Fin 515 final exam | Business & Finance homework help

FIN 515 Remaining Examination 1

Web page 1:
1. (TCO A) Which of the next does NOT all the time enhance an organization's market worth? (Factors : 5)
2. (TCO F) Which of the next statements is appropriate? (Factors : 5
three. (TCO D) Church Inc. is presently having fun with comparatively excessive development due to a surge within the demand for its new product. Administration expects earnings and dividends to develop at a price of 25% for the following four years, after which competitors will most likely scale back the expansion price in earnings and dividends to zero, i.e., g = zero. The corporate's final dividend, D0, was $1.25, its beta is 1.20, the market threat premium is 5.50%, and the risk-free price is three.00%. What's the present worth of the frequent inventory?
four. (TCO G) Singal Inc. is making ready its money finances. It expects to have gross sales of $30,00zero in January, $35,00zero in February, and $35,00zero in March. If 20% of gross sales are for money, 40% are credit score gross sales paid within the month after the sale, and one other 40% are credit score gross sales paid 2 months after the sale, what are the anticipated money receipts for March?

Web page 2
1. (TCO H) Zervos Inc. had the next knowledge for 2008 (in hundreds of thousands). The brand new CFO believes (a) that an improved stock administration system may decrease the common stock by $four,00zero, (b) that enhancements within the credit score division may scale back receivables by $2,00zero, and (c) that the buying division may negotiate higher credit score phrases and thereby enhance accounts payable by $2,00zero. Moreover, she thinks that these adjustments wouldn't have an effect on both gross sales or the prices of products bought. If these adjustments had been made, by what number of days would the money conversion cycle be lowered

2. (TCO C) Bumpas Enterprises purchases $four,562,500 in items per yr from its sole provider on phrases of two/15, web 50. If the agency chooses to pay on time however doesn't take the low cost, what's the efficient annual share value of its nonfree commerce credit score? (Assume a 365-day yr.)
three. (TCO E) You had been employed as a marketing consultant to the Quigley Firm, whose goal capital construction is 35% debt, 10% most popular, and 55% frequent fairness. The rate of interest on new debt is 6.50%, the yield on the popular is 6.00%, the price of frequent from retained earnings is 11.25%, and the tax price is 40%. The agency won't be issuing any new frequent inventory. What's Quigley's WACC?
four. (TCO B) An organization forecasts the free money flows (in hundreds of thousands) proven beneath. The weighted common value of capital is 13%, and the FCFs are anticipated to proceed rising at a 5% price after Yr three. Assuming that the ROIC is anticipated to stay fixed in Yr three and past, what's the Yr zero worth of operations, in hundreds of thousands?
5. (TCO G) Based mostly on the company valuation mannequin, Hunsader's worth of operations is $300 million. The steadiness sheet exhibits $20 million of short-term investments which are unrelated to operations, $50 million of accounts payable, $90 million of notes payable, $30 million of long-term debt, $40 million of most popular inventory, and $100 million of frequent fairness. The corporate has 10 million shares of inventory excellent. What's the greatest estimate of the inventory's worth per share?
6. TCO G) Clayton Industries is planning its operations for subsequent yr, and Ronnie Clayton, the CEO, desires you to forecast the agency's extra funds wanted (AFN). The agency is working at full capability. Information to be used in your forecast are proven beneath. Based mostly on the AFN equation, what's the AFN for the approaching yr? are in hundreds of thousands. 

FIN 515 Remaining Examination 2

Web page 1

1. (TCO A) Which of the next does NOT all the time enhance an organization's market worth? (Factors : 5)

2. (TCO F) Which of the next statements is appropriate? (Factors : 5)

three. (TCO D) The Ramirez Firm's final dividend was $1.75. Its dividend development price is anticipated to be fixed at 25% for two years, after which dividends are anticipated to develop at a price of 6% perpetually. Its required return (rs) is 12%. What's the greatest estimate of the present inventory worth?

four. (TCO G) The ABC Company's budgeted month-to-month gross sales are $four,00zero. Within the first month, 40% of its prospects pay and take the three% low cost.
The remaining 60% pay within the month following the sale and do not obtain a reduction.
ABC's dangerous money owed are very small and are excluded from this evaluation.                        
Purchases for subsequent month's gross sales are fixed every month at $2,00zero. Different funds for wages, lease, and taxes are fixed at $500 monthly.
Assemble a single month's money finances with the knowledge given. What's the common money achieve or (loss) throughout a typical month for the ABC Company? (Factors : 20)
5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the approaching yr, and the CEO desires you to forecast the agency's extra funds wanted (AFN). The agency is working at full capability. Information to be used within the forecast are proven beneath. Nonetheless, the CEO is worried concerning the impression of a change within the payout ratio from the 10% that was used up to now to 50%, which the agency's funding bankers have beneficial. Based mostly on the AFN equation, by how a lot would the AFN for the approaching yr change if HHW elevated the payout from 10% to the brand new and better degree? All are in hundreds of thousands.

Web page 2

1. (TCO H) Your consulting agency was just lately employed to enhance the efficiency of Shin-Soenen Inc, which is very worthwhile however has been experiencing money shortages because of its excessive development price. As one a part of your evaluation, you need to decide the agency's money conversion cycle. Utilizing the next data and a 365-day yr, what's the agency's current money conversion cycle?
2. (TCO C) Bumpas Enterprises purchases $four,562,500 in items per yr from its sole provider on phrases of two/15, web 50. If the agency chooses to pay on time however doesn't take the low cost, what's the efficient annual share value of its nonfree commerce credit score? (Assume a 365-day yr.
three (TCO E) Daves Inc. just lately employed you as a marketing consultant to estimate the corporate's WACC. You've got obtained the next data. (1) The agency's noncallable bonds mature in 20 years, have an eight.00% annual coupon, a par worth of $1,00zero, and a market worth of $1,zero50.00. (2) The corporate's tax price is 40%. (three) The chance-free price is four.50%, the market threat premium is 5.50%, and the inventory's beta is 1.20. (four) The goal capital construction consists of 35% debt and the steadiness is frequent fairness. The agency makes use of the CAPM to estimate the price of frequent inventory, and it doesn't count on to challenge any new shares. What's its WACC? (Factors : 30
four. (TCO B) An organization forecasts the free money flows (in hundreds of thousands) proven beneath. The weighted common value of capital is 13%, and the FCFs are anticipated to proceed rising at a 5% price after Yr three. Assuming that the ROIC is anticipated to stay fixed in Yr three and past, what's the Yr zero worth of operations, in hundreds of thousands?
 5. (TCO G) Based mostly on the company valuation mannequin, the worth of an organization's operations is $900 million. Its steadiness sheet exhibits $70 million in accounts receivable, $50 million in stock, $30 million in short-term investments which are unrelated to operations, $20 million in accounts payable, $110 million in notes payable, $90 million in long-term debt, $20 million in most popular inventory, $140 million in retained earnings, and $280 million in whole frequent fairness. If the corporate has 25 million shares of inventory excellent, what's the greatest estimate of the shares worth per share?

FIN 515 Remaining Examination three

Web page 1

1. (TCO A) Which of the next statements is NOT appropriate? (Factors:5
2. (TCO F) Which of the next statements is appropriate? (Factors : 5)
three. (TCO D) The Ackert Firm's final dividend was $1.55. The dividend development price is anticipated to be fixed at 1.5% for two years, after which dividends are anticipated to develop at a price of eight.zero% perpetually. The agency's required return (rs) is 12.zero%. What's the greatest estimate of the present inventory worth?

four. (TCO G) The ABC Company's budgeted month-to-month gross sales are $four,00zero. Within the first month, 40% of its prospects pay and take the three% low cost. The remaining 60% pay within the month following the sale and do not obtain a reduction. ABC's dangerous money owed are very small and are excluded from this evaluation.                    
Purchases for subsequent month's gross sales are fixed every month at $2,00zero. Different funds for wages, lease, and taxes are fixed at $500 monthly.
Assemble a single month's money finances with the knowledge given. What's the common money achieve or (loss) throughout a typical month for the ABC Company? (Factors : 20)
5. (TCO G) Clayton Industries is planning its operations for subsequent yr, and Ronnie Clayton, the CEO, desires you to forecast the agency's extra funds wanted (AFN). The agency is working at full capability. Information to be used in your forecast are proven beneath. Based mostly on the AFN equation, what's the AFN for the approaching yr? are in hundreds of thousands.

Web page 2

1. (TCO H) The Dewey Company has the next knowledge, in 1000's. Assuming a 365-day yr, what's the agency's money conversion cycle?

Annual gross sales =                         $31,500
Annual value of products bought =     $four,00zero
Stock =                              $ 2,00zero

Accounts receivable =              $ 2,400
Accounts payable =                $45,00zero
three. (TCO E) Daves Inc. just lately employed you as a marketing consultant to estimate the corporate's WACC. You've got obtained the next data. (1) The agency's noncallable bonds mature

in 20 years, have an eight.00% annual coupon, a par worth of $1,00zero, and a market worth of $1,zero50.00. (2) The corporate's tax price is 40%. (three) The chance-free price is four.50%, the market threat premium is 5.50%, and the inventory's beta is 1.20. (four) The goal capital construction consists of 35% debt and the steadiness is frequent fairness. The agency makes use of the CAPM to estimate the price of frequent inventory, and it doesn't count on to challenge any new shares. What's its WACC?
four. (TCO B) Leak Inc. forecasts the free money flows (in hundreds of thousands) proven beneath. If the weighted common value of capital is 11% and FCF is anticipated to develop at a price of 5% after Yr 2, what's the Yr zero worth of operations, in hundreds of thousands? Assume that the ROIC is anticipated to stay fixed in Yr 2 and past (and don't make any half-year changes).
Yr:                      1          2
Free money movement:     -$50     $100

5. (TCO G) Based mostly on the company valuation mannequin, the worth of an organization's operations is $900 million. Its steadiness sheet exhibits $70 million in accounts receivable, $50 million in stock, $30 million in short-term investments which are unrelated to operations, $20 million in accounts payable, $110 million in notes payable, $90 million in long-term debt, $20 million in most popular inventory, $140 million in retained earnings, and $280 million in whole frequent fairness. If the corporate has 25 million shares of inventory excellent, what's the greatest estimate of the shares worth per share?