CHAPTER 17 SUGGESTED ANSWERS Exercise 17 - 1 Jan. 5 Purchases 1‚789‚200 Accounts Payable 1‚789‚200 70‚000 x P25.56 Mar. 9 Purchases 16‚780 Accounts Payable 16‚780 100‚000 x P.1678 May 10 Accounts Payable 1‚789‚200 Foreign Exchange Gain or Loss 2‚800 Cash 1‚792‚000 70‚000 x P25.60 = P1‚792‚000 16 Accounts Payable 16‚780 Foreign Exchange Gain or Loss 1‚280 Cash 15‚500
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The University for business and the professions MSc Degree in Shipping‚ Trade and Finance MSc Degree in Supply Chain‚ Trade and Finance MSc Degree in Energy‚ Trade and Finance Cass Business School Module Code SMM586 Exam title Corporate Finance Full/Part time Date 1st May 2013 Time 10.00 -13.00 Division of Marks: Section A carries 36 marks‚ Section B carries 28 marks and Section C carries 36 marks. Instructions to students: Students should answer TWO questions
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Page 43-44‚ Chapter 2 5. Klingon Widgets‚ Inc. Notes Current Assets purch cloaking 3 yrs ago for $6mil (book value) +Net Working Capital $215‚000 can sell today for 5.3m (market value) +Current Liability $900‚000 net fixed assets 3.2m =Current Assets $1‚115‚000 current liabilities 900‚000 net working capital of 215‚000 Book Value of Total Assets if liquidated all assets today = 1.25m = market value +Book Value
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Introduction to Corporate Finance 1. Two Questions: what investments should the corporation make and how should it pay for those investments? a. Investment decisions involve spending money and financing decisions involving raising money b. Concepts govern good financial decisions c. Financial managers value the shareholders’ investment opportunities outside their company because of the opportunity cost of capital contributed by shareholders d. All managers and employees need to pull together
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Case Solutions Corporate Finance Ross‚ Westerfield‚ and Jaffe 9th edition CHAPTER 2 CASH FLOWS AT WARF COMPUTERS The operating cash flow for the company is: (NOTE: All numbers are in thousands of dollars) OCF = EBIT + Depreciation – Current taxes OCF = $1‚332 + 159 – 386 OCF = $1‚105 To calculate the cash flow from assets‚ we need to find the capital spending and change in net working capital. The capital spending for the year was: | |Capital spending
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CORPORATE FINANCE Master in Banking and Finance 2012 FINAL EXAM A. PROBLEMS (20 points each problem) 1. FAGE Manufacturing is currently an all-equity firm with 20 million shares outstanding and a stock price of $7.50 per share. Although investors currently expect FAGE to remain an all-equity firm‚ the company plans to announce that it will borrow $50 million and use the funds to repurchase shares. FAGE will pay interest only on this debt‚ and it has no further plans to increase or decrease
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CHAPTER 6 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. Assuming conventional cash flows‚ a payback period less than the project’s life means that the NPV is positive for a zero discount rate‚ but nothing more definitive can be said. For discount rates greater than zero‚ the payback period will still be less than the project’s life‚ but the NPV may be positive‚ zero‚ or negative‚ depending on whether the discount rate is less than
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Chapter #17: Manifest Destiny and Its Legacy – Big Picture Themes IDENTIFICATIONS: John Tyler Was the tenth President of the United States. A native of Virginia‚ Tyler served as a state legislator‚ governor‚ U.S. representative‚ and U.S. senator before winning election as Vice President in 1840. Slidell’s Mission U.S. troops were stationed at the U.S./Mexico border‚ ready to defend against Mexican attack. The Mexican government rejected Slidell’s mission. After Mexican forces attacked
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Chapter 1 The Corporation Chapter Outline 1.1 The Four Types of Firms 1.2 Ownership Versus Control of Corporations 1.3 The Stock Market Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 1-2 Learning Objectives 1. List and define the four major types of firms in the U.S.; describe major characteristics of each type‚ including the means for distributing income to owners. 2. Distinguish between limited and unlimited liability‚ and list firm types that are subject
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Chapter 1 Note: the summaries at the end of each chapter are good study tools. Corporations A corporation is a permanent entity‚ legally distinct from its owners‚ who are called shareholders or stockholders. A corporation confers limited liability to its owners: shareholders cannot be held personally responsible for the corporations’ debts; they only stand to lose their investment. To incorporate‚ you work with a lawyer to prepare articles of incorporation‚ which set out the purpose of the
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