MGT 160 FQ 2012
Homework Week 9
Solutions
1. Calculating WACC.Mullineaux Corporation has a target capital structure of 60 percent
common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 12.5 percent, the
cost of preferred stock
MGT 160 Homework #5
Due Wednesday, November 9th
9.2 (295) Relevant Cash Flows. Winnebagel Corp. currently sells 28,000 motor homes per year at
$73,000 each and 7,000 luxury motor coaches per year at $115,000 each. The company wants to
introduce a new port
Betheseda Mining Company
Common-Size Balance Sheet
2011
Assets
Current Assets
Cash
Accounts Receivable
Inventory
Total
Fixed Assets
Net Plant and Equipment
Total Assets
Liabilities and Owners' Equity
Current Liabilities
Accounts Payable
Notes Payable
Tota
MGT 160 FQ 2012
Homework Week 6
Due Wednesday November 14, 6:10pm
PLEASE SHOW ALL WORK
1. Relevant Cash Flows. Winnebagel Corp. currently sells 28,000 motor homes per year at $73,000
each and 7,000 luxury motor coaches per year at $115,000 each. The compa
MGT 160 FQ 2012
Homework Week 8
Solutions
1. Indicate whether the following events might cause stocks in general to change price, and whether
cause Big Widget Corps stock to change price.
a. The government announces threat inflation unexpectedly jumped by
MGT 160: Financing New Business Ventures
Tentative Syllabus
(Fall - 2012)
General Information
Wednesdays, 6:10 to 9:00 p.m.
Gallagher Hall Room 1213
Instructor:
Nicholas Briscoe, MS, AVA
Email: nabriscoe@ucdavis.edu
Telephone: (925) 299-1200
Office & Offi
MGT160
Week 1
Introduction
Chapter 1
Chapter 2
Chapter 3
Forms of Business Organization
Three major forms in the United States
Sole proprietorship
Partnership
General
Limited
Corporation
S-Corp
Limited liability company
1-2
1-1
Sole Proprietorship
MGT160
Week 4
Review
Chapter 8
We will cover chapters 6 and 7 in Week 8
Mid-Term Review
Capital Budgeting
Analysis of potential projects
Long-term decisions
Large expenditures
Difficult/impossible to reverse
st
Determines firms strategic direction
1-
MGT160
Fall 2011
Homework Assignment
Week 3
Due Wednesday, October 19th, 6:10pm.
Please see the Excel file posted in SmartSite.
Chapter 5:
o
o
o
o
o
o
2 (pg. 153)
8 (pg. 154)
24 (pg. 156)
28 (pg. 156)
38 (pg. 157)
42 (pg 157) Hint: What is the Present Val
MGT160 Week 3
Week 3
Review
Chapter 5
Future Value of Multiple
Payments
1-1
Future Value: Multiple Cash Flows
Example 5.1
You think you will be able to deposit
$4
$4,000 at the end of each of the next three
th
th
th
years in a bank account paying 8 pe
MGT 160
FALL 2011
Formulas for Mid-Term
Future Value: FV = PV(1 + r)t
Solving for t:
Present Value: PV = FV / (1+r)
t
PV of an Annuity in Perpetuity: PV = PMT / r
Present Value of an Annuity:
Future Value of an Annuity:
1
1 (1 + r )t
PV = PMT
r
(1 + r )
MGT 160: Financing New Business Ventures
(Fall - 2011)
General Information
Wednesdays, 6:10 to 9:00 p.m.
Gallagher Hall Room 1213
Instructor:
Nicholas Briscoe, MS, AVA
Email: nabriscoe@ucdavis.edu
Telephone: (925) 299-1200
Office & Office Hours: To be ann
Mgt 160 Course Project
The purpose this project is to use the financial decision-making tools from class to
analyze an actual investment. Your group may consist of one to four members. Your
project is to perform a detailed analysis of what the associated
MGT 160 Homework #4
Due Wednesday, October 26th
*Please see the Excel file posted in SmartSite
8.10 (260) NPV versus IRR. Framing Hanley, LLC has identified the following two mutually exclusive
projects:
Year
0
1
2
3
4
Cash Flow (A) $
-50,000
26,000
20,00
MGT 160 Homework #3
Due Wednesday, October 19th
5.2 (153) Present Value and Multiple Cash Flows. Investment X offers to pay you $4,300 per year for 9
years, whereas Investment Y offers to pay you $6,100 per year for 5 years. Which of these cash flow
strea
MGT160
Fall 2011
Homework Assignment
Week 1
Due Wednesday, October 5th, 6:10pm
Chapter 2:
o 8 (pg. 45)
o 10 (pg. 45)
o 22 A, B and C (pg. 47)
Chapter 3:
o 2 (pg. 85)
o 16 (pg. 86)
o 3.2 (pg. 91)
MGT160
Fall 2011
Homework Assignment
Week 2
Due Wednesday, October 12th, 6:10pm.
Please see the Excel file posted in SmartSite. It will be helpful for #20, calculating the
number of periods.
Chapter 4:
o
o
o
o
o
o
2 (pg. 116)
4 (pg. 116)
10 (pg. 117)
20 (