10 Round all answers to whole dollars.
_ 1.
A proposed project is expected to decrease accounts receivable by $10,000, decrease inventory by $4,000, and increase accounts payable by $6,000. What is
7
_ 1.
A semiannual corporate bond has a face value of $1,000, a yield to maturity of 7.2 percent, and a coupon rate of 7.5 percent. The bond matures 10 years from today. This bond: a. pays interest
CHAPTER 8
Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets
113. Pic Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the ear
Assignment For Class 3
Finc 450 by Wei Zhang
8-2 PORTFOLIO BETA An individual has $35,000 invested in a stock with a beta of
0.8 and another $40,000 invested in a stock with a beta of 1.4. If these ar
Assignment For Class 2
Finc 450 by Wei Zhang
7-1 BOND VALUATION Callaghan Motors bonds have 10 years remaining to
maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest
Assignment For Class 6
Finc 450 by Wei Zhang
10-4 COST OF EQUITY WITH AND WITHOUT FLOTATION Javits & Sons common stock
currently trades at $30.00 a share. It is expected to pay an annual dividend of $
Chapter 7: Solutions to Homework Problems
7-1
With your financial calculator, enter the following:
N = 10; I/YR = YTM = 9%; PMT = 0.08 1,000 = 80; FV = 1000; PV = VB = ?
PV = $935.82.
7-4
With your fi
Agreement Contract for the Sale of an Iphone 7
Preamble
This is a contract for the sale of an iphone 7. Apple Store (Seller) is selling an
Apple Iphone 7 to Jesse Ruiz (Buyer).
Recital
Apple is a Cali
VISA
MasterCard
Arlene
Rodriguez
Biyun Hu
Jingyao Zhou
Lilia
Dominguez
ECON 420
1
ECON 420
January 2013
January 2013
Case Summary
Joint ventures in general purpose cards (GPCs)
v
Created, owned, gove
Instructions for the Microsoft Excel Templates
Be advised - The workbooks and sheets are not protected. Typing over information may result in the loss of that info
Detail and information on Excel is c
Instructions for the Microsoft Excel Templates
Be advised - The workbooks and sheets are not protected. Typing over information may result in the loss of that info
Detail and information on Excel is c
Instructions for the Microsoft Excel Templates
Be advised - The workbooks and sheets are not protected. Typing over information may result in the loss of that info
Detail and information on Excel is c
Instructions for the Microsoft Excel Templates
Be advised - The workbooks and sheets are not protected. Typing over information may result in the loss of that info
Detail and information on Excel is c
2 problems on capital budgeting
1. Techlink Inc. is considering an investment project. The equipment in question costs $430,000. The
firm will need to spend an additional $70,000 for transportation an
2 PROBLEMS ON WACC
1. XYZ has $200M of debt and $500M of Equity on its balance sheet. The firms bonds have a coupon
rate of 6% (assume annual payments), 20 year maturity, $1000 face value. These bonds
EQUATIONS
CORPORATE FINANCIAL MANAGEMENT
NOTE: r and R ARE THE SAME
1.
FV = PV (FVF) r, t
FVA = A (FVFA) r, t
2.
PV = FV (PVF) r, t
PVA = A (PVFA) r, t
PV = A / ( r g) .PERPETUITY
3.
BP = IP (PVFA) r,
Risk, Return, and the CAPM
FINC 450 WEEK 3, FALL 2016
Tarhan, Fall 2016
1
Risk and Return
Measuring the risk of stocks
Unsystematic risk
Systematic Risk
Risk & return: CAPM / SML
Tarhan, Fall 2016
2
I
Bonds and Their Valuation
Key features of bonds
Bond valuation
Measuring yield
Assessing risk
Tarhan, 2016
1
What is a bond?
A long-term debt instrument in which
a borrower agrees to make payments
of
Firm-wide Weighted Average
Cost of Capital
FINC 450, Week 6, Fall 2016
Tarhan, Fall 2016
1
Outline
1. What hurdle rates do firms use? Where are they used?
2. Sources of capital
3. Calculating the firm
Common Stock Valuation
FINC 450, Week 4, Fall 2016
Tarhan, Fall 2016
1
Issues to be examined
Features of common stock
Determining common stock values
Preferred stock and its valuation
Tarhan, Fall
CAPITAL STRUCTURE POLICY
FINC 450, Week 9, Fall 2016
Tarhan, Fall 2016
1
Optimal Capital Structure with Taxes
Do Firms Prefer Debt?
When firms raise new capital from investors,
they do so primarily
Capital Budgeting Methods
FINC 450, Week 8 Fall 2016
Tarhan, Fall 2016
1
Introduction to capital budgeting: Net
Present Value (NPV)
C1
C2
Cn
NPV C 0
.
2
1 r 1 r
1 r n
The represents the addition t
Time Value of Money
FINC 450, Week 1, Fall 2016
Tarhan, Fall 2016
1
Financial Decisions and Time value
of Money
TVM is the most basic principle of finance
For example, in deciding which projects to t
Chapter 12: Solutions to Homework Problems
12-3
Equipments original cost
Depreciation (80%)
Book value
$20,000,000
16,000,000
$ 4,000,000
Gain on sale = $5,000,000 $4,000,000 = $1,000,000.
Tax on gain