Solutions to Chapter 3
Accounting and Finance
9.
a
Book value equals the $200,000 the founder of the firm has contributed in
tangible assets. Market value equals the value of his patent plus the value of
the production plant: $50,000,000 + $200,000 = $50,
Solutions to Chapter 4
Measuring Corporate Performance
1.
a. Market value = 657 mil $83 = $54,531 million
Market value added = 54,531 17,532 = $36,999 million
b. Market / book = 54,531 / 17,532 = 3.11
c. Yes. The company has increased the value of the equ
Solutions to Chapter 5
The Time Value of Money
16.
We solve the following equation for r:
422.41 (1 + r)10 = 1000 r = 9.00%
[On a financial calculator, enter PV = ()422.41, FV = 1,000, n = 10, PMT = 0;
compute the interest rate.]
16
The PV for the quarter
Solutions to Chapter 1
Goals and Governance of the Firm
1.
a.
b.
c.
d.
e.
f.
Investment decision
Financial asset
Public corporation
Corporation
Treasurer
The cost resulting from conflicts of interest between managers and
shareholders
Est time: 0105
Introd
F V= PV x (1+i) n (Compound)
SI= (PV x i) x n PV= FV/(1+i)n PV of Cash Flows=PV of YR1 + PV of YR2 + PV of YR3 + etc
PV of an annuity = Calculator: N=t(number of months); I=interest rate per month; PMT = payment per month; FV=0; END. Credit Cards: 1 + eff
F I NANCE 307-07 & 08: Survey of F in ance
EXCEL ASSIGN ME N T #1: F in ancia l Ratio Analysis Dr. H. Chr istine Hsu Spr ing 2010 The objective of this assignment is to evaluate the financial performance of Apple Inc. against i ts industry norm. Students