世新大學九十二學年度研究所博、碩士班考試
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學系別 |
考試科目 |
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財務金融學系 |
財務管理 |
1.
The Anderson Company, a
producer of air filters, is planning to enter the bicycle wheels business and
is looking for a proxy company to measure the risk involved in it. Jackson
Company, a producer of bicycle wheels, whose stock is publicly traded, is
suggested as an appropriate benchmark. Jackson Company has a debt-equity ratio
of 0.40, a beta of 1.45, and is in the 34% tax bracket. Anderson Company has a
debt-equity ratio of 0.50. The yield to maturity on
a.
If Anderson Company maintains
its debt-equity ratio of 0.50, what is the beta it should use for evaluating
the rate of return on its new investment?
(5%)
b.
If the risk-free rate currently
is 7.2% and the expected return on the market portfolio is 12%, what return
should Anderson Company require for the investment if it uses a CAPM
approach? (5%)
2.
The following balance sheet and
income statement should be used to solve this problem.
Laifung,
Inc.
Laifung, Inc.
2002
Income Statement
Balance
Sheet as of
($ in millions)
($ in million)
2001 2002
2001 2002
Net sales
$9,625 Cash $1,455 $260 Accounts payable $1,150 $2,863
Cost of goods sold 5,225 Accounts Rec.
2,460 3,975 Notes
payable
2,600 1,628
Depreciation 1,890 Inventory
1,405 885 Total
$3,750 $4,491
Earnings before
interest
and taxes $2,510 Total
$5,320 $5,120 Long-term debt 7,000 7,600
Interest paid 850 Common
stock
5,500 5,700
Taxable income $1,660 Net fixed assets
19,300
21,720 Retained
earnings 8,370 9,049
Taxes
581
Total liabilities
Net income
$1,097 Total
assets
$24,620 $26,840 & owner’s equity $24,620 $26,840
Dividends paid $400
Addition to retained
earnings
$679
a.
What is the firm’s operating
cash flow for 2002? (5%)
b.
What is the firm’s net capital
spending for 2002? (5%)
c.
What is the firm’s change in
net working capital for 2002? (5%)
d.
What is the firm’s cash flow from
assets for 2002? (5%)
e.
What is the firm’s cash flow to
creditor’s for 2002? (5%)
f.
What is the firm’s cash flow to
stockholders for 2002? (5%)
3.
Suppose you borrow $10,000 from
Citibank Bank. You will repay the loan by making equal annual payments for five
years. The interest rate on the loan is 14 percent per year.
a.
Please prepare an amortization
schedule for the loan. Your amortization schedule must include the following
items: beginning balance, payment, interest paid,
principal paid and ending balance for each year. (15%)
4.
Danta Breweries is considering leasing equipment that costs $3,000,000,
and it has an estimated residual value of $400,000 after five years. For a
5-year lease with payments at the beginning of each year, what annual lease
payments would be required to give the lessor a
return of 12 percent? (10%)
5. In order to expand production facility, Dagwood, Inc.
is considering buying one of two machines, A or B. The respective costs and
benefits of each are listed below:
Annual Pretax Savings
Machine Cost Life of Machine for Company
A
$125,000
5 Years $60,000
B
$100,000
4 Years
$56,000
Both machines
are going to be depreciated on a straight-line basis and there will be no
salvage value for either machine. The firm’s tax rate is 40 percent and its
required rate of return is 16 percent.
a.
Calculate the NPV and the PI of
each machine. Which would Dagwood select and why? (20%)
6. Please explain the interpretation of equity ownership
as equivalent to owning a call option on the assets of the firm. (15%)