Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
FIN 515 Entire Course *Managerial Finance*
Copy the link: http://www.homeworkmade.com/fin/fin-515/fin-515-entire-course-managerial-finance/ |
FIN 515 Entire Course Managerial Finance
Week 1 Homework Assignment Complete the following graded homework assignment in a Word document named “FIN515_Homework1_yourname." Show the details of your calculations/work in your answer to the problems. · Mini Case (p. 45) · Problems (p. 79) o 2-6 Statement of Retained Earnings o 2-7 Corporate Tax Liability (calculate tax liability and AT income) o 2-9 Corporate After-Tax Yield (muni, corp, PS) Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial. See Syllabus "Due Dates for Assignments & Exams" for due date information. Week 2 Homework Assignment Complete the following graded homework assignment in a Word document named “FIN515_Homework2_yourname." Show the details of your calculation/work in your answer to the problems. |
|
|
FIN 515 Week 1 Homework Problems
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-1-homework-problems/ |
Mini Case
Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle DellaTorre, a professional tennis player who has just come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to produce and market apparel she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. DellaTorre is very bright, and she would like to understand in general terms what will happen to her money. Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre. a. Why is corporate finance important to all managers? b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. |
|
|
FIN 515 Week 2 Homework Problems
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-2-homework-problems/ |
FIN 515 Week 2 Homework Problems
(3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. (3-2) Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debtratio? (3-3) Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? (3-4) Price/Earnings Ratio A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio? (3-5) ROE |
|
|
FIN 515 Week 3 Homework Problems
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-3-homework-problems/ |
5-1
Bond Valuation with Annual payments Jackson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. What is the current market price of these bonds? 5-2 Yield to Maturity for Annual payments Wilson Wonders’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity? 5-6 Maturity Risk Premium The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.3%. What is the maturity risk premium for the 2-year security? 5-7 Bond Valuation with Semiannual payments |
|
|
FIN 515 Week 4 Homework Problems
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-4-homework-problems/ |
(7–2)
Constant Growth Valuation Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1 = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the value per share of Boehm’s stock? (7–4) Preferred Stock Valuation Nick’s Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock’s required rate of return? (7–5) Nonconstant Growth Valuation A company currently pays a dividend of $2 per share (D = $2). It is estimated that the company’s dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock’s current price? |
|
|
FIN 515 Week 4 Midterm
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-4-midterm/ |
1. (TCO A) Which of the following statements is CORRECT?
- It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required…………… 2. (TCO G) Which of the following statements is CORRECT? - In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash…………. 3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, ……….. 4. (TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will ……….. 5. (TCO B) You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received ……… 6. (TCO B) Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in five equal installments at the end of each of the next five years. ……. |
|
|
FIN 515 Week 5 Course Project
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-5-course-project/ |
(11-7)
New-Project Analysis You have been asked by the president of your company to evaluate the proposed acquisition of a new spectrometer for the firm’s R&D department. The equipment’s basic price is $70,000, and it would cost another $15,000 to modify it for special use by your firm. The spectrometer, which falls into the MACRS 3-year class, would be sold after 3 years for $30,000. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,000. The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. The firm’s marginal federal-plus-state tax rate is 40%. a. What is the net cost of the spectrometer? (That is, what is the Year-0 net cash flow?) b. What are the net operating cash flows in Years 1, 2, and 3? c. What is the additional (nonoperating) cash flow in Year 3? |
|
|
FIN 515 Week 5 Homework Problems
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-5-homework-problems/ |
FIN 515 Week 5 Homework
(10-8) NPVs, IRRs, and MIRRs for Independent Projects Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year’s capital budget. The projects are independent. The cash outlay for the truck is $17,100 and that for the pulley system is $22,430. The firm’s cost of capital is 14%. After-tax cash flows, including depreciation, are as follows: |
|
|
FIN 515 Week 6 Homework Problems
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-6-homework-problems/ |
(12–1)
AFN Equation Baxter Video Products’s sales are expected to increase by 20% from $5 million in 2010 to $6 million in 2011. Its assets totaled $3 million at the end of 2010. Baxter is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN equation to forecast Baxter’s additional funds needed for the coming year. (13-2) |
|
|
FIN 515 Week 6 Test
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-6-test/ |
1. (TCO D) A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current…..(Points : 10)
2. (TCO D) If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stock’s expected dividend yield for the coming year? (Points : 10) 3. (TCO D) Rebello's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share. What is its effective annual (not nominal) rate….? (Points : 10) 4. (TCO E) Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting? (Points : 10) |
|
|
FIN 515 Week 7 Course Project
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-7-course-project/ |
Week 7 Project
(13-10) Corporate Valuation The financial statements of Lioi Steel Fabricators are shown below—both the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%. a. If operating capital as of 12/31/2010 is $502.2 million, what is the free cash flow for 12/31/2011? b. What is the horizon value as of 12/31/2011? c. What is the value of operations as of 12/31/2010? d. What is the total value of the company as of 12/31/2010? e. What is the intrinsic price per share for 12/31/2010? (13-10) |
|
|
FIN 515 Week 7 Homework Problems
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-7-homework-problems/ |
Cash Management
Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm’s inventory level and increase the firm’s inventory turnover ratio to 5 while maintaining the same level of sales, how much cash will be freed up? (16-2) Receivables Investment Medwig Corporation has a DSO of 17 days. The company averages $3,500 in credit sales each day. What is the company’s average accounts receivable? |
|
|
FIN 515 Week 8 Final Exam
Copy the link: http://www.homeworkmade.com/fin-515/fin-515-week-8-final-exam/ |
Final Exam Page 1
1. (TCO A) Which of the following does NOT always increase a company's market value? (Points : 5) 2. (TCO F) Which of the following statements is correct? (Points : 5) 3. (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product……. 4. (TCO G) Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March………… Final Exam Page 2 1. (TCO H) Zervos Inc. had the following data for 2008 (in millions). The new CFO believes (a) that an improved inventory management system …… 2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.) |
