Chapter 11, Problem 3
Best case: Unit sales = 109,250, Unit price = $2,185, Unit
variable cost = $204, Fixed cost = $4,080,000
Worst case: Unit sales = 80,750, Unit price = $1,615, Unit
variable cost = $276, Fixed cost = $5,520,000
Chapter 11, Problem 4
A
Tutorial 5
Q1. Why would firms want to issue preferred stocks instead of common stocks and bonds? In your
answer please consider the need for some firms, esp. those in the financial services industry to comply
with regulations.
Q2. Chapter 8, Question 10
Tutorial 6
Q1. Mr. Martin Wu will discuss the answer for Q1 and Q2 of assignment 1 with you.
Q2. Chapter 4, Problem 16
Q3. Chapter 4, Problem 17
Q4. Chapter 4, Problem 22
Q5. Chapter 4, Problem 25
Q6. Chapter 4, Problem 26
Self exercises
Chapter 4, Proble
BE103/512
THE UNIVERSITY OF HONG KONG
FACULTY OF BUSINESS AND ECONOMICS
School of Economics and Finance
FINA1003/FINA1310 Corporate Finance
(Version: January 23, 2013)
GENERAL INFORMATION
Instructors: Sandy Lai
Emails: [email protected]
Office: Room 1117,
FINA1003/1310 (D/E) Corporation Finance
Tutorial 2
Question 1 (Growing Annuities)
You have 40 years left until retirement and want to retire with $2 million. Your salary is paid
annually, and you will receive $40,000 at the end of the current year. Your s
FINA1003/1310 (D/E) Corporation Finance
Tutorial 1
Question 1 (PV, FV and Number of periods)
Youre planning to save to buy a new car 3 years later. The bank pays 4.5 percent annual
interest on its accounts. You have $40,000 today that can be invested at y
THE UNIVERSITY OF HONG KONG
FACULTY OF BUSINESS AND ECONOMICS
FINA1003/1310 D/E Corporate Finance
Second SEMESTER, 2014-2015
Tutorial 3
Question 1 (Bond price)
(a) The Hong Kong Government issued 11-year bonds one year ago at a coupon rate
of 8.6%.If the
Tutorial 11
Please explain how the two effects of debt financing (i.e. tax deduction benefit and financial distress)
affect the WACC in the presence of tax as a firm increases it debt ratio.
Chapter 16, Question 13
Chapter 16, Question 14
Chapter 16, Ques
Tutorial 4
1. Consider a two year coupon bond that pays interest annually.
Let
c = coupon rate
F = face value
B = market price of the bond
r = market yield (this is the discount rate investors in the market use to price the bond).
(i)
(ii)
Prove that if c
Tutorial 3
1. Return to example 5 (the insurance coverage example) in Lecture 2,
(a) compute the answer by using a financial calculator. Does the discount look unusual? What
is your interpretation?
(b) set up a spreadsheet to show that $218,412 is equival
Chapter 6, Problem 31
$508.35
Chapter 6, Problem 34
Starting today: C = $85.00
Starting in 10 years: C = $286.13
Starting in 20 years: C = $1,010.86
Chapter 6, Problem 39
[email protected]% $68,454.72
[email protected]% = $93,416.92
[email protected]% = $52,626.33
Chapter 6, Problem 40
t
Solutions Manual
Fundamentals of Corporate Finance (Asia Global
Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 1
INTRODUCTION TO CORPORATE
FINANCE
Answers to Concepts Review and Critical Thinking Questions
1.
Capital budgeting
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 7 B-2
CHAPTER 7
INTEREST RATES AND BOND
VALUATION
Answers to Concepts Review and Critical Thinking Questions
1.
No.
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 5
INTRODUCTION TO VALUATION: THE
TIME VALUE OF MONEY
Answers to Concepts Review and Critical Thinking Questions
1.
T
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 16
FINANCIAL LEVERAGE AND CAPITAL
STRUCTURE POLICY
Answers to Concepts Review and Critical Thinking Questions
1. Bus
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 19
CASH AND LIQUIDITY MANAGEMENT
Answers to Concepts Review and Critical Thinking Questions
1.
Yes. Once a firm has
Solutions Manual
Fundamentals of Corporate Finance (Asia Global Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 18
SHORT-TERM FINANCE AND PLANNING
Answers to Concepts Review and Critical Thinking Questions
1.
These are firms wit
CHAPTER 23 B-1
Solutions Manual
Fundamentals of Corporate Finance (Asia Global
Edition)
Ross, Westerfield, Jordan, Lim and Tan
Updated April 2012
CHAPTER 23 B-2
CHAPTER 23
RISK MANAGEMENT: AN
INTRODUCTION TO FINANCIAL
ENGINEERING
Answers to Concepts Revie