FIN 534 Homework Chapter 1
Directions: Answer the following five questions on a separate document. Explain how
you reached the answer or show your work if a mathematical calculation is needed, or
both. Submit your assignment using the assignment link in t
Fin-534 Chapter 12
1. Which of the following statements is CORRECT?
a. Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of
common equity between common stock and retained earnings.
b. The first,
FIN 534 Homework Chapter 16
1. Swim Suits Unlimited is in a highly seasonal business, and the following summary balance sheet data
show its assets and liabilities at peak and off-peak seasons (in thousands of dollars):
Cash $ 50 $ 30
Risk and Return, Coefficient of Variation
Based on the following information, calculate the coefficient of variation and select the best
investment based on the risk/reward relationship.
Coefficient of var
Using a 3.8% discount rate, calculate the Net Present Value, Payback, Profitability
Index, and IRR for each of the investment projects below (note, the inflows are for
each year). Based on your calculations rank the projects and support you ans
Present value of single sum problem
You are going to be given $100,000 in 12 years. Assuming an interest rate of 3.5%, what is the present
value of this amount?
Explain the parts of the business plan.
The executive summary appears first in the business plan but is often the last to be created. It
quickly introduces the business and its owners, identifies the industry and target markets, and
identifies the competi
Valuation - preferred stock
What is the value of a share of preferred stock that pays a $9.50 dividend, assume k is 12%.
Value of preferred stock = Dividend/Cost of preferred stock
Based on the information below, calculate the weighted average cost of capital.
Great Corporation has the following capital situation.
Debt: One thousand bonds were issued five years ago at a coupon rate of 8%.
They had 25-year terms and $1,000 face va
Finance 534 chapter 17
Directions: Answer the following five questions on a separate document. Explain how you reached the
answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using
the assignment link in the c