Economics 720
MSFA Program
Fall 2009
John Gonzales
Assignment #1
1.
You are given the following information for company X and the financial markets.
of stock X = 1.4
recent dividend = $2.00
constant growth rate = 8%
projected stock market return = 14%
MSFA 710
USF School of Management
Fall 2015
John Gonzales
Assignment #1
1.
Do exercises 1 and 3 on page 62 of Pindyck and Rubinfeld. For #1, plug in I to find
the demand curve.
2.
Do exercise 11 on page 63 of Pindyck and Rubinfeld. For part (a), take the
Economics 714
MSFA Program
Spring 2011
John Gonzales
Assignment #1
1.
Do problems 2-10 through 2-12 on pages 79-80 of Brigham and Ehrhardt.
We did not cover this in class. You need to look at the relevant pages in the textbook in
order to solve these prob
Economics 720
MSFA Program
Spring 2011
John Gonzales
Assignment #1
The third page is a revised page two of the syllabus.
1.
You are given the following information for company X and the financial markets.
of stock X = 1.4
recent dividend = $2.00
consta
Econ 720 Quiz #1 Answers
Problem #1
initial (recent) D
2.00
r = 12%
stage two is 12 years
D1
D2
2.32
2.69
PV of first 2 dividends
PV
2.071429
2.145408
4.217
H=6
constant growth (gL) from
end of year 12 to infinity
10.00%
[D2(1 + gL)]/[r - gL]
[2.69(1 + .1
Economics 720
MSFA Program
Fall 2009
John Gonzales
Assignment #1 Answers
1.
You are given the following information for company X and the financial markets.
of stock X = 1.4
recent dividend = $2.00
constant growth rate = 8%
projected stock market retu
Economics 720
MSFA Program
Fall 2009
John Gonzales
Assignment #2
1.
This problem involves valuing a stock with the two-stage growth model and the trailing
P/E. The following information is given.
initial (recent) D
projected growth for 4 yrs
estimated
Problem #2
initial (recent) D
2.00
r
14.00%
growth for 5 yrs
12.00%
constant growth
from end year 5
to infinity
D1
D2
D3
D4
D5
D6
2.24
2.51
2.81
3.15
3.52
3.81
PV
1.96491
1.93044
1.89657
1.8633
1.83061
PV of D's
9.49
8.00%
P at end of year 5
using D6/(r-g
Economics 720
MSFA Program
Spring 2011
John Gonzales
Assignment #3
1.
Do problems 3 through 7 on pages 197-200 of the text.
2.
Refer to problem 12 (Bron) on page 159 of the previous version of the text. This is in
the course handouts. This also is problem
Economics 720
MSFA Program
Spring 2011
John Gonzales
Assignment #4
1. Do Problems 3, 4, 5, 8, 9, 13 and 14 in chapter 5.
2.
Consider the information given below.
existing ROE = 20%; this will continue for the next 6 years.
rS = 12%
B0 = $18
payout rat
Corporation:
1.
Name:
Beta:
(a) Against which index?
(b) Method of calculation?
(c) Source:
2.
10-year Treasury yield on October 20, 2007:
10-year Treasury yield on October 20, 2008:
3.
Dividend yield 2007:
Capital gains yield 2007:
Actual rS 2007:
Divide
Economics 714
MSFA Program
Spring 2011
John Gonzales
Assignment #1 Answers
2-10.
EBIT
Interest
EBT
Taxes (40%)
NI
$750,000
0
$750,000
300,000
$450,000
NCF = NI + DEP = $450,000 + $200,000 = $650,000.
2-11. a.
Income Statement
Sales revenues
Costs except
d
Economics 720
MSFA Program
Fall 2009
John Gonzales
Quiz #2 Answers
There are two versions of the quiz, so make sure you look at the answer to number 3 to
identify the appropriate version.
1 and 2. There is a typo on the Balance Sheet: Net fixed assets sho
MSFA 720
USF School of Management
Spring 2016
John Gonzales
Assignment #1
1.
You are given the following information for company X and the financial markets.
of stock X = 1.4
recent dividend = $2.00
recent earnings = $3.00
constant growth rate = 8%
p
Economics 720
MSFA Program
Fall 2009
John Gonzales
Quiz #2 Answers
There are two versions of the quiz, so make sure you look at the answer to number 3 to
identify the appropriate version.
1 and 2. There is a typo on the Balance Sheet: Net fixed assets sho
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set IV
Spring 2011
Instructions:
1.
Answer all questions. (2 pages long)
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due date:
2/
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set III
Spring 2011
Instructions:
1.
Answer all questions. (3 pages long)
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due: 2/7/20
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set II
Spring 2011
Instructions:
1.
Answer all questions.
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due date:
1/31/2011 (M) @9a
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set V
Spring 2011
Instructions:
1.
Answer all questions.
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due date:
2/18/11 (F) @9am
P
Advanced Financial Statement
Analysis
A Review of Equity Valuation Methods
Equity Valuation
Key Questions & Concepts
1) What is the investment value of an equity security?
2) Do the markets value the security properly?
3) What considerations (pro/con) dri
Advanced Financial Statement
Analysis
Understanding FSA
The Accountants Question
i.
ii.
What does GAAP require?
What Adjustments to make company numbers
comparable? (The Analyst response)
The Analysts Question
i.
ii.
What does Economic Value require?
What
USF Review Session
th
February 24 , 2011
1.
By diversifying an equally weighted portfolio among a large number of risky assets, it is
possible to reduce the standard deviation of the portfolio return to almost zero if the asset
returns are uncorrelated.
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set IV
Spring 2011
Instructions:
1.
Answer all questions. (2 pages long)
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due date:
2/
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set III
Spring 2010
Instructions:
1.
Answer all questions. (4 pages long)
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due: 2/7/20
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set I
Spring 2011
Instructions:
1.
Answer all questions.
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due date:
1/24/2010 (M) @9am
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set I
Spring 2011
Instructions:
1.
Answer all questions.
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due date:
1/24/2010 (M) @9am
Econ 716-31 Macroeconomics for Finance
Lau
Problem Set II
Spring 2011
Instructions:
1.
Answer all questions.
2.
Please form study group of up to 3 persons and work on the problem set.
3.
Show your formulas and steps clearly.
4.
Due date:
1/31/2011 (M) @9a
Economics 720
MSFA Program
Spring 2011
John Gonzales
Assignment #5
1.
Consider the EVA and FCFF example that was covered in class (photocopied
pages 867 and 868). Solve the two models using the following revised facts.
(a) Assets in place are $200m.
(b) F