1. XYZs stock price increased from $10 to $11. There are 300 shares outstanding. How much does XYZs cash potion change due to the increase in the stock price?
2. GGGs information: Beta =1.0, GPM- 50% , PE ratio= 10, NPM=10%, current stock price=$800, expected stock price in one year =$1,000. Assuming you believe the expected stock price is accurate it is GGGs good stock to buy now? Explain
3. You are considering investing in XYZ bonds or XYZ stock. Which is likely to give you the greater return over the long term?
4. XYZ stock is currently trading at $10 per share. The next year (year 1) it goes down 50%. You decide you want to sell when the price returns to $10 per share so you do not lose any money. Fortunately, the next year (year 2) the stock appreciates 50%. Your financial advisor calls you to brag about the 50% appreciation. Is it time to sell if you stock to your decision rule to sell when the price returns to $10 per share? Explain.
5. When a company announces the issuance of new shares of stock. Why does the stock price go down?
6. XYZ is going to buy a company/building for 100,000 and obtain an 80,000 loan on a building. How much do the following increase or decrease?

Cash: ____________. (100,000 -80,000)

Current Assets: _______

Total Assets: _____________

Current Liabilities: __________________

Total Liabilities: ________________

Equity: _____ _________

7. A friend of yours tells you that it is impossible to improve a company's ROE or EPS without improving its opportunity performance. Agree or Disagree? Explain

8. You are in a meeting discussing the possibility of buying a competitor's product. These are the facts:

1. The company cost of capital or a weighted average cost of capital =12 %
2. The company would like to regroup its original investment in 4 years or less
3. The NPV of the project only equals 1 penny.
4. The forecasted internal turn of the projected equal to 12.1 %
5. The forecasted payback period for the investment equal 5 years

Argue for buying the product. and Agrue not to buy the product

9. You are the CEO and are considering raising capital. You must with an investment market consider whether to issue bonds or stock. From a cost of capital perspective, which form (bonds or stock) is likely to be more expensive Explain.

10. A company's gross profit margin, operating profit margin, and net profit margin have to increase. Is this a guarantee that the net increase has increased? Explain

11.You manage a retail store. After reviewing the financial statement, you have a concern that the store does not have adequate working capital. List three decisions that could strengthen the companys working capital.

12.You are working on Converse Retro Inc. Cash budgeting. You are projecting $100 in sales in January. You are giving customers 90-day terms to pay. You estimate that 30 percent will still pay cash while 70 percent will pay in 90 days. Estimate how much cash should be collected in the following month from these January sales.

January______________

February______________

March______________

April______________

May ______________

June______________

13. TTTs EPA is $10.00. VVV Inc.s EPS is 30.00 per share. Is it reasonable to think that these two companies performed at the same level? Explain

14. A company is forecasting its monthly cash position based on providing its clients 90-say terms to pay for its service. Because of giving 90-day terms, the company is forecasting large negative cash flow for this month toe. In the negative cash flow reason to NOT move forward with giving clients 90-day terms? Explain, including what variation or factor that have to be considered.

15. A companys sales (in dollars) have been growing at a compound annual rate of 10 percent annually. The companys gross profit has been growing at a rate of 5 percent annually. Explain why this may be happening.

16. DDDs management is considering a dividend that would total $1 Million or buying back $1 million of stock. What is the difference between these two choices? If any, of the impact on the balance sheet?

17. What are your three main takeaways from this class, finically related or not?

18. You are expecting a rising interest rate. Your financial advisor tells you it is not a good time to buy bonds because of the rejected increase in interest rate. Do you agree? Explain

19. Jet Blues stock price is $13. American Airlines stock price is $20. What does this tell you about the value of Jet Blue vs American Airlines?

20.A relatively young company has high operating expenses ( as a % of sales) relative to the competition. Give a reason that this may be a good, justifiable, strategic decision to have a high operating expense as a % of sales.

21.List two ways for a company to increase its financial leverage. What are the potential advantages of increasing financial leverage?

22.List three ways for a company to decrease its financial leverage.

23.Wall Street Journal article quoted regarding J.M SmuckerHigher price is manufacturing, transportation, ingredient, and packing cost continued to weigh on gross margin.falling to 34.7% from 40.2% a year earlier. Assuming a constant $100 in sales, by how much ( in dollars) did the companys gross profit decline?

24.Wall Street Journal Article quote-Hershey Plane to Spend $1.2 Billion in Deal for Pretzel Producer. Describe the finance-related process Hershey probably went through. To determine the purchase price for these pretzel manufacturers.

25. Was the Street Journal article quotes The fitness equipment maker (Peloton interactive) said Tuesday it was rising roughly #1 billion in its first equity offering since its 2019 initial public offering. Peloton's shares were down more than 68% year to date." A friend of yours says that a lower stock price is good for the current stockholders. This will attract more buyers because more people will be able to afford the stock. Agree or Disagree? Explain.