#FIN 515 Week 7 Problem Set
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FIN 515 Week 7 Problem Set
http://fin515entirecourse.com/fin-515-week-7-problem-set
Chapter 26 (page 903):
Answer the following questions:
What is the difference between a firm’s cash cycle and its operating cycle?
How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal?
How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal?
The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: Calculate The Greek Connection’s net working capital in 2012. Calculate the cash conversion cycle of The Greek Connection in 2012.
The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had matched the industry average for accounts receivable days?
Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Chapter 27 (page 925):
Which of the following companies are likely to have high short-term financing needs? Why? A clothing retailer A professional sports team An electric utility A company that operates toll roads A restaurant chain
Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The fol
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FIN 515 WEEK 7 PROBLEM SET
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FIN 515 Week 7 Problem Set
Answer the following questions and solve the following problems in the space provided. When you are done, save the file in the format flastname_Week_7_Problem_Set.docx (where flastname is your first initial and your last name), and submit it to the appropriate Dropbox.
Chapter 26 (page 903):
1. Answer the following questions:
a. What is the difference between a firm’s cash cycle and its operating cycle?
b. How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal?
c. How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal?
4. The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below:
a. Calculate The Greek Connection’s net working capital in 2012.
b. Calculate the cash conversion cycle of The Greek Connection in 2012.
c. The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had matched the industry average for accounts receivable days?
5. Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Chapter 27 (page 925):
1. Which of the following companies are likely to have high short-term financing needs? Why?
a. A clothing retailer
b. A professional sports team
c. An electric utility
d. A company that operates toll roads
e. A restaurant chain
2. Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm’s seasonal working capital needs the greatest? When does it have surplus cash?
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DEVRY FIN 515 Week 7 Problem Set
Check this A+ tutorial guideline at
http://www.assignmentclick.com/fin-515-devry/fin-515-week-7-problem-set
For more classes visit
http://www.assignmentclick.com
Chapter 26 (page 903):
Answer the following questions:
What is the difference between a firm’s cash cycle and its operating cycle?
How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal?
How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal?
The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: Calculate The Greek Connection’s net working capital in 2012. Calculate the cash conversion cycle of The Greek Connection in 2012.
The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had matched the industry average for accounts receivable days?
Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Chapter 27 (page 925):
Which of the following companies are likely to have high short-term financing needs? Why? A clothing retailer A professional sports team An electric utility A company that operates toll roads A restaurant chain
Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm’s seasonal working capital needs the greatest? When does it have surplus cash?
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Link
DEVRY FIN 515 Week 7 Problem Set
Check this A+ tutorial guideline at
http://www.assignmentclick.com/fin-515-devry/fin-515-week-7-problem-set
For more classes visit
http://www.assignmentclick.com
FIN 515 Week 7 Problem Set
Chapter 26 (page 903):
Answer the following questions:
What is the difference between a firm’s cash cycle and its operating cycle?
How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal?
How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal?
The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: Calculate The Greek Connection’s net working capital in 2012. Calculate the cash conversion cycle of The Greek Connection in 2012.
The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had matched the industry average for accounts receivable days?
Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Chapter 27 (page 925):
Which of the following companies are likely to have high short-term financing needs? Why? A clothing retailer A professional sports team An electric utility A company that operates toll roads A restaurant chain
Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm’s seasonal working capital needs the greatest? When does it have surplus cash?
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Link
DEVRY FIN 515 Week 7 Problem Set
Check this A+ tutorial guideline at
http://www.assignmentclick.com/fin-515-devry/fin-515-week-7-problem-set
For more classes visit
http://www.assignmentclick.com
FIN 515 Week 7 Problem Set
Chapter 26 (page 903):
Answer the following questions:
What is the difference between a firm’s cash cycle and its operating cycle?
How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal?
How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal?
The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below: Calculate The Greek Connection’s net working capital in 2012. Calculate the cash conversion cycle of The Greek Connection in 2012.
The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had matched the industry average for accounts receivable days?
Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Chapter 27 (page 925):
Which of the following companies are likely to have high short-term financing needs? Why? A clothing retailer A professional sports team An electric utility A company that operates toll roads A restaurant chain
Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm’s seasonal working capital needs the greatest? When does it have surplus cash?
0 notes
Link
DEVRY FIN 515 Week 7 Problem Set
Check this A+ tutorial guideline at
http://www.assignmentcloud.com/fin-515-devry/fin-515-week-7-problem-set
For more classes visit
http://www.assignmentcloud.com
FIN 515 Week 7 Problem Set
Chapter 26 (page 903):
Answer the following questions:
What is the difference between a firm’s cash cycle and its operating cycle?
How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal?
How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal?
0 notes
Text
FIN 515 Week 7 Problem Set
FIN 515 Week 7 Problem Set
IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load
http://www.acehomework.net/?download=fin-515-week-7-problem-set
IF You Face Any Problem Then E Mail Us At [email protected]
DeVry ENGL 227 Week 8 Report
This report determines which career is the best option now for would-be employees and career shifters who want to try a different career path than what they have now. The changing economic times have pushed these people to question whether they are in the right profession or if there are other opportunities out there that they could embark on. Therefore, this report is a comparison between two career options, with a recommendation at the end of the report. Also discussed are the job descriptions, educational requirements, job competencies, work environment, and salaries of both jobs.
I hope you find this report satisfactory.
Sincerely yours,
CHOOSING CAREER OPTION: TECHNICAL WRITER VS. REGISTERED NURSE
Top of Form
o#`�L�B�
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FIN 515 Week 7 Problem Set
FIN 515 Week 7 Problem Set
IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load
http://www.acehomework.net/?download=fin-515-week-7-problem-set
IF You Face Any Problem Then E Mail Us At [email protected]
DeVry ENGL 227 Week 8 Report
This report determines which career is the best option now for would-be employees and career shifters who want to try a different career path than what they have now. The changing economic times have pushed these people to question whether they are in the right profession or if there are other opportunities out there that they could embark on. Therefore, this report is a comparison between two career options, with a recommendation at the end of the report. Also discussed are the job descriptions, educational requirements, job competencies, work environment, and salaries of both jobs.
I hope you find this report satisfactory.
Sincerely yours,
CHOOSING CAREER OPTION: TECHNICAL WRITER VS. REGISTERED NURSE
Top of Form
l> gV����
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Text
FIN 515 Week 7 Problem Set
http://www.homeworkwarehouse.com/downloads/fin-515-week-7-problem-set/
FIN 515 Week 7 Problem Set
1. Answer the following questions:
a. What is the difference between a firm’s cash cycle and its operating cycle?
b. How will a firm’s cash cycle be affected if a firm increases its inventory, all else being equal?
c. How will a firm’s cash cycle be affected if a firm begins to take the discounts offered by its suppliers, all else being equal?
4. The Greek Connection had sales of $32 million in 2012, and a cost of goods sold of $20 million. A simplified balance sheet for the firm appears below:
a. Calculate The Greek Connection’s net working capital in 2012.
b. Calculate the cash conversion cycle of The Greek Connection in 2012.
c. The industry average accounts receivable days is 30 days. What would the cash conversion cycle for The Greek Connection have been in 2012 if it had matched the industry average for accounts receivable days?
5. Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
1. Which of the following companies are likely to have high short-term financing needs? Why?
a. A clothing retailer
b. A professional sports team
c. An electric utility
d. A company that operates toll roads
e. A restaurant chain
2. Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current (month 0) working capital levels. During which months are the firm’s seasonal working capital needs the greatest? When does it have surplus cash?
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FIN 515 Week 3 Problem Set
http://fin515entirecourse.com/fin-515-week-3-problem-set
Chapter 7 (pages 225–228):
1. Your brother wants to borrow $10,000 from you. He has offered to pay you back $12,000 in a year. If the cost of capital of this investment opportunity is 10%, what is its NPV? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.
8. You are considering an investment in a clothes distributor. The company needs $100,000 today and expects to repay you $120,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 20%. What does the IRR rule say about whether you should invest?
19. You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5,000 and will be posted for one year. You expect that it will generate additional revenue of $500 per month. What is the payback period?
21. You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.5 million at the end of the first year and its revenues will grow at 2% per year for every year after that.
a. Which investment has the higher IRR?
b. Which investment has the higher NPV when the cost of capital is 7%?
c. In this case, for what values of the cost of capital does picking the higher IRR give the correct answer as to which investment is the best opportunity?
Chapter 8 (260–262)
1. Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $20 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 40% will come from customers who switch to the new, healthier pizza instead of buying the original version.
a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza?
b. Suppose that 50% of the customers who will switch from Pisa Pizza’s original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case?
6. Cellular Access, Inc. is a cellular telephone service provider that reported net income of $250 million for the most recent fiscal year. The firm had depreciation expenses of $100 million, capital expenditures of $200 million, and no interest expenses. Working capital increased by $10 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.
12. A bicycle manufacturer currently produces 300,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2 a chain. The plant manager believes that it would be cheaper to make thes
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FIN 515 WEEK 4 PROBLEM SET
To Download tutorial Copy and Paste below Link into your Browser
https://www.essayblue.com/downloads/fin-515-week-4-problem-set/
for any inquiry email us at ( [email protected] )
FIN 515 Week 4 Problem Set
Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years.
Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM?
Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond?
Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond?
Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for?
Bond-6. A given bond has five years left to maturity. Interest is paid annually and the annual coupon rate is 9%. The par value of the bond is $1,000. The bond currently sells for $1,000. What is the yield to maturity?
9-1.Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in 1 year, and its equity cost of capital is 15%. What price must you expect it to sell for right after paying the dividend in 1 year in order to justify its current price?
9-5.NoGrowth Corporation currently pays a dividend of $2 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year?
9-6.Summit Systems will pay a dividend of $1.50 this year. If you expect Summit’s dividend to grow by 6% per year, what is its price per share if its equity cost of capital is 11%?
9-7. Dorpac Corporation has a dividend yield of 1.5%. Dorpac’s equity cost of capital is 8%, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of Dorpac’s dividends? b. What is the expected growth rate of Dorpac’s share price?
9-12.Procter & Gamble will pay an annual dividend of $0.65 1 year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After then, growth will level off at 2% per year. According to the dividend-discount model, what is the value of a share of Procter & Gamble stock if the firm’s equity cost of capital is 8%?
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DEVRY FIN 515 Week 3 Problem Set
Check this A+ tutorial guideline at
http://www.assignmentclick.com/fin-515-devry/fin-515-week-3-problem-set
For more classes visit
http://www.assignmentclick.com
Chapter 7 (pages 225–228):
1. Your brother wants to borrow $10,000 from you. He has offered to pay you back $12,000 in a year. If the cost of capital of this investment opportunity is 10%, what is its NPV? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.
8. You are considering an investment in a clothes distributor. The company needs $100,000 today and expects to repay you $120,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 20%. What does the IRR rule say about whether you should invest?
19. You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $5,000 and will be posted for one year. You expect that it will generate additional revenue of $500 per month. What is the payback period?
21. You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.5 million at the end of the first year and its revenues will grow at 2% per year for every year after that.
· a. Which investment has the higher IRR?
· b. Which investment has the higher NPV when the cost of capital is 7%?
· c. In this case, for what values of the cost of capital does picking the higher IRR give the correct answer as to which investment is the best opportunity?
Chapter 8 (260–262)
1. Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $20 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 40% will come from customers who switch to the new, healthier pizza instead of buying the original version.
a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza?
b. Suppose that 50% of the customers who will switch from Pisa Pizza’s original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case?
6. Cellular Access, Inc. is a cellular telephone service provider that reported net income of $250 million for the most recent fiscal year. The firm had depreciation expenses of $100 million, capital expenditures of $200 million, and no interest expenses. Working capital increased by $10 million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.
12. A bicycle manufacturer currently produces 300,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1.50 per chain. The necessary machinery would cost $250,000 and would be obsolete after 10 years. This investment could be depreciated to zero for tax purposes using a 10-year straight-line depreciation schedule. The plant manager estimates that the operation would require $50,000 of inventory and other working capital upfront (year 0), but argues that this sum can be ignored because it is recoverable at the end of the 10 years. Expected proceeds from scrapping the machinery after 10 years are $20,000.
If the company pays tax at a rate of 35% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the chains in-house instead of purchasing them from the supplier?
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FIN 515 Week 7 Problem Set
FIN 515 Week 7 Problem Set
IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load
http://www.acehomework.net/?download=fin-515-week-7-problem-set
IF You Face Any Problem Then E Mail Us At [email protected]
DeVry ENGL 227 Week 8 Report
This report determines which career is the best option now for would-be employees and career shifters who want to try a different career path than what they have now. The changing economic times have pushed these people to question whether they are in the right profession or if there are other opportunities out there that they could embark on. Therefore, this report is a comparison between two career options, with a recommendation at the end of the report. Also discussed are the job descriptions, educational requirements, job competencies, work environment, and salaries of both jobs.
I hope you find this report satisfactory.
Sincerely yours,
CHOOSING CAREER OPTION: TECHNICAL WRITER VS. REGISTERED NURSE
Top of Form
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Text
FIN 515 Week 7 Problem Set
FIN 515 Week 7 Problem Set
IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load
http://www.acehomework.net/?download=fin-515-week-7-problem-set
IF You Face Any Problem Then E Mail Us At [email protected]
DeVry ENGL 227 Week 8 Report
This report determines which career is the best option now for would-be employees and career shifters who want to try a different career path than what they have now. The changing economic times have pushed these people to question whether they are in the right profession or if there are other opportunities out there that they could embark on. Therefore, this report is a comparison between two career options, with a recommendation at the end of the report. Also discussed are the job descriptions, educational requirements, job competencies, work environment, and salaries of both jobs.
I hope you find this report satisfactory.
Sincerely yours,
CHOOSING CAREER OPTION: TECHNICAL WRITER VS. REGISTERED NURSE
Top of Form
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DEVRY FIN 515 Week 4 Problem Set
Check this A+ tutorial guideline at
http://www.assignmentclick.com/fin-515-devry/fin-515-week-4-problem-set
For more classes visit
http://www.assignmentclick.com
Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years.
Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds are currently selling for $850. What is their YTM?
Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond?
Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments are $40 and are paid twice a year. Seven years are left on the life of the bond.The YTM is 9%. What is the price of the bond?
Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for?
Bond-6. A given bond has five years left to maturity. Interest is paid annually and the annual coupon rate is 9%. The par value of the bond is $1,000. The bond currently sells for $1,000. What is the yield to maturity?
9-1.Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in 1 year, and its equity cost of capital is 15%. What price must you expect it to sell for right after paying the dividend in 1 year in order to justify its current price?
9-5.NoGrowth Corporation currently pays a dividend of $2 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year?
9-6.Summit Systems will pay a dividend of $1.50 this year. If you expect Summit’s dividend to grow by 6% per year, what is its price per share if its equity cost of capital is 11%?
9-7. Dorpac Corporation has a dividend yield of 1.5%. Dorpac’s equity cost of capital is 8%, and its dividends are expected to grow at a constant rate. a. What is the expected growth rate of Dorpac’s dividends? b. What is the expected growth rate of Dorpac’s share price?
9-12.Procter & Gamble will pay an annual dividend of $0.65 1 year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After then, growth will level off at 2% per year. According to the dividend-discount model, what is the value of a share of Procter & Gamble stock if the firm’s equity cost of capital is 8%?
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FIN 515 Week 2 Problem Set
http://fin515entirecourse.com/fin-515-week-2-problem-set,
Chapter 4 (pages 132–136):
3. Calculate the future value of $2000 in
a. five years at an interest rate of 5% per year;
b. ten years at an interest rate of 5% per year; and
c. five years at an interest rate of 10% per year.
d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?
4. What is the present value of $10,000 received
a. twelve years from today when the interest rate is 4% per year;
b. twenty years from today when the interest rate is 8% per year; and
c. six years from today when the interest rate is 2% per year?
5. Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable?
6. Consider the following alternatives.
i. $100 received in 1 year
ii. $200 received in 5 years
iii. $300 received in 10 years
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