FINC 5000
Homework Assignment for Week 5:
Chapter 9:
For Week 5, please turn in the answers to the following questions:
1. What does it mean when people refer to a firms cost of capital?
A firm's cost of capital is the minimum average rate of return it mu
Steven Sanon
FINC 5880 QC S2 2016 Assignments Wk 4: Ch17, Ch19
Cross Rates
(17-1) At todays spot exchange rates 1 U.S. dollar can be exchanged for 9 Mexican pesos or for 111.23 Japanese yen. You hav
the peso; that is, how many yen would you receive for ev
Question 1: (Financial Statement Analysis)
a. Which firm is the most liquid? Why? (Justify your answer with at least two ratios).
CURRENT RATIO:
Tootsie Roll
Hershey's
CA
QUICK (Acid Test)
CA
RATIO:
Tootsie Roll
Hershey's
CL
$240,111.00
$2,487,334.00
CURR
Week 4: Quiz
Question 1
2 / 2 pts
A companys free cash flow was just FCF0 = $1.50 million. The weighted average cost of capital
is WACC = 10.1%, and the constant growth rate is g = 4.0%. What is the current value of
operations?
$23.11 million
$23.70 milli
Week 6 Quiz Solutions
Question 1:
Answer: C
The core definition of IRR is establishing the discount rate that equals the PV of the inflows to the PV of projected costs, with the typical project having most of the costs in
the first stage, meaning that the
Steven Sanon
Chapter 14: Problems 1, 4, 5, 6, 10
Chapter 18: Problems 1, 2
Residual Distribution Model
is planning for $5 million in capital expenditures next year. Pucketts target capital structure consists of 60% debt and 40% eq
with all distributions a
FINC 5000, Fall 2016
Final Exam, Part B
Final Exam Part B, Problems
Directions: You may complete the exam in Excel or in Word.
If you choose to complete the exam in Excel, open the Excel program and create a new
spreadsheet named final exam (your last na
Steven Sanon
WK6Chapter 20: Problems 1, 2, 3, 6
Warrants (20-1) Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and wa
annually, also trading for $1,000. What is the implied value of the warrants attached
Steven Sanon
Chapter 22: Problems 1, 2, 3
Chapter 23: Problems 3, 4, 5
Valuation
(22-1) Vandells free cash flow (FCF0 ) is $2 million per year and is expected to grow at a constant rate of 5% a year; its beta is
debt, what is the current value of Vandells
Steven Sanon
FINC 5880 QC S2 2016 Assignments Wk 5: Ch13 Minicase, parts a, b, c, d
Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that int
digital video recorders, and cell phones. Your
Week 4 Quiz Solutions
Question 1:
Answer: E
FCF0
WACC
G
Question 2:
$1.5MM
10.1%
4.0%
FCF1 (MM)
$
1.56
Value of Current Operations (MM)
$
25.57
Answer: D
FCF0
G
WACC
ST Investments
Debt
Shares Outstanding
$1.0MM
5.40%
11.40%
$4.0MM
$3.0MM
1MM
Intrinsic Va
Steven Sanon
WK6Chapter 20: Problems 1, 2, 3, 6
Warrants (20-1) Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and wa
annually, also trading for $1,000. What is the implied value of the warrants attached
Steven Sanon
(8-1) Option
A call option on the stock of Bedrock Boulders has a market price of $7. The stock sells for $30 a share, and the option has a
exercise value of the call option? What is the options time value?
Price of
stock
$
Strike
price
30.00
FINC 5000
Homework Assignment for Week 7:
For Week 7, please turn in the answers to the following questions:
1. When analysts use the term capital structure, what are they referring to?
Capital Structure refers to the proportion of debt and equity being u
FINC 5000 Final Exam
Part B, Problems
Updated for the Spring 1, 2015 term
Question 1
8 points
Pine Tree Farms Corporation (PTFC) has a target capital structure of 20% debt, 10% preferred stock, and 70%
common stock. Currently PTFC has a capital structure
FINC 5000
Homework Assignment for Week 6:
For Week 6, please turn in the answers to the following questions:
1. List the three steps that make up the general approach to capital budgeting.
The three steps that make up the general approach to capital budge
Week 1 Quiz Solutions
Question 1
Answer: C - One of the major benefits of a corporation is limited personal liability
Question 2
Answer: C - As a follow up to the previous answer, corporate ownership allows for liability limited only to investment
Questio
FINC 5000
Homework Assignment for Week 8:
For Week 8, please turn in the answers to the following questions:
1. The FINC 5000 Associates Corporation (FAC) has begun selling a new product and they
want you to help them with next years pro forma financial s
FINC 5000 Week 8 Homework
Chapter 12
Question 1:
FINC 5000 Associates
Financial Status and Forecast
This year Forecast for Next Year
Sales
COGS
Gross Profit
Fixed Expenses
Before Tax Profit
Tax @ 33.3333%
Net Profit
$10,000
$4,000
$6,000
$3,000
$3,000
$1,
FINC 5000 Mid-Term Exam
Part B, Problems
Question 1, Evaluation of the Tootsie Roll and Hershey Companies
FINANCIAL STATEMENTS, Tootsie Roll (in $000s)
BALANCE SHEET, as of year-end
ASSETS
Cash and marketable securities
Accounts receivable
Inventory
Prepa
FINC 5000
Homework Assignment for Week 6:
For Week 6, please turn in the answers to the following questions:
1. List the three steps that make up the general approach to capital budgeting.
The 3 steps that make up the general approach to capital budgeting
Week 8 Quiz Solutions
Question 1:
Answer: A
Accounts payable and accruals, also known as spontaneous financing, are driven by the change in sale
fully finance the needed funds that additional revenue generation activities require.
Question 2:
Answer: E
A
SOLUTION STARTS ON LINE 84
Finance 5000 - Chapter 11 Homework
You are the Operations Manager for a local delivery company. Business has been quite good in recent months, and your Sales
significant increases in business in the future. Overall Senior Manage
I have decided to use the financials from the Bank of Utah or rather BOU Bancorp Inc. This bank is a
Utah Corporation that started business in the late 50s. The bank is considered to be a local bank due to
its size ($857.5 million) and the primary locatio
FINC 5000
Homework Assignment for Week 7:
1. When analysts use the term capital structure, what are they referring to?
Capital Structure is the overall view or structure of how a company finances its operations
and future growth as it uses different sourc
FINC 5000 - Chapter 04 Homework
Show your inpu variables for 2 - 11, show the formula for 12, and show your input variables for 15.
1
If you invest $1,000 at 7.00% for 4 years at SIMPLE INTEREST, what will your investment be worth at the end of the 4 year
FINC 5000 - Chapter 3 Homework
1) Using the financial statements on the "Financial Statements" tab, complete the following
ratios for 2012 and 2013.
Liquidity
Current Ratio
Quick Ratio
Asset Management
Total Asset Turnover Ratio
Days Sales Oustanding Rati
Ready-to-Go Banker's Box Company!
We buy unfolded bankers boxes, fold them, and sell them
We bought our building and equipment 12/31/2011 and o
We have room in our factory for a maximum of 15 Box-Fo
Each Box-Folder can fold 500,000 boxes a year
Maximum Ou
FINC 5000 - Chapter 5 Homework
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
FINC 5000 - Chapter 5 Homework
If you have bond with a $1,000 face value (par value), and a coupon rate of 8%, with semi-annual payments of
interest; how much is each interest payment?
If
FINC 5000 - Chapter 07 Homework
1 Given the following information about ABC, Inc common stock, what would you pay for one share of common stock?
Most Recent Dividend
Expected Growth Rate
Your Desired Return
$5.00
3.00%
14.00%
2 Given the following informa
FINC 5000
Homework Assignment for Week 6:
For Week 6, please turn in the answers to the following questions:
1. Scott Enterprises is considering a project that has the following cash flow and cost of capital
(r) data. What is the project's NPV? Note that