Case Solutions
Cases 1,2,4,5,7
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Case #1 - Cash Flows and Financial Statements at Sunset Boards
Input ar
Chapter 6
Templates for HW Problems
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
NOTE: Some functions used in these spreadsheets may require that
t
FORMULAS AND CALCULATORS FOR THE FINAL EXAM
Note: This list is not all inclusive. Please make sure to master other calculations, such as taxes
(MACRS, Average, Marginal), collections, etc.
EBIT = Sale
Loans and Interest Rates (graded)
What is the difference between the annual percentage rate (APR) and the effective annual rate
(EAR)? Which rate do you believe is more relevant for financial decision
4. (TCO 3) Which of the following is not an approach to systems
development?
Prototyping.
Agile Methodologies.
Joint application design.
Re-engineering analysis.
Rapid application development.
5. (TCO
Sunset Boards
Sunsets Boards Inc.
Charley Baskett
DeVry University
BUSN 379
Professor Lance Parker
Sunset Boards
Sunset Boards currently pays out 50 percent of net income as dividends to Tad and the o
1. What are the monthly payments for a 30 year traditional mortgage?
What are the payments for a 20 year traditional mortgage?
Monthly payment on a 30 year traditional Loan
PV
N
I/YR
FV
PMT
(1,000,000
Chapter 5 Tutorial Questions
1. Present Value and Multiple Cash Flows. Rooster Co. has identified an investment project with the
following cash flows. If the discount rate is 10 percent, what is the p
Chapter 4 do #3,
Calculating Present values:
For each of the following, compute the present value:
Present Value
Years
$10,823.02
$29,411.69
$128,928.43
$72,388.42
Interest Rate
12
4
16
21
Future Valu
Week 2 Homework
Charley Baskett
DeVry University
BUSN 379
Professor Lance Parker
Chapter 4 (4, 8, 17, 18)
4. Calculate Interest Rates. Solve for the unknown interest rate in each of the following:
Pre
Sol: (8)
Years to maturity
YTM
Current Price of bond
Type of coupon payments
Number of periods
Semi-annual YTM
Par Value of bond
14.5
6.10%
$1,038
Semi-annual
29
3.05%
$1,000
Current bond price =
Curr
Charley Baskett
DeVry University
BUSN 379
Professor Lance Parker
Week 1 Homework
8. Calculating OCF. Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation
expense of $2,520, and interest
Chapter 4 Tutorial Questions
1. Simple Interest versus Compound Interest. First City Bank pays 6 percent simple interest on its
savings account balances, whereas Second City Bank pays 6 percent intere
26. Zero Coupon Bonds [LO2] Suppose your company needs to raise $ 45 million and you want
to issue 30- year bonds for this purpose. Assume the required return on your bond issue will be 6
percent, and
Problem #3,
Lycan, Inc. has 7 percent coupon bonds on the market that have 8 years left to maturity. The
bonds make annual payment. If the YTM on these bonds is 9 percent, what is the current bond
pri
Question 1
Coupon rate
Time to maturity
YTM
Let the face value of the bonds be $100
Coupn payments
Current bond price
6%
9 years
8%
$6.00
$87.51
Question 2
Time to maturity
Coupon rate
number of coupo
Chapter 9
Questions and Problems
1. Calculating Payback What is the
payback period for the following set of
cash flows.
To calculate the payback period, we need to find the
time that the project has
Homework Exercises
8) Calculating OCF
Sales-Cost-Depreciation= Earnings before Interest and Taxes
$34,630-10,340-2,520 = $21,770
Earnings before Interest and Taxes-Interest= Taxable Income
$21,770-175
Week 4 Case March 26, 2015
CHAPTER5
DiscountedCashFlowEvaluation
S&SAirsMortgage
1.
The 30 year loan payment will be:
PMT = PV x r/ (1-(1+r) ^-n
PMT = $35,000,000 x (.061/12)/(1-(1+.061/12)^-12*30)
PM