Should the firm undertake the healthy bottled water project? As part of your analysis, include
sensitivity analysis for sale price, variable cost, fixed cost, and unit sales at -+ 10%, 20%
30% from the base case
You have a trust fund that will pay you $1 million exactly ten years from today. You want cash now, so
you are considering an opportunity to sell the right to the trust fund to an investor.
What is the least you will sell your claim for if you could
Pg 179 Q#4
Discuss the feature(s) that drive the differing valuations of Vegas Chips.
Analyst report A is utilizing a Zero Growth valuation that features is distributing all profits into dividends
to stockholders. Zero of the money is invested into growin
Q1-3) What are the advantages and disadvantages of different legal forms of business organization?
Sole Proprietorships The advantage of a sole proprietorship is the simplicity and ease of operation. The
disadvantages are they have a limited life because
Mini Case (pg 64)
Overall, what are Bradleys strong and weak points? Knowing that your boss will approve new loans only
to companies in better-than-average financial position, what is your final recommendation (approval or
denial of the loan)?
P10-2a-c (pg 339)
Fournier Industries, a publicly traded waste disposal company, is a highly leveraged firm
with 70% debt, 0% preferred stock, and 30% common equity financiing. Currently the risk
free rate is about 4.5% and the return on the S&
You purchase 1,000 shares of Spears Grinders Inc. stock for $45 per share. A year later, the stock pays a dividend o
Calculate your total dollar return
total dollor return = (number of shares) x (divident income + capital gain)
# of shares