00Test Week 5 Midterm Exam Part 1 Started 11/12/14 12:52 PM Submitted 11/12/14 3:39 PM Status Needs Grading Attempt Score 40 out of 50 points Time Elapsed 2 hours‚ 46 minutes out of 2 hours. Instructions This exam consist of 25 multiple choice questions and covers the material in Chapters 1 through 3. Question 1 .2 out of 2 points Correct You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker‚ and the trade occurred on the NYSE. This
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DANONE Case - Financial analysis of Danone group PENG Bo (e113110) GE Chuxiao(e113051) JIANG Yihong(e113066) Fiancial Statement Analysis – Danone Case Agenda • Introduction • Capital structure • Profitability • Return • Liquidity • Solvency • Conclusions & Recommendations Fiancial Statement Analysis – Danone Case Introduction of DANONE Group History Initiate in 1966‚ DANONE evolved from the original glass manufacturer to the international leader in fresh diary products.
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Mercury Footwear Questions 1. Is Mercury an appropriate target for AGI? Why or why not? Yes‚ we do think so. In the case‚ we could find some characteristics of footwear industry: (1) It is a mature‚ highly competitive industry marked by low growth‚ but stable profit margin. (2) Performance of individual firms could be quite volatile for they need to anticipate and exploit fashion trend. (3) Except some global footwear brands‚ athletic and casual shoes market is still fragmented‚ which
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University of San Francisco School of Management PRACTICE FINAL EXAM BUS 430 Prof. Sara Ding International Financial Management Spring 2013 Instructions: Answer all questions in Part A‚ Part B‚ and Part C. Write your answers for Part A on the next page and write your answers for Part B and Part C in the space provided below the question. You may use one page (double sided) of notes and a financial calculator‚ but no other materials. Section:_______________________ Name:________________________
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on invested capital | 2. (TCO F) Which of the following statements is correct? (Points : 5) For a project with normal cash flows‚ any change in the WACC will change both the NPV and the IRR. To find the MIRR‚ we first compound cash flows at the regular IRR to find the TV‚ and then we discount the TV at the WACC to find the PV. The NPV and IRR methods both assume that cash flows can be reinvested at the WACC. However‚ the MIRR method assumes reinvestment at the MIRR itself. If two projects have
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Operations of Constant Growth Firm EMC Corporation has never paid a dividend. Its current free cash flow of $400‚000 is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12%. Calculate EMC’s value of operations. FCF = $400‚000 g = 5% WACC = 12% Vop = PV of expected future free cash flow Vop = = = $6‚000‚000 (13-3) Horizon Value Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after
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a project with normal cash flows‚ any change in the WACC will change both the NPV and the IRR. | | [pic] To find the MIRR‚ we first compound cash flows at the regular IRR to find the TV‚ and then we discount the TV at the WACC to | |find the PV. | | [pic] The NPV and IRR methods both assume that cash flows can be reinvested at the
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there is less need to borrow. (Warren Buffett’s Secrets‚ n.d.) High/Free Cash Flow – A measure of financial performance and stability is calculated as operating cash flow minus capital expenditures. Free cash flow represents the cash that a company has on hand after it maintains and/or expands its asset base. This is important because it allows a company to pursue opportunities that enhance shareholder value. With little or no cash‚ it is difficult to develop new products‚ make acquisitions‚ pay dividends
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(2006-2007) & Outlook (2008) 4 Analysis of 2006 Statement of Cash Flows 5 Operating Activities 5 Investing Activities 6 Financing Activities 6 Pro-Forma Statements 2008 7 S&P / Caterpillar Comparison 9 S&P Index – Dividend Returns 9 Caterpillar – Dividend Returns 9 Cost of Common Stock Calculations 10 Summary Analysis 10 Appendix – Financial & Calculation Tables 12 Balance Sheet 12 Statement of Earnings 13 Cash Flows 13 Free Cash Flow 14 Economic Value Added 14 Market Value Added 14 Costs
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spreadsheet we can calculate Beta for comparable companies. I calculate the Beta for Ben & Jerry’s to be 1.5994. I calculate Beta for Dreyer’s to be 1.2524. This averages out to 1.4259‚ which is the Beta I estimate for Eskimo Pie. Using the risk free rate of 4.56% from Exhibit 9‚ and an expected market return of 13.99% ‚ I calculate the expected return on equity to be 17.9968%. Thus‚ calculating the Weighted Average Cost of Capital: (.0367588)(11.44%) + (.9632411)(17.9968%) = 17.7558%. The
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