Finance 221
Problem Set 4 (Practice Problems) Solutions
This problem set is to provide practice for the capital budgeting portion of midterm 2. You will not
be required to submit your answers for credit.
1. Midwest Electric Company (MEC) uses only debt an
TheGrassisGreenerontheOthersidewith TheGrassisGreenerontheOthersidewith Telco
By Chanell Aigbedo Ana Antonetti Janelle Canty Brittany Clemmons
AnIntroductiontoabetter AnIntroductiontoabetter lifewithTelco
Many people dont realize what kind of impact they
L ights Out! M ake an extra effort to tu rn out the lights. Purchase and use energy star rated light bulbs in all f ixtures to cut down on the amount of energy used. Energy star bulbs typically use two thirds less energy! Install t imers and or motion sen
1. You notice that sales representatives in the Pacific Northwest made 20 percent fewer
sales to new clients over the past quarter than salespeople located elsewhere in the United States. Use the MARS model to provide possible explanations explain why the
Introduction to Financial Decisions Welcome to the Introduction Financial Decisions e-lecture series.
XML
This e-Lecture system will enable you to listen to a lecture provided as part of Financial Decisions course at Hosei University. These lectures have
1.
Question: Rollincoast Incorporated issued BBB bonds two years ago that provided a yield to maturity of 11.5%. Long-term risk-free government bonds were yielding 8.7% at that time. The current risk premium on BBB bonds versus government bonds is half of
Mantoux 1Tuberculin Skin Test Pre- and Post-Test
Circle the correct letter for each answer. Each question has only one answer (unless otherwise indicated). Please check to indicate whether this is a:
_Pre-Test
1. The correct amount of PPD antigen to use i
FINC3131 Business Finance Summer 2009 Student Name:
Exam 1
Solution
1. The primary goal for a publicly traded firms financial managers is:
a. To maximize the dividends per share paid out to shareholders b. To maximize preferred dividends c. To maximize th
University College of the Cayman Islands
FIN301 Financial Management
Tutorial 8 - Bond Valuation Chapter 7 (Note With respect to the textbook questions, the solutions for the ones
that require the yield to maturity are presented in financial calculator fo
Data is not identified and entered in cells. Answer is typed in cell with no calculations. 19 stocks with Bi = 1.12, 1 stock with Bi = 1.75, new Bi? (.95 x 1.12) + (.05 x 1.75)= 1.16
Introduction to Financial Decisions Welcome to the Introduction Financial Decisions e-lecture series.
XML
This e-Lecture system will enable you to listen to a lecture provided as part of Financial Decisions course at Hosei University. These lectures have
Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock is 15%. What is the stock's value per share? D1 P0 Time Dt P0
Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock is 15%. What is the stock's value per share? D1 P0 Time Dt P0
Table 12-1 Cash Flow Estimation and Analysis for Expansion Project S
0 Investment Outlays at Time = 0 Equipment Net WC Net Cash Flows Over the Project's Life Unit sales Sales price Variable cost per unit Sales revenues = Units Price Variable costs = Units
Model for Chapter 11, Basics of Capital Budgeting
On tab #1 we go through the main calculations done in the chapter. We recommend that you see our Excel
Tutorial if you don't understand some of the Excel functions.
Table 11-1. Data on Projects S and L WAC
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Chapter 10. The Cost of Capital
The cost of capital is a vital element in the capital budgeting process. For a project to be accepted, it must provide a return that exceeds its cost of capital, or hurdle rat
09 Chapter model
12/12/08
Chapter 9. Stocks and Their Valuation
This model is similar to the bond valuation models developed in Chapter 7 in that we employ discounted cash flow analysis to find the value of a firm's stock.
COMMON STOCK VALUATION (Section
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Chapter 8. Risk and Rates of Return
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The higher a security's risk, the higher its required return. Risk can be thought of in two ways: (1) Stand-alone risk, where the security is considered in isolation, and (2) portfolio risk,
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Chapter 7. Bonds and Their Valuation
The value of any financial asset is the present value of the asset's expected future cash flows. The key inputs are (1) the expected cash flows and (2) the appr
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Chapter 6. Interest Rates
THE DETERMINANTS OF INTEREST RATES (Section 6-3)
Interest rates can easily be observed. All it requires is reading the newspaper, watching television, or surfing the internet. H
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Chapter 6. Interest Rates
THE DETERMINANTS OF INTEREST RATES (Section 6-3)
Interest rates can easily be observed. All it requires is reading the newspaper, watching television, or surfing the internet. H
05 Chapter model
12-10-08
Chapter 5. The Time Value of Money
This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However, if someone wants to practice with Excel, then the model can be useful. Also, on the tabs we show
03 Chapter model
12/10/08
Chapter 3. Financial Statements, Cash Flows, and Taxes
This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However, if someone wants to practice with Excel, then the model can be useful. Also,
03 Chapter model
12/10/08
Chapter 3. Financial Statements, Cash Flows, and Taxes
This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However, if someone wants to practice with Excel, then the model can be useful. Also,