FIN515 Homework 5 Problem 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: Year | Truck | Pulley | 1 | $5‚100 | $7‚500 | 2 | 5‚100 |
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Homework Assignment: Week 1 Mini-Case a. Why is corporate finance important to all managers? Corporate finance is important to all managers because you need to be aware of the tools needed to evaluate the firm’s value and be able to accurately make decisions to maximize wealth. 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. A business may start as a sole proprietorship‚ or
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(Points : 10) A Division B project with a 13% return. A Division B project with a 12% return. A Division A project with an 11% return. A Division A project with a 9% return. A Division B project with an 11% return. 6. (TCO D) Assume that you are a consultant to Broske Inc.‚ and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and g = 8.00% (constant). What is the cost of common from retained earnings based on the DCF approach? (Points : 10)
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29. In fiscal year 2011‚ Starbucks Corporation (SBUX) had revenue of $11.70 billion‚ gross profit of $6.75 billion‚ and net income of $1.25 billion. Peet’s Coffee and Tea (PEET) had revenue of $372 million‚ gross profit of $72.7 million‚ and net income of $17.8 million. a. Compare the gross margins for Starbucks and Peet’s. Gross Marin = Gross Profit/Sales (Page 35) Starbucks: ($6.75 gross profit / $11.70 sales) = 0.57692 x 100 = 58% GM Peet’s: ($72.7 gross profit / $ 372 sales) = 0.19543 x
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FIN 515 Week 4 : Business Valuation and Stock Valuation - Exam Top of Form Exam 1. (TCO A) Which of the following statements is CORRECT? (Points : 10) It is generally more expensive to form a proprietorship than a corporation because‚ with a proprietorship‚ extensive legal documents are required. Corporations face fewer regulations than sole proprietorships. One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation
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10 July 2012 Managerial Finance FIN515 Professor David Felsberg DellaTorre Mini Case Corporate finance is important to all managers regardless of the industry they are in due to the fact that it deals with the strategic financial issues associated with achieving goals such as how the corporations should raise and manage its capital ‚ what investments the firm should make‚ what portion of profits should be returned to shareholders in the form of dividends‚ and whether it makes sense to make
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Ratio = 1 - 0.40 = 0.60% Solution: D/A 60% 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? Winston market = $75 x 800 million = $60 billion Book Value = Assets ($10b in total asset) – Liabilities ($1b current liabilities
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FIN515 Course Project One Apple Inc. Apple Incorporated is a leading company in technology. Apple has created and reimagined technology to what we use today. Easy to use‚ educational and simple tools to enjoy the things we love- from watching movies to creating our own music- is what Apple has created in the technology being sold today. iMacs‚ iPods and iPhones are only a few of the lineup that Apple sells today in its stores. Apple is a Cinderella story that has continued to show consumers a
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modalities‚ read the policies governing your current class modality. Course Materials Schultz‚ K. M. (2012). HIST2‚ volume 2 (2nd ed.). Boston‚ MA: Wadsworth‚ Cengage Learning. All electronic materials are available on the student website. Week One: Reconstruction and the New South Details Due Points Objectives 1.1 Evaluate the outcomes of Reconstruction. 1.2 Summarize the economic‚ political‚ and social characteristics of the New South. 1.3 Explain the populist response to late
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1. According to Maslow ’s hierarchy‚ which basic needs does the Patagonia culture meet? What would it be like to work at Patagonia? (Hint: Go to Patagonia’s website and find the section on jobs.) What’s your assessment of the company’s work environment? (20 points) Maslow’s hierarchy consists of five basic needs‚ self-actualization‚ esteem‚ social‚ safety‚ and physiological. Patagonia culture meets many standards promising that their products are produced under safe‚ fair‚ legal‚ and humane working
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