(Statistics For Business)
UNIVERSITY OF WOLLONGONG
FACULTY OF BUSINESS
Tutorial 7 Week 11 Questions
Please follow this instruction to prepare your homework:
Do not print and hand in the questions along with the solutions.
Show your full name and s
Tutorial: Capitalism and Business (Assessed)
Shaw et. al. (2013), Chapter 3: The Nature of Capitalism.
Sen, A. (1999). Markets and the role of ethics in capitalism, available from the subject
The extract from Sens book, Development
Part 1: Summarize the main people, events and outcomes in the A7D Affair. (4 marks)
The main people in the picture were John Warren an engineer and designer of the A7D Aircraft
low weight disc brake, Second, Searle Lawson who was n
Note: You must submit an evaluation for each member of your team except yourself.
Tutorial day, time and venue: _Monday. 14:30-15:30_
Full name of the student submitting this evaluation: _Yilin Yang_
Full name of the student being evaluate
The legal about the Nestle company and the ski yoghourt in the market:
As for the Nestle company, the board of directors ask for the company observe following
Nutrition, Health and Wellness: the Nestles aim is offer health and nutrition live f
Individual critical reading grid
Name of student
Text Book full reference
Journal article full reference
Key issue/s highlighted in the
Key management concepts
and theories useful to anal
Textbook Reading 1:
Q 10: A partnership consist of two or more owners who have joined together legally
to manage a business. Partnership are typically larger than sole trader business. The
key disadvantage of partnership are possible disputes among the pa
Provide short answers to the following (use diagrams where appropriate):
(a) What are the major components of aggregate demand?
The other things remaining the same, the higher the price level, the smaller is the
quantity of real GDP demanded. T
are also confronted with many challenges. The case study
Tutorial 9 (Week 10) of session
Provide typed and submitted answers to the following questions.
Answer all three questions.
Chapter 24 Aggregate supply and Aggregate demand
Questions based on material contained in Chapter 24 of McTaggart, Findla
Would you push the heavy person from the bridge to save five peoples lives
on the track? Justify using utilitarianism and Kantianism.
In general,the untilitariansim usually focus on the result of behaviors, the process
is not very important.
As for the te
An Introduction to Valuation
Approaches to Valuation The Big Picture View
Updated: September 2011
Some Initial Thoughts
" One hundred thousand lemmings cannot be wrong"
We thought we were in the top of the eighth inning,
when we were in
III. Estimating Growth
Ways of Estimating Growth in Earnings
Look at the past
The historical growth in earnings per share is usually a good starting point for
Look at what others are estimating
From Reported to Actual Earnings
- Convert into debt
- Adjust operating income
- Convert into asset
- Adjust operating income
Cleanse operating items of
- Financial Expenses
Net Capital Expenditures
Net capital expenditures represent the difference between capital
expenditures and depreciation. Depreciation is a cash inow that pays
for some or a lot (or sometimes all of) the capital expenditures.
In general, the net capital
VALUING EQUITY IN DISTRESSED FIRMS
a. True. Equity investors cannot lose more than their equity investment.
b. False. They can make equity more valuable, not the firm.
c. True. It transfers wealth to the bondholders.
d. True. This is
CHAPTER 14 FREE CASH FLOW TO EQUITY DISCOUNT MODELS
Problem 1 A. True. Dividends are generally smoothed out. Free cash flows to equity reflect the variability of the underlying earnings as well as the variability in capital expenditures. B. False. Firms c
CHAPTER 19 BOOK VALUE MULTIPLES
Problem 1 A. False. If the ROE< Required rate of return, this can be justified. B. False, since the drop can be temporary. If the drop is permanent, this will be generally true, since there will be a two-layered impact. The
CHAPTER 12 CLOSURE IN VALUATION: ESTIMATING TERMINAL VALUE
Problem 1 a. Operating income in year 5 = 100 million (1.1)5 = $ 161.05 million Terminal value (year 5) = 161.05 * 8 = $1288.41 million b. Value/ EBIT = (1- t) (1 g/ ROC)/ (Cost of capital g) 8 =
CHAPTER 18 EARNINGS MULTIPLES
Problem 1 A. Payout Ratio = 1.06/$2.40 = 44.17 % Expected Growth Rate = 6% Cost of Equity = 7% + 1.05 * 5.5% = 12.775% P/E Ratio = 0.4417 * 1.06/(.12775 - .06) = 6.91 B. The stock is trading at ten times earnings. P/E Ratio =
ESTIMATING EQUITY VALUE PER SHARE
Value of operating assets= 250(1-.4)(1-.3333)(1.05)/(.10-.05) =
+ Cash =
- Debt =
Value of equity =
Value per share =
Value of equity =
$ 799.90 milli
FIRM VALUATION: COST OF CAPITAL AND APV APPROACHES
A. False. It can be equal to the FCFE if the firm has no debt.
C. False. It is pre-debt, but after-tax.
D. False. It is after-tax, but pre-debt.
E. False. The free cash flow
CHAPTER 13 DIVIDEND DISCOUNT MODELS
Problem 1 A. False. The dividend discount model can still be used to value the dividends that the company will pay after the high growth eases. B. False. It depends upon the assumptions made about expected future growth