CHAPTER 4 DISCOUNTED CASH FLOW VALUATION Solutions to Questions and Problems 10. To find the future value with continuous compounding‚ we use the equation: FV = PVeRt a. b. c. d. FV = $1‚000e.12(5) FV = $1‚000e.10(3) FV = $1‚000e.05(10) FV = $1‚000e.07(8) = $1‚822.12 = $1‚349.86 = $1‚648.72 = $1‚750.67 23. We need to find the annuity payment in retirement. Our retirement savings ends at the same time the retirement withdrawals begin‚ so the PV of the retirement withdrawals will be the FV of
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BUSI K4003 Corporate Finance Syllabus Summer 2012‚ (Summer Q) Instructor: Brendan Mallee bm2115@columbia.edu Class Time/Location: July 2nd – August 8th MW 6:10-9:30pm / Hamilton Hall 516 Course Description: This course examines important issues in corporate finance from the perspective of financial managers who are responsible for making significant investment and financing decisions. The course is designed to develop critical corporate finance skills including: financial statement
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Figure 2: Operating probability under Plan L and H 5 Figure 3: Expected ROIC under plan L 5 Figure 4: Expected ROIC under plan H 6 Figure 5: Expected EBIT‚ NOPAT and future Cash Flows 7 Figure 6: Effects of the Financial Leverage on ROE 8 Figure 7: WACC and TIE Calculations 9 Figure 8: EPS and Stoke Price 10 Figure 9: Optimal Capital Structure 12 Conclusion 12 Case Study Data Tables 13 Table 1. Financial Statement and Other Data on Router and PNC 13 Table 2a. Operating Leverage Input 14 Table 2b.
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your answers to Part A on the ‘General Purpose Answer Sheet.’ Ensure you correctly enter your name and student number on this sheet. Neatly write your answers to Part B in the space provided on the exam paper. Show all workings. 5. Financial calculators are allowed. 6. A formula sheet and statistical tables are attached to the rear pages of this exam paper. Page 1 PART A: MULTIPLE CHOICE QUESTIONS (10 MARKS) Indicate your answers using a pencil on the ‘General Purpose Answer Sheet.’
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number This exam paper is divided into three parts: Part A: multiple-choice questions (answer sheet on page 2 of this document) Part B: calculation question Part C: questions requiring short written answers Duration: 2.0 hours University approved calculators are permitted Write your student number on this document and submit it with the answer book containing your answers to Parts B and C. Multinational Financial Management Answer sheet for multiple choice questions in Part A Student number_____________________
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= = ke -g x - = = R43 484 375 2 MAC3702/202/2 QUESTION 1 (continued) The value of 100% of Kgorong (Pty) Ltd is R17 904 104 Therefore the value of 10% = R17 904 104 x 0‚10 = R1 790 410 Alternative method by making use of the calculator INPUT in calculator R0 R605 000 R695 750 R834 900 R44 528 000 I/YR 28 COMP NPV (HP10bII) R17 883 392 The value of 100% of Kgorong (Pty) Ltd is R17 883 392 Therefore the value of 10% = R17 883 392 x 0‚10 = R1 788 339 (b) More reliable results will be
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this sheet. 2. PART B (60 marks): There are 9 questions. Attempt all questions. Show all working. Write answers in the spaces provided. Materials Permitted: No dictionaries are permitted. A non-programmable calculator (no text retrieval capacity) is permitted. Financial calculators may be used. This is a closed book examination. No books‚ notes or formulae sheets are allowed. Part B Question Out of 1 9 2 6 3 4 4 9 5 6 6 6 7 8 8 4 9 8 Total 60
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FINANCIAL MANAGEMENT: CAPITAL BUDGETING MINI CASE 1 CAPITAL BUDGETING (MINI CASE) QUESTION A What is capital budgeting? Solution: Capital budgeting is a required managerial tool. One duty of a financial manager is to choose investments with satisfactory cash flows and rates of return. Therefore‚ a financial manager must be able to decide whether an investment is worth undertaking and be able to choose intelligently between two or more alternatives. To do this‚ a sound procedure to evaluate
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11/30: (Bring pencil and calculator) Exam Review: GDP: * Y = C + I + G + ( X - M ) Pent-Up Demand “If you want to slow an economy to a screeching halt‚ make tax policy uncertain.” Fiscal Cliff: * Jan 1‚ 2013 * Bush era tax cuts expire‚ increasing tax rate for ALL income groups * Automatic spending cuts (Official) Start of the last recession: * December 2007 (Official) End of last recession: * June 2009 Chapter 16: * Not on final‚ but know the difference
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answer sheet‚ providing your family name‚ initials‚ and student number. c. Answer all multiple-choice questions using the generalised answer sheet. Clearly fill in the response oval using a 2B pencil. 7. CANDIDATES MAY BRING A UNSW APPROVED CALCULATOR TO THE EXAMINATION. 8. THIS PAPER MAY NOT BE RETAINED BY THE CANDIDATE 1 of 19 1. Which of the following types of firm owners have limited liability? (i) A sole trader (ii) A general partner in
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