For Questions 1 through 6, please use the following information: Princess Tools Inc 2014 2015 sales 5800 6500 cogs 3670 4038 current liabilities 703 1055 depreciation 125 122 cash 270 300 accounts receivable 1045 1234 net fixed assets 3008 3342 inventory 1474 1533 interest 290 200 taxes 600 680 common stock 2400 2600 long term debt 2500 1200 Dividends 100 100 1. What is the Cash Flow to Creditors for 2015? 2. What is the Cash Flow to Stock Holders for 2015? 3. What is the Cash flow From Assets for 2015? 4. What is the Operating Cash Flow for 2015? 5. What is the Net Capital Spending for 2015? 6. What is the Change in Net Working Capital for 2015? Questions 7 through 10 are based on the following tax rate information: Taxable Income Tax Rate 0 - 50,000 15% 50,001 - 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39% 7. Last year, Kicking Karate earned 121,000 in pretax income. How much is its tax liability? 8. What was Kicking Karates Average Tax rate? 9. What was Kicking Karates Marginal Tax rate?

If Kicking Karate had made an additional 20,000 last year, how much more would it have had to pay in taxes? Questions 10 and 11 are based on the following: Caspers ghosts Inc. bought new cloaking equipment 5 years ago for $8 million. The machinery can be sold to the Ghostbusters today for $4.2 million. Caspers current balance sheet lists the following values for Net Fixed Assets, Current Liabilities and Net Working Capital respectively: 3.1 million, 1.2 million, and 500,000. The company recently received a cash offer of 1.7 million for all its current assets. 11. What is the book value of Assets? 12. What is the market value of Assets? 13. Table Tops management is having a major data security problem. Someone deleted the depreciation expense number and they need it urgently. They provide you the following data: Sales: 40,000 costs: 15,000 addition to Retained Earnings: 4,000 Dividends: 1,200 Interest Expense: 2300 Tax rate: 40% Depreciation expense: ??? Chapter 3. Questions 1 and 2 correspond to the following data: Surfer girls Inc. had sales of 20,000, Assets of 15,000, and Debt of 6,000 and a profit margin of 7%. 1. What is the ROA? 2. What is the ROE? Questions 3 and 4 correspond to the following information: Roofmaster Inc. has a total debt ratio of .4 3. What is its Debt Equity ratio? 4. What is its Equity Multiplier? Questions 5 and 6 use the following information: A business has $4,620 in total debt and its debt-equity ratio is 0.60 5. What is the value of its assets? 6. What is the value of its equity?

7: 1. The company issued 20 year bonds, 3 years ago at a 7% coupon rate. The bonds make interest payments semi-annual. If investors require a 10% return, how much should the bonds sell for? 2. Armadillo Construction company issued 10% coupon bonds at par for 15yrs to finance its international expansion. The bonds make semi-annual payments. After the issuance, interest rates rose 2%. What is the percentage change in price of the bonds? 3. Jackson Enterprise issued 10 years bonds at a 5% coupon rate. The bonds make payments semi- annually. If they currently sell for 946.80, what is the yield to maturity? 4. Warren Buffet forecasts his portfolio to earn 12% next year. At the same time, the Fed forecasts inflation will be 5%. Assuming both parties are right, what is the real rate? Chapter 8:

1. How much will you pay for a share of Cookie Makers stock knowing the company just paid a dividend of $.80 plans to grow it by 5% a year forever and you require a 10% return?

2. According to Google finance, Global Runners Inc. has a dividend yield of 5%. Last year, the company paid a dividend of $1.50 and plans to pay $1.75 this year. This dividend growth rate is expected to continue at this level. What is investors required return?

3. Jacks Construction Inc shares sell for $40 and offer a dividend that grows by 4% every year. According to market analysts, the rate of return on this stock is 8%. What was the last dividend paid?

4. Jet Green Airlines is a start-up company with a very specific dividend plan for its investors. It plans to pay out $2.00, $2.25, and $2.50 dividend amounts for the next three years. Then, the dividend payment will be set constant to $3 per share. If the market requires a 10% return on this stock, how much should investors pay for the stock?

5. Jakes Dog Paradise store recently incorporated last year. The company has been extremely profitable and plans on paying high dividends over the next few years before stabilizing growth. The forecasted dividends will be $3.00, $3.50, and $4.00 over the next three years. The plan is to then increase the dividend by 3% a year, indefinitely. Assuming investors require an 8% return on this stock, what is the value of one share? 6. Iguana Enterprises is going down. Last year, it paid a dividend of $1.20. The company will have to reduce the dividends by 10% a year, forever. If you require an 8% return, how much will you pay for one share of this stock? 3 Owl Tutoring Inc. 2015