Fundamentals of Corporate Finance Phần 1 potx

... Questions 15 9Minicase 16 0IV CONTENTSAccounting and Finance 11 1The Balance Sheet 11 2Book Values and Market Values 11 5The Income Statement 11 7Profits versus Cash Flow 11 8The Statement of Cash ... Flows 11 9Accounting for Differences 12 1Taxes 12 3 Corporate Tax 12 3Personal Tax 12 5Summary 12 6Related Web Links 12 7Key Terms 12 7Quiz 12 7Practice Problems 12 8Challenge Problem 13 1Solutions ... Paper 18 6Secured Loans 18 6The Cost of Bank Loans 18 7Simple Interest 18 7Discount Interest 18 8Interest with Compensating Balances 18 9Summary 19 0Related Web Links 19 1Key Terms 19 1Quiz 19 1Practice...

... 9.930 10 .18 3 10 .442 10 .708 10 .980 11 .259 11 .544 11 .837 12 .13 6 12 .442 12 .7567 11 . 414 11 .772 12 .14 2 12 .523 12 . 916 13 .3 21 13.740 14 .17 1 14 . 615 15 .073 15 .546 16 .032 16 .534 17 .0 51 17.5838 14 .240 14 .773 ... 1. 240 1. 250 1. 260 1. 270 1. 280 1. 290 1. 3002 1. 346 1. 369 1. 392 1. 416 1. 440 1. 464 1. 488 1. 513 1. 538 1. 563 1. 588 1. 613 1. 638 1. 664 1. 6903 1. 5 61 1.602 1. 643 1. 685 1. 728 1. 772 1. 816 1. 8 61 1.907 1. 953 ... 87.068 96.022 10 5.9 31 116 .894 12 9.020 14 2.430 15 7.253 17 3.636 19 1.735 211 .723 233.7 91 258 .14 5 285. 014 18 84 .14 1 93.406 10 3.740 11 5.266 12 8 .11 7 14 2.4 41 158.405 17 6 .18 8 19 5.994 218 .045 242.585...

... Rate 1 year 1 6% 1. 06 6.0000%Semiannually 2 3 1. 032= 1. 0609 6.0900Quarterly 4 1. 5 1. 015 4= 1. 0 613 64 6 .13 64Monthly 12 .5 1. 005 12 = 1. 0 616 78 6 .16 78Weekly 52 .11 538 1. 0 011 53852= 1. 0 618 00 ... cost of an international phone call declinedfrom $30.20 to $3, a fall of over 90 percent.YearConsumer Price Index (19 47 ؍ 10 0) 19 47 19 51 1955 19 59 19 63 19 67 19 71 1975 19 79 19 83 19 87 19 91 199 819 95700600500400300200 10 00FIGURE ... 3 .15 3 3 .18 4 3. 215 3.246 3.278 3. 310 4 4. 310 4.375 4.440 4.506 4.573 4.6 41 5 5.526 5.637 5.7 51 5.867 5.985 6 .10 5 10 12 .578 13 .18 1 13 . 816 14 .487 15 .19 3 15 .93720 33.066 36.786 40.995 45.762 51. 160...

... 610 536Total assets 1, 573 1, 249 1, 244 1, 115 1, 002 959Current liabilities 680 365 348 302 276 320Long-term debt 217 15 9 15 9 311 319 315 Stockholders’ equity 676 725 599 502 407 324Number of ... Analysis 16 1TABLE A .18 Financial highlights for TheHobby Horse Company, Inc.,year ending March 31 2000 19 99 19 98 19 97 19 96 19 95Net sales 3,3 51 3, 314 2,845 2,796 2,493 2 ,16 0EBIT –9 312 256 243 212 ... Ratio (billions of dollars) Assets, % (billions of dollars) 1. General Electric 4.3 19 6 17 .3 1. 92. Coca-Cola 15 .4 15 8 36.3 2.63. Microsoft 17 .6 14 4 52.9 2.84. Merck 5.6 10 7 23.2 1. 95. Intel...

... +.08)2– 1 = 1. 042– 1 = .0 816 , or 8 .16 %2Bank C: The compound annual interest rate isEffective annual rate=ͩ 1 ͪm– 1 on a discount loan 1 annual interest rate m=ͩ 1 ͪ2– 1 =( 1 )2– 1 ... raised 45 15 .8 0 0Repayments9. Of stretched payables 0 0 10 .8 0 10 . Of bank loan 0 0 13 .8 31. 2Increase in cash balances 11 . Addition to cash balances 0 0 0 3.2Bank loan 12 . Beginning of quarter ... per Order 2 1, 000,000 1 500,000 $ 90 $ 25,000 $ 25,090500,000 2 250,000 18 0 12 ,500 12 ,680200,000 5 10 0,000 450 5,000 5,450 10 0,000 10 50,000 900 2,500 3,40060,000 16 .7 30,000 1, 500 1, 500 3,00050,000...

... CloseVol 10 0sNetChg 12 1 /2345/8269 /16 283/857/8 17 1 /84 15 /16 3 1 /234653 /16 4 1 /226 1 /47 14 1 /16 31 3/4 16 9 /16 11 /16 4733 1 /16 4 1 /448 1 /248 13 /16 20 1 /8 1 /16 2 1 /8 1 /16 5/8 1 /4 1 7 /16 1 /8 1 /83 /16 3 1 /2 7/8 1 /8 1 /16 1 /4 11 /16 1 3/8 1 /16 1 /87 /16 2 11 /16 1 /8+–+–+–++–––++–+–++–––YldBOOK ... 4520983526 81 5488 11 097394297359984568763050 16 3758 14 64250 219 9992866320325664968 12 9 12 1 /2369 /16 26 15 /16 29 1 /45 15 /16 18 7 /16 5 1 /16 39 /16 343/8697/84 13 /16 277 1 /8 14 1 /16 32 1 /16 16 3/4 11 /16 47 1 /8335 /16 45 /16 487/8 51 9 /16 203 /16 12 7 /16 34 1 /16 26 1 /228 1 /85 1 /2 17 43/435 /16 333 /16 64 1 /24 1 /2253/465/8 13 7/8 31 3/4 16 1 /45/845 1 /2329 /16 4 1 /16 473 /16 485 /16 19 15 /16 15 1 /8497 /16 295/839 15 /16 21 5/825 1 /4 11 1 /16 6 1 /16 41 1/284 1 /26 1 /8437 /16 13 1 /2 17 3/8367/8243/823 /16 51 1/450 11 /2568 11 /16 663/873259 /16 nsnࡔࡔ 11 1 /4297/8 12 5/828 1 /25 1 /2 15 1 /24 1 /233 /16 30 1 /825 1 /233/4 15 5 /16 4 15 /16 10 3/828 1 /4 11 1 /16 13 /32233035/8423/445 11 /16 19 3/4Hi52 ... 4520983526 81 5488 11 097394297359984568763050 16 3758 14 64250 219 9992866320325664968 12 9 12 1 /2369 /16 26 15 /16 29 1 /45 15 /16 18 7 /16 5 1 /16 39 /16 343/8697/84 13 /16 277 1 /8 14 1 /16 32 1 /16 16 3/4 11 /16 47 1 /8335 /16 45 /16 487/8 51 9 /16 203 /16 12 7 /16 34 1 /16 26 1 /228 1 /85 1 /2 17 43/435 /16 333 /16 64 1 /24 1 /2253/465/8 13 7/8 31 3/4 16 1 /45/845 1 /2329 /16 4 1 /16 473 /16 485 /16 19 15 /16 15 1 /8497 /16 295/839 15 /16 21 5/825 1 /4 11 1 /16 6 1 /16 41 1/284 1 /26 1 /8437 /16 13 1 /2 17 3/8367/8243/823 /16 51 1/450 11 /2568 11 /16 663/873259 /16 nsnࡔࡔ 11 1 /4297/8 12 5/828 1 /25 1 /2 15 1 /24 1 /233 /16 30 1 /825 1 /233/4 15 5 /16 4 15 /16 10 3/828 1 /4 11 1 /16 13 /32233035/8423/445 11 /16 19 3/4Hi52...

... –8 13 16 9 +20 +19 3 61 Normal +5 0 0 +3 +2 4Boom +18 +13 16 9 –20 – 21 4 41 Expected return 1 (–8 + 5 + 18 ) = 5% 1 (+20 + 3 – 20) = 1% 33Variancea 1 (16 9 + 0 + 16 9) = 11 2.7 1 (3 61 + 4 + 4 41) = ... percentϪ25Ϫ30 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58Ϫ20 15 10 Ϫ505 10 15 202530Ϫ25Ϫ30 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58Ϫ20 15 10 Ϫ505 10 15 202530Ϫ25Ϫ30 1 ... percentNumber of years0 10 Ϫ20Ϫ30Ϫ40 10 20 30 40 50 13 .2 20.3Common stocksRate of return, percentNumber of years0 10 10 203.2 4.5 InflationRate of return, percentNumber of years0 10 10 20 30...

... Depreciation Tax Shield at 12 % 1 3,333 1, 167 1, 0422 4,445 1, 556 1, 2403 1, 4 81 518 3694 7 41 259 16 5Totals 10 ,000 3,500 2, 816 The present value increases to 2, 816 , or $2, 816 ,000.arlier we began ... percentϪ26240 810 Ϫ6Ϫ8 10 Ϫ4Ϫ25Ϫ20 15 10 Ϫ505 10 15 20Beta ؍ . 61 Standard deviation ؍ 16 %25(a)Market return, percentPolaroid return, percent؊26240 810 ؊6؊8 10 ؊4؊25؊20 15 10 ؊505 10 15 2025Beta ... Ϫ2 1 Ϫ55432 1 0 1 Ϫ2Ϫ4Ϫ3 21 Market return,percentRisk, Return, and Capital Budgeting 429Month Market Return, % Tumblehome Return, % 10 +1 20 1 3 1 –2.54 1 –0.55 +1 +26 +1 +1 7+2...

... change in profits=change in profits/level of profitspercentage change in sales . 01 = 10 0 ×change in profits= 10 0 ×. 01 × (profits + fixed costs)level of profits level of profits =1 +fixed ... analysis, NPV of Finefodder’s Gravensteinsuperstore with scenario of new competing store innearby Salome Cash Flows Years 1 12 Base Case Competing Store Scenarioa 1. Sales $16 ,000,000 $13 ,600,0002. ... Variable costs 13 ,000,000 11 ,15 2,0003. Fixed costs 2,000,000 2,000,0004. Depreciation 450,000 450,0005. Pretax profit (1 – 2 – 3 – 4) 550,000 –2,0006. Taxes (40%) 220,000 –8007. Profit after...

... EquityOfferings: An Empirical Investigation,” Journal of Financial Economics 15 (January–February 19 86), pp. 91 11 8; W. H. Mikkelson and M. M. Partch, “Valuation Effects of Security Offerings ... overpriced thestock. 11 10 See, for example, P. Asquith and D. W. Mullins, “Equity Issues and Offering Dilution,” Journal of Finan-cial Economics 15 (January–February 19 86), pp. 61 90; R. W. Masulis ... Not Have,” Journal of Financial Economics 13 (19 84), pp. 18 7–222.PRIVATE PLACEMENTSale of securities to a limitednumber of investors withouta public offering.Leasing 5 51 ized.” Essentially,...