fundamental of corporate finance 9th

... Solutions Manual Fundamentals of Corporate Finance 9th edition Ross, Westerfield, and Jordan Updated 12-20-2008 CHAPTER INTRODUCTION TO CORPORATE FINANCE Answers to Concepts Review ... planning Therefore, the study of corporate finance is concentrated within the treasury group’s functions To maximize the current market value (share price) of the equity of the firm (whether it’s ... the corporate form of ownership, the shareholders are the owners of the firm The shareholders elect the directors of the corporation, who in turn appoint the firm’s management This separation of...

Ngày tải lên: 08/01/2018, 15:09

... controller of a corporation generally reports directly to the: A board of directors B chairman of the board C chief executive officer D president E vice president of finance 13 Which one of the following ... company 8 Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? A articles of incorporation B corporate breakdown ... defines the upward chain of command in a typical corporate organizational structure? A The vice president of finance reports to the chairman of the board B The chief executive officer reports to president...

Ngày tải lên: 17/01/2018, 14:23

... amount of debt incurred C less debt a firm has per dollar of total assets D higher the number of outstanding shares of stock E lower the balance in accounts payable 25 The book value of a firm ... amount of the total liabilities? A $2,050 B $2,690 C $4,130 D $5,590 E $5,860 48 A firm has common stock of $6,200, paid-in surplus of $9,100, total liabilities of $8,400, current assets of $5,900, ... assets of $21,200 What is the amount of the shareholders' equity? A $6,900 B $15,300 C $18,700 D $23,700 E $35,500 49 Your firm has total assets of $4,900, fixed assets of $3,200, long-term debt of...

Ngày tải lên: 17/01/2018, 14:23

... firm's cash flows for 2009? A net use of cash of $37 B net use of cash of $83 C net source of cash of $83 D net source of cash of $111 E net source of cash of $135 49 During the year, Kitchen Supply ... statement of cash flows for 2009? A a use of $4,218 of cash as an investment activity B a source of $807 of cash as an operating activity C a use of $4,218 of cash as a financing activity D a source of ... firm had cash of $52, accounts receivable of $218, inventory of $509, and net fixed assets of $1,107 This year, the firm has cash of $61, accounts receivable of $198, inventory of $527, and net...

Ngày tải lên: 17/01/2018, 14:23

... accomplishes which of the following for a firm? I determination of asset requirements II development of plans to contend with unexpected events III establishment of priorities IV analysis of funding ... the amount of fixed assets required to support each dollar of sales? I current amount of fixed assets II current sales III current level of operating capacity IV projected growth rate of sales ... operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,200, net fixed assets of $27,500, and a percent profit margin The firm has no long-term debt...

Ngày tải lên: 17/01/2018, 14:23

... have time to compound Feedback: Refer to sections 5.1 and 5.2 54 PV of A = $10,000; PV of B = $11,167.90; FV of A = $17,908.48; FV of B = $20,000 Based on both present values and future values, B ... every year C The total amount of interest you will earn will equal $1,000 × 06 × 40 D The present value of this investment is equal to $1,000 E The future value of this amount is equal to $1,000 ... from now, the value of Luis' money will be equal to the value of Soo Lee's money E Soo Lee's money is worth more than Luis' money given the percent discount rate 16 Which one of the following variables...

Ngày tải lên: 17/01/2018, 14:23

... Chief Executive Officer of a corporation is responsible for declaring dividends D The Chief Financial Officer of a corporation determines the amount of dividend to be paid E Corporate shareholders ... the form of a bid-ask spread 49 Which one of the following transactions occurs in the primary market? A purchase of 500 shares of GE stock from a current shareholder B gift of 100 shares of stock ... fixed period of time, cease paying dividends for a period of time, and then commence paying increasing dividends for an indefinite period of time 36 Which one of the following sets of dividend...

Ngày tải lên: 17/01/2018, 14:23

... unit of $13.10, fixed costs of $74,000, depreciation of $12,500, variable costs per unit of $22, and a financial break-even point of 11,360 units What is the operating cash flow at this level of ... interest and taxes of $14,600, fixed costs of $52,000, a selling price of $29 a unit, and a sales quantity of 16,000 units All estimates are accurate within a plus/minus range of percent Depreciation ... average variable cost of materials only B average cost of all variable inputs C sensitivity value of the variable costs D marginal cost of materials only E marginal cost of all variable inputs...

Ngày tải lên: 17/01/2018, 14:23

... of stock in Global Trading at a price of $38.70 a share The stock pays a quarterly dividend of $0.15 a share Today, you sold all of your shares for $40.10 per share What is the total amount of ... an expected rate of return of 13 percent and a standard deviation of 21 percent Which one of the following best describes the probability that this stock will lose at least half of its value in ... percent E The average real rate of return was zero 24 Which one of the following is a correct ranking of securities based on their volatility over the period of 1926-2007? Rank from highest to...

Ngày tải lên: 17/01/2018, 14:23

... pre-tax cost of debt of 7.6 percent, a cost of equity of 14.3 percent, and a cost of preferred stock of 8.5 percent The firm has 220,000 shares of common stock outstanding at a market price of $27 ... associated with each form of financing D one-half of the flotation cost of debt plus one-half of the flotation cost of equity E a weighted average based on the book values of the firm's debt and ... a beta of 0.87 and a cost of equity of 11.9 percent The risk-free rate of return is 2.8 percent The firm is currently considering a project that has a beta of 1.03 and a project life of years...

Ngày tải lên: 17/01/2018, 14:23

... some of these shares prior to the shares being offered to the general public What is this type of an offer called? A best efforts offer B firm commitment offer C general cash offer D rights offer ... incorporate and offer shares of stock to the general public What is this type of an equity offering called? A venture capital offering B shelf offering C private placement D seasoned equity offering ... of attorneys providing services for an IPO C block of investors who control a firm D a bank that loans funds to finance the start-up of a new firm E a group of underwriters sharing the risk of...

Ngày tải lên: 17/01/2018, 14:23

... value of equity of $10,665 Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding Tucker's is going to use all of its ... cash of $1,332, other assets of $11,674, and equity of $7,200 The firm has 600 shares of stock outstanding and net income of $838 Blasco's has decided to spend one-third of its excess cash on a share ... at a market price per share of $27 Currently, the firm has excess cash of $400, total assets of $28,900, and net income of $1,320 The firm has decided to pay out all of its excess cash as a cash...

Ngày tải lên: 17/01/2018, 14:23

... market offer a return of 7%, then Cost of capital = r = 7% 16 Valuing an Office Building Step 3: Discount future cash flows PV = C1 (1+r) = 400 (1+.07) = 374 Step 4: Go ahead if PV of payoff exceeds ... higher rate of return w Higher required rates of return cause lower PVs PV of C1 = $400 at 7% 400 PV = = 374 + 07 19 Risk and Present Value PV of C1 = $400 at 12% 400 PV = = 357 + 12 PV of C1 = $400 ... of C1 = $400 at 7% 400 PV = = 374 + 07 20 Rate of Return Rule w Accept investments that offer rates of return in excess of their opportunity cost of capital Example In the project listed below,...

Ngày tải lên: 13/12/2013, 14:53

... market offer a return of 7%, then Cost of capital = r = 7% 16 Valuing an Office Building Step 3: Discount future cash flows PV = C1 (1+r) = 400 (1+.07) = 374 Step 4: Go ahead if PV of payoff exceeds ... higher rate of return w Higher required rates of return cause lower PVs PV of C1 = $400 at 7% 400 PV = = 374 + 07 19 Risk and Present Value PV of C1 = $400 at 12% 400 PV = = 357 + 12 PV of C1 = $400 ... of C1 = $400 at 7% 400 PV = = 374 + 07 20 Rate of Return Rule w Accept investments that offer rates of return in excess of their opportunity cost of capital Example In the project listed below,...

Ngày tải lên: 17/01/2014, 02:20

... material from FUNDAMENTALS OF CORPORATE FINANCE, Third Edition with additional material from FUNDAMENTALS OF CORPORATE FINANCE, Alternate Fifth Edition ESSENTIALS OF CORPORATE FINANCE, Second ... Wallace E Carroll School of Management Boston College with additional material from Fundamentals of Corporate Finance, Alternate Fifth Edition Essentials of Corporate Finance, Second Edition Stephen ... material from Fundamentals of Corporate Finance Third Edition Richard A Brealey Bank of England and London Business School Stewart C Myers Sloan School of Management Massachusetts Institute of Technology...

Ngày tải lên: 22/02/2014, 06:20

... material from FUNDAMENTALS OF CORPORATE FINANCE, Third Edition with additional material from FUNDAMENTALS OF CORPORATE FINANCE, Alternate Fifth Edition ESSENTIALS OF CORPORATE FINANCE, Second ... Wallace E Carroll School of Management Boston College with additional material from Fundamentals of Corporate Finance, Alternate Fifth Edition Essentials of Corporate Finance, Second Edition Stephen ... material from Fundamentals of Corporate Finance Third Edition Richard A Brealey Bank of England and London Business School Stewart C Myers Sloan School of Management Massachusetts Institute of Technology...

Ngày tải lên: 31/03/2014, 22:21

... v-1.1 x TABLE OF CONTENTS (This page is intentionally blank) v-1.1 v05/15/94 p01/14/00 Introduction INTRODUCTION: BASICS OF CORPORATE FINANCE COURSE OVERVIEW Basics of Corporate Finance serves ... Center of Latin America Global Finance and the Citibank Asia Pacific Banking Institute Please sign your name in the space below Table of Contents TABLE OF CONTENTS Introduction: Basics of Corporate ... STATEMENT Summary of operations and profitability The Income Statement provides a summary of a company's operations and profitability over a given period of time (at the end of a month, quarter,...

Ngày tải lên: 01/04/2014, 23:38

... material from FUNDAMENTALS OF CORPORATE FINANCE, Third Edition with additional material from FUNDAMENTALS OF CORPORATE FINANCE, Alternate Fifth Edition ESSENTIALS OF CORPORATE FINANCE, Second ... Wallace E Carroll School of Management Boston College with additional material from Fundamentals of Corporate Finance, Alternate Fifth Edition Essentials of Corporate Finance, Second Edition Stephen ... material from Fundamentals of Corporate Finance Third Edition Richard A Brealey Bank of England and London Business School Stewart C Myers Sloan School of Management Massachusetts Institute of Technology...

Ngày tải lên: 28/06/2014, 10:20

... market offer a return of 7%, then Cost of capital = r = 7% 16 Valuing an Office Building Step 3: Discount future cash flows PV = C1 (1+r) = 400 (1+.07) = 374 Step 4: Go ahead if PV of payoff exceeds ... higher rate of return w Higher required rates of return cause lower PVs PV of C1 = $400 at 7% 400 PV = = 374 + 07 19 Risk and Present Value PV of C1 = $400 at 12% 400 PV = = 357 + 12 PV of C1 = $400 ... of C1 = $400 at 7% 400 PV = = 374 + 07 20 Rate of Return Rule w Accept investments that offer rates of return in excess of their opportunity cost of capital Example In the project listed below,...

Ngày tải lên: 28/06/2014, 10:20