@ finance assignments

week_7.xlsx

Instructions

			Instructions
NAME:
	To complete the homework assignments in the templates provided:
	1.	The question is provided for each problem. You may need to refer to your textbook for additional information in a few cases.
	2.	You will enter the required information into the shaded cells.
	3.	The cells are coded:
		a) T requires a text answer. Essay questions require references; use the textbook.
		b) C requires a calculation, using Excel formulas or functions. You cannot perform the operation on a calculator and then type the answer in the cell. You will enter the calculation in the cell, and only the final answer will show in the cell. I will be able to review your calculation and correct, if necessary.
		c) F requires a number only. In some problems, a “Step 1” is added to help you solve the problem.
		d) Formula requires a written formula, not the numbers. For example, the rate of return = [(1 + nominal)/ (1+inflation)]-1, or D (debt) + E (equity) = V (value).
	4.	Name your assignment file as "lastnamefirstinitial-FINC600-Week#", and submit by midnight ET, Day 7.

Problem 18-2
Table 18.11 (p. 484 and also provided below) gives abbreviated balance sheets and income statements for Estée Lauder Companies. Calculate the following ratios:
Answers:
	Ratio	Formula (in words)	Calculation	TIP: Interest rate - p. 468
a.	Return on assets	T	C
b.	Operating profit margin	T	C
c.	Sales-to-assets ratio	T	C
d,	Inventory turnover	T	C
e.	Debt–equity ratio	T	C
f.	Current ratio	T	C
g.	Quick ratio	T	C

Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.

Principles of Corporate Finance, Concise, 2nd Edition

	Problem 18-23
	Suppose that you wish to use financial ratios to estimate the risk of a company's stock. Which of those that we have described in this chapter are likely to be helpful? Can you think of other accounting measures of risk?
	Answer:
	T

Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.

Problem 19-11
If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid in the current quarter? In the following quarter? What if the delay is 60 days?
Step 1:
Worksheet - 30 day delay				Worksheet - 60 day delay
	Month of Purchase	Month for Payment			Month of Purchase	Month for Payment
2012 Qtr. 4	Dec	T		2012 Qtr. 4	Nov	T
2013 Qtr.1	Jan	T			Dec	T
	Feb	T		2013 Qtr.1	Jan	T
	Mar	T			Feb	T
2013 Qtr.2	Apr	T			Mar	T
	May	T		2013 Qtr.2	Apr	T
	Jun	T			May	T
2013 Qtr.3	Jul	T			Jun	T
	Aug	T		2013 Qtr.3	Jul	T
	Sep	T			Aug	T
2013 Qtr.4	Oct	T			Sep	T
	Nov	T		2013 Qtr.4	Oct	T
	Dec	T			Nov	T
					Dec	T
Step 2:
Answers:
30 day delay - Payment made at end of 2013 Qtr1
	Fraction from last quarter		F
	Fraction from this quarter		F
	Fraction for next quarter		F
60 day delay - Payment made at end of 2013 Qtr1
	Fraction from last quarter		F
	Fraction from this quarter		F
	Fraction for next quarter		F

Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.

	Problem 19-17
	Corporate financial plans are often used as a basis for judging subsequent performance. What do you think can be learned from such comparisons? What problems are likely to arise, and how might you cope with these problems?
	Answer:
	What do you think can be learned from such comparisons?
	T
	What problems are likely to arise, and how might you cope with these problems?
	T

Instructions: Please refer to your book for assistance with your homework. Post your work in the worksheet. Highlight your final answer.