Mini Case Chapter 4 A – G A. 1.) 0 1 2 0 ? $100 2.) 0 1 2 3 i% 100 100 100 3.) 0 1 2 3 -50 100 75 50 B. 1.) FV=PV + Int = PV + PV(i) FV = 100(1.10)3 = 100(1.331) = $133.10 2.) PV = FV/(1+i) = FV(1/1+i) = 100(1+10)3 = 100(.7513) = 75.13 C. FVn = PV(FVIF i,n)= $2 = $1(FVIF 20,n)= 2.00 = (FVIF 20,n)= 1.728 and 2.0736 = 3.8 D. 1(1 + i) 1(1 + i)2 1(1 + i)3= FV = $1(1 + i)3
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1st Scenario MINI-CASE ABC CORPORATION The initial cash outlay at Time 0 is simply the cost of the new equipment, $15,000,000 and the ABC’s required return of 12 percent. The marketing study and the research and Development is both sunk costs and should be ignored. (Assuming CCA class is 43, the CCA rate of 30 percent and corporate tax is 35 percent). Sales Sales VC Fixed costs Year 1 $17,500,000 6,020,000 3,000,000 Year 2 $20,000,000 6,880,000 3,000,000 Year 3 $25,000,000 8,600,000 3,000
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Chapter 5: Mini Case 2 - Central University Central University Suppose you are the network manager for Central University, a medium-size university with 13,000 students. The university has 10 separate colleges (e.g., business, arts, journalism), 3 of which are relatively large (300 faculty and staff members, 2,000 students, and 3 buildings) and 7 of which are relatively small (200 faculty and staff, 1,000 students, and 1 building). In addition, there are another 2,000 staff members who work in
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Mini-case analysis paper In my previous company, I was responsible for an operation function, totally more than 80 people in this function in my charge. The function is divided into four teams to cover 7*24 operation, one team for morning shift, one for noon shift, and two for night shift. The four team leaders report to me directly, Bruce and Roc are the two team leaders of night shift (one for D135, and the other for D246). Because of the same working flow and responsibility, the KPI setting
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Mini-Case #2 Financial crisis, Home Mortgages, Credit Markets, Financial Institutions, Moral Hazard, Adverse selections, CONCEPTS IN THIS CASE: Mortgage defaults sub-prime mortgages mortgage-backed security defaults write off wealth effect moral hazard adverse selection You have been hired to manage a depository institution, such as a bank. The top management team is very concerned to avoid the similar massive defaults on home mortgages as in 2007. You are being asked to explain factors
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Meghan Michel 9/8/2015 Finance 403 Chapter 6 Mini Case a. What effect did the expansion have on sales and net income? Sales increased 70% off of the $3,432,000 in 2014 to $5,834,000 in 2015. Revenue went up by 2.4 million dollars but cost of goods sold went up by 2.1 million dollars therefore it is of no surprise that EBIT fell Net income fell from $87,960 to ($95,136) despite the 70% increase in sales due to the 2.6 million dollar increase in total operating expenses. What effect did the
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| Jen Poe | | | | | | | BUS657 Corporate Managerial Finance | | | | | | | | | | | | | Week #5 | | | | | | | Assignment - Chapter 22 Mini - Case | | | | | | | | | | | | | | | | | | | 1) Calculate BB's current cash conversion cycle. | | | | | | | | | | | | | BB's Ratios: | | | | | | | Average Age of Inventory | $842,020 / [(0.57 *$43,803,000) /365] | | 12.31 | days | | Average Collection Period | $3,240,222/($43
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MINI – CASE ASSIGNMENT Facebook 1. What is the name of the company? What is the industry sector? Facebook Inc. is a multi-billion dollar company in the Internet informational providers, technology (IT) industry. Facebook Inc. is one of the leading an online social networking service in the world and is continuing to grow as the front-runner in their industry. 2. What are the operating risks of the company? No company with no operational risks to consider. Operational risk is the
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Chapter 9 Mini Case During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice president. Your first task is to estimate Harry Davis’s cost of capital. Jones has provided you with the following
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------------------------------------------------- FI – 516 – WEEK 2 - MINI CASE – ANSWER KEY Assume that you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant chain. The company’s EBIT was $50 million last year and is not expected to grow. The firm is currently financed completely with equity, and it has 10 million shares outstanding. When you took your corporate finance course, your instructor stated that most firms’ owners would
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