After you reach age 70, you start withdrawing $6,000 every month until death. Also, you withdrew $30,000 (a one-time withdrawal for the birthday party) on your 75th birthday. Determine the balance in the account on your 90th birthday.

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Financial Management

Today, you celebrated your 25th birthday. You just landed a new job at Citi Bank. Citi provides you a 401-k plan, and you decide to deposit $300 every month for 10 years. Citi matches your 401-k at 100% (matching funds are deposited annually) and pays interest at 7.2% compounded monthly. At the end of 15 years, you change the job to JP Morgan Chase, and you decide not to roll-over your 401-k to Chase. The money continues to earn interest at the specified rate when you are not working at Citi.

You join Chase on your 40th birthday. At Chase, you contribute 7% of your salary to the 401-k; deposits are made annually. Your starting salary at Chase is $70,000 and you expect to earn 2.5% pay raise every year. Chase matches your 401-k at 100% (matching funds are deposited annually) and pays interest at 6% per year compounded monthly. You retire from Chase when you reach 65.

While at chase, you get a letter from your previous employer, Citi stating that beginning your 50th birthday, the interest rate on your 401-k at Citi will go down from 7.2% compounded monthly to 4.8% compounded monthly. Since the new interest rate is lower than the interest rate at Chase, on your 50th birthday, you roll over the balance from Citi 401k to Chase 401k.

You had a hardship withdrawal of $50,000 at age 55. The money was returned to account at age 60.

On your 65th birthday, and you stop contributing to 401-k. Assume that you leave the money at Chase and not rollover to a retail account like Fidelity. The money will continue to earn interest.

  • a)Determine the total account balance (including company match) in your Chase account on your 65th birthday.
  • b)After you reach age 70, you start withdrawing $6,000 every month until death. Also, you withdrew $30,000 (a one-time withdrawal for the birthday party) on your 75th birthday. Determine the balance in the account on your 90th birthday.

Do an internet search for ANY sports feasibility study project and post in the discussion.

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Finance Question

Do an internet search for ANY sports feasibility study project and post in the discussion. This post is worth 25 points. Provide a brief description of the project including:

  • Team/organization the Feasibility study was for and the company that completed the project (if applicable) (5 points)
  • Description of what the feasibility study was for (15 points). This should include what they were studying, areas the study looked at, and any outcome or recommendations.
  • Link to the actual study. (5 points) – Note a link to a news article is not sufficient. A link to the study is required to receive points. If you can not find a link, then I would suggest looking for a different study.

Using the template provided, calculate Caleb’s annual retirement income for Low Return, Medium Return and Hight Return.

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Assignment 4-2

Celisteela Moonn met one of SchoolStreet’s clients, Caleb Jamal, to discuss his retirement income.

Moonn plans to invest Caleb’s money in a risky portfolio that might have a long-run low return of 1.0%, medium return of 5.0%, and a high return of 12.0%.

Caleb asked Moonn what would be his annual retirement income in the low, medium, and high return scenarios when saving with a taxable plan, a traditional IRA or 401(k) plan, or a Roth IRA or 401(k) plan?

Caleb provided following info to SchoolStreet:

  • Age 25 years
  • Expect to earn a constant salary of $50,000.
  • Planning to retire at age 65 and expects to live at age 85.
  • Caleb saves at a 10.0% rate.
  • Current tax rate is 18.0% and Caleb expects his retirement years tax rate to be 23.0%.

Using the template provided, calculate Caleb’s annual retirement income for Low Return, Medium Return and Hight Return for:

  • Taxable Investment
  • Traditional IRA or 401(k)
  • Roth IRA or 401(k)

What is the maximum premium a U.S. acquirer would be expected to pay if the value of CPRI PLC (without epsilon) is $380 million?

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Finance problem

Part A

Problem 1 (Answer all parts of this problem)
A U.S. based acquiring firm is considering making an offer for CPRI PLC, a Thailand-based company. Below you can find the up-to 5-years free cash flow (FCF) forecasts (which include epsilon) for CPRI PLC. Values are given in millions of Thai Bahts (THB). Some additional inputs/assumptions are provided below.

 

Five-Year Forecast:
FCFs (THB, in millions                    Yr1   Yr2   Yr3   Yr4   Yr5

                                                             456   568   678   890   765

Additional Inputs/Assumptions:

Inflation rate,                                                                            2.40% 

US Exchange rate at time t = 0 (US$1:THB33.63)           33.63

Exchange rate depreciation                                                   -1.17%

Real discount rate                                                                     3.56%

a. Compute the Present Value of CPRI PLC in TBH. [10% of total mark]

b. Translate the cash flows into U.S. dollars. [10% of total mark]

c. Estimate the discounted cash flow value of the investment under the two forecasts (THB and U.S. dollars). Did you come up with the same present value? What rate did you use to discount the U.S. dollar flows? What assumptions are necessary to obtain equivalency between approaches A (converting local flows into dollars and discounting at a dollar rate) and B (forecasting in local currency and discounting at a local rate)? [20% of total mark]

d. What is the maximum premium a U.S. acquirer would be expected to pay if the value of CPRI PLC (without epsilon) is $380 million? [10% of total mark]

Replace the calculations in the excel with numbers within the link below. Then update all the numbers in the PowerPoint.

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Replace the numbers in the calculations and update the excel

Replace the calculations in the excel with numbers within the link below. Then update all the numbers in the PowerPoint.

There are 5 definitions, select the term that matches the definition. Assign a list of actual NCAA revenues and expenses to the correct category/area.

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Week 6: Revenue and Expense

Complete the Revenue & Expense exercise. This includes two parts.

Part 1: There are 5 definitions, select the term that matches the definition.

Part 2: Assign a list of actual NCAA revenues and expenses to the correct category/area. You will also use excel formulas to calculate subtotals, totals, and net income.

  1. Download the Xcel File (if you have Google sheets  ).
  2. Complete the assignment (See the Xcel Sheet and this week’s video for instructions and assistance)
  3. Submit your file back in excel. The file MUST be submitted in excel, to verify formulas were used. If using Google Sheets, you should be able to download the file to your computer in excel and attach it that way.

Complete the following on the discussion board related to the business of College, Professional, or International Sports.

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Week 3: college-pro-international

For this week’s class, each class member should complete the following on the discussion board related to the business of College, Professional, or International Sports. Grading will be based on completing the three items and contributing to the discussion:

  1. Post a question: Post a question or discuss a topic related to the business of college, professional, or international sports. What questions do you have, what are things you’d like to know, what are you seeing in the media on areas that affect either of these areas in sports, and the income and expenses.
  2. Post a resource Link: Post a resource link with a description on the business of college, professional, or international sports. This should be specific to the business aspect of sport. It could also be related to players specifically as it relates to business.
  3. Post a comment: Comment on any other student or instructor’s question or resource link. Providing your thoughts on the subject or follow up.

Watch a brief Excel tutorial on YouTube to assist you in Excel formulas. Play the video and follow along entering the exact information while the narrator does.

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Excel week 2

For this week’s assignment you will watch a brief Excel tutorial on YouTube to assist you in Excel formulas. Excel will be used throughout the course. The final document uploaded should be an EXCEL FILE. This will be used to verify your formulas/calculations were entered correctly. PDF documents will not be accepted.

A link to the Excel Formulas and Functions Video and the Excel file to use for the exercise are attached to this assignmnet.

You may also complete this assignment in Google Sheets if you prefer.

If completing in google sheets, download this excel file, then save it to your computer. Open Google Sheets and then import this excel spreadsheet in the program. when finished download the file to an Excel format and save to your computer then submit the excel file in Courseden.

The attached excel file should be used as a starting point. The first tab is laid out with the same row titles as the video. The second tab includes information on grading of the assignment. Your grade will be based on you recreating the spreadsheet EXACTLY as it appears in the video inclusive of all formulas used and entered correctly. You will play the video and follow along entering the exact information while the narrator does. You may pause, backup, or replay the video as much as you like when completing this exercise.

If ABC produces a liter of orange juice in its US headquarters and ship it to Japan for USD $1.45 per unit. If the firm wants a 25% markup on the project, what should be the price of the juice sold in Japan measured by Yen, if using the exchange rate as shown above?

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Financial Management    Spring 2023

Project (20 points)

Note:   Write down the steps and results of each step of the calculation process.

  1. (4 points)

ABC Inc.’s capital structure is 40% debt, 30% preferred, and 30% common equity, and its tax rate is 35%. For financing, (a) ABC sold a non-callable bond several years ago that now has 15 years to maturity with 8% annual coupon, paid semiannually, at a price of $1,055, and a par value of $1,000. (b) ABC sold a perpetual preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.00% of the price. (c) ABC also has beta = 1.2, risk free rate of return rRF = 6.00%; market risk premium RPM = 7.00%;

The question is: What is the company’s WACC?

  1. (4 points)

ABC is considering a project that has the following cash flow and WACC data.

  • What is the project’s NPV?
  • What is the project’s IRR
  • What is the project’s MIRR?
  • Should the project be accepted? Why?

WACC:  The result of (1) above

 

Year              0        1        2        3        4        5  

Cash flows     -$1,200    $420     $380     $360     $340     $320

  1. (4 points)

ABC is now considering changing the debt ratio and moving it to the new debt/assets ratio as indicated below, and replacing all preferred stocks with debt.  The money raised would be used to repurchase preferred stock at the current price.  It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise somewhat, as indicated below.  If this plan were carried out,

  • By how much would the WACC change, i.e., what is WACCOld – WACCNew (WACC (in question (1) or (2)) – WACC (in question (3))?

New Debt/Assets               45%      Interest rate new = rd       7.0%

New Equity/Assets             55%      New cost of equity = rs     13.0%

  • Based on the Hamada equation, what would the firm’s beta be if it used no debt, i.e., what is its unlevered beta?

 

  1. (4 points)

ABC is planning its operations for next year, and wants to forecast the firm’s additional funds needed (AFN).  Data for use in the forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?  Dollars are in millions.

Last year’s sales = S0               $700   Last year’s accounts payable       $45

Sales growth rate = g                 18%   Last year’s notes payable          $55

Last year’s total assets = A*0        $500   Last year’s accruals               $35

Last year’s profit margin = M          5%   Target payout ratio                50%

  1. (4 points)

 

On 4/10/2022, the exchange rates are as follows:

1 British Pound = USD $1.30

1 Australian dollar = 0.57 British Pound

1 Australian dollar = 87.59 Japanese Yen

$1 USD = 1.34 Australian dollar

$1 USD = 124.46 Japanese Yen

 

  • ABC is considering expanding its sales of orange juice overseas. If the product is produced in ABC’s Australian brunch with cost 2.20 Australian dollars, ship to UK, where it can be sold for 1.54 British pound. What is the profit measured by US dollars on the sale?
  • If ABC produces a liter of orange juice in its US headquarters and ship it to Japan for USD $1.45 per unit. If the firm wants a 25% markup on the project, what should be the price of the juice sold in Japan measured by Yen, if using the exchange rate as shown above?
  • If the shipped orange juice in Japan is actually sold for 215 Yen, by PPP, what is the exchange rate between USD and Yen (Yen/USD $1) implied?

In your opinion, which of these documents is most important running and sustaining a healthcare business and why is X document most important? Which document is least important and why? Support your opinion.

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M5 Class 1 – the income statement, cash flow statement, and balance sheet.

This week’s readings are about the income statement, cash flow statement, and balance sheet. Briefly describe the purpose of each of these financial documents. In your opinion, which of these documents is most important running and sustaining a healthcare business and why is X document most important? Which document is least important and why? Support your opinion.