HOMEWORK 2
Chapter 2
Beginning chapter questions
1.
a. Standalone risk is the risk associated with a single operating unit of a company or asset.
Standalone involves the risks created by a specific division or project.
b. In a portfolio context, an asset
Paper
Organizational structure
Organizational structure can be easily defined as a system which sets a hierarchy within an
organization; it generally outlines how work roles and responsabilities are delegated,
controlled and coordinated, in order to achie
HOMEWORK #4 (CH. 4)
41
The current market price of these bonds is:
1
)
( 1.09 )12 10001
+
=$ 928.39
12
0.09
( 1.09 )
10000.08(1
PV =
42
We get a good approximation of YTM by using this formula:
FP
1000850
) (100+
)
n
12
=
=12.16
F+ P
1000+ 850
2
2
(C+
Y
Homework
Chapter 11
Problems
112
Currently outstanding coupon bond= 11%
Yield to maturity= 8%
Marginal tax rate= 35%
Aftertax cost of new debt= rd*(1T)= 8%*(135%)= 5.2%,
where rd is the interest paid on new debt.
114 : Cost of Preferred stock with Fl
HOMEWORK CH. 6
PROBLEM 61
Bonds aftertax yield: 9%*(136%)=5.76%
PROBLEM 64
Net income= $2.4 million
Pretax earnings= $2.4/(140%)=$4.0 million
EBIT= $4.0 + $2.0= $6.0 million
Depreciation & Amortization: EBITDAEBIT= $8.0$6.0= $2.0 million
PROBLEM 6
Lecture 1
Working with Financial Statements
12
Key Concepts and Skills
Know the difference between book
value and market value
Know the difference between
accounting income and cash flow
Know the difference between average
and marginal tax rates
Applicat
Lecture 3
Interest Rates and Bond Valuation
Key Concepts and Skills
Know the important bond features
and bond types
Understand bond values and why
they fluctuate
Understand the term structure of
interest rates
32
33
Lecture outline
Key Features Of Bonds
Lecture 4
Stock Valuation and Equity Markets
42
Key Concepts and Skills
Understand how stock prices depend
on future dividends and dividend
growth
Be able to compute stock prices using
the dividend growth model, corporate
value model and the multiples of
Chapter 5
Time Value of Money
1
Learning Objectives
1.
2.
3.
4.
Explain time value of money and its importance to the field
of finance.
Explain the concept of future value, including the meaning
of the terms principal, simple interest and compound
interes
Lecture 2
The Time Value of Money
Key Concepts and Skills  Part 1
Be able to compute the future value of an
investment made today
Be able to compute the present value of
cash to be received at some future date
Be able to compute the return on an
investme
Chapter 6
Discounted Cash
Flows and Valuation
1
Learning Objectives
1. Explain why cash flows occurring at different times
must be adjusted to reflect their value as of a common
date before they can be compared, and compute the
present value and future va
Lecture 5
Capital Asset Pricing Model
52
Key Concepts and Skills
Understand variance as a measure of
total risks
Understand the modern portfolio
theory
Understand Capital asset pricing
model (CAPM)
Know how to calculate expected
returns based on CAPM
53
FIN300: Chapter 8
102416
AAR = Average Net Income / Average Book Value
IRR assumes reinvestment at IRR.
NPV assumes reinvestment at the firms weighted average cost of capital (opportunity cost
of capital).
Average Book Value
P.I. = PV inflows / cost
FIN300: Review
CHAPTER 6
Bond Values and Yield
Yield to maturity (YTM): The rate required in the market on the bond.
Current yield: Bonds coupon payment / price.
Discount bond: Bond sells for less than its face value.

The investor makes a gain when the
ECON320: Chapter 4
Jan. 31
Compounding
What if interest is paid monthly?
1. Divide annual interest rate by # of time periods per year.
2. In calculating PV, set n = # of times per year.
EXAMPLE: 50,000 at annual interest of 3% compounded monthly, paid ove
FIN340: Real Estate Principles
Ch. 2
What is real estate?
Land and things attached to the land.
Real property: Legal interests in land and things attached to the land.

Real property is benefits gained from owning real estate / legal interests.
Personal
FIN300: Chapter 3
9616
3.1 Standardized Financial Statements
Commonsize Statement is a standardized financial statement presenting all items in
percentage terms.
 This is used to compare companies better as it is hard to compare companies when
their s
FIN300: Chapter 5
92116
5.1 Future and Present Values of Multiple Cash Flows
Timing assumption: When discussing cash flows, unless otherwise specified, the cash flows
occur at the end of the period.
There are 2 ways to calculate future values for multip
FIN300: Chapter 4
91816
4.1 Future Value and Compounding
Future Value (FV) refers to the amount an investment is worth after one or more periods.
 Compounding: The process of accumulating interest in an investment over time to
earn more interest.
 Sim
ASSIGNMENT III
HCA 341 Financial Management in Health Care SPRING 2017
1. Community Hospital, a nonforprofit acute care facility, has the following cost structure for
its inpatients services: 7 pts.
Fixed costs
$169,300,000
Variable cost per inpatient
ASSIGNMENT III ANSWERS
HCA 341 Financial Management in Health CareSPRING 2017
1. Community Hospital, a nonforprofit acute care facility, has the following cost structure for its
inpatients services: 19 pts.
Fixed costs
$169,300,000
Variable cost per inp
ASSIGNMENT IV
HCA 341
SPRING 2017
Question: (Use whole dollars and cents!)
Assume that managers of IDC Hospital are setting the price on a new outpatient service. Here are
relevant data estimates:
Variable cost per visit
$27.50
Annual Direct Fixed Costs
$
HEALTHCARE FINANCIAL MANAGEMENT
ASSIGNMENT II ANSWERS
SPRING 2017
Consider the following financial statements for COVERED CALIFORNIA, a notforprofit managed care plan:
COVERED CALIFORNIA
Statement of Operations and Change in Net Assets
Year Ended Decemb
HCA 341Assignment I
ANSWERS
SPRING 2017
1. Here is the financial statement information on three notforprofit clinics: (in ooos) 9 PTS.
HCP
BPMG
MOLINA
December 31, 2015
Assets
$90,000
$85,000
$140,000
Liabilities
60,000
50,000
80,000
Equity
30,000
35,0