Input correct amounts in the yellow cells below.
Percent Correct
0.00%
Name:
Chapter 3. Build a Model
You will see your % Correct in Cell B2 Correct when you have finished
When Complete, Save the File as "Your Name" Chp3 and Send it to sweissmueller@sulli
Chapter:
Problem:
5
24
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040.
The bond sells for $1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Years to maturity:
Periods
Drop Box OCM 1.3 Problems Dropbox Chapter 2
2.1
Given: Before tax bond yield=9% and Tax=36%
So we get: After tax yield=9 %*( 1-36%) =5.76%
2.2
Given: corporate bond yield=8% and municipal bond yield=6%
In order to make the after tax bond yield the same fo
Drop Box OCM 1.3 Problems Dropbox Chapter 2
2.1
Given: Before tax bond yield=9% and Tax=36%
So we get: After tax yield=9%*(1-36%)=5.76%
2.2
Given: corporate bond yield=8% and municipal bond yield=6%
In order to make the after tax bond yield the same for t
2-1. An investor recently purchased a corporate bond that yields 9%. The investor is in the 36%
combined federal and state tax bracket. What is the bonds after-tax yield?
9% * 36%=3.24%,
9%-3.24%=5.76%6%
The after-tax yield of this bond is 6%.
2-2. Corpor
12/7/2012
Chapter:
Problem:
10
23
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash
flows are as follows:
Time
0
1
2
3
4
5
6
7
Expected Net Cash Flows
Project A Project B
($375)
($575)
($300)
$190
($200)
4-1. Greene Sisters has a DSO of 20 days. The companys average daily sales are $20,000.
What is the level of its accounts receivable? Assume there are 365 days in a year.
DSO = Receivables/ Average sales per day = Receivables/ (Annual sales/365) = 20 days
Chapter:
Problem:
12
10
Start with the partial model in the file Ch12 P10 Build a Model.xls on the textbooks Web site, which contains the
2013 financial statements of Zieber Corporation. Forecast Zeiber's 2014 income statement and balance sheets. Use
the
12/7/2012
Chapter:
Problem:
6
15
a. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then
calculate average returns over the five-year period. (Hint: Remember, returns are calculated by
subtracting the beginnin
10-1. A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and
a cost of capital of 11%. What is the projects NPV? (Hint: Begin by constructing a time line.)
Discount rate = 11%. Cash flow 0= -40000. Cash flo
Input correct amounts in the yellow cells below.
Percent Correct
100.00%
Chapter 2 BAM.
You will see your % Correct in Cell B2 Correct when you have finished
When Complete, Save the File as "Your Name" Chp3 and Send it to sweissmueller@sullivan.edu
Here a
12-1. Broussard Skateboards sales are expected to increase by 15% from $8 million in 2013 to $9.2
million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its
assets must grow at the same rate as project