財(cái)務(wù)管理雙語(yǔ)課后練習(xí)答案

財(cái)務(wù)管理雙語(yǔ)部分課后練習(xí)答案

2-7a.Calculationofgrossincome:

2000

Salary$60,000

DividendIncome10,000

InterestIncome(IBMbondsonly)5,000

STcapitalgains1.000=$22,000-$21,000

GrossIncome(excludingLTcapitalgains)$76、000

LTcapitalgains=$22,000-$9,000=13,000

**LTCapitalgainstaxrate=20%.

Nottaxed:S1(),(XX)interestonFloridamunicipalbonds

Calculationoftaxableincome:

GrossIncome$76,000

Exemption(2,750)

Deductions(5、000)

TaxableIncome(excludingLTcapitalgains)$68,250

Personaltax=Taxontaxableincome(excludingLTcapitalgains)+LTcapitalgainstax

=[$14,138.5+($68,250-$62,450)(0.31)+$13,000(0.2)

=[$14,138.5+$1,798]+$2,600

=$18,536.50

b.Marginaltaxrate=31%.

Averagetaxrate=$18,536.50/($68,250+$13,000)=22.8%.

c.After-taxreturns:

IBM=(0.11)-(0.31)(0.11)=7.59%

FLA=(0.09)-0=9.-30%

TheFloridabondsprovideahigherafler-taxreturn.

d.9%=U%(1-T).NowsolveforT:

9%=11%-11%T

11%T=2

T2/11=18.18%.

Atataxratelessthan18.2percent,Margaretwouldbebetteroffholding11percenttaxablebonds,butat

ataxrateover18.2percent,shewouldbebetteroffholdingtax-exemptmunicipalbonds.Givenour

progressivetaxratesystem,itmakessenseforwealthypeopletoholdtax-exemptbonds,butnotfbrthose

withlowerincomesandconsequentlylowertaxrates.

2-8a.Salaryandincome:9

Donald'ssalary$50,000.0

Interestfrombonds2,500.0

Incomefromrentalproperty42,000.0=$3,500x12months

Adjustedincome$94.500.0

Expenses,exemptions,anddeductions:

Exemptions=2X$2,750$5,500.0

Interestonmortgages、18,000.0

Plumbingexpenses。L250.0

Totalexpensesanddeductions$24.750.0

Taxableincome$69,750.0

Taxes=$6457.5+($69,750-$43,050)X0.28=$13,933.50

aWecouldhaveincludedMaryanne'ssalaryinthissection,butthenwewouldhavehadtorecognizethe

amountsheearnedasanexpenseassociatedwiththerentalproperty.Becausethetwoitemscanceleach

other,weneednotincludethemhere.Also,weignoreemploymenttaxesinthisproblem.

bTheamountoftheinterestandpropertytaxespaidonbothhousesistaxdeductible.

cOnlytheplumbingexpenseassociatedwiththerentalpropertyistaxdeductiblebecauseitwasincurred

inthegenerationofbusinessrevenues.Suchpersonalexpensesarenotdeductible.

b.Salaryandincome:

Donald'ssalary$50,000.0

Interestfrombonds2,500.0

Acljustedincome$52,500.()

Expenses,exemptions,anddeductions:

Exemptions=2X$2,750$5,500.0

Interestonmortgages35,350.0

Totalexpensesanddeductions$10850.0

Taxableincome$41,650.0

Taxes=$0+$41,650X(0.15)=$6,247.50

aOnlytheamountofinterestandpropertytaxespaidonthecouple'sresidenceisapplicable.

c.Expensesincurredtogeneratebusinessincomearetaxdeductible,butpersonalexpensesarenot.Thecost

offixingtheplumbingintherentalhousewouldbeconsideredabusinessexpense,butthecostoffixing

theplumbingintheJefferson'sownhousewouldbeconsideredapersonalexpense.

3-2a.Industry

CampsevAverage

Currentassets_$655,000

1.98x2.0x

Currentliabilities$330,000

Accountsreceivable_$336,000

75.0days35.0days

Sales/360一$4,465.28

Costofgoodssold$1,353,00()

5.60x5.6x

Inventories$241,500

Sales_$1,607,500

1.70x3.0x

Totalassets$947,500

Nelincome_$27,300

1.7%1.2%

Sales-$l,607,500

Netincome_$27,300

2.9%3.6%

Totalassets$947,500

Netincome_$27,300

7.6%9.0%

Commonequity$361,000

Totaldebt_$586,500

61.9%60.0%

Totalassets$947,500

b.ForCampsey,ROA=PMxTAturnover=1.7%x1.7=2.9%.

Fortheindustry,ROA=1.2%x3.0=3.6%.

Campsey'sdayssalesoutstandingismorethantwiceaslongastheindustryaverage,indicatingthatthe

firmshouldtightencreditorenforceamorestringentcollectionpolicy.Thetotalassetsturnoverratioiswell

belowtheindustryaveragesosalesshouldbeincreased,assetsdecreased,orboth.WhileCampsey'sprofit

marginishigherthantheindustryaverage,itsotherprofitabilityratiosarelowcomparedtotheindustry—net

incomeshouldbehighergiventheamountofequityandassets.However,thecompanyseemstobeinan

averageliquiditypositionandfinancialleverageissimilartoothersintheindustry.

d.If2005representsaperiodofsupernormalgrowthforCampsey,ratiosbasedonthisyearwillbe

distortedandacomparisonbetweenthemandindustryaverageswillhavelittlemeaning.Potentialinvestors

wholookonlyat2005ratioswillbemisled,andareturntonormalconditionsin2006couldhurtthefirm's

stockprice.

3-4a.FinnertyIndustry

FurnitureAverage

Currentassets_$303

2.73x2.0x

Currentliabilities$111

Debt_Debt_$135

30.00%30.0%

ratioTotalassets$450

TimesinterestEBIT$49.5

ll.OOx7.0x

earnedInterest$4.5

Inventory.Costofgoodssold_$6604.15x8.5x

turnoverInventories$159

DsoAccountsreceivable$66

29.89days24.0days

Sales/360-$795/360

Fixedassets_Sales_$795

5.41x6.0x

turnoverFixedassets5147

Totalassets_Sales_$7951.77x3.0x

turnoverTotalassets$450

Netprofit_Netincome_$27

3.40%3.0%

margin-Sales-$795

Returnon_Netincome_$27

6.00%9.0%

totalassetsTotalassets$450

Returnon_Netinconr_$27

8..57%12.9%

equityTotalequity$315

b.ROA=ProfitmarginxTotalassetsturnover

NetincomeSales

----------------x----------------

SalesTotalassets

$27$795

一$795$450

=3.4%x1.77=6.0%

FinnertyIndustryComment

Profitmargin3.4%3.0%Good

Totalassetsturnover1.8x3.0xPoor

Returnontotalassets6.0%9.0%Poor

c.AnalysisoftheDuPontequationandthesetofratiosshowsthattheturnoverratioofsalestoassetsis

quitelow.Eithersalesshouldbeincreasedatthepresentlevelofassets,orthecurrentlevelofassetsshould

bedecreasedtobemoreinlinewithcurrentsales.Thus,theproblemappearstobeinthebalancesheet

accounts.

d.Thecomparisonofinventoryturnoverratiosshowsthatotherfirmsintheindustryseemtobegetting

alongwithabouthalfasmuchinventoryperunitofsalesasFinnerty.IfFinnerty'sinventorycouldbereduced

thiswouldgeneratefundsthatcouldbeusedtoretiredebt,thusreducinginterestchargesandimproving

profits,andstrengtheningthedebtposition.Theremightalsobesomeexcessinvestmentinfixedassets,

perhapsindicativeofexcesscapacity,asshownbyaslightlylowerthanaveragefixedassetsturnoverratio.

However,thisisnotnearlyasclear-cutastheover-investmentininventory.

e.IfFinnertyhadasharpseasonalsalespattern,orifitgrewrapidlyduringtheyear,manyratiosmightbe

distorted.Ratiosinvolvingcash,receivables,inventories,andcurrentliabilities,aswellasthosebasedon

sales,profits,andcommonequity,couldbebiased.Itispossibletocorrectforsuchproblemsbyusing

averageratherthanend-of-periodfigures.

4-2a.NosoTextiles

ProFormaIncomeStatement

December31,2005

($thousands)

ProForma

2005(1+2)2006

Sales$36,000(1.15)$41,400

Operatingcosts(32,440)(1.15)(37,306)

EBIT$3,560$4094

Interest(560)(560)

EBT$3,000$3,534

Taxes(40%)(L200)(1414)

Netincome$L80Q$2-20

Dividends(45%)$810$954

AdditiontoRE$990$1.166

NosoTextiles

ProFormaBalanceSheet

December31,2005

($thousands)

2005(1+2)AdditionsProFormaFinancina

Cash$1,080(1.15)$1,242S

Accountsreceivable6,480(1.15)7,452

Inventories9.000(1.15)10,350

Totalcurr.assets$16,560$19,044$

Fixedassets12,600(1.15)14,490

Totalassets$29,160$33,534$

Accountspayable$4,320(1.15)$4,968s

Accruals2,880(1.15)3,312

Notespayable2.1002,100+2,128

Totalcurrentliabilities$9,300$10,380$

Long-termdebt3,5003,500

Totaldebt$12,800$13,880$

Commonstock3,5003,500

Retainedearnings12.8661,166*14,026

Totalliab.andequity$29.160$31.406$

AFN=$2.128

4-6a.5,000units12,000units

Income($45/unit)$225,000$540,000

Variablecosts($20/unit)(100,000)(240,000)

Fixedcosts(175、000)(175000)

Gain(loss)$(50.000)$125,000

F_$175,000

QopBEp_y$25-=7,(XX)units

SOPBE=7,000X$45=$315,000.

nciGrossprofit$10,800*.

4-3a.DOL=--------------=----------=2.5x

EBIT$4,320

門小EBIT$4,32054,320..

DFL=----------=--------------------=---------=3.0x

EBIT-I$4,320-$2,880$1,440

mGrossprofit$10,800$10,800

EBIT-I-$4,320-$2,880一$1,440

b.DOL=2.5;soforevery1percentchangeinsales,EBITwillchangeby2.5percent.DFL=3.0;sofor

every1percentchangeinEBIT,EPSwillchangeby3.0percent.Coiribiningthesetwoleverages,wehave

DTL=7.5;soforevery1percentchangeinsales,EPSwillchangeby7.5percent(2.5X3.0).Forexample,

ifVanAukcn'ssalesdecreaseby2percent,EBITwilldecreaseby5percent(operatingleverage),andthis

5percentdeclineinEBITwillresultina15percentdecreaseinEPS(financialleverage).Incombination,

then,leveragewillcausea15percentdecreaseinEPSwhensalesdecreaseby2percent,andviceversa.

c.VanAukencanreduceitstotalleveragebyreducingthedegreeofoperatingleverage,thedegreeof

financialleverage,orboth.Allelseequal,thecompanycanreduceitsdegreeofoperatingleverageby

reducingfixedoperatingcosts,decreasingthevariablecostratio,orbyincreasingthesellingpricesofthe

products.Thedegreeoffinancialleveragecanbereducedbydecreasingfixedfinancialcosts,suchas

interestandpreferreddividends.

4-5a.8.000units18,000unils

Sales($25/watch)$200,000$450,000

Variablecosts($15/watch)(120,0(X))(27(),000)

Fixedcosts(140,000)(14Q000)

Gain(loss)60.000)$40,000

小F$140,000r2門.

b.QcnRF=------=------------=14,000units

Y°PBEp_v$io

SOPBE=QxP=(14,000)($25)=$350,000.

FC=140,000,SOPBE=350,000,QOPBE=14,000.

八8,000($25-$15)$80,000

=-133

“Lnns8,000($25-$15)-$140,000-$60,000

_18,000($25-$15)_$180,000

=4.5

DOL電娘wunusi8,000($25-$15)-$140,000$40,000

d.Ifthesellingpricerisesto$31,whilethevariablecostperunitremainsfixed,P-Vincreasesto$16.

_^$?,0units

QYOoppBE=p_y=$]6=875

SopBE=QXP=(8,750)(531)=$271,250.

Thebreakevenpointdropsto8,750units.ThefirmnowhaslessoperatingleveragethanunderPartsaandb;hence,

thevariabilityinthefirm'sprofitstreamhasbeendecreased,buttheopponunityformagnifiedprofitshasalsobeen

decreased.

e.Ifthesellingpricerisesto$31andthevariablecostperunitrisesto$23,P-Vfallsto$8.

小F$140,000

QOPBE=^7^=―—=17,500units

SOPBE=QxP=(17,500)($31)=$542,500.

Thebreakevenpointincreasesto17,500units.ThefirmnowhasmoreoperatingleveragethanunderPartsaandb.

4-6a.5,000units12200units

Income($45/unit)$225,000$540,000

Variablecosts($20/unit)(100,(XX))(240,000)

Fixedcosts(175000)(175.000)

Gain(loss)$(50,000)$125.000

,cF$175,0007nm.

QopRF-pv-$25-7,000units

SOPBE=7,000x$45=$315,000.

c.4,000($45-$20)=$100,000whichfallsshortofcoveringallfixedcharges.However,thefirm'scashflow

coverscashfixedchargesof$65,000byawidemargin.

CreditorsareadvisedtobewillingtoacceptlatepaymentsfromDellva.Thecompanygeneratessufficientcashto

payitscashfixedcharges.

4-7a.EBITFinBE=$2,000

EBIT$2,000

Interest(2,000)

Earningsbeforetaxes0

Taxes(40%)0

Netincome$0

EPS=$0/1,000=$0

$4,500

b.DFL=即b二=1.8x

EBIT-I$4,500-2,000

Every1percentchangeinEBITwillresultina1.8percentchangeinEPS.

c.EBITRHBE=$2,000+5600=$2,000+$1,000=$3,000

1-0.40

EBIT$3,000

Interest(2,000)

Earningsbeforetaxes1,000

Taxes(40%)(400)

Netincome$600

Preferreddividends(600)

Earningsavailabletocommonstockholders

EPS=$0/1,000=$0

5-2a.kM=0.1(10%)+0.2(12%)+0.4(13%)+0.2(16%)+0.1(17%)=13.5%.

b.Todeterminethefund'sbeta,BF,theweightfortheamountinvestedineachstockneedstobe

computed.

A=$160/5500=0.32

B=$120/$500=0.24

C=$80/$500=0.16

D=$80/$500=0.16

E=$60/$500=0.12

BF=0.32(0.5)+0.24(2.0)+0.16(4.0)+0.16(1.0)+0.12(3.0)

=0.16+0.48+0.64+0.16+0.36=1.8.

c.RRF=8%(given)

Therefore,theSMLequationis

kF=kRH+(kM-kRH)BF=8%+(13.5%-8%)BH=8%+(5.5%)即.

d.UseBF=1.8intheSMLdeterminedinPartb:

kF=8%+(13.5%-8%)1.8=8%+9.90%=17.90%.

e.kN=Requiredrateofreturnonnewstock=8%+(5.5%)2.0=19%.

Anexpectedreturnof18percentonthenewstockisbelowthe19percentrequiredrateofreturn

onaninvestmentwithariskofB=2.0.BecausekN=19%>kN=18%,thenewstockshouldnot

bepurchased.TheexpectedrateofreturnthatwouldmakeMcAlhanyindifferenttopurchasing

thestockis19percent.

5-5a.kY=0.1(-35%)+0.2(0%)+0.4(20%)+0.2(25%)+0.1(45%)=14%

kx=12%

b.或=(-10%-12%)2(0.1)+(2%-12%)2(0.2)+(12%-12%)2(0.4)

+(20%-12%)2(0.2)+(38%-12%)2(0.1)=148.8

Ox=7148.8=12.20%

OY=20.35%

CVX=12.20%/12%=1.02

CVy=20.35%/14%=1.45.

5-81.Oldportfoliobeta=1.12=(0.05)6]+(0.05)%+…+(0.05)B2o

1.12=(SBj)(0.05)

EBj=1.12/0.05=22.4=20(1.12)

Newportfoliobeta=(22.4-1.0+1.75)/20=1.1575=1.16

2.LBjexcludingthestockwiththebetaequalto1.0is22.4-1.0=21.4,sothebetaof

theportfolioexcludingthisstockisB=21.4/19=1.1263.Thebetaofthenew

portfoliois:

1.1263(0.95)+1.75(0.05)=1.1575=1.16

6-16a.012341617181920Periods

-600-600-600-600-600-600-600-600-600

(1)Dealer's''specialfinancingpackage”

r=4%/4=1%,t=5x4=20,

PVA=600X(P/A,l%,20)=600X18.0456=10827.36

SoSarahmustuse$2,172.64=$13,000-$10,827.36ofthe$3,000inhercheckingaccountifthe

dealer'sfinancingisused.

(2)Bankloan

r=12%/4=3%,t=5x4=20,

PVA=600X(P/A,3%,20)=600X14.8775=8926.48

ThedifferencebetweenthisamountandthePVAofthedealer's''specialfinancingpackage”is

$1,900.86=$10,827.36-$8,926.50,soSarahwouldhavetonegotiateareductioninthestickerprice

equalto$1,901tomakethebankfinancingmoreattractivethanthedealer'sfinancing.

6-17Informationgiven:

1.Janetwillsavefor40yearsat7percentcompoundedannually,thenretire.

2.Whensheretires,Janetwantstotakeatriparoundtheworldatacostof$120,000.

3.Afterthetrip,Janetwantstoreceivepaymentsequalto$70,000peryear,andthese

paymentsareexpectedtolastfor20years.

4.Uponretirement,Janet'sfundswillearn5percentcompoundedannually.

ThecashflowtimelineforJanetis:

012340

7%05%121920

-PMT-PMT-PMT-PMT

120z000Trip

70,00070,00070,00070,000

FVA4O=7OOOOX(P/AZ5%Z2O)+12OOOO

=7000X12.4622+120000

=992354

=AX(F/A,7%,40)

=AX199.64

A=4970.72^4971

Janetneedstocontribute$4,971eachyearfor40yearstomeetherretirementgo