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Principles of Finance. TA Discussion #1 September 7, 2018 Yangcheng Chen Email: chen278@uwm.edu Office hours: S445 Thursday 2pm-4pm. Points for exams and assignments. Points for exams and assignments. Required Materials. Text book (e book), LearnSmart , and Connect assignments.
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Principles of Finance TA Discussion #1 September 7, 2018 Yangcheng Chen Email: chen278@uwm.edu Office hours: S445 Thursday 2pm-4pm
Required Materials • Text book (e book), LearnSmart, and Connect assignments. ---Get the e book with assignments for $100 using McGraw-Hill Campus on D2L. And you can print the chapters at no cost. ---Go to e campus and get a 16-digit code to access the e book, Connect, and LearnSmart for $157.14. • Financial Calculator.
McGraw-Hill Connect Finance Click Here
McGraw-Hill Connect Finance Click Here!
Assignments 1. LearnSmart (total 14 × 10 for each=140) 2. Assignment (total 14 × 5 for each=70)
Financial Calculators TI BA II Plus TI BA II Professional HP-10B
Q1 • Suppose you own stock in a company. The current price per share is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company’s management immediately begins fighting off this hostile bid. Is management acting in the shareholders’ best interests? Why or why not?
Q2 Belyk Paving Co. had the following results for the current year: Sales: $2,350,000 COGS: $1,295,000 Admin and Selling Exp: $530,000 Depreciation Expense: $420,000 Interest Expense: $245,000 Tax Rate 35%
a. What is Belyk’s net income? • b. What is its operating cash flow? • c. Explain your results in (a) and (b).
Q3 • Titan Football Manufacturing had the following operating results for 2016: Sales: $28,476 COGS: $20,136 Depreciation Expense: $3,408 Interest Expense: $497 Dividends Paid: $739 Tax Rate 40%
What is net income for 2016? • b. What is the operating cash flow for 2016? • c. What is the cash flow from assets for 2016? Is this possible? Explain.
Q4 • Sam wants to find the best mix of long term debt and equity. His financial concern primarily involves which of the following? • Capital budgeting • Capital structure • Working capital management • Agency problems