Chap 10, 11:

a) E(R)1 : Probability stockA - 0.2

=
x 0.08 0.4 0.12
+
+
0.4x0.15=
+

0.124 = 12.41.

E(R) 0.2 0.1 0.4x0.06 +0.4 0.1

=
x
+
x
0.1:10%
=

b) I warA: (stack A expected return of stock Al

=

Probability -

- 0.2 x 10.08-12.4% 0.4(0.12-12.4%)+0.4(0.15-12.4%.)2 +

4
6.64
-

~ x 10
0.026
-

6.64 10
T1
x
=

=
=>

-=ar 40.1-12.4")" + 0.4(0.06-12. 2)" =0.4(0.14-12.4%)

3
1.856 16
-

x
=

7 (B 1.856 10
=

x
-
3
0.043
=

x90% 10%x70% 10.78%

c)ECR)1=12.41.
=
+

d) Recession 0.08 30% +0.1x70%.

=
x
0.094=9.4%
=

Normal 0.12+30% = +0.06 x70%: 0.078:7.8%

Boom 0.15,30% :
+
0.14 +70%.=0.143:14.3%

10.72%
E(RIP 0.2,9.4% 0.4 7.8% 0.4x14.3%
+
+

=
x =

I: ward 2

=0.219.4%-10.72%) =0.4(7.8%.-10.79%) =0.4 (14.3%-10.72)

4
8.94504 10
-

=
x

T1 8.34304x10-4
=
0.03
=
 Cebocho infor -> assume laannual hosseminal
*miny:
Chap 13: Hisvo gidovien (nine mail hoi)

c/NPV of the project

a/ MY 600,000 95%. = x x100 $57,000,000

=

MV1=350,000 90 x $91,500,000
=

MVc 1,500,000
=

x 60 $90,000,000
=

MY 57,000,000 31,500,000 90,000,000 $178,500,000

=

of WA
=
+ +

6
WD 57,000,000 3.19%
/N1V =
=

680,000 180,000 x
-
= +

178,500,000
31,500,000 17.6%
We = =

178,500,000

WC 90,000,000 50.4%
=
=

178,500,000

ex(1 2") -y
-

Ex)
P =
-

95/100
2 100x(1 )- + 100 Ry 8.89%
-

=> =

=
x

(1 x)16
+

Rc R
=

= b(RM -R)
+

4%.
=
1.25(8%-(1)
=

= 9%

R1 = 10%
=

b/ WACC RxWD (1-tan) Rex Ws

=
+
+
R1x WI
8.89%x3. 19%(1-21%) +
=
9%. x 50.4%. + 17.6%
10%x

6.5%
=
Chap 26
900:
Beginning payable of Q1 this year:
-x purchases a lastyear
-

75%x1,925
6
=
x

: 962.5

I
Q Q2 Q3 Q4
Beginning payable 962.3
↑250 1,060 925

purchases 1,845 1,598 1,387.5 1,462.5

payment of AR 1,577.5 17601,322.5 1,412.5

Ending of Al 1,060 925 975

1,230
Purchases of Q2 75%,
=

x 2460; pint of A1 Q1 1,845

=

1
x 969.5 1,577.5
+
=

Ending of A1Qn=962.5 1,845 1,577.5:1236

+
-

&1 Q2 Q3 Q4
Antofaccount1,577.5 1,760 1,527.5 1,412.5

wages, takes and385 370

...
492424

hang-term.... 118 110 10 118

Total 9079.52,3629,056.31,892.5
 Chap 21:
corred discount rate:discontrate (1-tan)
=94.x (1-35%) 5.85% =

Atertain of lease putlease h-tan)

+

= 130,000x (1 -

55%) $84,500
=

depreciation 450,000
=
35%
x $93,600
=

tan shield S

al Lease O I 2 3 &
Aftertan lease print -

84,500 -

8,500
-

84,500 -

84,500

total cash flow (leasing) -

8,500-84,500-84,500 -

84,500

Buy
cost of machine -

480,000

depreciation tan chield 33,60033,60033,66033,600

total cashflow (buying) 480,000
-

$3,600.33,60033,60033,600

Each flow (lease -buy) 480,000 18,100 118,100 118,100 118,100

-
- = =

Present value when leaving 480,000 118,100,1 (1 5.851)-3.- 19,516.78

- +

5.85%

Buy
=
 Chap 16:
a) all-equity plan (unteverred plan)

EPSu EBIT
=

779,000
=

stock 315,000
share
of
2.4%
=

leverred plan
E1S2:EBIE(debtxdebtrate) 749,000 -(,140,000 10%) 1.49%
=
x
=

share of stock 225,000

Su higher
=>

b/ all-equity plan (unleverned plan)

A1Sn 1,748,000
= 5.5%
=

315,000

levered plan

E191 =
1,748,000 -(4,140,000 10%)
x
3.9%
=

225,000

E1S,
=>
higher
/Break-even level
EBII =
EBIT -(4,140,000 10%)
x

=) EBIT $1,449,000
=

315,000 225,000