Find present value in Annuity Due
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16 | Find present value in Annuity Due |
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| N = 5 years, monthly payments |
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| Interest rate = 8%, compounded monthly |
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| PMT = -1000x(8%/12) |
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| FV = -1000 |
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| Compute PV |
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17 | Find present value in Ordinary annuity |
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| N = 30 years, monthly payments |
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| Interest rate = 8%, compounded monthly |
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| PMT = -850 |
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| FV = 0 |
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| Compute PV |
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| Questions 18-27 use the same data |
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18 | Mortgage - Find payment |
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| N = 20 years, monthly payments, starts at end of January |
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| Interest rate = 7%, compounded monthly |
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| PV = 350,000 |
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| FV = 0 |
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| Compute payment PMT |
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| P1 = 1 |
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| P2 = 12 |
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19 | Balance at end of December in first year |
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20 | Total Principal Repayment at end of first year |
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21 | Total Interest payments at end of first year |
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| P1 = 61 |
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| P2 = 72 |
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22 | Balance at end of December in 6th year |
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23 | Total Principal Repayment in 6th year |
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24 | Total Interest payments in 6th year |
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25 | Balance at end of December in 11th year |
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26 | Total Principal Repayment in 11th year |
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27 | Total Interest payments in 11th year |
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| Questions 28 - 31 use the same data |
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28 | Find Mortgage payment |
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| N = 30 years, monthly payment, Annuity Due |
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| Interest rate = 5.25%, compounded monthly |
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| PV = 200000 |
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| FV = 0 |
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| Compute PMT |
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| Amortization schedule after 10 years - Same data as Q28 |
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| P1 = 1 |
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| P2 = 120 |
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29 | Balance after 10 years of payments |
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30 | Total Principal Repayment after 10 years of payments |
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31 | Total interest payments after 10 years of payments |
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32 | Compute IRR using following data: |
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| CF0=-10000 |
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| CF1=2500 |
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| CF2=2500 |
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| CF3=3500 |
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| CF4=3500 |
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| CF5=5000 |
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33 | Compute NPV |
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| Same cash flows as Q32 |
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| Interest rate = 8% |
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Part II: Financial Statements Review (35 marks)
1. Build the Income Statement and Balance Sheet for CanDo Inc. based on the information given below, as of December 31, 2009.
Accounts payable | $141,000 |
Accounts receivable | $103,000 |
Cash and cash equivalents | $154,000 |
CoGS | $224,700 |
Common Stock | $1,286,000 |
Depreciation | $37,000 |
Dividend payout ratio | 40% |
Interest paid | $43,000 |
Inventory | $129,000 |
Long-term debt | $1,254,000 |
Net Fixed Assets | $2,530,000 |
Sales | $330,000 |
Short-term debt | $132,000 |
Tax rate | 35% |
Number of shares | 1,000,000 |
Price per share | $0.50 |
The following table presents the data for CanDo Inc. in as of December 31 2008:
Accounts payable | $104,000 |
Accounts receivable | $146,000 |
Cash and cash equivalents | $108,000 |
CoGS | $224,700 |
Common Stock | $1,286,000 |
Depreciation | $37,000 |
Dividend payout ratio | 40% |
Interest paid | $43,000 |
Inventory | $123,000 |
Long-term debt | $1,254,000 |
Net Fixed Assets | $2,467,000 |
Sales | $330,000 |
Short-term debt | $106,867 |
Tax rate | 35% |
Calculate the following financial ratios for CanDo Inc. in the fiscal year of 2009:
a. Interval measure
b. Total debt ratio
c. Long-term debt ratio
d. Price-earnings (P/E) ratio
e. Market-to-book ratio
12 years ago
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