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Unit 2 Textbook Problems Core Principles and Applications 4th edition textbook. Due: 12/6 This assignment helps you develop the skills to master the following course

Unit 2 Textbook Problems

Core Principles and Applications 4th edition textbook. Due: 12/6

This assignment helps you develop the skills to master the following course competencies:

Apply the theories, models, and practices of finance to the financial management of the firm.

To review how all your activities help you achieve the competencies in the course, and ultimately, your overall program outcomes, revisit the MBA6016 Course Alignment Map.

Activity Instruction

To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook.

Chapter 4, problem 2a, b, and c (pages 117). Chapter 4, problem 3 (page 118). Chapter 4, problem 4 (page 118). Chapter 4, problem 5 (page 119). Chapter 4, problem 11 (page 122). Chapter 5, problem 2a (page 158). Chapter 5, problem 3 (page 158). Chapter 6, problem 2 (page 190). Chapter 6, problem 4 (page 190).

Assignment Submission

You are required to use the textbook problems template in the Resources to complete the problems. This Excel document contains unique details and cells specific to the problems that you must use to derive your solutions. Where numeric solutions are expected, provide full detail of the process used to reach the solution using Excel. Where analysis is expected, use information from the textbook to inform your analysis, not replace it, incorporating creativity, critical thinking, and real-life perspectives. Cite all resource materials used in your analysis, using proper APA format.

A thorough, professional presentation of your analysis and results is an important consideration. Enhance your presentation skills by using applicable tools such as tables, graphs, diagrams, and commentary as appropriate in all assignments in this course.

Submit your completed problems for grading and instructor feedback. Solutions for the problems will be posted the subsequent week.

UNIT 2: TEXTBOOK PROBLEMS

CHAPTER 4: PROBLEM 2 (a through c)
A. B. C.
Present Value 3,200 3,200 3,200
Interest Rate 6% 8% 6%
Number of Years 10 10 20
Future Value =
CHAPTER 4: PROBLEM 3
A. B. C. D.
Future Value = 15,451 51,557 886,073 550,164
Interest Rate 7% 9% 14% 16%
Number of Years 12 8 19 24
Present Value =
CHAPTER 4: PROBLEM 4
A. B. C. D.
Present Value = 217 432 41,000 54,382
Future Value 307 896 162,181 483,500
Number of Years 3 10 13 26
Interest Rate
CHAPTER 4: PROBLEM 5
A. B. C. D.
Present Value = 625 810 18,400 21,500
Future Value 1,284 4,341 402,662 173,439
Interest Rate 9% 11% 7% 10%
Number of Years (or Periods)
CHAPTER 4: PROBLEM 11
Discount Rate 5% 13% 18%
Year 1: $960 $960 $960
Year 2: $840 $840 $840
Year 3: $1,935 $1,935 $1,935
Year 4: $1,350 $1,350 $1,350
Present Value @ 5%, 13%, and 18% = (Note: Use the built-in NPV formula in Excel.)
CHAPTER 5: PROBLEM 2
A.
Settlement (Think of Settlement as the beginning of the duration of the bond.)
Maturity (Think of Maturity as the end of the duration of the bond.)
Rate (Coupon Rate)
YTM (Yield to Maturity or Required Rate of Return)
Redemption (Bonds Face Value, Par Value, or Fair Price; Note that is $100, not $1,000. You make the adjustments by multiplying the answer by 10.)
Frequency (Coupon payments are semiannual, so you put in a 2. If they are annual, then you input a 1.)
Basis (Always leave it blank.)
Bond Price (The answer. But you need to multiply it by 10 to get the actual bond price.)
Multiply by 10 (Microsoft gives the bond price in 2 digits. You need to multiply it by 10 to get the actual bond price.)
CHAPTER 5: PROBLEM 3
Settlement (Think of Settlement as the beginning of the duration of the bond.)
Maturity (Think of Maturity as the end of the duration of the bond.)
Rate (Coupon Rate)
Pr (The bonds price per $100 face value)
Redemption (Bonds Face Value, Par Value, or Fair Price; Note that is $100, not $1,000.)
Frequency (Coupon payments are semiannual, so you put in a 2. If they are annual, then you input a 1.)
Basis: (Always leave it blank.)
YTM
CHAPTER 6: PROBLEM 2
Dividend Payment $1.99
Dividend Growth Rate 4.50%
ZYX Stock Price $31
Required Return =
CHAPTER 6: PROBLEM 4
Dividend $2.65
Dividend increase per year 4.75%
Required Return (Return on Investment) 11%
Stock Price =

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