Chapter 2 Case
Cash Flows and Financial Statements at Sunset Boards, Inc.
Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the
founder of the company, is i
Week 4. 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 pro
Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had
done on financial planning. Using Chriss analysis, and looking at the demand for light aircraft, they have
4. Portfolio Expected Return. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an
expected return of 14 percent and Stock Y with an expected return of 11 percent. If your
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
flo
memo
S&S Air, Inc.
To:
Mark Sexton & Todd Story
From:
Christie Vaughan
CC:
Chris
Date:
20 November 2016
Re:
Mortgage payments for manufacturing facility
To summarize our findings, we begin with the 30
Maureen Primosch
Week 6 Homework
Chapter 12
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 perce
CHAPTER CASE
BULLOCK GOLD MINING
Seth 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 th
Running head: Chapter 2
1
Week 1 Homework: Chapter 2
Michelle King
BUS 379
Professor Phan
11 August 2017
Running Head: Chapter 2
2
8: Calculating OFC. Hammett, Inc. has sales of $34,630, costs of $10,
1. Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present v
According to the cash flows, cumulative cash flows are easy to
6. Bond Prices. App Store Co. issued 20-year bonds one year ago at a coupon rate
of 6.1 percent. The bonds make semiannual payments. If the YTM on these bonds is
5.3 percent, what is the current bond
Chapter 4 (4, 8, 17, 18)
4. Calculate Interest Rates. Solve for the unknown interest rate in each of the following:
Present Value
Years
Interest Rates
Future Value
$ 715
$1,381/(1+0.09)^
905
9
7.59 %
Week 6 Homework
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 dividen
1.
How would you describe Sunset Boards cash flows for 2014? Write a brief description.
Based on his operating cash flows, Sunset Boards appears to be operating successfully. However,
when we drill do
Maureen Primosch
Ch 8 Homework
Chapter 8
3. Global Toys Inc. imposes a payback cutoff of three years for its international investments projects. If
the company has the following two projects available
Maureen Primosch
Week 7 Homework
Chapter 17
6. Calculating Net Float. Each business day, on average, a company writes checks totaling $19,500 to
pay its suppliers. The usual clearing time for the chec
date
name
Finance
Professor
Course Project Part I
Introduction
The Course Project is an opportunity for you to apply concepts learned to a real-life simulation
experience. Throughout the Course Projec
NAME
DATE
Professor
Finance
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 i
12/9/12
Professor
Finance
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
Maureen Primosch
Ch 11 Homework
Chapter 11
4. You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of
14% and Stock Y with an expected return of 11%. If yo
Maureen Primosch
Ch 4 & 5 Homework
Chapter 4
8. Calculating Rates of Return. In 2011, an 1880-O Morgan silver dollar sold for $13,113. What was the
rate of return on this investment?
t= 2011-1880 = 13
Maureen Primosch
Ch 6 & 7 Homework
Chapter 6
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 maturity, whereas Bond T
11/17/12
name
Finance
Professor
Course Project Part I
Introduction
The Course Project is an opportunity for you to apply concepts learned to a real-life simulation
experience. Throughout the Course Pr