...FINC 5000 Week 5 Homework Assignment Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-week-5-homework/ Chapter 9: For Week 5, please turn in the answers to the following questions: 1. What does it mean when people refer to a firm’s “cost of capital?” 2. What are the three components that normally make up a firm’s weighted average cost of capital (WACC)? 3. (calculating the after-tax cost of debt) Suppose your firm can borrow what it needs from a local bank at 4.5% interest. If your firm’s effective tax rate is 40%, what is its after-tax cost of debt? 4. (calculating the cost of preferred stock) Suppose your firm wants to finance a project, in part, with 4.0%, $100 par preferred stock which the firm’s investment bankers say can be sold for $60 a share. The investment bankers will charge your firm $1 a share to handle the stock issue. Given these conditions, what is your firm’s cost of preferred stock? 5. (calculating the cost of common stock, or common equity per the dividend growth model approach) Your firm’s common stock is selling for $37.00 a share and it paid a dividend last year to the common stockholders of $1.60. If the growth rate in earnings and dividends for your firm is estimated to be a constant 5% for the foreseeable future, what is your firm’s cost of common equity per the dividend growth model approach? 6. (cost of common stock, or common equity per the CAPM approach) After some research on the Internet, you...
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...FINC 5000 Homework Assignment for Week 6: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-6/ For Week 6, please turn in the answers to the following questions: 1. List the three steps that make up the general approach to capital budgeting. 2. Define an “Incremental cash flow” as the term is used in capital budgeting 3. Define the payback period method in capital budgeting and state the payback period decision rule. 4. What is the payback period of the following project? Initial Investment: $60,000 Projected life: 7 years Net cash flows each year: $14,000 5. Define the discounted payback period method in capital budgeting and state the payback period decision rule. 6. What is the discounted payback period of the project in Question 4, assuming your cost of capital is 7%? 7. Define the Net present Value (NPV) method in capital budgeting and state the NPV decision rule. In economic terms, what does the NPV amount represent? 8. Your firm is looking at a new investment opportunity, Project Z, with net cash flows as follows: ---- Net Cash Flows ---- Project Z Initial Cost at T-0 (Now) ($100,000) cash inflow at the end of year 1 50,000 cash inflow at the end of year 2 40,000 cash inflow at the end of year 3 30,000 Calculate project Z's Net Present Value (NPV), assuming your firm’s required rate of return...
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...FINC 5000 Homework Assignment for Week 6: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-6/ For Week 6, please turn in the answers to the following questions: 1. List the three steps that make up the general approach to capital budgeting. 2. Define an “Incremental cash flow” as the term is used in capital budgeting 3. Define the payback period method in capital budgeting and state the payback period decision rule. 4. What is the payback period of the following project? Initial Investment: $60,000 Projected life: 7 years Net cash flows each year: $14,000 5. Define the discounted payback period method in capital budgeting and state the payback period decision rule. 6. What is the discounted payback period of the project in Question 4, assuming your cost of capital is 7%? 7. Define the Net present Value (NPV) method in capital budgeting and state the NPV decision rule. In economic terms, what does the NPV amount represent? 8. Your firm is looking at a new investment opportunity, Project Z, with net cash flows as follows: ---- Net Cash Flows ---- Project Z Initial Cost at T-0 (Now) ($100,000) cash inflow at the end of year 1 50,000 cash inflow at the end of year 2 40,000 cash inflow at the end of year 3 30,000 Calculate project Z's Net Present Value (NPV), assuming your firm’s required rate of return...
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...FINC 5000 Homework Assignment for Week 1 Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-1/ For Week 1, please turn in the answers to the following questions: Chapter 1: 1. Describe the field of finance. How is it different from the field of accounting? 2. What are the three forms of business generally encountered in the US? What are the main defining characteristics of each? 3. What should be the basic financial goal of a business? 4. In the context of a corporation seeking to maximize the wealth of its owners, how is “wealth” defined? 5. What are the three broad factors that influence the market price of a corporation’s stock? 6. Name three ways in which businesses can raise money from external sources when they need it for expansion or project funding. Chapter 2: 7. What is the purpose of a balance sheet? What are some examples of typical balance sheet accounts? 8. What is the purpose of an income statement? What are some examples of typical income statement accounts? 9. What is the purpose of a statement of cash flows? What are some examples of typical statement of cash flow accounts? 10. a. What are “Free Cash Flows (FCF)?” b. What is “NOPAT?” 11. What was Joe’s average, or effective tax rate in 2014? 12. What was Joe’s NOPAT in 2014? 13. What was Joe’s Free Cash Flow (FCF) in 2014? (Note: For this...
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...FINC 5000 Homework Assignment for Week 1 Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-1/ For Week 1, please turn in the answers to the following questions: Chapter 1: 1. Describe the field of finance. How is it different from the field of accounting? 2. What are the three forms of business generally encountered in the US? What are the main defining characteristics of each? 3. What should be the basic financial goal of a business? 4. In the context of a corporation seeking to maximize the wealth of its owners, how is “wealth” defined? 5. What are the three broad factors that influence the market price of a corporation’s stock? 6. Name three ways in which businesses can raise money from external sources when they need it for expansion or project funding. Chapter 2: 7. What is the purpose of a balance sheet? What are some examples of typical balance sheet accounts? 8. What is the purpose of an income statement? What are some examples of typical income statement accounts? 9. What is the purpose of a statement of cash flows? What are some examples of typical statement of cash flow accounts? 10. a. What are “Free Cash Flows (FCF)?” b. What is “NOPAT?” 11. What was Joe’s average, or effective tax rate in 2014? 12. What was Joe’s NOPAT in 2014? 13. What was Joe’s Free Cash Flow (FCF) in 2014? (Note: For this...
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...FINC 5000 Homework Assignment for Week 3: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-3/ Chapter 5: For Week 3, please turn in the answers to the following questions: 1. Define the following terms as they apply to bonds: a. Face value b. Maturity date c. Coupon interest (including coupon interest rate) d. Current yield e. Yield to maturity (YTM) f. Yield to call (YTC) g. Call premium 2. What are “Zero-coupon” bonds? 3. Suppose you see the following bond price quote in the newspaper: McDonalds 5.7% 2039……..122.733 What can you tell about this bond from reading the price quote? 4. (calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie, PV)? 5. (calculating the current yield of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its current yield? 6. (calculating the YTM of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its yield to maturity (YTM)? 7. (calculating the YTC of a bond) Assume a callable corporate bond with a face value of $1,000, a coupon interest rate of 5.7%, a market...
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...FINC 5000 Homework Assignment for Week 3: Click Link Below To Buy: http://hwcampus.com/shop/finc-5000-homework-assignment-for-week-3/ Chapter 5: For Week 3, please turn in the answers to the following questions: 1. Define the following terms as they apply to bonds: a. Face value b. Maturity date c. Coupon interest (including coupon interest rate) d. Current yield e. Yield to maturity (YTM) f. Yield to call (YTC) g. Call premium 2. What are “Zero-coupon” bonds? 3. Suppose you see the following bond price quote in the newspaper: McDonalds 5.7% 2039……..122.733 What can you tell about this bond from reading the price quote? 4. (calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie, PV)? 5. (calculating the current yield of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its current yield? 6. (calculating the YTM of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a market price of $1,223.92, what is its yield to maturity (YTM)? 7. (calculating the YTC of a bond) Assume a callable corporate bond with a face value of $1,000, a coupon interest rate of 5.7%, a market...
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...WEBSTER UNIVERSITY • WESTPORT, ST LOUIS, MO • GEORGE HERBERT WALKER SCHOOL OF BUSINESS & T ECHNOLOGY • BUSINESS DEPARTMENT BASIC FINANCE FOR MANAGERS BUSN5200 SU 2015 Section 07 3 Credits 06/01/2015 to 07/31/2015 Modified 05/20/2015 MEETING TIMES Thursday, 5:30 PM to 9:30 PM, Westport Campus CONTACT INFORMATION Mike Boland Email: michaelboland57@webster.edu (mailto:michaelboland57@webster.edu) Phone: 6362363636 DESCRIPTION Managers and human resources management professionals must be able to understand financial information contained in financial statements and reports. Line managers must be able to understand financial information contained in financial statements and reports in order to evaluate their unit's financial performance, to communicate clearly with other managers, and to apply financial information when making decisions. Human resources management professionals must understand financial statements and principles if they are to effectively assist line managers and be strategic partners with other business functions. This course will focus on the interpretation and use of basic financial information by nonfinancial managers, not on the production of financial statements and reports. (FINC 5000 cannot be substituted for BUSN 5200.) Requisites None OBJECTIVES OUTCOMES Outcome Expectation Students have a basic familiarity with the field of finance and an understanding of the financial goal of a business, and they have an appreciation for ...
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