Description
2.Problem 6-4 External financing [LO1]
Antivirus, Inc., expects its sales
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How much external financing will
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External funds needed
|
$
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5.Problem 6-10 Optimal policy mix [LO5]
Assume that Hogan Surgical Instruments
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(a)
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Compute the anticipated return
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Anticipated return
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(b)
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Compute the anticipated return
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Anticipated return
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(c)
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Compute the anticipated return
|
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Anticipated
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Low liquidity
|
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High liquidity
|
|
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8.Problem 6-14 Conservative versus aggressive
financing [LO5]
Collins Systems, Inc., is trying
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(a)
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Construct two alternative
|
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Total
|
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Conservative
|
$
|
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Aggressive
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$
|
|
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(b)
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Given that Collins’s earnings
|
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Earning
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Conservative
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$
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Aggressive
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$
|
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rev: 09_29_2011
10.Problem 6-16 Expectations hypothesis and
interest rates [LO4]
Using the expectations hypothesis
|
|
1-year T-bill at
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1-year T-bill at beginning
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1-year T-bill at
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1-year T-bill at
|
|
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Expected
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2 year security
|
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3 year security
|
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4 year security
|
|
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11.Problem 6-18 Interest costs under alternative
plans [LO3]
Carmen’s Beauty Salon has
|
|
|
|
|
|
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January
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$
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8,400
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April
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$
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8,400
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February
|
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2,400
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May
|
|
9,400
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March
|
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3,400
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June
|
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4,400
|
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Short-term financing will be
|
|
|
|
|
|
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January
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8.0
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%
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April
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15.0
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%
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February
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9.0
|
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May
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12.0
|
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March
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12.0
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June
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12.0
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|
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(a)
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Compute total dollar interest
|
Total dollar interest
|
$
|
(b-1)
|
Compute the total dollar interest
|
Total dollar interest
|
$
|
(b-2)
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If long-term financing at 12
|
|
|
rev: 12_14_2012
14.Problem 6-13 Impact of term structure of
interest rates on financing plan [LO4]
Winfrey Diet Food Corp. has
|
|
|
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Temporary current
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$
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2,100,000
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Permanent current
|
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1,555,000
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Fixed assets
|
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1,395,000
|
|
||
Total
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$
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5,050,000
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|
||
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Short-term rates are 14 percent.
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What will earnings after taxes
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Earnings after taxes
|
$
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rev: 03-18-2011,
04-18-2012, 06_23_2012
15.Problem 7-2 Cost-benefit analysis of cash
management [LO2]
Neon Light Company of Kansas City
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(a)
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If Neon Light Company has $2.65
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Freed-up funds
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$
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(b)
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If Neon Light Company can earn 9
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Interest on freed-up
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$
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(c)
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If the total cost of the new
|
|
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17.Problem 7-10 Determination of credit sales
[LO4]
Mervyn’s Fine Fashions has an
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Credit sales
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$
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