CHAPTER 2 ASSET CLASSES AND FINANCIAL INSTRUMENTS 1. Common stock is an ownership share in a publicly held corporation. Common shareholders have voting rights and may receive dividends. Preferred stock represents nonvoting shares in a corporation‚ usually paying a fixed stream of dividends. While corporate bonds are long-term debt issued by corporations‚ the bonds typically pay semi-annual coupons and return the face value of the bond at maturity. 2. While the DJIA has 30 large corporations in
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Solutions to Practice Problems by Kyung Hwan Shim University of New South Wales Australian School of Business School of Banking & Finance for FINS 3625 S1 2010 May 23‚ 2010 ∗ These notes are preliminary and under development. They are made available for FINS 3625 S1 2010 students only and may not be distributed or used without the author’s written consent. ∗ 1 Solution for Question 1 Summary Table of Cash Flows t=0 I II CF from Machinery ignoring depreciation Working Capital Level
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Why has Wal-Mart viewed international expansion as a critical part of its strategy? Wal-Mart has viewed international expansion as a critical part of its strategy because of a number of reasons. First‚ Wal-Mart saw the potential for increased profits and sales in new markets.“After rapid expansion during the 1980s and 1990s‚ Wal-Mart faces limits to growth in its home market and has been forced to look internationally for opportunities”(Ball‚ 2007). Second‚ Wal-Mart saw the need “to protect their
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SCHOOL OF ECONOMICS‚ FINANCE & MARKETING CORPORATE FINANCE MID SEMESTER TEST FIRST SEMESTER 2008 – Part-time STUDENT DETAILS (Please Print Clearly) Family Name: ___________________________________________________________ First Name: _____________________________________________________________ Address: _______________________________________________________________ Tel. No: (BH) ___________________________________________________________ Student Number: _________________________________________________________
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concerned with curiosity‚ innovative thinking‚ assimilating new information‚ and open to new experiences. It describes a person’s personality. In the mini cases study Ann Fudge decided that after working 24 years in corporate America‚ she was going to take some time off to figure out her life and have some time to herself. During her time away from corporate America‚ Fudge traveled to different countries to visit and embark on some new experiences. People with this personality trait enjoy traveling to
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Chapter 6 Forecasting Case Problem 2: Forecasting Lost Sales 1. The data used for the forecast is the Carlson sales data for the 48 months preceding the storm. Using the trend and seasonal method‚ the seasonal indexes and forecasts of sales assuming the hurricane had not occurred are as follows: Month Seasonal Index Month Forecast ($ million) January 0.957 September 2.16 February 0.819 October 2.54 March 0.907 November 3.06 April 0.929 December 4.60 May 1.011 June 0.937 July 0.936
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Question 11. In early 2003 Bristol-Myers Squibb announced that it would have to restate its financial statements as a result of stuffing as much as $3.35 billion worth of products into wholesalers’ warehouses from 1999 through 2001. The company’s sales and cost of sales during this period was as follows: 2001 2000 1999 Net sales $18‚139 $17‚695 $16‚502 Cost of products sold 5‚454 4‚729 4‚458 The company’s marginal tax rate during the three years was
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This is a sample of the instructor resources for Cases in Healthcare Finance‚ Fourth Edition by Louis Gapenski. This sample contains the case questions‚ case solutions‚ instructor model‚ and PowerPoints for Chapter 4. The complete instructor resources consist of 268 pages of instructor’s notes including case questions and case solutions; instructor model spreadsheets; and 623 PowerPoint slides. If you adopt this text you will be given access to complete materials. To obtain access‚ e-mail your
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Questions and Problems Page 1 of 3 Corporate Finance eBook 9/e Content Chapter8: Interest Rates and Bond Valuation Questions and Problems 1. Valuing Bonds What is the price of a 10-year‚ zero coupon bond paying $1‚000 at maturity if the YTM is: BASIC (Questions 1– 12) a. 5 percent? b. 10 percent? c. 15 percent? 2. Valuing Bonds Microhard has issued a bond with the following characteristics: Par: $1‚000 Time to maturity: 25 years Coupon rate: 7 percent Semiannual payments Calculate the price of
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Capital Budgeting Mini Case There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well‚ for example‚ the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring
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