2/12/2017
AssignmentPrintView
Score:
1.
0/100
Points
0
%
Award: 0 out of 10.00 points
MC Qu. 11 When a rm alters its capital structure to.
When a rm alters its capital structure to include more or less debt (and, in turn, less or more equity), it
impacts
2/12/2017
AssignmentPrintView
Score:
1.
0/100
Points
0
%
Award: 0 out of 2.00 points
MC Qu. 6 Income Statement Barnyard, Inc.'s 2008 income statement lists.
Income Statement Barnyard, Inc.'s 2008 income statement lists the following income and expenses:
E
Fin 31 Final Exam - Fall 2016
Name:_
Instructions: Show complete methodology for each answer where required. Answer all four questions.
Please drop this off at my office on or before December 19th.
1. (25 Points)
The current market price of an asset is S
What I want to focus on in this lecture is the financial statements of the organization. As I mentioned, in
this book we will present the organization as a corporation. There are three basic forms of organizations
sole proprietorship, partnership and cor
Award: 10 out of 10.00 points
Compute the PI statistic for Project X and note whether the ﬁrm should accept or reject the project with the cash flows shown below if the
appropriate cost of capital is 11 percent.
mun-:-
nus-“mum:
O “00%, reject
o . 36.29%,
1. Award: 0 out of 10.00 points
Portfolio Weights If you own 380 shares of Air Line Inc at $20.15, 310 shares of BuyRite at $11.1, and 490 shares of Motor City at $47.15, what are the
portfolio weights of each stock?
6 . Air Line = .3220, BuyRite = .2627,
1. Awardz10 out of 10.00 points
According to this theory of term structure of interest rates, at any given point in time, the yield curve reﬂects the market's current expectations of
future short-term rates.
0 Term structure of interest rates theory
0 Fut
A perpetuity pays $50 per year and interest rates are 9 percent. How much would its value change if
interest rates decreased to 7.5 percent? (Round your answer to 2 decimal places.)
Change in value $ 111.11 9
Did the value increase or decrease?
Increase 0
A perpetuity pays $50 per year and interest rates are 9 percent. How much would its value change if
interest rates decreased to 7.5 percent? (Round your answer to 2 decimal places.)
Change in value $ 111.11 9
Did the value increase or decrease?
Increase 0
1. Award: 10 out of 10.00 points
Balance Sheet You are evaluating the balance sheet for Cypress Corporation. From the balance sheet you ﬁnd the following balances: Cash and
marketable securities = $530,000, Accounts receivable = $730,000, Inventory = $430
Running head: APPLICATION REPORT 1
1
Application Report 1
FIN 201 Principles of Finance
Post University
Professor Phillip Dawson
July 16, 2016
Application Report 1
APPLICATION REPORT 1
2
Although Ford experienced only moderate growth during the previous f
17. marginal versus average tax rates Corporation growth has $82,500 in taxable income, and
corporation income has $8,250,000 in taxable income.
a. What is the tax rate for each firm?
7500
6250
2550
16300
b. Suppose both firms have identified a new projec
9. Calculating NPV Howell Petroleum is considering a new project
that compliments its existing business. The machine required for
the project cost $3.9 million. The marketing department predicts
that sales related to the project will be $2.35 million per
7. Stock Valuation Gruber Corp. pays a constant $9 dividend on
its stock. The company will maintain this dividend for the next 13
years and will then cease paying dividends forever. If the required
return on this stock is 9.5 percent, what is the current
22. Portfolio Returns and Deviations Consider the following information about three stocks:
A. If your portfolio is invested 40 percent each in A and B and 20 percent in C, What is the portfolio expected retu
B. If the expected T-bill rate is 3.80 percent
CH 22 Options and Convertibles Computational Problems
#1
a. The value of the call is the stock price minus the present value of the exercise price
C = $63 [$60/1.048] = $5.75
The intrinsic value is the amount by which the stock price exceeds the price of
8. Calculating External Financing Needed (EFN) The most recent financial statements for williamson Inc., are sho
assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are p
Explanation:
An increase o
CH 22 Options and Corporate Finance
Options: A right, but not an obligation to
do something.
Exercising the option: The act of buying or
selling the underlying assets via the option
contract.
Strike price: Price at which an option can be
exercised. Also c
38. Calculating Loan Payments You need a 30
year, fixed-rate mortgage to buy a new home
for $250,000. Your mortgage bank will lend you
the money at an APR of 4.5 percent for this
360 month loan. However, you can only afford
monthly payments of $950, so yo
14. Comparing Investment Criteria Wii
Brothers, a game manufacturer, has a new idea
for an adventure game. It can market the game
either as a traditional board game or as an
interactive DVD, but not both. Consider the
following cash flows of the two mutua
Suppose you invest $7000 in a 5 year CD earning 6% per year.
How much would you have in 5 years?
Rate
Nper
PV
FV
0.06
5
-7000
$9,367.58
How much must I Invest today at 9% to have $10,000
five years from today?
Rate
0.09
Nper
5
FV
10000
PV ($6,499.31)
Bank
Much of the text is focused on the calculation and interpretation of business-related Financial
Ratios. My guess is that this information would come alive to you even more so if you could
understand the importance of Financial Ratios in your everyday pers
Luigi Taveras Unit 6 Homework
Chapter 11: 11-1, 11-3, 11-5, 11-7, 11-9
11-1. Cost of Equity: Diddy Corp. stock has a beta of 1.2, the current risk-free rate is 5 percent, and the
expected return on the market is 13.5 percent. What is Diddys cost of equity
Luigi Taveras Unit 1 Homework
2-1 Balance Sheet: You are evaluating the balance sheet for Goodmans Bees Corporation. From the
balance sheet you find the following balances: cash and marketable securities = $400,000, accounts
receivable = $1,200,000, inven
Luigi Taveras Unit 7 Homework
Chapter 13: 13-1, 13-2, 13-3, 13-4, 13-5, 13-6, 13-7, 13-8, 13-13, 13-14
13-1 NPV with Normal Cash Flows Compute the NPV for Project M and accept or reject the project with the
cash flows shown below if the appropriate cost o
Introduction
This week we will begin a discussion about the broad concepts of risk and return on invested
capital. Whether contemplating your personal nest egg or diversifying a large corporate portfolio,
you as the financial manager must arrive at a leve
Running head: FED INTEREST RATES
1
The Federal Interest Rates
Luigi Taveras
Post University
FED INTEREST RATES
2
In recent years, a common topic when it comes to the U.S. Economy has been, what
would happen if or when the Federal Reserve (Fed) raises the
All of you have had experience with the time value of money. When we put money in the bank we
expect to earn interest on it. Cash in hand today is more valuable than money promised at some time in
the future. To give up the use of our money for a period o
Running head: FORD AND GM
1
Ford and General Motors Path
Luigi Taveras
Post University
FORD AND GM
2
Ford Motor Company has been showing much success throughout the years while
General Motors (GM) has been falling behind. To get a better understanding we