Fundamentals of Corporate Finance Phần 3 pot

... Inc.,year ending March 31 2000 1999 1998 1997 1996 1995Net sales 3, 351 3, 314 2,845 2,796 2,4 93 2,160EBIT –9 31 2 256 2 43 212 156Interest 37 63 65 58 48 46Taxes 3 60 46 43 39 34 Net profit –49 189 145 ... 0.44 0.42 0 .37 0.25Current assets 669 469 491 435 39 2 4 23 Net fixed assets 9 23 780 7 53 680 610 536 Total assets 1,5 73 1,249 1,244 1,115 1,002 959Current liabilities 680 36 5 34 8 30 2 276 32 0Long-term ... Returns Tax Rate, %0–25,750 0– 43, 050 1525,750–62,450 43, 050–104,050 2862,450– 130 ,250 104,050–158,550 31 130 ,250–2 83, 150 158,550–2 83, 150 36 Over 2 83, 150 Over 2 83, 150 39 .6MARGINAL TAX RATEAdditional...

... Are Diversifiable 33 1Message 2: Market Risks Are Macro Risks 33 2Message 3: Risk Can Be Measured 33 3Summary 33 4Related Web Links 33 4Key Terms 33 4Quiz 33 5Practice Problems 33 6Solutions to ... Rule 36 3Capital Rationing 36 5Soft Rationing 36 5Hard Rationing 36 6Pitfalls of the Profitability Index 36 67Summary 36 7Related Web Links 36 8Key Terms 36 8Quiz 36 8Practice Problems 36 9Challenge ... 34 9Internal Rate of Return 34 9A Closer Look at the Rate of Return Rule 35 0Calculating the Rate of Return for Long-Lived Projects 35 1A Word of Caution 35 2Payback 35 2Book Rate of Return 35 5Investment...

... peryard)Year 1 234 51. Yards sold 100.00 100.00 100.00 100.00 100.002. Price per yard 30 .00 30 .00 30 .00 30 .00 30 .00 3. Revenue (1 × 2) 3, 000.00 3, 000.00 3, 000.00 3, 000.00 3, 000.004. Cost of goods ... 30 0) × (1 – .35 ) + (200 × .35 ) = 2655 MACRS 3- Year PV Tax ShieldYear Depreciation Tax Shield at 12%1 3, 333 1,167 1,0422 4,445 1,556 1,240 3 1,481 518 36 94 741 259 165Totals 10,000 3, 500 2,816The ... 2,271 .36 2 ,36 2.21 2,456.705. Operating cash flow (3 – 4) 900.00 816.00 728.64 637 .79 5 43. 306. Depreciation 250.00 250.00 250.00 250.00 250.007. Income (5 – 6) 650.00 566.00 478.64 38 7.79 2 93. 308....

... 28.657 30 .1 13 31.6 43 33. 2 53 34.945 36 .7 23 38.5 93 40.556 42.61911 25. 733 27.200 28.755 30 .404 32 .150 34 .001 35 .962 38 . 039 40. 238 42.566 45. 031 47. 639 50 .39 8 53. 318 56.40512 30 .850 32 .824 34 . 931 37 .180 ... 1 23. 414 138 .166 154.740 1 73. 354 194.254 217.712 244. 033 2 73. 556 30 6.658 34 3.758 38 5 .32 3 431 .870 4 83. 9 73 20 115 .38 0 130 . 033 146.628 165.418 186.688 210.758 237 .989 268.785 30 3.601 34 2.945 38 7 .38 9 ... 2.210 2.220 2. 230 2.240 2.250 2.260 2.270 2.280 2.290 2 .30 0 3 3.506 3. 539 3. 572 3. 606 3. 640 3. 674 3. 708 3. 7 43 3.778 3. 8 13 3.848 3. 8 83 3.918 3. 954 3. 9904 5.066 5.141 5.215 5.291 5 .36 8 5.446 5.524...

... 2.090 2.100 3 3.1 53 3.184 3. 215 3. 246 3. 278 3. 3104 4 .31 0 4 .37 5 4.440 4.506 4.5 73 4.6415 5.526 5. 637 5.751 5.867 5.985 6.10510 12.578 13. 181 13. 816 14.487 15.1 93 15. 937 20 33 .066 36 .786 40.995 ... of Loan0 $1,000 $100 $31 5.47 $215.471 ——— ——— 31 5.47 ———2 ——— ——— 31 5.47 ——— 3 ——— ——— 31 5.47 ———40 0 — —c. Show that the loan balance after 1 year is equal to the year-end payment of $31 5.47 ... 45.762 51.160 57.275 30 66. 439 79.058 94.461 1 13. 2 83 136 .30 8 164.4940 4948•••• 432 1 •$500,000Level savings (cash inflows) in years1–50 result in a future accumulatedvalue of $500,000FINANCIAL...

... days 3, 518 /36 5This is a reduction of 22.8 days from the original value of 48.7 days.Days in receivables = 30 0= 27.6 days 3, 968 /36 5This is a reduction of 16.2 days from the original value of 43. 8 ... 0Repayments9. Of stretched payables 0 0 10.8 010. Of bank loan 0 0 13. 8 31 .2Increase in cash balances11. Addition to cash balances 0 0 0 3. 2Bank loan12. Beginning of quarter 0 40 45 31 .2 13. End of ... net 30 :5 10, net 30 ↑΋↑↑percent discount number of days that number of daysfor early payment discount is available before payment is dueSimilarly, if a firm sells goods on terms of 2 /30 ,...

... 452098 35 2681548811097 39 4297 35 998456876 30 501 637 5814642502199992866 32 0 32 5664968129121/2 36 9/162615/16291/4515/16187/1651/16 3 9/16 34 3 /8697/84 13 /162771/8141/16 32 1/1616 3 /411/16471/8 33 5/1645/16487/8519/1620 3 /16127/16 34 1/16261/2281/851/2174 3 /4 3 5/16 33 3 /16641/241/225 3 /465/8 13 7/8 31 3 /4161/45/8451/2 32 9/1641/1647 3 /16485/161915/16151/8497/16295/8 39 15/16215/8251/4111/1661/16411/2841/261/8 43 7/16 13 1/217 3 /8 36 7/824 3 /82 3 /16511/45011/256811/1666 3 /8 73 259/16nsnࡔࡔ111/4297/8125/8281/251/2151/241/2 3 3/16 30 1/8251/2 3 3/4155/16415/1610 3 /8281/4111/16 13 /32 23 30 3 5/842 3 /44511/1619 3 /4Hi52 ... 452098 35 2681548811097 39 4297 35 998456876 30 501 637 5814642502199992866 32 0 32 5664968129121/2 36 9/162615/16291/4515/16187/1651/16 3 9/16 34 3 /8697/84 13 /162771/8141/16 32 1/1616 3 /411/16471/8 33 5/1645/16487/8519/1620 3 /16127/16 34 1/16261/2281/851/2174 3 /4 3 5/16 33 3 /16641/241/225 3 /465/8 13 7/8 31 3 /4161/45/8451/2 32 9/1641/1647 3 /16485/161915/16151/8497/16295/8 39 15/16215/8251/4111/1661/16411/2841/261/8 43 7/16 13 1/217 3 /8 36 7/824 3 /82 3 /16511/45011/256811/1666 3 /8 73 259/16nsnࡔࡔ111/4297/8125/8281/251/2151/241/2 3 3/16 30 1/8251/2 3 3/4155/16415/1610 3 /8281/4111/16 13 /32 23 30 3 5/842 3 /44511/1619 3 /4Hi52 ... and Drit-ter for 3. Compare their payoffs:Year 1 Year 2 Year 3 Erste DIV1= 3 P1= 81Zweiter DIV1= 3 DIV2= 3. 24P2= 87.48Dritter DIV1= 3 DIV2= 3. 24 DIV 3 = 3. 50P 3 = 94.48Remember,...

... stocks.Ϫ20Ϫ15Ϫ10Ϫ50510152025 30 Merck return, percentϪ25 30 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58Ϫ20Ϫ15Ϫ10Ϫ50510152025 30 Ϫ25 30 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 ... percentNumber of years0Ϫ10Ϫ20 30 Ϫ40 10 20 30 40 50 13. 2 20 .3 Common stocksRate of return, percentNumber of years0Ϫ10 10 20 3. 2 4.5 InflationRate of return, percentNumber of years0Ϫ10 10 20 30 405.7 ... of capital:PV =C1+C2+C 3 1 + r (1 + r)2(1 + r) 3 =$16,000+$16,000+$466,000= $409 ,32 31.07 (1.07)2(1.07) 3 The net present value of the revised project is NPV = $409 ,32 3 – $35 0,000...

... profits will increase by .01 × (sales – variable costs) = .01 × (profits + fixedcosts). Now recall the definition of DOL:DOL =percentage change in profits=change in profits/level of profitspercentage ... profitspercentage change in sales .01= 100 ×change in profits= 100 ×.01 × (profits + fixed costs)level of profits level of profits=1 +fixed costsprofitst helps to use discounted cash-flow techniques ... planes sold 3. Fixed costs 1754. Depreciation 900/6 = 1505. Pretax profit (1 – 2 – 3 – 4) (7 × planes sold) – 32 56. Taxes (at 50%) (3. 5 × planes sold) – 162.57. Net profit (5 – 6) (3. 5 × planes...

... Ϫ$0,680depreciationtax shieldCost of ϩ$10,000machineTotal cash ϩ$10,000 Ϫ$2 ,33 0 Ϫ$2 ,33 0 Ϫ$2 ,33 0 Ϫ$2 ,33 0 Ϫ$2 ,33 0flowTABLE B.2Incremental cash flows forTasha Corp. from leasinginstead of buyingLeasing ... prior to Offering Owned after OfferingName of SharesBeneficial Owner Number Percent to Be Sold Number PercentEmma Lucullus 400,000 13. 3 25,000 37 5,000 12.9Ed Lucullus 400,000 13. 3 25,000 37 5,000 ... over the first 3 years of trading have been less than a con-trol sample of matching firms. See J. R. Ritter, “The Long-Run Performance of Initial Public Offerings,”Journal of Finance 46 (March...