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 the amount of the initial cash flow for this proje
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 payments of $75.00 every six months. b. sells at
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 are the only
two investments in her portfolio, what is he
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 early 1990s, the
price of the plastic it uses to produce t
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
rate is 8%, and the yield to maturity is 9%. What is t
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 $3 00 a share at
the end of the year D1 $3.00 , and the
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 financial calculator, enter the following to find YTM:
N
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 California Corporation, organized under the laws of Califor
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, governed, and operated by and in the interest
of member ban
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 contained within the manual.
Striking the "F1" key or fo
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 contained within the manual.
Striking the "F1" key or fo
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 contained within the manual.
Striking the "F1" key or fo
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 contained within the manual.
Striking the "F1" key or fo
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 and installation expenses, and
$35,000 to increase its ne
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 currently are
selling for $920. The firms tax rate is
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, t + F (PVF) r, t
BP = IP / r . PERPETUITY
SP = DIV1/ (
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
Investment returns
The rate of return on an investment c
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 principal and interest, on specific
dates, to the holde
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-wide WACC
a. Flotation costs of issuing securities
b.
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 2016
2
Stocks and Their Valuation
FINC 450, WEEK 3 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 by issuing debt.
In most years aggregate equity issues
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 to market value of the firm.
Net refers to the fact that
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 take
(investment decisions) firms need to worry
about:
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 = $1,000,000(0.4) = $400,000.
AT salvage value = $5,00