Case II is due at the end of this week. For this assignment, prepare a memo in Word, which
answers the questions in the Chapter 5 case, S & S Air's Mortgage, on page 165 of the
textbook. Use Excel to do any financial calculations. You will be graded on co
Chapter 12
Question 3
Calculating Cost of Equity. Stock in CDB Industries
has a beta of .90. The market risk premium is 7 percent,
and T-bills are currently yielding 3.5 percent. CDBs
most recent dividend was $1.80 per share, and dividends
are expected to
Question:
(TCO 1) Which one of the following actions best matches the primary goal of financial management?
Your Answer:
increasing the net working capital while lowering the long term asset requirements
improving the operating efficiency, thereby increas
CHAPTER CASE
BULLOCK GOLD MINING
S
eth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in
South Dakota.
Dan Dority, the companys geologist, has just finished his analysis of the mine site.
He has estimated that the mine would be p
FINANCIAL PLANNING PROBLEMS CHAPTER 8
1. You can purchase a service contract for all of your major appliances for $180 a year. If the
appliances are expected to last for 10 years, and you earn 5 percent on your savings, what
would be the future value of t
Course Project Part II
Introduction
You will assume that you still work as a financial analyst for AirJet Best Parts, Inc. The company
is considering a capital investment in a new machine and you are in charge of making a
recommendation on the purchase ba
Week 1 Homework
Week 1 Chapter 2 Exercises 8,14,19
8. Calculating OCF. Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of
$2,520, and interest expense of $1,750. If the tax rate is 35 percent, what is the operating cash flow, o
Week 2 Chapter Questions
Chapter 4: 8, 17, and 18
Chapter 5: 1, 4, and 12
Chapter 4
8. Coupon Rates. Volbeat Corporation has bonds on the market with 10.5 years to maturity, a
YTM of 8.4 percent, and a current price of $945. The bonds make semiannual paym
Case 1
Case 1: Cash Flows and Financial Statements at Sunset Boards,
Inc.
DeVry University
BUSN-379
Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks,
the founder of the company, is in charge of the design and sa
Week 3 Chapter Questions
DeVry University
Chapter 6: 16
Chapter 7: 11, 12
Chapter 6
16.
16 (LO2) Interest Rate Risk. Both Bond Bill and Bond Ted have 7 percent
coupons, make semiannual payments, and are priced at par value. Bond Bill has 3 years to
maturi
Week 4 Chapter Questions
DeVry University
Chapter 8: 3, 4, 5, and 6
3. Calculating Payback. Global Toys Inc., imposes a payback cutoff of three years for its
international investment projects. If the company has the following two projects available,
shoul
CHAPTER12:3,5,6,15
Chapter13:1
Chapter 12
Chapter 12: 3
CAPM
DGM
9.80%
9.02%
Chapter 12:5
Cost of Prefered Equity
5.79%
Chapter 12:6
B. After Tax Cost
5.49%
Chapter 12: 15
a. Market Vaule of debt
b. Market Value of Common Stock
c. Market Value of Prefered
Week 3 Homework
Chapter 6:16
INCREASE
Bond Bill
New Yield
Semianual Yeild
# of Periods
Coupon
Price of Bond Bill
Change in Price
Bond Ted
New Yield
Semiannual Yield
# of Periods
Coupon
Price of Bond Bill
Change in Price
Chapter 7:11
Price at year 19
Stock
Income Statement for 2013 & 2014
1
2
INCOME STATEMENT
Net Sales
Less: Cost of Goods Sold
Gross Profit
Less: Selling & Administrative Exps
Less: Depreciation
Earnings before Interest & Taxes
Less: Interest Expense
Earnings before Taxes
Income Tax @20%
Net
Courtney Stephens
Busn 379- Week 4 Case (P.165)
July 28, 2016
1. What are the monthly payments for a 30-year traditional mortgage? What are
the payments for a 20-year traditional mortgage?
A. In this particular case, the 30 year loan will result in the pa
Astyer
Week 1 Assignments
#1. If an investor holds between 20 and 50 percent of the voting stock of the investee,
significant influence is normally assumed and the equity method is applied.
#3. Because distribution of cash dividend reduces the carrying va
Sources
factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml
House 1: http:/www.realtor.com/realestateandhomes-detail/39443-Clover-Ln_SquawValley_CA_93675_M16313-50983?row=4
House 2: http:/www.realtor.com/realestateandhomes-detail/30645-Seminol
Problem Set 6
1. For each of the following situations, what amount would the insurance company
pay?
a. Wind damage of $835; the insured has $500 deductible. $835-500 = $335
b. Theft of a stereo system worth $1,300; the insured has a $250 deductible.
$1300
Patrick Stevens
June 22, 2015
Case 3
Snapshot of my Excel Work Below:
For MIRR, finance and reinvestment rate have been considered 12%
2. Based on your analysis, should the company open the mine?
Based on the above analysis, Company shall open the mine
NP
Chapter 12
Question 3
Calculating Cost of Equity. Stock in CDB Industries
has a beta of .90. The market risk premium is 7 percent,
and T-bills are currently yielding 3.5 percent. CDBs
most recent dividend was $1.80 per share, and dividends
are expected to
Papa Geos
Budget Proposal
for
[5 years]
BUSN-278
[Term 1]
Professor[Luxe Isaac]
DeVry University
Papa Geos
Table of Contents
Section
Title
1.0
Executive Summary
2.0
Sales Forecast
3.0
Capital Expenditure
Budget
4.0
Investment Analysis
5.0
Subsection
Title
1
Terdell Grace
DeVry University
2
4. Expected Return of Portfolio = Weight of Stock X * Expected Return of Stock X + Weight of
Stock Y * Expected Return of Stock Y
12.4% = Weight of Stock X*14% + (1-Weight of Stock X)*11%
0.124 = 0.14Weight of Stock X +
1
Terdell Grace
DeVry University
2
1. What are the monthly payments for a 30-year traditional mortgage? What are the payments for
a 20-year traditional mortgage?
In order to do this, we must use a present value formula;
PV= [1-1/(1+r)^360/r]
$35,000,000 =
1
Terdell Grace
DeVry University
2
Chapter 6: Questions 16
Chapter 7: Questions 11 and 12
11. $ 250
12. Based on a current dividend price of $2.72 and a growth rate of 4.5% in order to earn your
12% required rate of return the most you could pay for this
1
Terdell Grace
DeVry University
2
Chapter 2: Questions 8, 14, and 19
8. Calculating OCF. Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense
of $2,520, and interest expense of $1,750. If the tax rate is 35 percent, what is the ope
BUSN278 Budgeting and Forecasting Template Instructions
Use this spreadsheet structure to lay out the various sections of your project.
The purpose of this spreadsheet is to make it easy for your professor to locate the
various sections of your project. P
BUSN 379 HW Week 7
Essentials of Corporate Finance - Ross, Westerfield, Jordan 8th edition
HW Week 7 PROBLEMS
Professor will enter points for each problem in NEXT worksheet on bar below labelled "Scoring"
Chapter 17 Pages 579-580 Problems 6, 7, and 14
EAS