Assignment 5
Ch 9 1,5,9,10,17,19
1. Calculating Payback What is the payback period for the following set of cash flows?
Year
0
1
2
3
4
Cash Flow
-$4800
1500
2600
2900
1700
Accum. CF
-4800
-3300
-700
2200
payback= 2+(700/2900)=2.24
5. Calculating Discounte
Assignment 2
Ch 6 - 7, 10, 12, 24, 35, 43, 51, 53
7. Calculating Annuity Values If you deposit $3,000 at the end of each of the next 20
years into an account paying 10.5 percent interest, how much money will you have in the
account in 20 years? How much w
Assignment 8
Ch 12 4,9,14
4. Calculating Returns Suppose you bought a 6 percent coupon bond one year ago
for $940. The bond sells for $920 today.
a. Assuming a $1,000 face value, what was your total dollar return on this
investment over the past year?
D1+
Assignment 4
Ch 8 1,8,9,12,13,15
1. Stock Values The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.60 per
share on its stock. The dividends are expected to grow at a constant rate of 6 percent per
year indefinitely. If investors require a 12
Assignment 5
Ch 9 1,5,9,10,17,19
1. Calculating Payback What is the payback period for the following set of cash flows?
Year
0
1
2
3
4
Cash Flow
-$4800
1500
2600
2900
1700
Accum. CF
-4800
-3300
-700
2200
payback= 2+(700/2900)=2.24
5. Calculating Discounte
Assignment 7
Ch 10 3,7,9,13,17,25
3. Calculating Projected Net Income A Proposed new investment has projected
sales of $740,000. Variable costs are 60 percent of sales, and fixed costs are
$173,000; depreciation is $75,000. Prepare a pro forma income stat
Assignment 7
Ch 10 3,7,9,13,17,25
3. Calculating Projected Net Income A Proposed new investment has projected
sales of $740,000. Variable costs are 60 percent of sales, and fixed costs are
$173,000; depreciation is $75,000. Prepare a pro forma income stat
Assignment 8
Ch 12 4,9,14
4. Calculating Returns Suppose you bought a 6 percent coupon bond one year ago
for $940. The bond sells for $920 today.
a. Assuming a $1,000 face value, what was your total dollar return on this
investment over the past year?
D1+
Assignment 9
Ch 13 3,6,7,8,13
3. Portfolio Expected Return You own a portfolio that is 50 percent invested in
Stock X. 30 percent in Stock Y, and 20 percent in Stock Z. The expected returns
on these three stocks are 10 percent, 16 percent, and 12 percent,
Assignment 9
Ch 13 3,6,7,8,13
3. Portfolio Expected Return You own a portfolio that is 50 percent invested in
Stock X. 30 percent in Stock Y, and 20 percent in Stock Z. The expected returns
on these three stocks are 10 percent, 16 percent, and 12 percent,
HW # 10
WACC
1) Over the last five years, Crispy Creams (a rival of Krispy Kreme) dividend has been
$.85, $.95, $1.01, $1.05, and $1.50. The current share price is $100. What is the cost of
equity?
Avg. G=.16
Re=1.5(1+.16)/100=.1774
2) Crispy Cream curren
Cameron Cates
Industry Analysis
Industry Averages
Sporting Goods
Current Ratio: 1.9
P/E: 25.6
Revenue Growth: 1.9
Net Income Growth: 31.5
Operating Margin: 1.7%
Gross Margin: 2.6%
ROE: 6.5%
ROA: 3.6%
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Assignment 3
Ch 7 7,10,19,22,31
7. Bond Yields Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate of 9.2
percent. The bonds make semiannual payments. If these bonds currently sell for 104
percent of par value, what is the YTM?
C=(.092*1000)/2=4
Assignment 4
Ch 8 1,8,9,12,13,15
1. Stock Values The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.60 per
share on its stock. The dividends are expected to grow at a constant rate of 6 percent per
year indefinitely. If investors require a 12
Assignment 5
Ch 9 1,5,9,10,17,19
1. Calculating Payback What is the payback period for the following set of cash flows?
Year
0
1
2
3
4
Cash Flow
-$4800
1500
2600
2900
1700
Accum. CF
-4800
-3300
-700
2200
payback= 2+(700/2900)=2.24
5. Calculating Discounte
Assignment 6
Ch 2 6,7,14,16,21
6.
Calculating Taxes The Baryla Co. had $325,000 in 2007 taxable income.
Using the rates from Table 2.3 in the chapter, calculate the companys 2007
income taxes.
22,250 + (325,000-100,001)*.39= 109,999.61
7.
Tax Rates In pro