4/11/2010
Chapter 14. Solution to Ch 14-13 Build a Model
J. Clark Inc. (JCI), a manufacturer and distributer of sports equipment, has grown until it has become a stable, mature company.
Now JCI is planning its first distribution to shareholders. Shown bel
Chapter 12. Solution for Ch 12-10 Build a Model
Zieber Corporation's 2010 financial statements are shown below. Forecast Zeiber's 2011 income statement and
balance sheets. Use the following assumptions: (1) Sales grow by 6%. (2) The ratios of expenses to
dea645ae1f9b4ac1e3da9980557c94f212f825ef.xlsx
Corporate Valuation
4/11/2010
Chapter 13. Tool Kit for Corporate Valuation,
Value-Based Management and Corporate Governance
This spreadsheet has two major components, one for Corporate Valuation and one for Va
4/11/2010
Chapter 16. Solution to Ch16 P18 Build a Model
Input Data
Collections during month of sale
Collections during month after sale
Collections during second month after sale
Lease payments
Target cash balance
General and administrative salaries
Depr
8/11/2009
Chapter 22. Solution for Ch 22-5 Build a Model
Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for
liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collate
4/11/2010
Chapter 26. Solution to Ch 26 P11 Build a Model
A. Fethe is a custom manufacturer of guitars, mandolins and other stringed instruments located
near Knoxville, TN. Fethe's current value of operations, which is also its value of debt plus equity,
4/11/2010
Chapter 2. Solution for 2-14
a. Cumberland Industries' most recent sales were $455,000,000; operating costs (excluding depreciation) were equal to
85% of sales; net fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets;
4/11/2010
Chapter 13. Solution for Ch 13-11 Build a Model
The Henley Corporation is a privately held company specializing in lawn care products and services. The most recent
financial statements are shown below.
Income Statement for the Year Ending Decemb
Chapter 4. Solution for 4-35
3/11/2009
a. Find the FV of $1,000 invested to earn 10% annually 5 years from now. Answer this question by using
a math formula and also by using the Excel f unction wizard.
Inputs:
Formula:
Wizard (FV):
PV =
I/YR =
N=
FV = PV
4/11/2010
Chapter 10. Solution for Chapter 10 P23 Build a Model
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as
follows:
Time
0
1
2
3
4
5
6
7
Expected Net Cash Flows
Project A Project B
($3
McDowell Industries sells on terms of 3/10, net 30. total sales for the year are
$912,500. 40% of the customers pay on the 10th day and take discounts, the other 60%
pay, on average, 40 days after their purchases.
a. what is the days sales outstanding?
b.
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
B
C
D
E
F
G
H
I
4/11/2010
Chapter 19. Solution to Ch 19-08 Build a Model
Maggie's Magazines (MM) has straight nonconvertible bond that currently yield 9%. MM's stock sells for $22 p
Do You Know Your Cost of Capital?
Author: Jacobs, M. T., & Shivdasani, A. (2012). Do You Know Your Cost of Capital? Harvard
Business Review.
Abstract: It has been discovered that the process of evaluating financial returns on investments
is quite similar
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Michael C. Ehrhardt
Build a Model
4/11/2010
Chapter 23. Solution to Ch 23-06 Build a Model
Problem 23-6. Use the information and data from Problem 23-5
Problem Inputs:
Size of planned debt offering =
Anticipat
4/2/2009
Chapter 6. Solution to Ch 06 P14 Build a Model
a. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate
average returns over the five-year period. (Hint: Remember, returns are calculated by
4/11/2010
Chapter 5. Solution to Ch05 P24 Build a Model
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The
bond sells for $1,100. (Assume that the bond has just been issued.)
Basic Input
4/11/2010
Chapter 2. Solution for 2-15
a. Using the financial statements shown below, calculate net operating working capital, total net operating
capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recen
4/11/2010
Chapter 09. Solution for Ch09 P18 Build a Model
INPUTS USED IN THE MODEL
P0
$50.00
Net Ppf
$30.00
Dpf
$3.30
D0
$2.10
7%
g
B-T rd
10%
0.83
Skye's beta
Market risk premium, RPM
6.0%
Risk free rate, rRF
6.5%
45%
5%
50%
35%
10%
Target capital struct
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
B
C
D
E
F
G
H
4/11/2010
I
Chapter 7. Solution for Ch 7-20 Build a Model
Rework Problem 7-19. Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per year in
recent years. This same growth rate is exp
4/11/2010
Chapter 14. Solution to Ch 14-12 Build a Model
Buena Terra Corporation is reviewing its capital budget for the upcoming year. It has paid a $3.00 dividend
per share (DPS) for the past several years, and its shareholders expect the dividend to re
7/25/09
Chapter 12. Solution for Ch 12-10 Build a Model
Figure 1. Financial Statements and Other Data (Millions except per share data)
Balance Sheet, Matthews, 12/31/10
Cash and securities
Accounts receivable
Inventories
Total current assets
Net fixed ass
Chapter 19
Hybrid Financing: Preferred Stock, Warrants, and
Convertibles
ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS
19-1
Both companies and investors have different preferences regarding risks,
maturities, and so forth.
Companies can offer different types
NOVA SOUTHEASTERN UNIVERSITY
H. Wayne Huizenga School
of Business and Entrepreneurship
Masters Program Winter 2013
FIN 5560 - Advanced Financial Policy (On-Line Learning)
IX. MEETING DATES AND LOCATIONS
Wk.
Start Date
End Date
Days
Start Time
1
1/7/2013
1