Students Name: Gian Piero Rovagnati Gallegos_
Explain why the present value of a cash flow stream, and the asset associated
therewith; fluctuate in value with the level of interest rates
Running head: NETFLIX
NETFLIX: Leader in the Online Video World
Gian Piero Rovagnati
Dr. Glendon Williams
NETFLIX: LEADER IN THE ONLINE VIDEO WORLD
Netflix: Leader in the Online Video World
Technology has been adva
Problem 1-2: Users of Accounting Information and Their Needs
Havre Company would like to buy a building and equipment to produce a new product line.
Information about Havre is more useful to some people involved in the project than to others.
Provide detailed descriptions and show all calculations used to arrive at solutions for the following
1. Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this
value could be reduced to 50 days, w
Chapter 10, problems
10-1. A project has an initial cost of $40,000, expected net cash inflows of $9,000 per
year for 7 years, and a cost of capital of 11%. What is the projects NVP? (Hint:
begin by constructing a timeline)
Chapter 2, problems
2-1. An investor recently purchased a corporate bond that yields 9%. The investor is in the
36 % combined federal and state tax bracket. What is the bonds after tax bracket?
Bond yield = 9%
ATY (after tax Yield) = 9 (1-tax) = 9 (1-36%)
A). Distribution policy is the payment cycle made by the issuer which aims to make
investors confident to invest and purchase. Investors are promised to obtain a reliable
distribution but not a constantly changing payment.
Over time, dividend payouts and
For myself, I am a guy who averse to the risk. Today by the low level of interest, I
will invest in Chinese property market. It is the traditional habit for us and we dont
need pay for the property tax every year. And the profit is high than US bonds.
Gross proceed= 3,000,000*$6
Gross proceeds= 3,000,000*$4
AFN=(A0*/S0)S-(L0*/S0) S-(PM)(S1)(1-payout rate)
Broussards additional funds needed for the coming year is $283,800
Chapter 1 HW Essay Questions
1. The agency problem can seriously restrain the economic success of a company. What avenues are
available to shareholders to bring their goals and those of management into alignment?
The main avenue they can take is to make s
Chapter 3 Homework Questions
1. Explain the different types of activities presented in the statement of cash flows.
The cash flow statement organizes and reports the cash generated and used in the following:
Operating Activities which converts the items r
a. $5 per share
Gross proceeds= (2,000,000)($5)=$15,000,000.
b. $6 per share
Gross proceed= (3,000,000)($6)=$18,000,000
c. $4 per sha
Welcome to Apple
Business strategy analysis
Comparing to competitors
Apple stocks` performance
25 Millions, Yes or No?
Apple is committed to bringing
the best personal computing
The concept of compounding
Compounding is the process that calculating future interest based on the present values. From
compounding, financial analyst can know how long to achieving financial goals in future
time. There is not only earning interest based
Chapter 7 Case study
A. Describe briefly the legal rights and privileges of common stockholders.
Common stockholders have briefly legal rights and privileges of company. First
common stockholders have the right to select the CEO, and senior manag
(2-1) Yield 9%
Tax 36 %
AT YIELD = 9%*0.64=5.76%
The Bonds after-tax yield is 5.76%.
(2-2) corporate bond yields 8%, municipal bond yields 6%
The tax rate is 25%.
NI= $ 3,100,000 DEP= $ 500,000 AMO
Compounding is the process that calculating future interest based on the present
values. From compounding, financial analyst can know how long to achieving
financial goals in future time. There is not only earning interest based on original
Mergers refer to combination of two or more companies into one enterprise, mergers can
help companies to achieve the economic goals, and to achieve the optimum combination of
productive forces. There are six valid economic justifications for mergers from
After reading the article statement of cash flows: how to get the whole story, I have
different understand of cash flow statement. Many accounting and fiance would
misunderstood of the numbers of statement of cash flows, how to get the
Mortgage securitization is a process that financial institutions integrate individual mortgages
into one pool, then they sold the debt securities from this pool of mortgages. Base on the financial
institutions guarantee and enhancement credit, Mortgage wo
Dt = D0(1+g)t, and the growth rate in the first three year is 5%, after the first three
years the rate is 10%, so
D1 = 1.50 (1+5%)1 = $1.575 per share
D2 = 1.50 (1+5%)2 = $1.654 per share
D3 = 1.50 (1+5%)3 = $1.736 per share
D4 = 1.50(1+5%)3 (1+10%) =
Week 3 case study
The common stockholders are the owners of the company and they have legal rights for the
company. The companys common stockholders have right to elect the directors of the company.
Common stockholders have preemptive right and what is
If a company want to scale up, Going public can increased the value of company. After
going public, the public stock is one important currency to company for acquisitions, company
also can increased the goodwill and prestige so that going public can help
The company going public can benefit company in different ways. First, it can
improve the financial situation. Funds through the stock market does not have to get is
repaid within a certain time limit. Second, it can use stock to acquire other c
Gian Piero Rovagnati Gallegos
Article Review 1
Article: Varela, O., & Abdou, K. (2012). A note: Should investors prefer compound
interest? not always. Journal of Financial and Economic Practice, 12(3), 28-35. Retrieved
The article How to Read a CBO Report on Housing Finance, which published in
National Mortgage News at January 18th 2015, is described how to get the information
about mortgage market from Congressional Budget Office (CBO).
CBO reports says: A new
Generally a budget period should be long enough to show the result of any policies that have been
implemented by management but they should also be short to the point that they can provide estimates
with practical precision. There are certain budgets that
Practice Time Value Problems
Please try to do the practice problems before checking answers the end.
21. Gerold invested $6,200 in an account that pays 5 percent simple interest. How much money
will he have at the end of ten years?
Banks should not be allowed to use taxpayer bailout money in order to payout bonuses. This is
unfair to the hard-earned taxpayers. The whole point of the bailout was to give the banks some money in
order for them to continue business as usual. The fact th