FIN-516 WEEK 5 HOMEWORK CHAPTER 18
Lease vs. Purchase Analysis Problem
Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a
4-year life that costs $40,000 and falls into the MACRS 3-year class. If the firm
borrows and buys the
Problem 25-6 on Purchase Versus Lease Based on Chapter 25
Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be depreciated on a straight-line basis ov
a) What are the free cash flow consequences
29 In fiscal year 2011, Starbucks Corporation (SBUX) had revenue of $11.70 billion, gross profit of $6.75 billion, and net income of $1.25 billion. Peets Coffee and Tea (PEET) had revenue of $372 million, gross profit of $72.7 million, and net income of $
Week 4 Homework
FIN516
FIN-516 WEEK 4 CHAPTER 20 - HOMEWORK PROBLEMS
Chapter 20 Problem 20 1
(201) Profit or Loss on New Stock Issue
Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent
offering of Beedles Inc., the ter
Page 1
Question 1.1. (TCO E) For federal tax purposes, income attributable to the direct efforts of the tax payer, such as
salary, is classified as: (Points : 5)
portfolio income.
active income.
passive income.
None of the above
Question 2.2. (TCO D) How
FIN-516 WEEK 1 HOMEWORK ASSIGNMENT
Problem Based on Chapter 14, Residual Dividends
Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net
Income is forecast to increase by 8%. The companys capital structure has been 35%
Debt a
FIN516WEEK5HOMEWORK
Problem 25-6 on Purchase Versus Lease Based on Chapter 25
Craxton Engineering will either purchase or lease a new $756,000 fabricator. If
purchased, the fabricator will be depreciated on a straight-line basis over 7 years.
Craxton can
FIN-516 WEEK 1 HOMEWORK ASSIGNMENT
Problem Based on Chapter 14, Residual Dividends
Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net
Income is forecast to increase by 8%. The companys capital structure has been 35%
Debt a
FIN516
Week6HomeworkAssignment
FIN-516 WEEK 6 - HOMEWORK - CH. 21
No. 1 Acquisition Analysis
Brau Auto, a national autoparts chain, is considering purchasing a smaller chain, South
Georgia Parts (SGP). Brau's analysts project that the merger will result i
Week 1 Homework Assignment
FIN516
May 7, 2013
FIN-516 WEEK 1 HOMEWORK ASSIGNMENT
Problem Based on Chapter 14, Residual Dividends
Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net
Income is forecast to increase by 8%. The
Page 1
Question 1.1. (TCO B) Which of the following statements concerning the MM extension with growth
is NOT CORRECT?
(a) The tax shields should be discounted at the unlevered cost of equity.
(b) The value of a growing tax shield is greater than the valu
You are a U.S. investor who is trying to calculate the present value of a 5 million cash inflow that will occur 1 year in the future. The spot exchange ra
a. What is the present value of the 5 million cash inflow computed by first discounting the euro and
FIN-516 WEEK 2 - HOMEWORK ASSIGNMENT
PROBLEM BASED ON CHAPTER 15 WACC AND THE HAMADA FORMULA
Bickley Engineering Company has a capital structure of 30% Debt and 70% Equity. Its
current Beta is 1.3, and its Market Risk Premium is 7.5% Points. The current R
Homework Week 2
FIN516
FI-516 WEEK 2 - HOMEWORK ASSIGNMENT
PROBLEM BASED ON CHAPTER 15 WACC AND THE HAMADA FORMULA
Bickley Engineering Company has a capital structure of 30% Debt and 70% Equity. Its
current Beta is 1.3, and its Market Risk Premium is 7.5%
FIN-516 WEEK 2 - HOMEWORK ASSIGNMENT
PROBLEM BASED ON CHAPTER 15 WACC AND THE HAMADA FORMULA
Bickley Engineering Company has a capital structure of 30% Debt and 70% Equity. Its
current Beta is 1.3, and its Market Risk Premium is 7.5% Points. The current R
Gevo Inc. 1
Initial Public Offering: Gevo, Inc.
FIN516: Advanced Managerial Finance
Janice Jensen
February 9, 2014
Gevo Inc. 2
An Initial Public Offering (IPO) is when a private company sells its first stock to the public. This is
usually done by companys
FIN516WEEK7HOMEWORK
Problem 31-1 on Exchange Rates Based on Chapter 31 International Corporate Finance
(Excel file included)
You are a U.S. investor who is trying to calculate the present value of a 5 million cash inflow
that will occur 1 year in the futu
FIN516
Week7Homework
FIN-516 WEEK 7 HOMEWORK PROBLEMS - CHAPTER 17
No. 1 - Exchange rates
If one U.S. dollar buys 1.64 Canadian dollars, how many U.S. dollars can you purchase
for one Canadian dollar?
1/1.64 = 0.60975
No. 2 - Currency Appreciation
Suppose
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.
Date Taken:
Time Spent:
Points Received:
Question Type:
6/2/2013
1 h , 19 min , 4
(TCO C) Brammer Corp.'s projected capital budget is $1,000,000, its target capital
structure is 60 percent debt and 40 percent equity, and its forecasted net income is
$550,000. If the company follows a residual dividend policy, what total dividends, if a
Consider the entrepreneur described in Section 14.1 (and referenced in Tables 14.114.3). Suppose she funds the project by borrowing $750 rather than $500.
a. According to MM Proposition I, what is the value of the equity? What are its cash flows if the ec
Grade Details - All Questions
1.
Question :
(TCO C) Blease Inc. has a capital budget of $625,000, and it wants to
maintain a target capital structure of 60 percent debt and 40
percent equity. The company forecasts a net income of $475,000. If it
follows t
FIN516WEEK1HOMEWORK
Problem 17-7 on Ex-dividend Price Based on Chapter 17 Payout Policy
Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million
shares outstanding with a current market price of $15 per share. Natsams board
FIN516WEEK2HOMEWORK
Problem 14-11 Based on Chapter 14: WACC and Modigiani & Miller Extension
Models With Growth Assumptions
Consider the entrepreneur described in Section 14.1 (and referenced in Tables 14.1
14.3). Suppose she funds the project by borrowin
FIN-516 WEEK 4 CHAPTER 20 - HOMEWORK PROBLEMS
Chapter 20 Problem 20 1
(201) Profit or Loss on New Stock Issue
Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering
of Beedles Inc., the terms were as follows:
Pri
FIN516WEEK3HOMEWORK
Problem 20-6 on Call Options Based on Chapter 20
(Excel file included)
You own a call option on Intuit stock with a strike price of $40. The option will expire in
exactly 3 months time.
a) If the stock is trading at $55 in 3 months, wh
ACCT553
Week 7 Homework
_
Please provide your answer to each question in the space provided below.
When finished, submit to the DropBox.
Chapters 10-11-12
1. Please explain the distinction between a "realized" gain and a "recognized" gain. (5 pts)
Answer:
FIN516 WEEK 3 - HOMEWORK
R. Lynn Ross
Problem 20-6 on Call Options Based on Chapter 20
(Excel file included)
You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly
3 months time.
a) If the stock is trading at $
FIN516 WEEK 1 - HOMEWORK
R. Lynn Ross
Problem 17-7 on Ex-dividend Price Based on Chapter 17 Payout Policy
Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares
outstanding with a current market price of $15 per sh
FIN516 WEEK 5 - HOMEWORK
R. Lynn Ross
Problem 25-6 on Purchase Versus Lease Based on Chapter 25
Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the
fabricator will be depreciated on a straight-line basis over 7 y
FIN516 WEEK 2 - HOMEWORK
R. Lynn Ross
Problem 14-11 Based on Chapter 14: WACC and Modigiani & Miller Extension Models
With Growth Assumptions
Consider the entrepreneur described in Section 14.1 (and referenced in Tables 14.114.3).
Suppose she funds the pr
FIN516 WEEK 4 - HOMEWORK
R. Lynn Ross
Problem 23-3 on Implied Price of Funding Based on Chapter 23
Starware Software was founded last year to develop software for gaming applications. Initially,
the founder invested $800,000 and received 8 million shares