1. FIN 516 Innovative Education-- snaptutorial.com

2. FIN 516 Week 1 Homework For more classes visit www.snaptutorial.com Problem 17-7 on Ex-dividend Price based on Chapter 17 Payout Policy Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsam’s board has decided to payout this cash as a one-time dividend.

3. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 1 Homework For more classes visit www.snaptutorial.com FIN 516 Week 1 Homework

4. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 2 Homework For more classes visit www.snaptutorial.com PROBLEM 14-11 BASED ON CHAPTER 14: WACC AND MODIGLIANI & MILLER EXTENSION MODELS WITH GROWTH ASSUMPTIONS Consider the entrepreneur described in Section 14.1 (and referenced in Tables 14.1–14.3). Suppose she funds the project by borrowing $750 rather than $500. a.According to MM Proposition I, what is the value of the equity? What are its cash flows if the economy is strong? What are its cash flows if the economy is weak?

5. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 2 Mini Case Assignment Coach Inc For more classes visit www.snaptutorial.com FIN 516 Week 2 Mini Case Assignment Coach Inc

6. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 3 Homework For more classes visit www.snaptutorial.com Problem 20-6 on Call Options based on Chapter 20 You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a.If the stock is trading at $55 in 3 months, what will be the payoff of the call? b.If the stock is trading at $35 in 3 months, what will be the payoff of the call?

7. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 3 HomeWork For more classes visit www.snaptutorial.com 1. (TCO B) In which of the following situations may taxpayers file as married filing jointly? (Becker CPA Review Course) 2. (TCO F) A business bad debt is deductible for tax purposes as a(n): 3. (TCO I) Which of the following is subject to the Uniform Capitalization Rules of Code Sec. 263A? (Becker CPA Review Course) 4. (TCO A) Which of the following does not constitute tax evasion? 5. (TCO C) Which of the following items is not subject to federal income tax?

8. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 4 Homework For more classes visit www.snaptutorial.com FIN 516 Week 4 Homework

9. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 4 Homework For more classes visit www.snaptutorial.com Problem 23-3 on Implied Price of Funding based on Chapter 23 Starware Software was founded last year to develop software for gaming applications. Initially, the founder invested $800,000 and received 8 million shares of stock. Starware now needs to raise a second round of capital, and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed.

10. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 5 Homework For more classes visit www.snaptutorial.com Problem 25-6 on Purchase versus Lease based on Chapter 25 Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be depreciated on a straight-line basis over 7 years. Craxton can lease the fabricator for $130,000 per year for 7 years. Craxton’s tax rate is 35%. (Assume the fabricator has no residual value at the end of the 7 years.)

11. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 5 HomeWork For more classes visit www.snaptutorial.com 1. (TCO E) For federal tax purposes, royalty income not derived in the ordinary course of a business is classified as: 2. (TCO F) When comparing corporate and individual taxation, the following statements are true, except: 3. (TCO H) Charles and Marcia are married cash-basis taxpayers. In Year 8, they had interest income as follows(Becker CPA Review Course): $500 interest on federal income tax refund.

12. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 5 IPO Paper For more classes visit www.snaptutorial.com FIN 516 Week 5 IPO Paper

13. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 5 Mandatory Problems For more classes visit www.snaptutorial.com Mandatory Problem 5-1 Smith Trucking Company (STC is evaluating a potential lease for a truck with a 4 year life that costs $40,000 and falls into the MACRS 3 year class. If the firm borrows and buys the truck, the loan rate would be 10%, and the loan would be amortized over the truck’s 4 year life, so the interest expense for taxes would decline over time. The loan payments would be made at the end of each year. The truck will be used for 4 years, at the end of which time it will be sold at an estimated residual value of $10,000.

14. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 6 Homework For more classes visit www.snaptutorial.com Problem 28-9 on Acquisition Analysis based on Chapter 28 Mergers and Acquisitions Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2, 1 million shares outstanding, and a price per share of $25. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction.

15. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 7 Homework For more classes visit www.snaptutorial.com FIN 516 Week 7 Homework

16. FIN 516 Innovative Education-- snaptutorial.com FIN 516 Week 7 Homework For more classes visit www.snaptutorial.com Problem 31-1 on Exchange Rates based on Chapter 31 International Corporate Finance (Excel file included) You are a U.S. investor who is trying to calculate the present value of a €5 million cash inflow that will occur 1 year in the future. The spot exchange rate is S = $1.25/€ and the forward rate is F1 = $1.215/€. You estimate that the appropriate dollar discount rate for this cash flow is 4% and the appropriate euro discount rate is 7%.

17. FIN 516 Innovative Education-- snaptutorial.com