CASE: E308
DATE: 02/14/08
ENDEAVOR
Endeavor was formed for the purpose of promoting entrepreneurs in emerging markets, beginning
in Latin America. Its basic model is to link up small and midsize businesses with seasoned
entrepreneurs so that little guys a
The Wharton School
University of Pennsylvania
Prof. Stephan Dieckmann, Spring 2016
FNCE 611/614 Corporate Finance
Problem Set 3
This problem set is due February 25, 2016, in class. Students should prepare the
solution in groups of up to 3 students, to be
FNCE 100
Prof. Cherkes
Fall 2016
Due Date: Monday Oct .17 - 2016
HW-5
Q.1 Solve Q.38a in RWJ page 204-205.
Q.2 Valuation of a Firm as a Going Concern
Keith Taxxon, sole owner and president of the Taxxon Company, has received a number
of informal inquiries
FNCE 100
Prof. Cherkes
Fall 2016
Due Date: Monday NOV 1 - 2016
HW-6
Q.1 Build portfolios using the following two assets:
Asset A has an expected mean return of 12% and St. Dev. of 20%;
Asset B has an expected mean of 22% and St. Dev. of 30%;
The coefficie
FNCE 100: CORPORATE FINANCE
Sections 003, 004, 005
The Wharton School, University of Pennsylvania
Fall 2014
Course description
The purpose of this course is to introduce techniques of financial analysis, with applications to
Corporate finance. The concept
Ex:
Suppose we have a bond with 22 years to maturity, a coupon rate of 8 percent, and a y
Settlement Date
Maturity Date
Annual Coupon Rate
Yield to Maturity
Face Value
Coupons Per Year
Bond Price
$
$
1/1/2015
1/1/2037
0.08
0.09
100.00
2
90.49
pon rate of
7/21/2015
Problems
CopyrightMichaelR.Roberts
Problem Instructions
These problems are designed to test your understanding
of the material and ability to apply what you have
learned to situations that arise in practice both
personal and professional. I have
7/21/2015
Problems
CopyrightMichaelR.Roberts
Problem Instructions
These problems are designed to test your understanding
of the material and ability to apply what you have
learned to situations that arise in practice both
personal and professional. I have
Problems
Copyright Michael R. Roberts
Problem Instructions
These problems are designed to test your understanding
of the material and ability to apply what you have
learned to situations that arise in practice both
personal and professional. I have
7/29/2015
Problems
CopyrightMichaelR.Roberts
Problem Instructions
These problems are designed to test your understanding
of the material and ability to apply what you have
learned to situations that arise in practice both
personal and professional. I have
Problems
Copyright Michael R. Roberts
Problem Instructions
These problems are designed to test your understanding
of the material and ability to apply what you have
learned to situations that arise in practice both
personal and professional. I have
You are preparing to buy a car that costs $36,000. You can pay for the car using an auto loan from
the car manufacturer or using money from your home equity line of credit (HELOC). The auto loan
charges 2.75% interest per annum. The HELOC charges 3.85% in
You are purchasing a house that costs $500,000. You plan on making a down
paymentof$100,000(i.e.,yourequity)andborrowingthedifference(i.e.,yourdebt).
Thetermsofyourmortgagewillbe$400,000inprincipal,a30yearterm,andafixed
APRof3.875%.Theloanpaymentsaremonth
7/29/2015
Problems
CopyrightMichaelR.Roberts
Problem Instructions
These problems are designed to test your understanding
of the material and ability to apply what you have
learned to situations that arise in practice both
personal and professional. I have
Time value of money
intiutition, tools, and discounting
Intuition Discounting
currency/foreign
can't add/subtract different currencies, must use an exchange rate for time.
Time line different time periods, could be days/months/years. Point Zero is now.
C
You are given the following information:
1) Bond A is a one-year, zero coupon bond priced at $99.43. I.e., You pay $99.43 today for a claim to $100
one year from today.
2) Bond B is a two-year, semi-annual coupon bond with a 5% coupon and priced at $105.5
You will receive an inheritance of $500,000 in 20 years on your 40 th birthday. What is
the value of the inheritance today if the discount rate is 10%?
R
T
CF
PV - Manual
PV - Excel
10%
20
$500,000.00
$ 74,321.81
$ 74,321.81
What is the present value (i.e
BelowisGoPros(Nasdaq:GPRO)2014incomestatement.
(Cost of revenue and operating expenses are the Costs in our FCF formula.
Amortization is depreciation of certain intangible assets so treat it as you would
depreciation. Interest and other expense can be int
You will receive an inheritance of $500,000 in 20 years on your 40 th birthday. What is
the value of the inheritance today if the discount rate is 10%?
R
T
CF
PV - Manual
PV - Excel
10%
20
$ 500,000.00
$ 74,321.81
$ 74,321.81
What is the present value (i.
What will the value of your house be in 10 years if the current value is $500,000 and local home prices are expecte
appreciate by 5% per year in the future?
R
T
PV
FV - Manual
FV - Excel
5%
10
$
500,000.00
$
$
814,447.31
814,447.31
and local home prices a
Assume that a bond makes equal annual payments of $1,000 over thirty years
beginning next year. (This security is sometimes referred to as an amortizing bond.) If
the discount rate is 3.5% per annum, what is the current price of the bond?
CF
R
T
Price - M