Homework Problems: The required homework problems are not exhaustive, but they
will indicate the fundamental subject matter of the exams. Complete solutions will be
posted on Blackboard. For this reason, NO LATE HOMEWORK ASSIGNMENTS
WILL BE ACCEPTED FOR A
Chapter 02 - Financial Statements, Taxes, and Cash Flow
CHAPTER 2
FINANCIAL STATEMENTS, TAXES, AND
CASH FLOW
Answers to Concepts Review and Critical Thinking Questions
1.
Liquidity measures how quickly and easily an asset can be converted to cash without
2/13/2016 HW02 - Chapter 2: Financial Statements, Taxes, And Cash Flow
1. Award: 10.00 points Problems? Ad'ust credit for all students.
Problem 2-2 Building an Income Statement [LO 2]
Draiman, Inc., has sales of $590,000, costs of $268,000, depreciation e
2/11/2016 HW03 - Chapter 3. Working With Financial Statements
1. Award: 10.00 points Problems? Ad'ust credit for all students.
Problem 3-1 Calculating Liquidity Ratios [LO 2]
SDJ, Inc., has net working capital of $1,710, current liabilities of $5,690, and
Chapter 2
1.
Liquidity measures how quickly and easily an asset can be converted to cash without significant loss
in value. Its desirable for firms to have high liquidity so that they can more safely meet short-term
creditor demands. However, liquidity al
3/1/2016
1.
Assignment Print \ﬁew
Award: 10.00 points
Problem 5-1 Present Value and Multiple Cash Flows [LO 1]
Rooster Co. has identified an investment project with the following cash flows.
Year Cash Flow
1 $1,230
2 1,150
3 1,560
4 1,920
Requirement 1:
Chapter 3
1.
a. If inventory is purchased with cash, then there is no change in the current ratio. If inventory is
purchased on credit, then there is a decrease in the current ratio if it was initially greater than 1.0.
b. Reducing accounts payable with c
Crime and Criminal Justice
MULTIPLE CHOICE
1.
If one of your fellow students suggested that crime is a recent social problem, you would say
A. Crime and violence have been common since the nation was first formed and are not
recent social problems.
B. Cri
1.
Award: 10.00 points
Problem 13-2 Portfolio Expected Return [LO1]
Youownaportfoliothathas$2,800investedinStockAand$3,800investedinStockB.Iftheexpected
returns on these stocks are 8 percent and 11 percent, respectively, what is the expected return on the
FINANCE 384: Corporate Valuation, Investment Decisions and Risk Management
STUDENT LECTURE NOTE 7 Sp14CR
I.
Introduction To Currency Hedging
Q: When do YOU need to understand how Foreign Exchange (FX) conversion into
Dollars, or Dollars (USD or US$) into
FINANCE 384: Corporate Valuation, Investment Decisions and Risk Management
STUDENT LECTURE NOTE 6 Sp14CR
I.
INTRODUCTION TO FUTURES CONTRACTS
A.Futures and Forward Contracts
1. How Futures Contracts Work
A futures contract Ft,T, involves an agreement ente
FINANCE 384: Corporate Valuation, Investment Decisions and Risk Management
STUDENT LECTURE NOTE 8 Sp14CR
I. PUT/CALL PARITY THEOREM OPTION PRICING
1
A.Two Portfolio Insurance Strategies
1. Long Stock/Protective Put:
a. Suppose that you wish to invest in a
FINANCE 384: Corporate Valuation, Investment Decisions and Risk Management
STUDENT LECTURE NOTE 5 Sp14CR (Rev. 10-29-15)
I. INTRODUCTION TO OPTIONS
A. In General:
1. An option is a security that gives its owner the right to buy or sell 100 (or
1000 in the
Finance 384 - Sp14CR
Practice Test 1 SOLUTIONS
A1)
a) MRP = E(Rm) Rf = 0.1280 0.0375 = 9.05%.
b) Assets with a beta greater than 1.0 will have a required return greater than the
12.8% Expected Return on the Market, i.e., LAMR (Lamar Advertising), and HON
FINANCE 384: Corporate Valuation, Investment Decisions and Risk Management
STUDENT LECTURE NOTE 2 Sp14CR
I. Financial Statements & Free Cash Flow
A. Traditional Accounting Statements and Measures of Profitability are designed
primarily for creditors and t
FINANCE 384: Corporate Valuation, Investment Decisions and Risk
Management
STUDENT LECTURE NOTE 3 Sp14CR (Rev Su14)
I. Corporate Value and Value-Based Management
A. Maximization
of Shareholder Wealth requires forecasting financial
statements under alterna
1.
Award: 10.00 points
Problems? Adjust credit for all students.
Problem 6-14 Calculating EAR [LO4]
First National Bank charges 14.4 percent compounded monthly on its business loans. First United Bank
charges14.7percentcompoundedsemiannually.
Calculate th
1.
Award: 10.00 points
Problem 14-1 Calculating Cost of Equity [LO1]
TheAbsolute Zero Co. just issued a dividend of $2.90 per share on its common stock. The company is
expectedtomaintainaconstant6percentgrowthrateinitsdividendsindefinitely.
If the stock s
2/13/2016 Assignment Print View
1 . Award: 10.00 points
MC Qu. 4 Margie opened a used bookstore and is both.
Margie opened a used bookstore and is both the 100 percent owner and the store's manager.
Which type of business entity does Margie own if she is
2/11/2016 Assignment Print View
1_ Award: 10.00 points
Problem 4-1 Simple Interest versus Compound Interest [LO 1]
First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City
Bank pays 6 percent interest compounded
FINANCE 384: Corporate Valuation, Investment Decisions and Risk Management
Lecture Note #9, Part II (Rev Fa15)
Geek School: Learn How to Use Excel Macros to Automate Tedious Tasks
Source: http:/www.howtogeek.com/162975/geek-school-learn-how-to-use-excel-m
F384: Lecture Note #9, Part I
Pivot Tables: Example 1
Source: http:/www.excel-easy.com/data-analysis/pivot-tables.html
Insert a Pivot Table | Drag fields | Sort | Filter | Change Summary Calculation | Two-dimensional
Pivot Table
Pivot tables are one of Ex
FIN 381: Comparative Analysis of Financial Position
MMDDYY
ASSETS:
043012 ComSize Industry
LIABILITIES:
Current Assets
Current Liabilities
Cash
$56,717 21.67%
7.7% Accounts Payable
MarketableSecs
$26,249 10.03%
Accrued and other
Accounts Rec'ble
$48,313 1
COCA COLA COMPANY:
VALUATION MODEL
Starbucks Corp.
Summary of Valuation Results
Dec-16
Method 1: Dividend Discount Model
Method 2: Operating Free Cash Flow
Method 3: Free Cash Flow to Equity
Average
Market Price as of 12/1/2016:
Rows 1-16: These are the f