Solutions Manual Fundamentals of Corporate Finance 9th edition Ross‚ Westerfield‚ and Jordan Updated 09-29-2010 CHAPTER 1 INTRODUCTION TO CORPORATE FINANCE Answers to Concepts Review and Critical Thinking Questions 1. Capital budgeting (deciding whether to expand a manufacturing plant)‚ capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt)‚ and working capital management (modifying the firm’s credit collection policy with its customers)
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Creating Black Americans‚ by Nell Irvin Painter Review and Discussion Questions Chapter 13: Protest Makes a Civil Rights Revolution Review Questions 1. What was the role of Ella Baker (1903-1986) with regard to the Southern Christian Leadership Conference (SCLC) and the Student Nonviolent Coordinating Committee (SNCC)? Why is this important? 2. How was Freedom Summer of 1964 different from earlier southern civil rights struggles of the 1960s? 3. What were the political and racial
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(10-2) IRR A project has an initial cost of $52‚125‚ expected net cash inflows of $12‚000 per year for 8 years‚ and a cost of capital of 12%. What is the project’s NPV? (Hint: Begin by constructing a time line.) What’s the project’s IRR? NPV = Cash Flow in Period n/ (1 + Discount Rate)n NPV = $52‚125 + 12‚000/(1 +.12)8 = 4‚846.60 12‚000/(1 +.12)7 = 5‚428.19 12‚000/(1 +.12)6 = 6‚079.58 12‚000/(1 +.12)5 = 6‚809.13 12‚000/(1 +.12)4 = 7‚626.21 12‚000/(1 +.12)3 = 8‚541.35 12‚000/(1 +.12)2 = 9‚566.33
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CHAPTER 2 How to Calculate Present Values Answers to Problem Sets 1. If the discount factor is .507‚ then .507*1.126 = $1 2. 125/139 = .899 3. PV = 374/(1.09)9 = 172.20 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1‚003 5. FV = 100*1.158 = $305.90 6. NPV = -1‚548 + 138/.09 = -14.67 (cost today plus the present value of the perpetuity) 7. PV = 4/(.14-.04) = $40 8. a. PV = 1/.10 = $10 b. Since the perpetuity
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1. Dayton is a U.S based manufacturer of gas turbine equipment. This company has concluded negotiations for the sales of a turbine generator to Regency (U.K) for total payment of £3‚000‚000 which is due in 90 days Given the following exchange rates and interest rates‚ what transaction exposure hedging strategy is now in Dayton’s best interest? Spot rate $1.7620/£ Expected spot rate in 90 days $1.7850/£ 90-day forward rate $1.7550/£ 90-day dollar
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UNIVERSITY SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING‚ ECONOMICS‚ AND FINANCE FIN 318 - PRINCIPLES OF INTERNATIONAL CORPORATE FINANCE COURSE SYLLABUS Term: Spring 2013 Tuesday & Thursday 12:15 – 1:30 Main Campus I. COURSE NUMBER AND TITLE FIN 318-01 – Principles of International Corporate Finance II. INSTRUCTOR Dr. Nicole Grandmont-Gariboldi ngariboldi@stu.edu Office Phone (305) 628-6568 III. TEXTBOOK Fundamentals of Multinational Finance 3rd Ed Moffett ‚ Stonehill &Eiteman‚ Addison-Westley ISBN: 0-321-54164-2
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Buckwold and Kitunen‚ Canadian Income Taxation‚ 2010-2011 Ed. CHAPTER 10 INDIVIDUALS: DETERMINATION OF TAXABLE INCOME AND TAXES PAYABLE Review Questions 1. Briefly explain the difference‚ for individuals‚ between net income for tax purposes and taxable income. 2. Explain the difference between an allowable capital loss and a net capital loss. 3. Describe the tax treatment of net capital losses. 4. Explain how a non-capital loss is created and how it is treated for tax
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FINS3616 International Business Finance - Week 4 A. Conceptual questions 1. What is a forward exchange rate? 2. If the yen is selling at a premium relative to the euro in the forward market‚ is the forward price of EUR per JPY larger or smaller than the spot price of EUR per JPY? 3. If you are a U.S. firm and owe someone ¥10‚000‚000 in 180 days‚ what is your transaction exchange risk? 4. If the spot exchange rate of the yen relative to the dollar is ¥105.75‚ and the
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Chapter 4 15. For discrete compounding‚ to find the EAR‚ we use the equation: EAR = [1 + (APR / m)]m – 1 = .0719‚ or 7.19% EAR = [1 + (.07 / 4)]4 – 1 EAR = [1 + (.16 / 12)]12 – 1 = .1723‚ or 17.23% = .1163‚ or 11.63% EAR = [1 + (.11 / 365)]365 – 1 To find the EAR with continuous compounding‚ we use the equation: EAR = er – 1 EAR = e.12 – 1 = .1275‚ or 12.75% 23. Although the stock and bond accounts have different interest rates‚ we can draw one time line‚ but we need to remember to
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FUNDAMENTALS OF Corporate Finance Jonathan Berk Stanford University Peter DeMarzo Stanford University Jarrad Harford University of Washington ISBN 0-558-65200-X Fundamentals of Corporate Finance‚ by Jonathan Berk‚ Peter DeMarzo‚ and Jarrad Harford. Published by Prentice Hall. Copyright © 2009 by Pearson Education‚ Inc. Editor in Chief: Donna Battista Sr. Development Editor: Rebecca Ferris Market Development Manager: Dona Kenly Assistant Editors: Sara Holliday‚ Kerri McQueen Managing
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