Fundamentals of Corporate Finance Phần 4 docx

... National Bromide for the first 4 months of 2001 (figures in thousands of dollars):Month: 1 2 3 4 Cash sales 15 24 18 14 Sales on credit 100 120 90 70On average, 50 percent of credit sales are paid ... price=(1 +5)365/50– 1 = .45 4, or 45 .4% 95In this case the customer who does not take the discount is effectively borrowing moneyat an annual interest rate of 45 .4 percent.You might wonder ... balance is $ 940 + $100 = $1, 040 . The bank is aware of the check youdeposited but is not aware of the check you wrote.e. Ledger balance plus payment float = $1,000 + $40 = $1, 040 , which equals...

... WeightedAverage 44 0Market versus Book Weights 44 1Taxes and the Weighted-Average Cost of Capital 44 2What If There Are Three (or More) Sources of Financing? 44 3Wrapping Up Geothermal 44 4Checking ... 44 5Measuring Capital Structure 44 6Calculating Required Rates of Return 44 7The Expected Return on Bonds 44 8The Expected Return on Common Stock 44 8The Expected Return on Preferred Stock 44 9Big ... ExpectedReturns 45 2What Happens When the Corporate Tax Rate Is Not Zero 45 3Flotation Costs and the Cost of Capital 45 4Summary 45 4Related Web Links 45 5Key Terms 45 5Quiz 45 5Practice Problems 45 6Challenge...

... 3.153 3.1 84 3.215 3. 246 3.278 3.310 4 4.310 4. 375 4. 440 4. 506 4. 573 4. 641 5 5.526 5.637 5.751 5.867 5.985 6.10510 12.578 13.181 13.816 14. 487 15.193 15.93720 33.066 36.786 40 .995 45 .762 51.160 ... 45 .762 51.160 57.27530 66 .43 9 79.058 94. 461 113.283 136.308 1 64. 4 94 0 49 48••• 43 21 •$500,000Level savings (cash inflows) in years1–50 result in a future accumulatedvalue of $500,000FINANCIAL ... as 1 947 prices. 4 The purchasing power of money fell by a factor of 6.99 between 1 947 and 1998. Adollar in 1998 would buy only 14 percent of the goods it could buy in 1 947 (1/6.99 =. 14) . In...

... 3,351 3,3 14 2, 845 2,796 2 ,49 3 2,160EBIT –9 312 256 243 212 156Interest 37 63 65 58 48 46 Taxes 3 60 46 43 39 34 Net profit 49 189 145 142 125 76Earnings per share –0.15 0.55 0 .44 0 .42 0.37 ... of dollars) Assets, % (billions of dollars)1. General Electric 4. 3 196 17.3 1.92. Coca-Cola 15 .4 158 36.3 2.63. Microsoft 17.6 144 52.9 2.8 4. Merck 5.6 107 23.2 1.95. Intel 5.2 90 42 .7 4. 8 24. ... 0.37 0.25Current assets 669 46 9 49 1 43 5 392 42 3Net fixed assets 923 780 753 680 610 536Total assets 1,573 1, 249 1, 244 1,115 1,002 959Current liabilities 680 365 348 302 276 320Long-term debt...

... 45 2098352681 548 8110973 94 29735998 45 68763050163758 146 42 50219999286632032566 49 68129121/2369/162615/16291 /4 515/16187/1651/1639/16 34 3/8697/8 4 13/162771/8 14 1/16321/16163 /4 11/16 47 1/8335/16 4 5/16 48 7/8519/16203/16127/16 34 1/16261/2281/851/217 4 3 /4 35/16333/16 64 1/2 4 1/2253 /4 65/8137/8313 /4 161 /4 5/8 45 1/2329/16 4 1/16 47 3/16 48 5/161915/16151/8 49 7/16295/83915/16215/8251 /4 111/1661/16 41 1/2 84 1/261/8 43 7/16131/2173/8367/8 24 3/823/16511 /4 5011/256811/16663/873259/16nsnࡔࡔ111 /4 297/8125/8281/251/2151/2 4 1/233/16301/8251/233 /4 155/16 4 15/16103/8281 /4 111/1613/32233035/8 42 3 /4 4511/16193 /4 Hi52 ... 45 2098352681 548 8110973 94 29735998 45 68763050163758 146 42 50219999286632032566 49 68129121/2369/162615/16291 /4 515/16187/1651/1639/16 34 3/8697/8 4 13/162771/8 14 1/16321/16163 /4 11/16 47 1/8335/16 4 5/16 48 7/8519/16203/16127/16 34 1/16261/2281/851/217 4 3 /4 35/16333/16 64 1/2 4 1/2253 /4 65/8137/8313 /4 161 /4 5/8 45 1/2329/16 4 1/16 47 3/16 48 5/161915/16151/8 49 7/16295/83915/16215/8251 /4 111/1661/16 41 1/2 84 1/261/8 43 7/16131/2173/8367/8 24 3/823/16511 /4 5011/256811/16663/873259/16nsnࡔࡔ111 /4 297/8125/8281/251/2151/2 4 1/233/16301/8251/233 /4 155/16 4 15/16103/8281 /4 111/1613/32233035/8 42 3 /4 4511/16193 /4 Hi52 ... ccdd 40 dd31dd 45 2098352681 548 8110973 94 29735998 45 68763050163758 146 42 50219999286632032566 49 68129121/2369/162615/16291 /4 515/16187/1651/1639/16 34 3/8697/8 4 13/162771/8 14 1/16321/16163 /4 11/16 47 1/8335/16 4 5/16 48 7/8519/16203/16127/16 34 1/16261/2281/851/217 4 3 /4 35/16333/16 64 1/2 4 1/2253 /4 65/8137/8313 /4 161 /4 5/8 45 1/2329/16 4 1/16 47 3/16 48 5/161915/16151/8 49 7/16295/83915/16215/8251 /4 111/1661/16 41 1/2 84 1/261/8 43 7/16131/2173/8367/8 24 3/823/16511 /4 5011/256811/16663/873259/16nsnࡔࡔ111 /4 297/8125/8281/251/2151/2 4 1/233/16301/8251/233 /4 155/16 4 15/16103/8281 /4 111/1613/32233035/8 42 3 /4 4511/16193 /4 Hi52...

... return, percentϪ25Ϫ301 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58Ϫ20Ϫ15Ϫ10Ϫ5051015202530Ϫ25Ϫ301 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58Ϫ20Ϫ15Ϫ10Ϫ5051015202530Ϫ25Ϫ301 ... flow of C1= $40 0,000 in 1 year. Therefore, youforecasted a profit on the venture of $40 0,000 – $350,000 = $50,000, and a rate of return of Rate of return =profit=C1– investment= $40 0,000 ... thousands of dollarsDiscount rate, percentϪ200Ϫ150Ϫ100Ϫ5005010015012 048 2016 24 32 36 40 44 28 48 IRR ϭ 12.96%NPV profileIntroduction to Risk, Return, and the Opportunity Cost of Capital...

... 1,167 1, 042 2 4, 445 1,556 1, 240 3 1 ,48 1 518 369 4 741 259 165Totals 10,000 3,500 2,816The present value increases to 2,816, or $2,816,000.arlier we began to come to grips with the topic of risk. ... 2,1 84. 00 2,271.36 2,362.21 2 ,45 6.705. Operating cash flow (3 – 4) 900.00 816.00 728. 64 637.79 543 .306. Depreciation 250.00 250.00 250.00 250.00 250.007. Income (5 – 6) 650.00 566.00 47 8. 64 387.79 ... year.Year12 34 Cost per worker $2 ,40 0 $2,568 $2, 748 $2, 940 The present value at 10 percent is $9,2 14 if the first payment is made immediately. If it isdelayed a year, present value falls to $8,377. 4 The...

... 2,000,000 4. Depreciation 45 0,000 45 0,0005. Pretax profit (1 – 2 – 3 – 4) 550,000 –2,0006. Taxes (40 %) 220,000 –8007. Profit after tax 330,000 –1,2008. Cash flow from operations (4 + 7) 780,000 44 8,800Present ... EquityAssets = value of Geothermal’s $ 647 Debt $1 94 (30%)existing businessEquity $45 3 (70%)Total value $ 647 Value $ 647 (100%)There are actually two costs of debt finance. The explicit cost of debt is ... 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...

... operates a chain of 140 fast-food outlets in the UnitedStates offering unusual combinations of dishes.The Offering: Common Stock offered by the Company 500,000 shares;Common Stock offered by 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 1991), ... total costs of $1 64. 45 + $1,173 = $1,337 .45 million.Therefore, while the total market value of the issued shares was 69 million × $70 = $4, 830 million, direct costs and the costs of underpricing...

... . 540 .502 .46 7 .43 4 .40 4 .376 .351 .3279 .9 14 .837 .766 .703 . 645 .592 . 544 .500 .46 0 .42 4 .391 .361 .333 .308 .2 84 10 .905 .820 . 744 .676 .6 14 .558 .508 .46 3 .42 2 .386 .352 .322 .295 .270 . 247 11 ... 32.8 24 34. 931 37.180 39.581 42 . 142 44 .8 74 47.788 50.895 54. 208 57.739 61.501 65.510 69.780 74. 32713 36.786 39 .40 4 42 .219 45 . 244 48 .49 7 51.991 55. 746 59.779 64. 110 68.760 73.751 79.107 84. 853 91.016 ... 387.389 43 7.573 49 4.213 558.112 630.16525 249 .2 14 292.105 342 .603 40 2. 042 47 1.98 5 54. 24 650.96 7 64. 61 898.09 10 54. 79 1238. 64 145 4.20 1706.80 2002.62 2 348 .8030 530.312 647 .43 9 790. 948 966.712...