Financial Management 2B Capital Budgeting Cash Flows
Capital budgeting is the process used to evaluate and select long-term investments consistent
with the goal of owner wealth maximization. Capital expenditures are outlays made by the fi
1. Even though most corporate bonds in the United States make coupon payments
semiannually, bonds issued elsewhere often have annual coupon payments.
Suppose a German company issues a bond with a par value of 1,000, 25 years to
maturity, and a
Home assignment 3
Conch Republic Electronics, Part 1
Conch Republic Electronics is a midsized electronics manufacturer located in Key West,
Florida. The company president is Shelley Couts, who inherited the company. When it was
founded over 70 years ago,
1. The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.45 per share on its
stock. The dividends are expected to grow at a constant rate of 6 percent per year
indefinitely. If investors require a return of 11 percent on The JacksonTim
1. Find the EAR if the stated rate (APR) is 9% in each of the following cases: quarterly,
monthly, daily and infinite compounding.
2. First National Bank charges 13.2 percent compounded monthly on its business loans.
First United Bank charges
l. The balance sheet identity or equation:
Assets 2 Liabilities
+ Shareholders equity [2.1]
2. The income statement equation:
Revenues Expenses = Income [2.2]
3. The cash ow identity:
Cash ow from assets =
Cash flow to creditors +
How to market in a downturn
We are facing another downturn and in this special period, company also
need to do something special to win the battle of business.
1.Adjust companys strategies to suit customers shifting needs. During