2.1
Balance Sheet
Current Asset
Net Fixed Assets
Total Assets
Working Capital =
Working Capital =
2.2
Gross Sales
COGS
Depreciation Expense
Earnings Before Interest and Tax
Interest Expense
Income Before Tax
Tax 35%
Net Income
Addition to Retained Earning
Assigned Problems - 1.5, 1.6; 2.1, 2.3, 2.8, 2.10; 4.2, 4.6
Chapter 1
Containers of Toys/Unit
China
France
Cases of Wine/Unit
10
2
Toys
7
7
Wine
China - production allocation in units
Total Containers of Toys/Cases of Wine
800
8,000
200
1,400
France - pro
10.1
The percentage total return
R = [(86-75) + 1.20] / 75
R = 0.1627 or 16.27%
The percentage total return is 16.27%
10.2
Dividend yield
Dividend yield = 1.2/75 = 0.0160 or 1.6%
Dividend yield = 0.0160 or 1.6%
Capital gains yield
Capital gains yield = (8
8.1
Most bonds pay interest semi-annually, which means you receive two payments each year.
a)
Face Value
$
1,000.00
Rate/Yield
5% annual = 2.5% semiannual
Time to Maturity
15 years = 30 semiannual payments
Price = 1,000 / (1 x 0.025) = $476.74
b)
Face Flu
Assigned Problems - 18.3
Chapter 18
18.3
a) Present value of the expected euro dividend stream if the euro is expected to appreciate 4.00% per annum against the do
Dividend expected to grow
10%
Rate of th Euro appreciation
4%
WACC
12%
Year#
0
Dividends to
Assigned Problems - 10.7, 10.10, 10.16
Chapter 10
10.7
a)
Hedging choices:
Remain Unhedged
Price of the sale (yen)
Expected spot exchange rate (yen)/$
Amount to be received in 90 days
Forward Market Hedge
Price of the sale (yen)
3-month forward rate (yen/
4.1
First City Bank
FV = $5,000 x 8% = $400
$400 x 10 years = $4,000 in interest
FV = $5,000 + $4,000 = $9,000
Second City Bank
FV = $5,000 (1 + 8%)
FV = $5,400 (1.08)
FV = $10,794.62
$10,794.62 - $9,000 = $1,794.62
We would earn $1,794.62 more investing
The obvious application of any of the three network flow problems within my place of work, Pepsi,
would be transportation of goods. However, I am choosing to challenge myself against a current project I am
working on. I run a medium sized selling, deliver
For week 4, I would like you to discuss possible applications of the use of simulation in your primary place of
employment. As you lead the discussion, I would like your examples to be as specific as possible. For example,
what variables would be consider
A)
Formulate an LP Model for this problem
Cost of Transportation Between Locations ($/car)
Location 1
Location 2
Defining the decision variables
8 decision variables
X13
X14
X15
X16
X23
X24
X25
X26
Location 3 Location 4 Location 5 Location 6
$
54.00 $ 17.
13.1
Cost of Equity
We will use CAMP to calculate the cost of equity
Re = 0.035 + 1.21 (0.11-0.035)
Re = 0.1258, or 12.58%
13.4
Cost of Debt
Book value of debt:
BVb = 70,000,000 + 100,000,000
BVb = 170,000,000
Total Market Value
b = 1.08 (70,000,000) + 0.
Assigned Problems - 6.2, 6.7, 6.9
Chapter 6
6.2
Exchange rate before the float in January 2002 (Ps/$)
Exchange rate on 1/29/2003, after the float in January 2002 (Ps/$)
Annual inflation rate in Argentina
Annual inflation rate in the U.S.
1.00
3.2
20%
2.20
Assigned Problems - 3.20, 3.21, 3.22, 3.23
Chapter 3
Assumptions (billions of US dollars)
2000
2001
2002
2003
A. Current account balance
B. Capital account balance
C. Financial account balance
D. Net errors and omissions
E. Reserves and related items
-81.