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kaplan 550 unit 4 assignments




Question;GB550: Financial ManagementThere are two Assignments due in Unit 4.Assignment 1 of 2:Complete Chapter 25 question, 25-1, p. 1005Complete Chapter 25 problem, 25-2, p. 1007Prepare this Assignment as a Word document. List each question, followed by your answer.Directions for Submitting Assignment 1Compose your Assignment in a MS Word document and save it as Username-GB550 Assignment 1-Unit#.doc (Example: TAllen- GB550 Assignment 1-Unit 4.doc). Submit your file by selecting the Unit 4: Assignment 1 Dropbox by the end of Unit 4.Assignment 2 of 2:Please complete all parts of spreadsheet problem 2-15 on page 89. It is recommended that you complete the problem using the Excel template located in Doc Sharing.Directions for Submitting Assignment 2Compose your Assignment in a MS Excel document and save it as Username-GB550 Assignment 2-Unit#.doc (Example: TAllen- GB550 Assignment 2-Unit 4.doc). Submit your file by selecting the Unit 4: Assignment 2 Dropbox by the end of Unit 4.Assignment 125-1) Define the following terms, using graphs or equations to illustrateyour answers wherever feasible: a) Portfolio, feasible set, efficient portfolio, efficient frontierb) Indifference curve, optimal portfolioc) Capital Asset Pricing Model (CAPM), Capital Market Line (CML)d) Characteristic line, beta coeffiecient, be) Arbitrage Pricing Theory (APT)25-2) An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free is 6%, the expected return on the first factor (r1) is 12%, and the expected return on the second factor (r2) is 8%. If bi1=0.7 and bi2-0.9, what is Crisp's required return?Assignment 2problem 2-15 on page 89a. Using the financial statements shown below, calculate net;operating working capital, total net operating capital, net operating profit;after taxes, free cash flow, and return on invested capital for the most;recent year.;Lan;Chen Technologies: Income Statements for Year Ending December 31;(Thousands of Dollars);2013;2012;Sales;$945,000;$900,000;Expenses;excluding depreciation and amortization;812,700;774,000;EBITDA;$132,300;$126,000;Depreciation;and amortization;33,100;31,500;EBIT;$99,200;$94,500;Interest;Expense;10,470;8,600;EBT;$88,730;$85,900;Taxes (40%);35,492;34,360;Net income;$53,238;$51,540;Common;dividends;$43,300;$41,230;Addition;to retained earnings;$9,938;$10,310;Lan;Chen Technologies: December 31 Balance Sheets;(Thousands;of Dollars);Assets;2013;2012;Cash and cash equivalents;$47,250;$45,000;Short-term investments;3,800;3,600;Accounts Receivable;283,500;270,000;Inventories;141,750;135,000;Total current assets;$476,300;$453,600;Net fixed assets;330,750;315,000;Total assets;$807,050;$768,600;Liabilities and equity;Accounts payable;$94,500;$90,000;Accruals;47,250;45,000;Notes payable;26,262;9,000;Total current liabilities;$168,012;$144,000;Long-term debt;94,500;90,000;Total liabilities;$262,512;$234,000;Common stock;444,600;444,600;Retained Earnings;99,938;90,000;Total common equity;$544,538;$534,600;Total liabilities and equity;$807,050;$768,600;Key Input Data;Tax rate;40%;Net;operating working capital;2013;NOWC =;Operating current assets;-;Operating current liabilities;2013;NOWC =;-;2013;NOWC =;2012;NOWC =;Operating current assets;-;Operating current liabilities;2012;NOWC =;-;2012;NOWC =;Total;net operating capital;2013;TOC =;NOWC;+;Fixed assets;2013;TOC =;+;2013;TOC =;2012;TOC =;NOWC;+;Fixed assets;2012;TOC =;+;2012;TOC =;Investment;in total net operating capital;2013;2012;2013;Inv. In TOC =;TOC;-;TOC;2013;Inv. In TOC =;-;2013;Inv. In TOC =;Net operating profit after taxes;2013;NOPAT =;EBIT;x;(1 - T);2013;NOPAT =;x;2013;NOPAT =;Free cash flow;2013;FCF =;NOPAT;-;Net investment in;operating capital;2013;FCF =;-;2013;FCF =;Return on invested capital;2013;ROIC =;NOPAT;/;Total net operating;capital;2013;ROIC =;/;2013;ROIC =;b. Assume that there were 15 million shares outstanding at the;end of the year, the year-end closing stock price was $65 per share, and the;after-tax cost of capital was 8%. Calculate EVA and MVA for the most recent;year.;Additional Input Data;Stock;price per share;$65.00;#;of shares (in thousands);15,000;After-tax;cost of capital;8.0%;Market Value Added;MVA =;Stock price;x;# of shares;-;Total common equity;MVA =;x;-;MVA =;-;MVA =;Economic Value Added;EVA =;NOPAT;-;(Operating Capital;x;After-tax cost of;capital);EVA =;-;x;EVA =;-;EVA =


Paper#51248 | Written in 18-Jul-2015

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