Amazon
Weighted Average Cost of Capital (WACC)
FIN_515 Managerial Finance
Prof. Carolyn Griffen
Presenter: Srini Sandaka & Mukthiar Singh
04/10/2017
Debt 15.2 B
Introduction
Equity 19.3
B
Pioneer of online retailing business
Business focus in Online ret
Problem 1) Suppose the risk-free interest rate is 3.5 %.
a. Having $ 100 today is equivalent to having what amount in one year?
b. Having $ 100 in one year is equivalent to having what amount today?
c. Which would you prefer, $ 100 today or $ 100 in one y
Problem 1) What is the most important difference between a corporation and all other
organization forms?
Problem 2) What does the phrase limited liability mean in a corporate context?
Problem 3) Which is not a function of a financial manager?
Problem 4) T
A)
Future value
Given
Solve for FV
FV = PV x (1 + r)
NPER
1
=/(1+)
B)
Present value
NPER
Given
1
Solve for PV
RATE
3.1%
=$100 (1+0.031)=#103.10
PV
100.00
PMT
0
FV
Excel Formula
$103.10
=FV(RATE,NPER,PMT,-PV)
=$100/(1+0.034) )=$96.99
RATE
3.1%
PV
96.99
PMT
A) 6 months
EDR
3.10%
R
13%
N1
2
N2
2
B) 1 Year
6.30%
13%
2
1
C) 1 Month
0.51%
13%
2
12
Given
Solve for FV
NPER
3
RATE
4.0%
PV
1.00
PMT
0
FV
$1.12486
A)
Given
Solve for FV
NPER
6
RATE
2.0%
PV
1.00
PMT
0
FV
$1.12616
B)
Given
Solve for FV
NPER
2
RATE
6.0%
P
Assets
Cash
Accounts receivable
Inventory
Total current assets
Net plant, property
Total assets
1,603
3,965
1,450
7,018
8,500
15,518
Sales
COGS
Days
Days
32,000
12,800
365
30
A)
Net working capital
3,233,000
Liabilities and equity
Accounts payable
Notes p
FIN515 Week 3 Project:
Financial Statement Analysis
Introduction
Benchmark analysis of FedEx
Corporation vs. sampling of industry
averages.
DuPont Identity
Gross Margin
Debt to Equity Ratio
Cash Ratio
Asset Turnover Ratio
Net Profit Margin
People Se
Week 8 : Final Exam - Final Exam
Time Remaining: 03:23:30
Page:
1
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Submit for Grading
2
1. (TCO A) Double taxation is a drawback for which of the following types of business organization
except? (Points : 5)
S corporation
C corporation
Limited
FIN515 Week 7 Project:
Capital Budgeting Analysis
Introduction
Expansion Project
10% expansion of current Net PPE
12 Years estimated life
with 5% salvage
18% of new PPE, expected annual
EBIT
People Service Profit
Calculation of Cost of Project
Expansio
FIN515 Week 2 Project:
Financial Statement Analysis
Introduction
Brief analysis of the financial
performance of the FedEx Corporation
vs. industry medians.
DuPont Identity ratio
Other ratio analysis
FedEx Corp. is committed to produce
superior financial
FIN515 Week 6 Project:
Weighted Average Cost of Capital
Introduction
Expansion Project
Project Effectiveness
Capital Structure
Cost of Debt
Cost of Equity
Weighted Average Cost of Capital
Analysis Strengths and Limitations
People Service Profit
Cost of De
Instructor Explanation: Chapter 2
Points Received:
10 of 10
Comments:
4. Question :
(TCO B) When we express the value of a cash flow or series of cash flows
in terms of dollars today, we call it the _ of the investment. If we
express it in terms of dollar
3.
a.
Timeline:
0
1
2
5
2000
FV = ?
FV5 2, 000 1.055 2,552.56
b.
Timeline:
0
1
2
10
2000
FV = ?
FV10 2, 000 1.0510 3, 257.79
c.
Timeline:
0
1
2
5
2000
FV = ?
FV5 2, 000 1.15 3, 221.02
d.
5.
Because in the last 5 years you get interest on the interest earn
26-1.
Answer the following questions:
a.
Whatisedfrnwcbmyltaopigec?
b.
Howilafrmhscyebtdnivory,alesbqg?u
c.
Howilafrmhscyebtdgonakuiscferbytpl,nqg?a
a.
A firms cash cycle is the average length of time from when a firm pays cash for its inventory to when
i
1. (TCO A) In the United States, which of the following types of organization has the greatest revenue in
total? (Points : 5)
Sole proprietorship
C corporation
S corporation
Limited partnership
Question 2. 2. (TCO A) The one thing that makes a corporation
Kohl's Corporation, d.b.a., Kohl's first store was actually a supermarket founded in 1946,
and then come along the first department store founded in 1962 in Brookfield, Wisconsin.
Kohls is currently headquartered in Menomonee Falls, WI. The company was fo
COURSE PROJECT
Abstract
Cost savings initiatives is the new trend in every
company. The driving force of this trend is partially
due to the need for companies to invest in technology
like never before. Companies that have had favorable
budgets in the past
Meals
Lunch
Dinner
Totals
Service good Service poor
27
35
18
47
45
82
Totals
62
65
127
Prop meal was lunch/service was poor
Prop meal was lunch
Prop Serive was poor given meal was lunch
0.275591
0.488189
0.564516
Rating
Count
1
2
3
4
5
0
10
11
56
21
Percent Step b
Step d
0
0
0
10.2
0.102
0.204
11.22
0.1122
0.3366
57.14
0.5714
2.2856
21.43
0.2143
1.0715
3.8977 Over a very large number of trials, the average driver-side crash rating
age driver-side crash rating
Problem 1
Absenteesim
Turnover
Problems with Both
Problem 2
IQ_Score
1
2
3
4
5
6
7
8
9
Totals
Part A
Part B
Part C
0.7 P(A)
0.4 P(B)
0.2 P(AB)
Invest_in_Market
No_Investment
859
4663
1319
8639
1958
9393
5272
19366
8236
23942
10012
21247
6312
11320
5014
71
Problem 1
Suppose you're given a data set that classifies each sample unit into one of four categories: A, B, C, or D.
You plan to create a computer database consisting of these data, and you decide to code the data as A=
1, B=2, C=3, and D=4. Are the dat
The ages of a group of 50 women are approximately normally distributed with a mean of 49 years and a
standard deviation of 5 years. One woman is randomly selected from the group, and her age is observed.
a. Find the probability that her age will fall betw
Question 1
The table to the right gives a breakdown of
2 comma 1362,136
civil cases that were appealed. The outcome of theappeal, as
well as the type of trial (judge or jury), was determined for
each case. Suppose one of the cases is selected at random
an
Problem 3
Grade on Business Statistics Exam
A: 90-100
B: 80-89
C: 65-79
D: 50-64
F: Below 50
Total
Frequency
Relative Frequency
0.07
51
132
54
42
300
1
A
B
C
D
F
21 Relative Frequency = Frequency/Total number of observations
0.17
0.44
0.18
0.14
Proble
Problem 1
mean
Standard Deviation
Part A
52 years
5 years
Probabilty
Years bewteen
54
Part B
61
z1
0.4
x
z2
1.80
x
Z = x \ .
Area to left of Z1
Given From Table
Z1
(0z1)
Given table to find
Z2
P(z22.4)
0.5
0.1554
0.6554
0.655
0.4641
0.9641
0.964
54
52
5
6