Fundamentals of Financial Management (Concise 6th Edition)

A-26 Appendix B Answers to Selected End-of-Chapter Problems

12-6 E(NPV)! $3,000,000; σNPV! $23.622 mil-

lion; CV! 7.874

12-8 b. #$126,000

c. $42,518; $47,579; $85,628

d. NPV! $10,841; Purchase

12-10 Yes, NPV! $22,329.39.

12-12 NPV 5! $2,211; NPV 4!

#$2,081; NPV 8! $13,329;

E(NPV)! $4,486.46

12-14 a. #$98,500

b. CF 1! $46,675; CF 2! $52,975;

CF 3! $37,225; CF 4! $33,025;

CF 5! $22,850

c. Yes, NPV! $34,073.20.

13-2 30% debt and 70% equity

13-4 bU! 1.0435

13-6 a(1). #$60,000

a(2). $40,000

b. QBE! 14,000

c. QBE! 8,750

d. QBE! 17,500

13-8 rs! 17%

13-10 a. FCA! $80,000; VA! $4.80/unit;

PA! $8.00/unit; FCB! $120,000;

VB! $4.00/unit; PB! $8.00/unit

b. Firm B

c. 50,000 units

13-12 a. EPSOld! $2.04; New: EPSD! $4.74

and EPSS! $3.27

b. 339,750 units

c. QOld! 316,957 units; QNew, Debt!

272,250 units; QNew, Stock! 204,750 units

14-2 P 0! $60

14-4 D 0! $3.44

14-6 Payout! 31.39%

14-8 a. 12%

b. 18%

c. g! 6%; rs! 18%

d. 6%

e. 28,800 new shares; $0.13 per share

15-2 73 days; 30 days; $1,178,082

15-4 a. 83 days

b. $356,250

c. 4.87$

15-6 a. 32 days

b. $288,000

c. $45,000

d(1). 30

d(2). $378,000

15-8 a. ROET! 11.75%; ROEM! 10.80%;

ROER! 9.16%

15-10 a. Oct. loan! $22,800

16-2 AFN! $610,000

16-4 a. $133.50 million

b. 39.06%

16-6 $67 million; 5.01$

16-8 a. $480,000

b. $18,750

16-10 $34.338 million; 34.97! 35 days

16-12 a. $2,500,000,000

b. 24%

c. $24,000,000

16-14 a. 33%

b. NP! $3,553.2; Bonds! $6,598.8;

Stock! $2,514; RE! $28,284

17-2 29.7143 yen per shekel

17-4 1 euro! $1.6 or $1! 0.625 euro

17-8 12 kronas per pound

17-10 rNOM-U.S.! 4.6%

17-12 a. Discount

b. $1.9985

17-14 "$500,000

17-16 $586,046,512