khong co gì dau chi la de tim kiem thoi, cac ban thong cam vi minh can de lam nghien cưu nhe mong cac ban thong cam mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
Q1:R If the approximate discount rate is 12% per year, what is the present value of the following expected cash flow? Year to $ per year Year to 10 $ 2000 per year Year 11 to 15 $ 4300 per year Q2:R GAP offers a 9.5% coupon bond with annual payments The yield to maturity is 11.2% and the maturity date is 11 years from today What is the market price of this bond if the face value $1000? PMT = 1000(.095) = 95 N=11 FV=1000 I/Y(=r) =11.2 Bond Value = Q3: Company B recently paid $2.5 as an annual dividend Future dividends are projected at $3.3 , $4.2 and $5.6 over the next years, respectively Begin years from now, the dividend is expected to increase by percent annually What is the one share of this stock worth to you if you require is 12% rate of return? Q4:R session Ph.Inc is considering a new 5-year expansion project that requires an initial fixed asset investment of $6 million The fixed asset will be depreciated straight-line to zero over its 6-years tax life The project is estimated to generate $5.328.000 in annual sales with cost of $2.131.200 The tax rate is 31% What is the operating cash flow for this project? If at the end of project, the fixed asset can be sold for $1.200.000, what is the after tax cash flow from selling these asset? Q5: Session 10 Consider the following information: Standard Deviation Security C 25% 1.55 Security D 35% 0.90 Beta A, Which security has more total risk? Security D has more total risk since it has higher standard deviation B Which security has more systematic risk? Security C has more systematic risk, since it has a higher Beta C Which security should have the higher expected return ? Why ? Security C should have a higher expected return since it has a higher Beta, and thus higher systematic risk. (A risk premium on an asset only depends on its systematic risk) Q6:Session 10 The company B has $70M bank loans with an interest rate of 9.5% The company also have 2.3M shares of common stock outstanding The common stock has a Beta of 1.34 and sells for $40 a shares The U.S.Treasury bill is yielding 3.8% and the return on the market is 11.2% The corporate tax rate is 35% What is the Company’s weighted average cost of capital? Re = Cost of equity = Rf + A (E(RM) – Rf ) = 3.8% + 1.34(11.2%-3.8%) = 0.13716 Rd = Cost of debt = (70M×9.5% )/70M = 0.095 E = Market value of equity = Total share outstanding × Total share price = 2.3M × $40 = 92M D = Market value of debt = 70M => WACC = E/(E+D) × Re + D/(E+D) × Rd × (1-t) = 92/(92+70) × 0.13716 + 70/(70+92) × 0.095 × (1-35%) = 10.46% Phillps Equipment has 80,000 bonds outstanding that are selling at par Bonds with similar characteristics are yielding at 6.75 percent The company also has 7500,000 shares of percent preferred stock and 2.5 million shares of common stock outstanding The preferred stock selling for $53 a share The common stock has a beta of 1.34 and sells for $42 a share The U.S Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent The corporate tax rate is 38 percent What is the firm's weighted average cost of capital? Re = 0.028 + 1.34(0.112 - 0.028) = 0.14056 Rp= (0.07 x $100)/$53 = 0.13208 Debt: 80,000 x $1,000 = $80m Preferred: 750,000 x $53 = $39.75m Common: 2.5m x $42 = $105m Total: $224.75m WACC = ($105m/$224.75m)(0.14056) + ($39.75m/$224.75m)(0.13208) + ($80m/224.75m)(0.0675)(1 - 0.38) = 10.39 percent