财务管理双语课程作业(英文题目)

1：Chapter2,P35,Q5

BookValuesversusMarketValuesUnderstandaccountingrules,itispossibleforacompany’sliabilitiestoexceeditsassets.Whenthisoccurs,theowner’sequityisnegative.Canthishappenwithmarketvalues?Whyorwhynot?

2：Chapter3,P71,Q1

FinancialRationAnalysisAfinancialratiobyitselftellsuslittleaboutacompanysincefinancialratiosvaryagreatdealacrossindustries.Therearetwobasicmethodsforanalyzingfinancialratiosforacompany:timetrendanalysisandpeergroupanalysis.Whymighteachoftheseanalysismethodsbeuseful?Whatdoeseachtellyouaboutthecompany’sfinancialhealth?

3：Chapter4,P103,Q3

PresentValueSupposetwoathletessign10-yearcontractsfor$80million.Inonecase,we’retoldthatthe$80millionwillbepaidin10equalinstallments.Intheothercase,we’retoldthatthe$80millionwillbepaidin10installments,buttheinstallmentswillincreaseby5percentperyear.Whogotthebetterdeal?

4：Chapter5,P135,Q17

BondPricesversusYields

WhatistherelationshipbetweenthepriceofabondanditsYTM?

Explainwhysomebondssellatapremiumoverparvaluewhileotherbondssellatadiscount.WhatdoyouknowabouttherelationshipbetweenthecouponrateandtheYTMforpremiumbonds?Whataboutfordiscountbonds?Forbondssellingatparvalue?

WhatistherelationshipbetweenthecurrentyieldandYTMforpremiumbonds?Fordiscountbonds?Forbondssellingatparvalue?

5：Chapter6,P166,Q4

DividendGrowthModelUnderwhattwoassumptionscanweusethedividendgrowthmodelpresentedinthechaptertodeterminethevalueofashareofstock?Commentonthereasonablenessoftheseassumptions.

6：Chapter7,P193,

PaybackandInternalRateofReturnAprojecthasperpetualcashflowsofcperperiod,acostofl,andarequiredreturnofR.Pleasedefining:a)Paybackperiod

b)Internalrateofreturn

c)Netpresentvalue

Whatistherelationshipbetweentheproject’spaybackanditsIRR?Whatimplicationsdoesyouranswerhaveforlong-livedprojectswithrelativelyconstantcashflows？

7：Chapter8,P214,Q2

IncrementalCashFlowsWhichofthefollowingshouldbetreatedasanincrementalcashflowwhencomputingtheNPVofaninvestment?

Areductionofthesalesofacompany’sotherproductscausedbytheinvestment.

Anexpenditureonplantandequipmentthathasnotyetbeenmadeandwillbemadeonlyiftheprojectisaccepted.

Costsofresearchanddevelopmentundertakeninconnectionwiththeproductduringthepastthreeyears.

Annualdepreciationexpensefromtheinvestment.

Dividendpaymentsbythefirm.

Theresalevalueofplantandequipmentattheendoftheproject’slife.

Salaryandmedicalcostsforproductionpersonnelwhowillbeemployedonlyiftheprojectisaccepted.

8：Chapter8,

Theinformationofaprojectasfollowing(i=10%),

Year1

Year2

Year3

Year4

Sales

7,000

7,000

7,000

7,000

Costs

2,000

2,000

2,000

2,000

Depreciation

2,500

2,500

2,500

2,500

EBT

Tax

850

850

850

850

Netincome

OCF

0

Capitalspending

10,000

0

0

0

0

NetWorkingCaptial

–200

–250

–300

–200

950

Incrementalcashflow

Please:a)Finishthetable

b)CalculatetheNPV

c)CalculatetheIRR

d)Criticallyevaluatethisproject.

9：Chapter9,

Acompanyinvestment1,500,000(＄)toaprojectinthefirstyear,andtheprojectcanbeoperatedabout5years.Therevenueandthevariablecostseachyearoftheprojectasfollowing(I=13%):

Pessimistic

Expected

Optimistic

Revenue

2,783,000

3,600,000

4,387,500

Variablecosts

1,742,400

2,100,000

2,386,800

Fixedcosts

850,000

800,000

750,000

Depreciation

300,000

300,000

300,000

EBT

Tax

–43,760

160,000

380,280

Netincome

OCF

Thecompanyshouldaccepttheproject?

10：Chapter12,P310,Q6

SMLCostofEquityEstimationWhataretheadvantagesofusingtheSMLapproachtofindingthecostofequitycapital?Whatarethedisadvantages?Whatarethespecificpiecesofinformationneededtousethismethod?Areallofthesevariableobservable,ordotheyneedtobeestimated?Whataresomeofthewaysinwhichyoucouldgettheseestimates?

11：Chapter13,P340,Q10

EfficientMarketHypothesisForeachofthefollowingscenarios,discusswhetherprofitopportunitiesexistfromtradinginthestockofthefirmundertheconditionsthat(1)themarketisnotweakformefficient,(2)themarketisweakformbutnotsemistrongformefficient,(3)themarketissemistrongformbutnotstrongformefficient,and(4)themarketisstrongformefficient.

Thestockpricehasrisensteadilyeachdayforthepast30days.

Thefinancialstatementforacompanywerereleasedthreedaysago,andyoubelieveyou’veuncoveredsomeanomaliesinthecompany’sinventoryandcostcontrolreportingtechniquesthatarecausingthefirm’strueliquiditystrengthtobeunderstated.

Youobservethattheseniormanagementofacompanyhasbeenbuyingalotofthecompany’sstockontheopenmarketoverthepastweek.

Usethefollowinginformationforthenexttwoquestions:

Technicalanalysisisacontroversialinvestmentpractice.Technicalanalysiscoversawidearrayoftechniques,whichareallusedinanattempttopredictthedirectionofaparticularstock,orthemarket.Technicalanalystslookattwomajortypesofinformation:historicalstockpricesandinvestorsentiment.Atechnicalanalystwo