investment Decision Rules (part 1)
The primary goal of corporate finance is to maximize shareholder value
To increase the value of a company, we must know how to evaluate each investment
opportunity =>Cap
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 14
COST OF CAPITAL
Answers to Concepts Review and Critical Thinking Questions
1.
It is the minimum rate of return th
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 15
RAISING CAPITAL
Answers to Concepts Review and Critical Thinking Questions
1.
A companys internally generated cas
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 13
RISK, RETURN, AND THE SECURITY
MARKET LINE
Answers to Concepts Review and Critical Thinking Questions
1.
Some of
CHAPTER 4
DISCOUNTED CASH FLOW
VALUATION
Answers to Concept Questions
1.
Assuming positive cash flows and interest rates, the future value increases and the present
value decreases.
2.
Assuming positive cash flows and interest rates, the present value wil
FINA2303 Fall 2015-2016
FINAL EXAM - Formula Sheet
The future value in N years of a cash flow C today is : (1 + )
The present value today of a cash flow C received in n years is : C
n
(1 + r )
Present Value of a stream of cash flows: PV =
C3
Cn
C2
C1
+
Question #1
If its yield to maturity is less than its coupon rate, a bond will sell at a _, and increases in market
interest rates will _.
(1) discount; decrease this discount.
(2) discount; increase this discount.
(3) premium; decrease this premium.
(4)
1. If a project has a net present value equal to zero, then how many of the following statements is/are
correct?
I. the present value of the cash inflows exceeds the initial cost of the project.
II. the project produces a rate of return that just equals t
CHAPTER 11
RETURN AND RISK: THE CAPITAL
ASSET PRICING MODEL (CAPM)
Answers to Concept Questions
1.
Some of the risk in holding any asset is unique to the asset in question. By investing in a
variety of assets, this unique portion of the total risk can be
CHAPTER 2
FINANCIAL STATEMENTS AND
CASH FLOW
Answers to Concept Questions
1.
Liquidity measures how quickly and easily an asset can be converted to cash without
significant loss in value. Its desirable for firms to have high liquidity so that they have a
FINA 2303: Financial Management
Spring 2016
_
Chapter 12
FINA 2303: Financial Management
Spring 2016
_
In chapter 11, we found that
Systematic Risk and The Equity Risk Premium
For large portfolios, investors expect higher returns for higher risk.
The sa
FINA 2303: Financial Management
Spring 2016
_
FINA 2303: Financial Management
Spring 2016
_
Why Cost of Capital is Important?
Chapter 13
Cost of Capital
The return to an investor is the same as the cost to the company
Cost of capital provides us with an