Net Present Value

b. If the company had set a goal of increasing sales by 28% during the next five years, what should be the sales goal for 2008? 4,113,223.68

1. Given the proposed financing plan, describe your approach (qualitatively) to value AirThread. Should Ms. Zhang use WACC, APV or some combination thereof? Explain. (2 points)

Directions: Use your graded tests and Unit 4 & 5 notes to answer the following questions. You can find the answers for #’s 1 – 62 on Exam 1 (3rd Nine Weeks Exam) and #’s 63 – 100 on your unit notes. Write your answers in the space provided, below each question.

A firm has an expected dividend next year of $1.20 per share, a zero growth rate

a. What is the CD’s value at maturity (future value) if it pays 10 percent annual interest?

This exam is a take-home exam and is worth 50 points. You may use your book, handouts, power points, or notes for completion. Please attach additional pages with your typed or carefully printed responses to these questions. The due date is on or before class time on April 6.

2. READING TIME = 10 Minutes 3. THIS EXAMATION PAPER HAS 9 PAGES 4. TOTAL NUMBER OF QUESTIONS - 6. 5. ANSWER ALL QUESTIONS. 6. ALL QUESTIONS ARE OF EQUAL VALUE 7. TOTAL MARKS AVAILABLE FOR THIS EXAMATION - 60. 8. THE MARKS AWARDED TO EACH PART OF A QUESTION ARE INDICATED. 9. CANDIDATES MAY BRING THEIR OWN CALCULATORS TO THE EXAM 10. STATISTICAL TABLES ARE PROVIDED AT THE END OF THE EXAM PAPER 11. ALL ANSWERS MUST BE WRITTEN IN PEN. PENCILS MAY BE USED ONLY FOR DRAWING, SKETCHING OR GRAPHICAL WORK. 12. THIS PAPER MAY BE RETAINED BY THE CANDIDATE

a. How much must be invested today in a CD paying 8.4 percent annual interest in order to

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.

Midterm Exam – October 17, 2012 SOLUTIONS Instructions: 1. Read the questions carefully. 2. Answer all questions on the following pages. 3. A financial calculator and a regular calculator are permitted. 4. A one-sided 8.5” x 11” formula sheet is permitted with formulas only. 5. The midterm has 11 pages, including 2 blank pages. 6. For Part 2, show all your work. 7. Midterm duration: 75 minutes. 8. Mark allocation: Shown on exam.

Q 1.3(E1.1) State the profit objectives and return on capital (ensure these are consistent with

In this case the concentration is on “Company Performance Measurement”, using the “Ratios”, ‎before we answer to the question, we have to focus a bit on the “Financial Ratios”‎

a) When the machine was bought for Lift-Off productions the cost has been calculated; and

But Dupont analysis indicates that profitability and efficiency have become lower. Additionally, the working capital has become lower and the current and quick ratios have declined. To understand the impact of these declining ratios on this company, the industry trend has to be analyzed to see if this happening throughout

Company D has higher current ratio and quick ratio which is higher 2.43x and 2.3x respectively. This was because Company D had higher cash and short term investment which was 55.6% while Company C only has 1.4%. It proves that Company D is financially conservative and it matches with the second described company.