财务管理双语课程作业(英文题目)

财务管理双语课程作业(英文题目)

Book Values versus Market Values Understand accounting rules, it is possible for a company’s liabilities to exceed its assets. When this occurs, the owner’s equity is negative. Can this happen with market values? Why or why not?

Financial Ration Analysis A financial ratio by itself tells us little about a company since financial ratios vary a great deal across industries. There are two basic methods for analyzing financial ratios for a company: time trend analysis and peer group analysis. Why might each of these analysis methods be useful? What does each tell you about the company’s financial health?

Present Value Suppose two athletes sign 10-year contracts for $80 million. In one case, we’re told that the $80 million will be paid in 10 equal installments. In the other case, we’re told that the$80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal?

Bond Prices versus Yields

a.What is the relationship between the price of a bond and its YTM?

b.Explain why some bonds sell at a premium over par value while other bonds sell at a

discount. What do you know about the relationship between the coupon rate and the YTM for premium bonds? What about for discount bonds? For bonds selling at par value?

c.What is the relationship between the current yield and YTM for premium bonds?

For discount bonds? For bonds selling at par value?

Dividend Growth Model Under what two assumptions can we use the dividend growth model presented in the chapter to determine the value of a share of stock ? Comment on the reasonableness of these assumptions.

6：Chapter 7, P193,

Payback and Internal Rate of Return A project has perpetual cash flows of c per period, a cost of l, and a required return of R. Please defining: a)Payback period

b)Internal rate of return

c)Net present value

What is the relationship between the project’s payback and its IRR? What implications does your answer have for long-lived projects with relatively constant cash flows？

7：Chapter8, P214, Q2

Incremental Cash Flows Which of the following should be treated as an incremental cash flow when computing the NPV of an investment?

a. A reduction of the sales of a company’s other products caused by the investment.

b.An expenditure on plant and equipment that has not yet been made and will be

made only if the project is accepted.

c.Costs of research and development undertaken in connection with the product

during the past three years.

d.Annual depreciation expense from the investment.

e.Dividend payments by the firm.

f.The resale value of plant and equipment at the end of the project’s life.

g.Salary and medical costs for production personnel who will be employed only if the

project is accepted.