Chapter 1
Proprietorship- unincorporated business owned by one
individual. Inexpensive, few govt. regulations, lower
income tax. Bad: unlimited liability, hard to get large
sums of capital, life is li
Chapter 11 Solutions to Problems 11-11 Project S: Using a financial calculator, enter the following data: CF0 = -15000; CF1-5 = 4500; I/YR = 14. NPVS = $448.86. Project L: Using a financial calculator
Solutions Manual
Fundamentals of Corporate Finance 9th edition Ross, Westerfield, and Jordan Updated 12-18-2009
B-2 SOLUTIONS
CHAPTER 1 INTRODUCTION TO CORPORATE FINANCE
Answers to Concepts Review and
Chapter 5 and 6
CPN = Coupon Rate x Face Value / # of coupons per year
Fisher Equation = relationship between real int., nominal int., inflation
- Solve for Nominal: R=[(1+r)/(1+i)]-1
- Solver for Rea
Chapter 9 Review
1. Projects A and B each have an initial cost of $5,000, followed by a series of
positive cash inflows. Project A has total undiscounted cash inflows of $12,000,
while B has total und
Chapter 2
Non-annual Compounding
You borrow $3,000 on your credit card that
has an 18% APR. You make the minimum
payment of $50 each month. How many
years will it take to pay it off.
5 years
7 years
1
CHAPTER 2
-Fixed income liabilities most common liability
-Earnings per share = NI/outstanding shares
-Dividends per share = Dividends paid/outstanding shares
-Net working capital = current assets cur
Follow Your Company
Sign up for a Twitter account at twitter.com. Then, follow your assigned company. (If
your company is not on twitter, let your instructor know.) Then choose a tweet or several
twee
Chapter 3 Homework Problems
1. Ortiz Lumber Yard has a current accounts receivable balance of $320,000. Credit sales for the year just ended were $1,440,000. (Round your answers to 2 decimal places. (
Chapter 1 Annuity-series of equal payments at fixed Areas in Finance- money and capital intervals for a specified # of periods markets, investments, financial Ordinary annuity-annuity whose payments m
DuPont Analysis
Professor Susan White
ReturnonEquity
ROE=
NetProfitability
ROE=
ROE
AssetEfficiency
x
Leverage
NetIncome
ShareholdersEquity
Netincome
NetIncome
= NetProfitMargin
/Sales
Equity
x
x
Sale
Chapter 11 Review Session
2007 Robert H. Smith School of Business University of Maryland
Chapter 11 Review Session
1. Projects A and B each have an initial cost of $5,000, followed by a series of pos
Chapter 2 Review Session
4. At an inflation rate of 9%, the purchasing power
of $1 would be cut in half in just over 8 years.
How long, to the nearest year, would it take for the
purchasing power of $
Homework No. 9 - Chapter 10 Homework Problems
1. Winnebagel Corp. currently sells 19,800 motor homes per year at $29,700 each, and 7,920 luxury motor coaches per year at $56,100 each. The company want
Chapter 6 Homework Problems
1. If you deposit $1,300 at the end of each of the next 16 years into an account paying 12.5
percent interest, you will have $ in the account in 16 years. How much will you
Chapter 5 Homework Problems
1. Assume the total cost of a college education will be $270,000 when your child enters college in 14 years. You presently have $75,782 to invest. You must earn an annual r
Chapter 4 Homework Problems
1. The most recent financial statements for GPS, Inc., are shown here (Do not include the
dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16):
Income
Stat
Ch. 4 Review
1. Coheed Corp. had equity of $135,000 at the beginning of the year. At the end of
the year, the company had total assets of $250,000. During the year the company
sold no new equity. Net
Name: _ Session: _
BMGT 313
FINANCIAL STATEMENT ANALYSIS
SPRING 2013 MIDTERM
MARCH 13TH, 2013
BASIC GUIDELINES
1. The time allocated for this exam is 75 minutes.
2. The work you submit must be your ow
Exam1SP09
Multiple Choice
Identify the choice that best completes the statement or answers the question.
Note that no question is identified as the bonus question. There are a couple of questions that
CHAPTER 3 THE TIME VALUE OF MONEY
OVERVIEW
A dollar in the hand today is worth more than a dollar to be received in the future because, if you had it now, you could invest that dollar and earn interes
Homework 1 Solutions
2 points
1.
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for
$6.6 million. The machinery can be sold to the Romulans today for $5 million.
Klingon's cur
Chapter 3 and 4 Review
Session
GDP Corp. has operating income (EBIT) of
$300,000, total assets of $1,500,000 and its capital
structure consists of 40% debt and 60% equity.
Total assets were equal to t
16-S2374 2/3/03 5:50 PM Page 539
16
Investment Banking and the Public Sale
of Equity Securities
Part 1: Introduction
1 The Scope of Corporate Finance
2 Financial Statement and Cash Flow Analysis
3 Pre
Chapter 5
Interest
Rates
IN CLASS
University of Maryland
Robert H. Smith School of Business
Finance
5-1
Learning Objectives
1. Convert APRs into EARs.
2. Create a loan amortization schedule.
3. Use th
You have $10,000 to invest. You will need the money
you expect to earn 8% per year. How much will you h
What are you looking for?
Use the FV formula:
FV(rate,nper,pmt,pv)
Compute
(Notice that the spre
Chapter 4
Time Value of
Money
Problems,
Problems
and More
Problems
IN CLASS
University of Maryland
Robert H. Smith School of Business
Finance
4-1
Learning Objectives
1. Calculate the PV and FV of an u
Chapter 1
Corporate
Finance and
the Financial
Manager
In-Class
University of Maryland
Robert H. Smith School Business
Finance
1-1
Learning Objectives
1. Grasp the importance of financial information
i
Chapter 3
Time Value of
Money: An
Introduction
In Class
University of Maryland
Robert H. Smith School of Business
Finance
3-1
Learning Objectives
1. Understand the Valuation Principle and
apply it.
2.