某公司理财课后题答案（英文版）(共46页).doc

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Assets
Currentassets
Cash
$4,000
Accountsreceivable
8,000
Totalcurrentassets
$12,000
Fixedassets
Machinery
$34,000
Patents
82,000
Totalfixedassets
$116,000
Totalassets
$128,000
Liabilitiesandequity
Currentliabilities
Accountspayable
$6,000
Taxespayable
2,000
Totalcurrentliabilities
$8,000
Long-termliabilities
Bondspayable
$7,000
Stockholdersequity
Commonstock($100par)
$88,000
Capitalsurplus
19,000
Retainedearnings
6,000
Totalstockholdersequity
$113,000
Totalliabilitiesandequity
$128,000

Oneyearago
Today
Long-termdebt
$50,000,000
$50,000,000
Preferredstock
30,000,000
30,000,000
Commonstock
100,000,000
110,000,000
Retainedearnings
20,000,000
22,000,000
Total
$200,000,000
$212,000,000

TotalCashFlowof
theStancilCompany
Cashflowsfromthefirm
Capitalspending
$(1,000)
Additionstoworkingcapital
(4,000)
Total
$(5,000)
Cashflowstoinvestorsofthefirm
Short-termdebt
$(6,000)
Long-termdebt
(20,000)
Equity(Dividend-Financing)
21,000
Total
$(5,000)
[Note:Thistableisn’ttheStatementofCashFlows,whichisonlycoveredinAppendix2B,sincethelatterhasthechangeincash(onthebalancesheet)asafinalentry.]
a. Thechangesinnetworkingcapitalcanbecomputedfrom:
Sourcesofnetworkingcapital
Netincome
$100
Depreciation
50
Increasesinlong-termdebt
75
Totalsources
$225
Usesofnetworkingcapital
Dividends
$50
Increasesinfixedassets*
150
Totaluses
$200
Additionstonetworkingcapital
$25
*Includes$50ofdepreciation.
b.
Cashflowfromthefirm
Operatingcashflow
$150
Capitalspending
(150)
Additionstonetworkingcapital
(25)
Total
$(25)
Cashflowtotheinvestors
Debt
$(75)
Equity
50
Total
$(25)
Chapter3:FinancialMarketsandNetPresentValue:FirstPrinciplesofFinance(Advanced)
$120,000-($150,000-$100,000)()=$65,000
$40,000+($50,000-$20,000)()=$73,600
a. ($7million+$3million)()=$
b.
$10millionbyborrowing$5milliontoday.
$[=$11million-($)]att=1.
Chapter4:NetPresentValue
a. $1,000´=$1,
b. $1,000´=$1,
c. $1,000´=$2,
d. ,theinterestearned inpartc,$1,,ismorethandoubletheamountearnedinparta,$.
Sincethisbondhasnointerimcouponpayments,itspresentvalueissimplythepresentvalueofthe$1,:Aswillbediscussedinthenextchapter,thepresentvalueofthepaymentsassociatedwithabondisthepriceofthatbond.
PV=$1,000/=$
PV=$1,500,000/=$187,
a. Atadiscountrateofzero,thefuturevalueandpresentvaluearealwaysthesame. Remember,FV=PV(1+r)=0,thentheformulareducestoFV=PV. Therefore,thevaluesoftheoptionsare$10,000and$20,000, shouldchoosethesecondoption.
b. Optionone: $10,000/=$9,
Optiontwo: $20,000/=$12,
Choosethesecondoption.
c. Optionone: $10,000/=$8,
Optiontwo: $20,000/=$8,
Choosethefirstoption.
d. %and20%.
$10,000/(1+r)=$20,000/(1+r)5
(1+r)4=$20,000/$10,000=2
1+r=
r==%
The$1,$1,000thatyouplaceintheaccountattheendofthesecondyearwillearninterestforfiveyears,,theaccountwillhaveabalanceof
$1,000()6+$1,000()5+$1,000()4+$1,000()3
=$6,
PV=$5,000,000/=$1,609,
a. $()3=$1,
b. $1,000[1+()]2´3=$1,000()6=$1,
c. $1,000[1+()]12´3=$1,000()36=$1,
d. $1,´3=$1,
e. ,theinterestisaddedtotheaccountbalanceatthe ,theaccountearns ,thebalance thatearnsinterestisrisingfaster.
=$120/=$800
a. $1,000/=$10,000
b. $500/=$5,,thevalueoftheperpetuityis$5,000/=$4,.
c. $2,420/=$24,200isthevaluetwoyearsfromnowoftheperpetualstream. Thus,thevalueoftheperpetuityis$24,200/=$20,000.
.
NPV =-$6,200+$1,200
=-$6,200+$1,200()
=$
Yes,youshouldbuytheasset.
,,theannuityfactorwillgiveyouthevalueattheendofyeartwoofthestreamofpayments.
Valueattheendofyeartwo =$2,000 =$2,000()
=$19,
Thepresentvalueissimplythatamountdiscountedbacktwoyears.
PV=$19,=$16,
$12,800/$2,000=;rememberPV=,%,,therateyouwillreceiveonthisnoteisslightlymorethan9%.
Youcanfindamorepreciseanswerbyinterpolatingbetweennineandtenpercent.
[10% ù[ù
aér úb cé ïd
ë9%ûëû
Byinterpolating,youarepresumingthattheratioofatobisequaltotheratioofctod.
(9-r)/(9-10)=(-)/(-)
r=%
%.
[Note:Astandardfinancialcalculator’,theIRRkeyon“advanced”financialcalculatorsisunnecessary.]
a. TheannuityamountcanbecomputedbyfirstcalculatingthePVofthe$25,000 $17,[=$25,000/]. Nextcomputetheannuitywhichhasthesamepresentvalue.
$17, =C
$17, =C()
C =$4,
Thus,putting$4,%accounteachyearwillprovide$25,000five yearsfromtoday.
b. Thelumpsumpaymentmustbethepresentvalueofthe$25,000,.,$25,000/ =$17,
Theformulaforfuturevalueofanyannuitycanbeusedtosolvetheproblem(see footnote11ofthetext).
Optionone:,youmustusetheafter--taxpaymentis$160,000(1-)=$115,,thenaddbackthefirstpaymentof$115,200toobtainthevalueofthisoption.
Value =$115,200+$115,200
=$115,200+$115,200()
=$1,201,
Optiontwo:$446,000now;thisisalreadyonanafter-$101,,soyourafter-taxpaymentis$72,[=$101,055(1-)].
Value =$446,000+$72,
=$446,000+$72,()
=$1,131,
SinceoptiononehasahigherPV,youshouldchooseit.
Letrbetherateofinterestyoumustearn.
$10,000(1+r)12 =$80,000
(1+r)12 =8
r ==%
Firstcomputethepresentvalueofallthepaymentsyoumustmakeforyourchildren’’seducationis
$21,000=$21,000()=$59,955.
Thisisthevalueoftheelderchild’’
PV =$59,955/+$59,955/
=$14,
Youwanttomakefifteenequalpaymentsintoanaccountthatyields15%sothatthepresentvalueoftheequalpaymentsis$14,.
Payment=$14,/=$14,=$2,

$50,000()2()=$1,.
PV =$1,[1/(-)-{1/(-)}{}40]
=$21,
Thisisthepresentvalueofthepayments,sothevaluefortyyearsfromtodayis
$21,()=$457,
$1,,,(=-).
Year
CashFlow
Factor
PV
1
$700

$
2
900


3
1,000
ù
4
1,000
ú

2,
5
1,000
ú
6
1,000
û
7
1,250


8
1,375


Total
$5,
NPV =-$5,000+$5,
=$
Purchasethemachine.
Chapter5:HowtoValueBondsandStocks
Theamountofthesemi-annualinterestpaymentis$40(=$1,000´).Therearea totalof40periods;.,twohalfyearsineachofthetwentyyearsinthetermtomaturity. useisthesemi-,for partbtheratetobeusedis5%andforpartcisit3%.PV=C+F/(1+r)40
a. $40()+$1,000/=$1,000
Noticethatwheneverthecouponrateandthemarketratearethesame,thebondis pricedatpar.
b. $40()+$1,000/=$
Noticethatwheneverthecouponrateisbelowthemarketrate,thebondispriced belowpar.
c. $40()+$1,000/=$1,
Noticethatwheneverthecouponrateisabovethemarketrate,thebondispriced abovepar.
a. Thesemi-annualinterestrateis$60/$1,000=,-1==%.
b. Price=$30+$1,000/
=$
c. Price=$30+$1,000/
=$
Note:,theyieldinyear5appliesforyear6aswell.
Price=$2()/+$4()/+$50/
=$
Thenumberofsharesyouown=$100,000/$=2,754shares
Price=$()/+$()/+$()/
+{$()()/(-)}/
=$
[Insertbeforelastsentenceofquestion:Assumethatdividendsareafixedproportionofearnings.]
Dividendoneyearfromnow=$5(1-)=$
Price=$5+$/{-(-)}
=$
Sincethecurrent$5dividendhasnotyetbeenpaid,itisstillincludedinthestockprice.
Chapter6:SomeAlternativeInvestmentRules
a. PaybackperiodofProjectA=1+($7,500-$4,000)/$3,500=2years
PaybackperiodofProjectB=2+($5,000-$2,500-$1,200)/$3,000=
ProjectAshouldbechosen.
b. NPVA=-$7,500+$4,000/+$3,500/+$1,500/=-$
NPVB=-$5,000+$2,500/+$1,200/+$3,000/=$
ProjectBshouldbechosen.
a. AverageInvestment:
($16,000+$12,000+$8,000+$4,000+0)/5=$8,000
Averageaccountingreturn:
$4,500/$8,000==%
b. 1. AARdoesnotconsiderthetimingofthecashflows,henceitdoesnot considerthetimevalueofmoney.
2. AARusesanarbitraryfirmstandardasthedecisionrule.
3. AARusesaccountingdataratherthannetcashflows.
a
AverageInvestment=(8000+4000+1500+0)/4=
AverageNetIncome=2000(1-)=1500
=>AAR=1500/3375=%
. Solvexbytrialanderror:
-$8,000+$4,000/(1+x)+$3000/(1+x)2+$2,000/(1+x)3=0
x=%
b. No,sincetheIRR(%)islessthanthediscountrateof8%.
Alternatively,******@=-$.
a. Solverintheequation:
$5,000-$2,500/(1+r)-$2,000/(1+r)2-$1,000/(1+r)3
-$1,000/(1+r)4=0
Bytrialanderror,
IRR=r=%
b. Sincethisproblemisthecaseoffinancing,accepttheprojectiftheIRRislessthan therequiredrateofreturn.
IRR=%>10%
Rejecttheoffer.
c. IRR=%<20%
Accepttheoffer.
d. Whenr=10%:
NPV=$5,000-$2,500/-$2,000/-$1,000/-$1,000/
=-$
Whenr=20%:
NPV=$5,000-$2,500/-$2,000/-$1,000/-$1,000/
=$
Yes,theyareconsistentwiththechoicesoftheIRRrulesincethesignsofthecash flowschangeonlyonce.
PI=$40,000/$160,000=
SincethePIexceedsoneaccepttheproject.
Chapter7:NetPresentValueandCap