Week 4 Problem Set
Answer the following questions and solve the following problems in the space provided.
When you are done, save the file in the format flastname_Week_4_Problem_Set.docx,
where flastname is your first initial and you last name, and submit
First Course Project
The purpose of this project is to help you develop skills not only in performing the calculations
behind financial analysis but interpreting the numbers as well.
You are to pick a company. You should pick one either from the industry
Week 1 Problem Set
Answer the following questions and solve the following problems in the space provided.
When you are done, save the file in the format flastname_Week_1_Problem_Set.docx,
where flastname is your first initial and you last name, and submit
Grading Summary
These are the automatically
computed results of your exam.
Grades for essay questions, and
comments from your instructor, are
in the "Details" section below.
Question Type:
Date Taken:
Time Spent:
Points Received:
7/31/2015
1 h , 32 min ,
Second Project
The purpose of this project is for you to have some practice working with financial concepts in
the real world. This will involve integrating some material from throughout the course. The
project will also involve the development of your ow
Grading Summary
These are the automatically
computed results of your exam.
Grades for essay questions, and
comments from your instructor, are
in the "Details" section below.
Question Type:
Date Taken:
Time Spent:
Points Received:
7/17/2015
27 min , 36 sec
1.
Question:
(TCO B) You just won $25,000 in the lottery. You decide you want to buy
a sportscar. You dont want to buy the car now but want to wait for 5
years when you will be 25 and your insurance premiums will be
affordable. You think you can earn 8% o
A
1
2
3
B
C
D
E
F
05 Chapter model
Chapter 5. The Time Value of Money
4
This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However, if someo
wants to practice with Excel, then the model can be useful. Also, on the tab
Week 5 Problem Set
Answer the following questions and solve the following problems in the space provided.
When you are done, save the file in the format flastname_Week_5_Problem_Set.docx,
where flastname is your first initial and you last name, and submit
1.
Question :
(TCO C) Company A has a beta of 2.77. Company B has a beta of .73.
Company C has a beta of .90. The risk free rate is 6% and the market
risk premium is 4%. What is the expected return of investing in
Company B? Show your work.
Student Answer
Grading Summary
These are the automatically
computed results of your exam.
Grades for essay questions, and
comments from your instructor, are
in the "Details" section below.
Question Type:
Date Taken:
Time Spent:
Points Received:
7/9/2015
48 min , 28 secs
Week 2 Problem Set
Answer the following questions and solve the following problems in the space provided.
When you are done, save the file in the format flastname_Week_2_Problem_Set.docx,
where flastname is your first initial and you last name, and submit
Second Project
For this exercise, I am taking Exxon Mobil as the company and calculating the WACC for the
company.
WACC Formulae is mentioned as below:
rWACC = (E/E+D) rE + D/(E+D) rD (1-TC)
The formula for the required return on a given equity investment
Question 1. 1. (TCO G) If Company A and Company B are in the same industry and
use the same production method, and Company As asset turnover is higher than
that of Company B, then all else equal we can conclude (Points : 10)
Company A is more efficient th
Week 3 Problem Set
Answer the following questions and solve the following problems in the space provided.
When you are done, save the file in the format flastname_Week_3_Problem_Set.docx,
where flastname is your first initial and you last name, and submit
4. Suppose Goodyear Tire and Rubber Company is considering divesting one of its
manufacturing plants. The plant is expected to generate free cash flows of $1.5 million per
year, growing at a rate of 2.5% per year. Goodyear has an equity cost of capital of
Ricardo Nelson Lopez
Week 1 Problem Set
Answer the following questions and solve the following problems in the space provided. When you
are done, save the file in the format flastname_Week_1_Problem_Set.docx, where flastname is your
first initial and you
Ricardo Nelson Lopez
Microsoft WACC
Ricardo Nelson Lopez
Keller School of Management
Fin515
Yvan Nezerwe
8/13/15
1
Ricardo Nelson Lopez
Calculated WACC.
Microsoft
Re (cost of equity)
6.91%
Rd (cost of debt before tax)
2.95%
E (market value of the firms
eq
4. Suppose Goodyear Tire and Rubber Company is considering divesting one of its
manufacturing plants. The plant is expected to generate free cash flows of $1.5 million per
year, growing at a rate of 2.5% per year. Goodyear has an equity cost of capital of
Ricardo Nelson Lopez
Week 6 Problem Set
Answer the following questions and solve the following problems in the space provided. When you
are done, save the file in the format flastname_Week_6_Problem_Set.docx (where flastname is your
first initial and your
Grading Summary
These are the automatically
computed results of your exam.
Grades for essay questions, and
comments from your instructor, are
in the "Details" section below.
Question Type:
Date Taken:
Time Spent:
Points Received:
7/31/2015
1 h , 32 min ,
Week 1 Problem Set
Answer the following questions and solve the following problems in the space provided. When you
are done, save the file in the format flastname_Week_1_Problem_Set.docx, where flastname is your
first initial and you last name, and submit
Ricardo N. Lopez
Week 2 Problem Set
Answer the following questions and solve the following problems in the space provided. When you
are done, save the file in the format flastname_Week_2_Problem_Set.docx, where flastname is your
first initial and you last
Lab 11 Problems
3.
Use the following information for the next four questions. Norlin Corporation is
considering an expansion project that will begin next year (Time 0). Norlins cost of capital is
12%. The initial cost of the project will be $250,000, and
Ricardo N Lopez
Week 5 Problem Set
Answer the following questions and solve the following problems in the space provided. When you
are done, save the file in the format flastname_Week_5_Problem_Set.docx, where flastname is your
first initial and you last