have a question on part B question 1 & 2

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Faculty of Business, Economics & Accounting Department of Accounting and Finance HELP Bachelor of Business (Hons) Year 2 HELP Bachelor of Management (Hons) Year 2 HELP Bachelor of Tourism Management (Hons) Year 2 INTERNAL SUBJECT DETAILS Semester 1, 2016 Subject: FIN 202 Financial Management Subject Lecturer/Tutor: Mr Selvanadan Telephone: 603- 2716 2000 Fax: 603- 2093 5311 Email: mselvanadan@help.edu.my Consultation: By appointment PRE-REQUISITE (S) ACC101 ACC103 FINANCIAL ACCOUNTING 1 MANAGEMENT ACCOUNTING 1 SYNOPSIS Managing a business requires one to develop good knowledge on the concept of business, forms and organisations of business, business strategy, financial management methods, allocation of capital and control of an organisation. OBJECTIVES Upon completion of this subject, students should be able to: To enable students to explain the role and purpose of financial management; To enable students to demonstrate an understanding of the primary issues in the formulation of a financial strategy; To prepare students for the challenge of managing the working capital requirement profitably; To enable students to evaluate various sources of finance; To give students a good understanding of how firms undertake investment appraisals; To enable students to evaluate investment risks and returns using CAPM and Portfolio Theory; To prepare students on how to evaluate mergers and acquisitions, and To enable students to undertake appropriate valuation of shares and bonds. 2 TOPICS Topic 1 - Introduction to financial management and the taxation system. Development of financial management Financial goal of the firm Financial decisions and risk-return relationships Business environment and legal forms of business organizations Income tax on companies and shareholders Implications of income tax and capital-gains tax on rates of return Topic 2 - The financial markets. Role of financial markets Components of the financial markets Flow of funds through financial markets Market prices and market efficiency Corporate credit ratings and risk-return trade-off Topic 3 - Financial mathematics Why cash flows are important The time value of money Opportunity cost Present value and annuities Solving problems in financial mathematics Topic 4 - Valuation of bonds and shares Definitions of value Market efficiency and behavioural finance Valuation: the basic process Bond valuation Preference share valuation Valuation of ordinary shares Topic 5 - Risk and rates of return Rates of return in financial markets Risk-return trade-off Expected return and investors required rates of return Risk reduction through diversification Topic 6 - Capital budgeting concepts and methods Principles for selecting capital budgeting criteria Discounted cash flow criteria Role of taxation in capital budgeting Non-discounted cash flow criteria in capital budgeting Ethics in capital budgeting Topic 7 - Issues in capital budgeting Guidelines for identifying a project's incremental costs and benefits Applying discounted cash flow techniques Complications in capital budgeting 3 Topic 8 - Risk in capital budgeting Risk and the investment decision Methods for incorporating risk into the required rate of return Other approaches to evaluating risk Topic 9 - Sources of short-term finance Managing current assets and current liabilities Sources of short-term finances Choosing short-term finance Topic 10 - Cost of capital Concept of the cost of capital Factors determining the weighted average cost of capital(WACC) Assumptions of the WACC Computing the WACC Topic 11 - Long-term debt finance Bonds, debentures and notes Term loans and leases The lease or buy decision Hire-purchase financing Topic 12 - Equity financing Equity and other classes of finance Ordinary and preference shares Convertible securities Capital management and hybrid capital Topic 13 - Capital structure Business and financial risk Break-even analysis Operating leverage and financial leverage EBIT-EPS analysis Capital structure theories and practices Other factors affecting financing mix Topic 14 - Dividend policy Three basic views of dividend policy Factors affecting dividend policy Dividend decision in practice Bonus shares and share splits Share buybacks. 4 PRESCRIBED TEXT Lawrence J. Gitman and Chad J. Zutter (2015) Principles of Managerial Finance, 14th edn, Pearson. RECOMMENDED REFERENCES Annie K., Ser-Keng A., Eugene F. Brigham and Michael C. Enrhardt (2014) Financial Management - Theory and Practice, Asia edn. CENGAGE Learning. William R. Lasher. (2013) Financial Management- A Practical Approach, 7th edn, CENGAGE Learning. Sheridan Titman, Arthur J. Keown and John D. Martin (2015) Financial Management - Principles and Applications, 12th edn. Pearson, Prentice Hall. Megginson,W., Smart,S. and Graham, J. (2010) Financial Management, 3rd edn, SouthWestern, CENGAGE Learning. James R. McGuigan, R. Charles Moyer, Ramesh Rao and William J. Kretlow (2012) Contemporary Corporate Finance, 12th edn. South Western CENGAGE Learning. 5 Subject Outline / Teaching Plan Department Lecturer : Accounting & Finance : Selvanadan Muniappan Week Subject Code : FIN 202 Subject Title : Financial Management Topics References 1 Introduction to financial management and the financial statement and cash flow analysis Chapter 1,2 & 3 2 Financial mathematics - the time value of money Chapter 5 3 Valuation of bonds and shares Chapter 6 & 7 4 Trade-off between risk and return and Capital Asset Chapter 8 Pricing Model 5 Capital Budgeting Processes and Techniques Chapter 10 6 Capital budgeting and cash flow also project risk Chapter 11 & 12 7 Mid-term & Break 8 Cost of Capital Chapter 9 9 Short-Term Financing Decisions Chapter 15 & 16 10 An overview of long-term financing sources Chapter 13 11 Capital Structure Chapter 13 12 Dividend Payout Policy Chapter 14 13 Long-term debt and Leasing decisions Chapter 17 14 - 15 Final Examination Textbook: Lawrence J. Gitman and Chad J. Zutter (2015) Principles of Managerial Finance, 14th edn, Pearson. 6 ASSESSMENT: There are 3 assessment items for this subject. Assessment Items Value Due Date 1. Mid Semester Test 15% Week 7 (5/03/2016 to 12/03/2016) - Date to be confirmed 2. Assignment 15% 4 April, 2016 3. Final Examination (Closed Book) 70% Examination period: 23 April - 7 May 2016** REQUIREMENTS: To gain a pass in this subject, students must: Achieve a passing grade in the final examination i.e. score a minimum of 35 marks out of 70 marks if there is an examination for this subject. Attempt ALL areas of assessment; and achieve a total result of 50% or better overall. If students did not attempt any areas of assessment they would be deemed to have failed the subject. ** - Please check on the notice board and My Acel for the actual date. HELP University reserves the right to make any changes to the above where appropriate. 7 ASSIGNMENT QUESTIONS Answer ALL questions Due date: Value: Monday 4 April, 2016 15% Rationale This assignment covers Weeks 1 - 10, and builds on previous work. Criteria Where necessary, state any assumptions you have made. Please note that assumptions have to be valid. Assignments should show all workings and students will be penalised for failing to do this. You will be assessed on: your understanding of the problem; choice of method for solving the problem; application of techniques. ANSWER ALL QUESTIONS Part A Question 1 (10 marks) a. Explain what is meant by the time value of money and why a bird in the hand is worth two or more in the bush. Which capital budgeting approach(es) ignores this concept? b. Why cannot the accounting rate of return be used as a reliable capital budgeting technique? What are its advantages? Question 2 (10 marks) a. Use the following information to calculate the cost of capital for TLC Ltd, on the assumption that investors can remove all unsystematic risk by diversification. The systematic risk of TLC Ltd's equity is 0.80; The risk free rate is 10%; The expected rate of return on the market portfolio is 15%; 8 The sources of funds used by TLC Ltd and their respective market values are as follows: Source of Funds Debt (par value $100) Equity Market Value ($m) 1 3 b. The interest rate on the debt is 11% paid annually. The debt, which is due to mature in eight years' time, has a current market price of $111. The company tax rate is 30%. Under what assumptions is the cost of capital you have calculated for TLC Ltd in (a) appropriate for a proposed project? Question 3 (10 marks) TLC Ltd at present only sells on a cash basis and it averages $50,000 of sales per month, with associated (variable) expenses of $40,000. It is thought that all customers would accept an offer of 90 day (three month) free credit terms and that the company's monthly sales would increase to $55,000 and its associated expenses to $44,000. TLC Ltd's required rate of return is 1% per month. a. Assuming that there are no costs associated with providing credit, will TLC Ltd benefit from offering such credit terms? b. If expenses remain at 80% of sales, what would the increase in sales need to be in order to justify the provision of these credit terms? Question 4(A) (5 marks) Currently Hambleton Ales dividends are growing by 10% pa and this is expected to continue for another two years. After that time they are expected to grow by 8% pa for the next two years, and then by 6% every year. Next year's dividend is expected to be $0.80, and the appropriate discount rate is 12%. If you have $20,700 to invest, how many shares can you buy in Hambleton Ales? Question 4(B) (5 marks) Two years ago Batlow Ltd. issued at par, bonds with a face value of $1,000 and a maturity of 8 years. The bonds have a coupon interest rate of 8%, paid semi-annually. a. If the current yield is 7.5%, what is the value of a Batlow bond today? b. If the expected yield in 3 years' time is 9%, what will be the price of a Batlow bond at that time? 9 Question 5 (10 marks) Comment on the following statements: i. 'If after all your calculations you tell me that there is a high probability that the share's price will vary between $4.50 and $9.60, I can make a fortune by buying the share at $4.50 and selling when it reaches $9.60.' ii. 'I don't care how high the price may go, all that worries me is whether or not I will make a loss.' iii. 'Expected return and standard deviation are of no interest to me, all I want to know is what my investment will be worth one year from now.' Part B (50 marks) Case study This case is intended to be an introduction to the various methods used in capital budgeting and looks at some of the decisions that may have to be made when evaluating projects. It is also designed to develop skills in using spreadsheets. You should set up a spreadsheet at the start to help analyse the problems. When using a spreadsheet, any tables that you wish to present to the reader should be embedded into a Word document as an ordinary table. Note, however, that you must still show how an answer is obtained, for example, you must show in Q5 how the NPV was derived, not simply give the final answer. Archer Juices, Inc Archer Juices is a leading juice producer who distributes unfranked dividends to its shareholders. The firm was founded in 1968 by Charles Archer who had spent several years in Australia and who was convinced that his country could produce juices that were as good as or better than the best Australia had to offer. Originally, Archer sold his juice to wholesalers for distribution under their brand names, but in the early 1970s, when juice sales were expanding rapidly, he joined with several other producers to form Archer Juices, which then began an aggressive promotion campaign. Today, its juices are sold throughout the country. Archer's management is currently evaluating a potential new product; a light, fruity juice designed to appeal to the younger generation. The new product, Bulgong Gold, would be positioned between the various juice coolers and the traditional drinks. The new product would cost more than juice coolers, but less than premium table drinks, and in market research samplings at the company's Bulgong headquarters, it was judged superior to various competing products. Jan Armstrong, the Chief Financial Officer, must analyse this project, along with other potential investments, and then present her findings to the company's executive committee. Production facilities for the new juice product would be set up in an unused section of Archer's main plant. Relatively inexpensive, used machinery with an estimated cost of only $500,000 would be purchased, but shipping costs to move the machinery to 10 Archer's plant would total $40,000, and installation charges would add another $60,000 to the total equipment cost. Further, Archer's inventories would have to be increased by $20,000, and this cash flow is assumed to occur at the time of the initial investment. The machinery has a remaining economic life of 4 years and the country's Tax Office ruling will allow Archer Juices to claim the following annual depreciation allowances: Year 1: Year 3: 33% 15% Year 2: Year 4: 45% 7% The machinery is expected to have a salvage value of $50,000 after 4 years of use. The section of the plant in which production would occur has not been used for several years, and consequently had suffered some deterioration. Last year, as part of a routine facilities improvement program, Archer spent $200,000 to rehabilitate that section of the main plant. Rufus Smith, the chief accountant, believes that this outlay, which has already been paid and expensed for tax purposes, should be charged to the juice project. His contention is that if the rehabilitation had not taken place, the firm would have had to spend the $200,000 to make the site suitable for the juice project. Archer's management expects to sell 200,000 bottles of the new juice product in each of the next 4 years, at a wholesale price of $4 per bottle, but $3 per bottle would be needed to cover fixed and variable cash operating costs. In examining the sales figures, Armstrong noted a short memo from Archer's sales manager which expressed concern that the juice project would cut into the firm's sales of juice coolers - this type of effect is called an externality (or opportunity cost). Specifically, the sales manager estimated that juice cooler sales would fall by 5 percent if the new juice were introduced. Armstrong then talked to both the sales and production managers, and she concluded that the new project would probably lower the firm's juice cooler sales by $40,000 per year, but, at the same time, it would also reduce production costs for this product by $20,000 per year, all on a pre-tax basis. Thus, the net externality effect would be $40,000 + $20,000 = -$20,000. Archer's effective tax rate is 40 percent, and its overall cost of capital is 10 percent, calculated as follows: E D R E R D (1 TC ) V V 1 1 (0.152) (0.08)(1 0.40) 2 2 0.10 10% WACC Now assume that you are Armstrong's assistant and she has asked you to analyse the project and then to present your findings in a 'tutorial' manner to Archer's executive committee. As Chief Financial Officer, Armstrong wants to educate some of the other executives, especially the marketing and sales managers, in the theory of capital budgeting so that these executives will have a better understanding of her capital budgeting decisions. Therefore, Armstrong wants you to ask and then answer a series of questions as set out below. Specifics on the other two projects that must be analysed are provided in Questions 4 and 5. Keep in mind that you will be questioned closely during your presentation, so you should understand every step of the analysis, including any assumptions and weaknesses that may be lurking in the background and that someone might spring on you in the meeting. 11 Depreciation Schedule Table 1 Depn. Allowance Depn. Expense End-of-Year Book Value $198,000 X X $600,000 $402,000 X X $ 0 Year 1 2 3 4 33% X X 7% 100% Cash Flow Statement Table 2 Year 0 Year 1 Year 2 Year 3 Year 4 Unit price Unit sales Net Investment Outlay Price Freight Installation Change in NWC Operating cash flows Revenues Operating Costs Depreciation Other project effects Before-tax income Tax Net income Plus depreciation Net operating cash flow Salvage value Salvage value tax Recovery of NWC Project net cash flow Note: The WACC (Weighted Average Cost of Capital) of 10% is the appropriate discount rate to use when evaluating this project Table 2 above is a suggested way of formatting your spreadsheet. Question 1 (10 marks) a. Define the term 'incremental cash flow'. Since the project will be financed in part by debt, should the cash flow statement include interest expenses? Explain. b. Should the $200,000 that was spent to rehabilitate the plant be included in the analysis? Explain. 12 c. Suppose another juice maker had expressed an interest in leasing the wine production site for $10,000 a year. If this were true (in fact it was not), how should that information be incorporated into the analysis? Question 2 (15 marks) Using Tables 1 and 2 to help identify relevant cash flows, what are the projects: a. b. c. d. Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period Will you recommend that the project should be undertaken? Why or why not? Question 3 (5 marks) Now assume that the sales price will increase by the 5% inflation rate beginning after Year 0. However, assume also that operating costs will increase by only 2% annually from the initial cost estimate, because over half of the costs are fixed by long-term contracts. For simplicity, assume that no other cash flows (net externality costs, salvage value, or net working capital) are affected by inflation. What are the project's NPV, IRR and Payback Period now that inflation has been taken into account? Does change your recommendation in Q2 (d)? (Hint: the Year 1, and succeeding cash flows, must be adjusted for inflation because the estimates are in Year 0 dollars.) Question 4 (10 marks) The second capital budgeting decision which Armstrong and you were asked to analyse involves choosing between two mutually exclusive projects, S and L, whose cash flows are set forth below: Year 0 1 2 3 4 Expected Net Cash Flow Project S Project L -$200,000 120,000 120,000 -$200,000 67,000 67,000 67,000 67,000 Both of these projects are in Archer's main line of business, premium table juice, and the investment which is chosen is expected to be repeated indefinitely into the future. Also, each project is of average risk, and hence each is assigned the 10% required rate of return. What is each project's single cycle NPV? Can you make a decision on this information? Why or why not? If not, what should you do to be able to make a decision? Which project should be chosen? Why? 13 Question 5 (10 marks) The third decision to be considered involves a fleet of trucks with an engineering life of three years (that is, the trucks will be totally worn out after three years). However, if the trucks were taken out of service, or "abandoned" prior to the end of three years, they would have a positive salvage value. Here are the estimated net cash flows for each truck: Year Initial Investment and Operating Cash Flow End-of-Year Net Abandonment Cash Flow 0 1 2 3 ($20,000) $ 8,400 $ 8,000 $ 7,000 $20,000 $12,400 $8,000 $ 0 The relevant required rate of return is again 10%. What would the NPV be if the trucks were operated for the full three years? What if they were abandoned at the end of Year 2? What if they were abandoned at the end of Year 1? What is the economic life of the truck project? 14 Assignment No.: __ Assignment Cover Sheet Student Information (For group assignment, please state names of all members) Name Grade/Marks ID Office Acknowledgement Module/Subject Information Module/Subject Code Module/Subject Name Lecturer/Tutor/Facilitator Due Date Assignment Title/Topic Intake (where applicable) Word Count Date/Time Declaration . I/We have read and understood the Programme Handbook that explains on plagiarism, and I/we testify that, unless otherwise acknowledged, the work submitted herein is entirely my/our own. . I/We declare that no part of this assignment has been written for me/us by any other person(s) except where such collaboration has been authorized by the lecturer concerned. . I/We authorize the University to test any work submitted by me/us, using text comparison software, for instances of plagiarism. I/We understand this will involve the University or its contractors copying my/our work and storing it on a database to be used in future to test work submitted by others. Note:1) The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statement. 2) The Group Leader signs the declaration on behalf of all members. Signature: Date: mail: 15 Feedback/Comments* Main Strengths Main Weaknesses Suggestions for improvement Student acknowledge feedback/comments Grader's signature Student's signature: Date: Date: Note: 1)A soft and hard copy of the assignment shall be submitted. 2)The signed copy of the assignment cover sheet shall be retained by the marker. 3)If the Turnitin report is required, students have to submit it with the assignment. However, departments may allow students up to THREE (3) working days after submission of the assignment to submit the Turnitin report. The assignment shall only be marked upon the submission of the Turnitin report. *Use additional sheets if required. 16 Department of Accounting & Finance ACADEMIC INTEGRITY Honesty and Responsibility Academic integrity is an important tenet for HELP University. In pursuit of the highest standards of academic integrity, the Department of Accounting & Finance holds it students to the highest ethical standards defined by the Rules and Regulations section of the Academic Handbook. All students at the Department of Accounting & Finance are subjected to and are bound by the Student Academic Misconduct Rule to assure academic honesty. Students are required to sign a pledge on the assignment cover sheet before submitting your assignments to the Administration Office of the Faculty of Business, Economics & Accounting. What is Plagiarism? Plagiarism is academic dishonesty or academic theft, and it is a serious academic offence. Plagiarism includes, but is not limited to, the followings: 1. quote, paraphrase or summarize someone else's ideas, theories or data, in whole or in part, without appropriate acknowledgement 2. borrow ideas, opinion or words, in whole or in part, from other sources without properly crediting the author(s) 3. use any facts, statistics, diagrams or graphs, in whole or in part, without acknowledging the source clearly 4. claim or imply original authorship of someone else's ideas, theories or data, in whole or in part, as your own 5. employ or allow someone to help to revise, amend or write your work and pass off as your own original work 6. collaborate with or allow other students to copy your work 7. draw on sources more than what you have acknowledged by citations While a student is not discouraged to discuss an assignment with his/her friends or classmates, the work he/she submits must be done by the student alone. If a student shares his/her assignment with other students and they plagiarize it, the student is as guilty as those students who plagiarized his/her assignment. All parties to plagiarism are considered equally guilty. Under no circumstances should a student be involved in collusion with other students unless he/she is permitted to work on an assignment jointly by the lecturer/tutor. If a student is unsure what constitutes plagiarism, he/she is obliged to consult the lecturer/tutor on the matter before submission of his/her assignment. When and How to Reference? Knowing when and how to cite is a student's responsibility. If he/she is in doubt or need more help on this matter, the student may consult the lecturer/tutor. The following list comprises some of the sources a student will need to reference. The list is by no means exhaustive, but simply consists of the most common sources used by students to complete their work. 1. Books 17 2. 3. 4. 5. 6. 7. 8. Chapters in books Journal articles Conference papers Newspaper articles Magazines Websites Study guide Students are advised to cite in the following cases [1]: 1. When he/she quotes two or more words verbatim, or even one word if it is used in a way that is unique to the source 2. When he/she introduce facts that he/she have found in a source 3. When he/she paraphrase or summarize ideas, interpretations, or conclusions that he/she find in a source 4. When he/she introduce information that is not common knowledge or that may be considered common knowledge in your field, but the reader may not know it 5. When he/she borrow the plan or structure of a larger section of a source's argument (for example, using a theory from a source and analyzing the same three case studies that the source uses) 6. When he/she build on another's method found either in a source or from collaborative work in a lab 7. When he/she build on another's program in writing computer code or on a notcommonly-known algorithm 8. When he/she collaborate with others in producing knowledge In general, a referencing system requires two parts: 1. In-text citations This is information about a source within the text of an assignment. 2. List of references This is a list of all sources a student has used to research his/her assignment. It is alphabetically arranged by author surname and appears immediately after the last page of an assignment. Different faculties or departments may have different requirement on how referencing for an assignment should be done. The various formats used for in-text citations and list of references are available in the following websites: 1. Harvard System (http://www.adelaide.edu.au/library/guide/gen/harvard.html) 2. Chicago Style (http://www.chicagomanualofstyle.org/index.html) 3. American Psychological Association or APA Style (http://www.apastyle.org) 4. Modern Language Association of America or MLA Style (http://www.mla.org) Once a student has selected a referencing style for his/her assignment, he/she must follow the same style consistently throughout the assignment. We strongly suggest that the student consults the lecturer/tutor about which method to use before submission of his/her assignment. 1 http://www.yale.edu/bass/writing/sources/plagiarism/warning.html, accessed May 18, 2008. 18 What are the Procedures and Penalties for Plagiarism? When a lecturer/tutor encounters a possible case of plagiarism, the lecturer/tutor shall report the matter to the Head of the Department, who then initiates an investigation on the matter. The following procedures would be carried out: 1. The lecturer/tutor shall provide evidence that substantiates an academic offence has occurred. The following documentations must be ready prior to reporting of alleged plagiarism: a. Copy of the alleged plagiarized assignment b. Copy of the source material (e.g. articles, websites, newspaper, etc.) c. Report of plagiarism d. Any other information that would support the claim of plagiarism 2. If the evidence warrants an accusation of academic offence, the Head of Department shall establish a Board of Inquiry comprising 3 academic staff. The Department shall provide all necessary documentations, including report on prior academic offences if applicable, to the Board of Inquiry. 3. The Board of Inquiry shall put the matter to the student in writing and give him/her an opportunity to respond to the accusation within 3 working days. 4. The student will be required to attend a meeting with the Board of Inquiry. After meeting the student, the Board of Inquiry shall decide whether or not the alleged plagiarism has occurred. The following documentations shall be submitted to the Head of Department at the end of the meeting: a. Findings of the investigation b. Recommended action(s) to be taken or imposed 5. The Head of Department shall review the Board of Inquiry's report with supporting evidence and shall decide on an appropriate action(s) based on the recommendation of the Board of Inquiry. 6. The decision of the Head of Department shall be put in writing to the student. Copies of all documentations will be retained in the Department. 7. If the student feels that he/she has been unfairly accused or treated, the student may appeal to the Head of Department within 5 working days. 8. The Head of Department shall review the appeal and the final decision will be communicated to the student in writing and a copy will be kept with the Department. Once a determination of plagiarism and penalty has been made by the Head of Department, the investigative process will be deemed to have ended and the student will not be allowed to appeal. Possible penalties for plagiarism range from mark reduction for the assignment to expulsion from the University. The student will not be allowed to make up the assignment. If plagiarism has been found to have occurred, the Department will take action(s) as determined by the forms of plagiarism implicated: 1. Complete plagiarism Verbatim copying another person's work without acknowledgement 1st offence : A grade of \"F\" in the subject and a warning letter will be issued 2nd offence : Expulsion from the University at the discretion of the Head of Department 2. Substantial plagiarism Near-verbatim copying another person's work by simply altering the order of the sentences or the format of presentation or by changing a few words or phrases without acknowledgement. 19 1st offence : Zero mark on the assignment and a warning letter will be issued nd 2 offence : A grade of \"F\" in the subject and a warning letter will be issued 3rd offence : Expulsion from the University at the discretion of the Head of Department 3. Minimal plagiarism Acknowledgement is made but paraphrasing by changing and/or eliminating some words 1st offence : Deduction of 50% of available marks on the assignment and a warning letter will be issued nd 2 offence : A grade of \"F\" in the subject and a warning letter will be issued 3rd offence : Expulsion from the University at the discretion of the Head of Department 4. Unintentional plagiarism Insufficient acknowledgement by not applying citation or quotation marks correctly 1st offence : Deduction of up to 50% of available marks on the assignment and a warning letter will be issued nd 2 offence : A grade of \"F\" in the subject and a warning letter will be issued rd 3 offence : Expulsion from the University at the discretion of the Head of Department Pleading ignorance or unintentional plagiarism does not constitute valid reasons for plagiarism and will not avoid the penalties from being imposed. Excuses for acts of plagiarism such as the following, but not limited to, will not be entertained: 1. I don't have time to do the assignment 2. I have too many assignments due on the same day 3. I don't know, I really didn't do it 4. I am not aware 5. I don't understand what plagiarism means 6. I have no intention to plagiarize 7. I forgot to cite the reference 8. I forgot to include the bibliography 9. My English is not good 10. My lecturer/tutor did not explain to me 11. In my country, it is alright to copy someone else's work 12. My friend copied my assignment when I let him/her to look at my assignment 13. My friend copied my assignment when I allow him/her to use my laptop 14. I did my assignment in the computer lab, someone must have copied my work 15. I asked my friend to submit my assignment and he/she copied my work 16. I discussed my assignment with my friends, so our answers are the same/similar 17. Even though I do not have in-text citation but I have bibliography/reference list Students should be reminded that it is their responsibilities to take due care throughout their written work to effectively reference or cite when they use others' ideas from any source. 20 DEPARTMENT OF ACCOUNTING & FINANCE SEMESTER X, 20XX SAMPLE FINAL EXAMINATION Subject Code : FIN202 Subject Name : FINANCIAL MANAGEMENT This examination carries 70% of the total assessment for this subject. Examiner(s) Moderator(s) MR SELVANADAN MUNIAPPAN Day : Date : Time : Time allowed : Reading - 10 MINUTES Writing - 3 HOURS INSTRUCTION(S): 1. This is a CLOSED BOOK examination; therefore no written material, reference books or notes will be permitted into the examination room. 2. Writing on the examination answer book is NOT permitted during reading time. 3. This examination consists of SIX (6) problem solving and discussion questions. Students are required to answer ANY FIVE (5) of the questions in the answer booklet provided. 4. Students are NOT permitted to retain this examination paper. 5. Students MUST pass this examination to pass the subject. 6. Tables are attached. (This examination paper consists of 6 questions in XX printed pages, including cover page) 21 Answer ANY 5 questions. Each question carries 20 marks. Question 1 Part (A) (5 marks) In general, what factors determine a firm's cost of capital? In answering this question, identify the factors that are within management's control and those that are not. Part (B) (15 marks) R. Stewart Co. Ltd. is a firm that pays its profits as franked dividends to shareholders who are able to utilise the franking credits. Below is the capital structure of the firm together with additional information. Issue costs would be (a) 13% of market value for a new bond issue, (b) $0.125 per share for ordinary equity, and (c) $0.24 per share for preference shares. The recent dividends on ordinary shares were $0.325 and are projected to have an annual growth rate of 6%. Coupon payments on bonds are paid annually. The firm is in a 30% tax bracket. Current market prices are $104 for bonds, $1.80 for preference shares, and $3 for ordinary shares. There is $250,000 of retained earnings available for investment. % of Capital Structure Source of Finance Bonds: (8% coupon, $100 par, 16 year maturity) Preference Shares: (50,000 shares, $5 par, $0.15 dividend) Ordinary Equity 38 15 47 100 What will be the weighted average cost of capital for a project if the amount of capital required is: a. b. $ 500,000 $1,000,000 Question 2 (20 marks) Mountain Springs, a partnership operated by the Campbell family, is contemplating the purchase of a new computer and software to help prepare delivery schedules and accounts receivable billing for its deliveries of spring water to customers. The total cost of the system is $80,000 and it will last four years, at which time its estimated disposal value is $20,000. The firm uses the straight-line depreciation method and it plans to 22 depreciate the system to zero. The partners think that the computer will save $30,000 annually in operating expenses (excluding depreciation and taxes). The firm has been offered a four-year lease contract, with annual payments of $21,000 beginning when the contract comes into effect, and with a residual value of $20,000. The lessor has offered to absorb all insurance and maintenance expenses (worth $3,000 per year, payable in advance). All the partners have a marginal tax rate of 47%. a. Estimate the net advantage of leasing (NAL) given that loan finance is otherwise available at 13% per annum. Should the firm lease the system? (15 marks) b. What are the differences between a financial lease and an operating lease? What type of individual or financial institution is most like to act as the lessor in a financial lease? What type of firm is most likely to undertake lease financing? (5 marks) Question 3 (20 marks) Part (A) (10 marks) You have decided to invest in a company, Joint. Co., which has developed a new coupling joint which you believe has great potential. The company is due to pay its first dividend of $0.30 in one year's time. Your research has shown that after the first dividend payment, you expect the dividend to grow by 8% for the next two years, 12% for the following two years, before settling into its long term growth rate of 6%. How much would you be willing to pay for a share in the company today given that you require a return of 9.5%pa? Part (B) (10 marks) To fund its research Joint Co. initially issued 10 year bonds two years ago with a face value of $1,000 and a coupon rate of 7%, paid semi-annually. i. If the yield on these bonds is currently 9%, what is the price of a bond today? (3 marks) ii. It is expected that the yield on these bonds will fall to 6.5% in four years' time. What will their price be at that time? (3 marks) iii. Explain why the yield on the bonds may fall, and the effect this fall will have on the price. (4 marks) Question 4 (20 marks) Two brothers have a partnership which runs a small manufacturing factory. The factory and office costs (being rent, rates, office staff, etc. but excluding depreciation) amount to $120,000 per annum. Factory labour costs for each of the ten employees are $25,000 per person per annum. The additional associated overhead costs are 42% of labour costs. The current machinery cost $1,500,000 three years ago and it is being depreciated over its estimated life of 5 years. If the machinery was scrapped today, its salvage value 23 would be $850,000, and in two year it would be zero. The brothers are considering purchasing new machinery for $1,000,000 with a two year life. Last year they spent $10,000 investigating the output of the new machine and the advantage will be the saving of three employees. The new machinery, which will be worthless in two years, will be financed 50% by debt costing 8.5%pa. Assume a discount rate of 12%, and a company tax rate of 30%. a. Calculate the NPV of the present situation. (5 marks) b. Calculate the NPV of the new situation of the equipment is purchased. (5 marks) c. Calculate the NPV of the incremental investment. (3 marks) d. Should the new machinery be purchased? Explain your answer. (2 marks) e. Explain the effect of changes in net working on the project's cash flow. How should interest payments on borrowed funds used to finance projects be dealt with in determining the project's cash flow? (5 marks) Question 5 (20 marks) a. 'Equity holders want 16% on their investment, whereas debt holders only require 8%. I would be crazy to expand using equity since debt is so much cheaper.' Comment. (4 marks) b. i. Determine the expected return and beta for the following portfolio. Expected Share % of Portfolio Beta () Return (%) 1 40 1.00 12 2 25 0.75 11 3 35 1.30 15 (4 marks) ii. Given the information above, draw the security market line (SML) and show where the securities fit on the graph. Assume that the risk-free rate is 8% and that the expected return on the market portfolio is 12%. How would you interpret these findings? (4 marks) c. A firm is evaluating two mutually exclusive investments, designated C and D, with the following characteristics: C D Net Present Value $10,000 $13,000 Estimated useful life 6 years 9 years If the firm's discount rate used for evaluating these projects is 12% p.a., which investment should be chosen? (Your answer must be justified with appropriate numerical analysis.) (4 marks) 24 d. Describe two measures of the risk of an investment. How do these measures differ? Of the two components of total risk, which one can investors eliminate? What is the remaining risk, and how is it measured? (4 marks) Question 6 (20 marks) a. Studies have shown that when firms raise or lower their dividends, their share prices tend to rise or fall in a like manner. Doesn't this prove that investors prefer dividends? Discuss. (4 marks) b. Trees Ltd is an unlevered firm whose net cash flows are constant in perpetuity. i. What is the after tax return Tree's shareholders require if Trees is valued at $2,625,000 with annual cash flows before tax of $600,000, when the corporate tax rate is 30% ? (4 marks) ii. Trees has decided to issue debt of $500,000 at 9% interest. What will be the new value of Trees after the debt issue? (3 marks) iii. What return will shareholders require from Trees after it becomes levered? (4 marks) iv. What is Trees' weighted average cost of capital (WACC) before the debt issue? (1 mark) v. What is Trees' weighted average cost of capital (WACC) after the debt issue? (4 marks) (16 marks) **END OF EXAMINATION PAPER** 25 FIN 202 - Formula sheet m i 1 m EAR = 1 FVn = PV1 i n PV = FVn 1 i n FVannuity = pmt(FVIFAi,n) 1 1 i n i = pmt PVannuity = Kp,AT 1 i n 1 = pmt i Kp,BT = VE = D p 1 T NP0 Dp NP0 D 0 1 g RE g KE,BT = D1 1 T g NP0 KE,AT = D1 g NP0 = pmt(PVIFAi,n) PVperpetuity = pmt PP or i i 1 + i = (1 + R)(1 + r) Vb 1 1 i n n M1 i i = I Rj = Rf + j(Rm Rf) PBILL = 365V 365 in Alternatively: PBILL = = I(PVIFAi,n) + M(PVIFi,n) Approximate bond yield to maturity: YTM I M Vb n M Vb 2 n 1 1 i NPV = PVIFAi, n EAA = NPV NPV PI = PV IO Approximate before-tax cost of bond: Kd,BT V 365 1 P n APRBILL = EARBILL = i = PV IO I M NP n M NP 2 V n 1 i 365 V P 365 n 1 Cost of forgoing a prompt settlement discount of a %: a 365 1 a n APR = EAR = where NP = net proceeds per bond Kd,AT = Kd,BT` (1 T) 26 1 1 a 365 n 1 FUTURE VALUE OF ANNUITY OF $1 PER PERIOD FOR N PERIODS No Pds 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 24% 28% 32% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 50 60 1.0000 2.0100 3.0301 4.0604 5.1010 6.1520 7.2135 8.2857 9.3685 10.462 11.567 12.683 13.809 14.947 16.097 17.258 18.430 19.615 20.811 22.019 23.239 24.472 25.716 26.973 28.243 29.526 30.821 32.129 33.450 34.785 48.886 64.463 81.670 1.0000 2.0200 3.0604 4.1216 5.2040 6.3081 7.4343 8.5830 9.7546 10.950 12.169 13.412 14.680 15.974 17.293 18.639 20.012 21.412 22.841 24.297 25.783 27.299 28.845 30.422 32.030 33.671 35.344 37.051 38.792 40.568 60.402 84.579 114.05 1.0000 2.0300 3.0909 4.1836 5.3091 6.4684 7.6625 8.8923 10.159 11.464 12.808 14.192 15.618 17.086 18.599 20.157 21.762 23.414 25.117 26.870 28.676 30.537 32.453 34.426 36.459 38.553 40.710 42.931 45.219 47.575 75.401 112.79 6 163.05 1.0000 2.0400 3.1216 4.2465 5.4163 6.6330 7.8983 9.2142 10.583 12.006 13.486 15.026 16.627 18.292 20.024 21.825 23.698 25.645 27.671 29.778 31.969 34.248 36.618 39.083 41.646 44.312 47.084 49.968 52.966 56.085 95.026 152.66 7 237.99 1.0000 2.0500 3.1525 4.3101 5.5256 6.8019 8.1420 9.5491 11.027 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.539 33.066 35.719 38.505 41.430 44.502 47.727 51.113 54.669 58.403 62.323 66.439 120.80 209.35 353.58 1.0000 2.0600 3.1836 4.3746 5.6371 6.9753 8.3938 9.8975 11.491 13.181 14.972 16.870 18.882 21.015 23.276 25.673 28.213 30.906 33.760 36.786 39.993 43.392 46.996 50.816 54.865 59.156 63.706 68.528 73.640 79.058 154.76 290.34 533.13 1.0000 2.0700 3.2149 4.4399 5.7507 7.1533 8.6540 10.260 11.978 13.816 15.784 17.888 20.141 22.550 25.129 27.888 30.840 33.999 37.379 40.995 44.865 49.006 53.436 58.177 63.249 68.676 74.484 80.698 87.347 94.461 199.64 406.53 813.52 1.0000 2.0800 3.2464 4.5061 5.8666 7.3359 8.9228 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 37.450 41.446 45.762 50.423 55.457 60.893 66.765 73.106 79.954 87.351 95.339 103.97 113.28 259.06 573.77 1253.2 1.0000 2.0900 3.2781 4.5731 5.9847 7.5233 9.2004 11.028 13.021 15.193 17.560 20.141 22.953 26.019 29.361 33.003 36.974 41.301 46.018 51.160 56.765 62.873 69.532 76.790 84.701 93.324 102.72 3 112.97 124.14 136.31 337.88 815.08 1944.8 1.0000 2.1000 3.3100 4.6410 6.1051 7.7156 9.4872 11.436 13.579 15.937 18.531 21.384 24.523 27.975 31.772 35.950 40.545 45.599 51.159 57.275 64.002 71.403 79.543 88.497 98.347 109.18 121.10 134.21 148.63 164.49 442.59 1163.9 3034.8 1.0000 2.1100 3.3421 4.7097 6.2278 7.9129 9.7833 11.859 14.164 16.722 19.561 22.713 26.212 30.095 34.405 39.190 44.501 50.396 56.939 64.203 72.265 81.214 91.148 102.17 114.41 128.00 143.08 159.82 178.40 199.02 581.83 1668.8 4755.1 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 42.753 48.884 55.750 63.440 72.052 81.699 92.503 104.60 118.16 133.33 150.33 169.37 190.70 214.58 241.33 767.09 2400.0 7471.6 1.0000 2.1300 3.4069 4.8498 6.4803 8.3227 10.405 12.757 15.416 18.420 21.814 25.650 29.985 34.883 40.417 46.672 53.739 61.725 70.749 80.947 92.470 105.49 120.20 136.83 155.62 176.85 200.84 227.95 258.58 293.20 1013.7 3459.5 1.0000 2.1400 3.4396 4.9211 6.6101 8.5355 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 50.980 59.118 68.394 78.969 91.025 104.77 120.44 138.30 158.66 181.87 208.33 238.50 272.89 312.09 356.79 1342.0 4994.5 1.0000 2.1500 3.4725 4.9934 6.7424 8.7537 11.067 13.727 16.786 20.304 24.349 29.002 34.352 40.505 47.580 55.717 65.075 75.836 88.212 102.44 118.81 137.63 159.28 184.17 212.79 245.71 283.57 327.10 377.17 434.75 1779.1 7217.7 1.0000 2.1600 3.5056 5.0665 6.8771 8.9775 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 60.925 71.673 84.141 98.603 115.38 134.84 157.41 183.60 213.98 249.21 290.09 337.50 392.50 456.30 530.31 2360.8 1.0000 2.1700 3.5389 5.1405 7.0144 9.2068 11.772 14.773 18.285 22.393 27.200 32.824 39.404 47.103 56.110 66.649 78.979 93.406 110.28 130.03 153.14 180.17 211.80 248.81 292.10 342.76 402.03 471.38 552.51 647.44 3134.5 1.0000 2.1800 3.5724 5.2154 7.1542 9.4420 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 72.939 87.068 103.74 123.41 146.63 174.02 206.34 244.49 289.49 342.60 405.27 479.22 566.48 669.45 790.95 4163.2 1.0000 2.1900 3.6061 5.2913 7.2966 9.6830 12.523 15.902 19.923 24.709 30.404 37.180 45.244 54.841 66.261 79.850 96.022 115.27 138.17 165.42 197.85 236.44 282.36 337.01 402.04 479.43 571.52 681.11 811.52 966.71 5529.8 1.0000 2.2000 3.6400 5.3680 7.4416 9.9299 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 87.442 105.93 128.12 154.74 186.69 225.03 271.03 326.24 392.48 471.98 567.38 681.85 819.22 984.07 1181.9 7343.9 1.0000 2.2400 3.7776 5.6842 8.0484 10.980 14.615 19.123 24.712 31.643 40.238 50.895 64.110 80.496 100.82 126.01 157.25 195.99 244.03 303.60 377.46 469.06 582.63 723.46 898.09 1114.6 1383.1 1716.1 2129.0 2640.9 1.0000 2.2800 3.9184 6.0156 8.6999 12.136 16.534 22.163 29.369 38.593 50.398 65.510 84.853 109.61 141.30 181.87 233.79 300.25 385.32 494.21 633.59 812.00 1040.4 1332.7 1706.8 2185.7 2798.7 3583.3 4587.7 5873.2 1.0000 2.3200 4.0624 6.3624 9.3983 13.406 18.696 25.678 34.895 47.062 63.122 84.320 112.30 149.24 198.00 262.36 347.31 459.45 607.47 802.86 1060.8 1401.2 1850.6 2443.8 3226.8 4260.4 5624.8 7425.7 9802.9 Percent Per Period 27 PRESENT VALUE OF ANNUITY OF $1 PER PERIOD FOR N PERIODS No. Pds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 50 60 Percent Per Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 24% 28% 32% 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 9.4713 10.367 6 11.255 1 12.133 7 13.003 7 13.865 1 14.717 9 15.562 3 16.398 3 17.226 0 18.045 6 18.857 0 19.660 4 20.455 8 21.243 4 22.023 2 22.795 2 23.559 6 24.316 4 25.065 8 25.807 7 32.834 7 39.196 1 44.955 0 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.575 3 11.348 4 12.106 2 12.849 3 13.577 7 14.291 9 14.992 0 15.678 5 16.351 4 17.011 2 17.658 0 18.292 2 18.913 9 19.523 5 20.121 0 20.706 9 21.281 3 21.844 4 22.396 5 27.355 5 31.423 6 34.760 9 0.9709 1.9135 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.635 0 11.296 1 11.937 9 12.561 1 13.166 1 13.753 5 14.323 8 14.877 5 15.415 0 15.936 9 16.443 6 16.935 5 17.413 1 17.876 8 18.327 0 18.764 1 19.188 5 19.600 4 23.114 8 25.729 8 27.675 6 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 8.1109 8.7605 9.3851 9.9856 10.563 1 11.118 4 11.652 3 12.165 7 12.659 3 13.133 9 13.590 3 14.029 2 14.451 1 14.856 8 15.247 0 15.622 1 15.982 8 16.329 6 16.663 1 16.983 7 17.292 0 19.792 8 21.482 2 22.623 5 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.379 7 10.837 8 11.274 1 11.689 6 12.085 3 12.462 2 12.821 2 13.163 0 13.488 6 13.798 6 14.093 9 14.375 2 14.643 0 14.898 1 15.141 1 15.372 5 17.159 1 18.255 9 18.929 3 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.105 9 10.477 3 10.827 6 11.158 1 11.469 9 11.764 1 12.041 6 12.303 4 12.550 4 12.783 4 13.003 2 13.210 5 13.406 2 13.590 7 13.764 8 15.046 3 15.761 9 16.161 4 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.059 1 10.335 6 10.594 0 10.835 5 11.061 2 11.272 2 11.469 3 11.653 6 11.825 8 11.986 7 12.137 1 12.277 7 12.409 0 13.331 7 13.800 7 14.039 2 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.016 8 10.200 7 10.371 1 10.528 8 10.674 8 10.810 0 10.935 2 11.051 1 11.158 4 11.257 8 11.924 6 12.233 5 12.376 6 0.9174 1.7591 2.5313 3.2397 3.8897 4.4859 5.0330 5.5348 5.9952 6.4177 6.8052 7.1607 7.4869 7.7862 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.2922 9.4424 9.5802 9.7066 9.8226 9.9290 10.026 6 10.116 1 10.198 3 10.273 7 10.757 4 10.961 7 11.048 0 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 8.6487 8.7715 8.8832 8.9847 9.0770 9.1609 9.2372 9.3066 9.3696 9.4269 9.7791 9.9148 9.9672 0.9009 1.7125 2.4437 3.1024 3.6959 4.2305 4.7122 5.1461 5.5370 5.8892 6.2065 6.4924 6.7499 6.9819 7.1909 7.3792 7.5488 7.7016 7.8393 7.9633 8.0751 8.1757 8.2664 8.3481 8.4217 8.4881 8.5478 8.6016 8.6501 8.6938 8.9511 9.0417 9.0736 0.8929 1.6901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.5620 7.6446 7.7184 7.7843 7.8431 7.8957 7.9426 7.9844 8.0218 8.0552 8.2438 8.3045 8.3240 0.8850 1.6681 2.3612 2.9745 3.5172 3.9975 4.4226 4.7988 5.1317 5.4262 5.6869 5.9176 6.1218 6.3025 6.4624 6.6039 6.7291 6.8399 6.9380 7.0248 7.1016 7.1695 7.2297 7.2829 7.3300 7.3717 7.4086 7.4412 7.4701 7.4957 7.6344 7.6752 7.6873 0.8772 1.6467 2.3216 2.9137 3.4331 3.8887 4.2883 4.6389 4.9464 5.2161 5.4527 5.6603 5.8424 6.0021 6.1422 6.2651 6.3729 6.4674 6.5504 6.6231 6.6870 6.7429 6.7921 6.8351 6.8729 6.9061 6.9352 6.9607 6.9830 7.0027 7.1050 7.1327 7.1401 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5.7245 5.8474 5.9542 6.0472 6.1280 6.1982 6.2593 6.3125 6.3587 6.3988 6.4338 6.4641 6.4906 6.5135 6.5335 6.5509 6.5660 6.6418 6.6605 6.6651 0.8621 1.6052 2.2459 2.7982 3.2743 3.6847 4.0386 4.3436 4.6065 4.8332 5.0286 5.1971 5.3423 5.4675 5.5755 5.6685 5.7487 5.8178 5.8775 5.9288 5.9731 6.0113 6.0442 6.0726 6.0971 6.1182 6.1364 6.1520 6.1656 6.1772 6.2335 6.2463 6.2492 0.8547 1.5852 2.2096 2.7432 3.1993 3.5892 3.9224 4.2072 4.4506 4.6586 4.8364 4.9884 5.1183 5.2293 5.3242 5.4053 5.4746 5.5339 5.5845 5.6278 5.6648 5.6964 5.7234 5.7465 5.7662 5.7831 5.7975 5.8099 5.8204 5.8294 5.8713 5.8801 5.8819 0.8475 1.5656 2.1743 2.6901 3.1272 3.4976 3.8115 4.0776 4.3030 4.4941 4.6560 4.7932 4.9095 5.0081 5.0916 5.1624 5.2223 5.2732 5.3162 5.3527 5.3837 5.4099 5.4321 5.4509 5.4669 5.4804 5.4919 5.5016 5.5098 5.5168 5.5482 5.5541 5.5553 0.8403 1.5465 2.1399 2.6386 3.0576 3.4098 3.7057 3.9544 4.1633 4.3389 4.4865 4.6105 4.7147 4.8023 4.8759 4.9377 4.9897 5.0333 5.0700 5.1009 5.1268 5.1486 5.1668 5.1822 5.1951 5.2060 5.2151 5.2228 5.2292 5.2347 5.2582 5.2623 5.2630 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.3271 4.4392 4.5327 4.6106 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9094 4.9245 4.9371 4.9476 4.9563 4.9636 4.9697 4.9747 4.9789 4.9966 4.9995 4.9999 0.8065 1.4568 1.9813 2.4043 2.7454 3.0205 3.2423 3.4212 3.5655 3.6819 3.7757 3.8514 3.9124 3.9616 4.0013 4.0333 4.0591 4.0799 4.0967 4.1103 4.1212 4.1300 4.1371 4.1428 4.1474 4.1511 4.1542 4.1566 4.1585 4.1601 4.1659 4.1666 4.1667 0.7813 1.3916 1.8684 2.2410 2.5320 2.7594 2.9370 3.0758 3.1842 3.2689 3.3351 3.3868 3.4272 3.4587 3.4834 3.5026 3.5177 3.5294 3.5386 3.5458 3.5514 3.5558 3.5592 3.5619 3.5640 3.5656 3.5669 3.5679 3.5687 3.5693 3.5712 3.5714 3.5714 0.7576 1.3315 1.7663 2.0957 2.3452 2.5342 2.6775 2.7860 2.8681 2.9304 2.9776 3.0133 3.0404 3.0609 3.0764 3.0882 3.0971 3.1039 3.1090 3.1129 3.1158 3.1180 3.1197 3.1210 3.1220 3.1227 3.1233 3.1237 3.1240 3.1242 3.1250 3.1250 3.1250 28 29