ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COM

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• A firm recently paid a dividend of 7/share. Over
  the next 15 years, they will maintain their
  dividend at 7/share
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• A firm recently paid a dividend of 7/share. 
  Over the next 15 years, they will maintain their
  dividend at 7/share.  Then afterwards, they will
  change their dividends to grow at a constant
  6/year every year, forever.  .
•             a.  How much dividend is paid in year
  31?
•             b.  What is the stock price?
• 2.  A stock will pay the following dividends 5
  in year 1, 6 in year 2, 7 in year 3.  After
  year 3, they will maintain a zero growth dividend
  policy.  .  Find the stock price.
• 3.  A firm has a zero growth dividend policy and
  recently paid 2/share.  Next year, they will pay
  an abnormally large dividend payment of
  10/share.  Afterwards, they will continue to pay
  their constant dividend payments of 2/share. 
  .  Find the stock price

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• ARE 171B Department of Ag and Resource 
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• Important You must write your answers on the
  sheet on pg. 3 of this assignment and you must
  attach explanations and derivations of your
  answers. Please turn your homework in at
  lecture or directly to your TA. Late homeworks
  will automatically be given a score of zero. In
  this homework assignment, you will get some data
  on the SampP 500 Index and on SampP 500 Index
  Options from the Internet and evaluate the
  performance of the Black-Scholes option pricing
  model.Go to http//finance.yahoo.com. Enter the
  symbol SPX to obtain information on the SampP
  500 index and then click on Historical Prices.
  Change the start date to Jan 01, 2000, the end
  date to February 28, 2014, and click on
  quotMonthlyquot and then quotGet Prices.
  We will only beinterested in the
  quotClosequot

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• ASSESSMENT CASE PAPER ANALYSIS
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• A  report broken down into the following
  sections
• Summary results and recommendationsup front,
  concise, and to the point.
• Answers to the 6 questions askeddevote a
  paragraph to each, with individual headings
• Attached exhibits which are readable and
  understandable (I suggest using Calibri font in
  11 pitch for the spreadsheet(s), because it is
  plain and easy to read)
• Spreadsheet printout(s) showing your derivation
  of
• Operating Cash Flows
• Incremental Cash Flows, including investment and
  salvage
• Warranty costs
• WACC
• NPV, IRR, Payback, and Profitability Index
• Any other supporting exhibits you feel are
  relevant
• A file containing your spreadsheet file,
  including all supporting elements. 

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• Bayerische Motoren Werke Aktiengesellschaft
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• Bayerische Motoren Werke Aktiengesellschaft
  (DBBMW) gt Financials gt Key StatsIn
  Millions of the trading currency, except per
  share items. CurrencyOrderDecimals Trading
  Currency Latest on Right Capital IQ (Default)
  ConversionUnitsDilution Today's Spot Rate
  SampP Capital IQ (Default)Basic Key
  Financials¹ For the Fiscal Period Ending Currency
  12 monthsDec-31-2012A EUR 12 months Dec-31-2013A
  EUR 12 monthsDec-31-2014A EUR 12 months
  Dec-31-2015A

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• Further Exercises Model two (2) Business
  Processes 
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• 3.7 Further Exercises Model two (2) Business
  Processes 1. Exercise 3.10 - Handling Down
  payments and 2. Exercise 3.11 - Assessing Credit
  Risk.1. Please read both Cases carefully to
  insure proper analysis and  modeling. (Pg. 93)
• Then read "Process Discovery" start from Pg. 155
  and answer questions below.
• Identify the various discovery methods available
  to an individual(s) attempting to construct
  either an "as-is" or "should-be" process
  model.2. Discuss the strengths and limitations
  of such a "discovery process" regardless of the
  methodology.3. Describe how you might
  systematically gather the required pieces of
  information about "how a book order" is processed
  by an on-line retailer. 4. Finally, assuming
  that you obtained sufficient information to
  create an appropriate process model what specific
  steps would you use and briefly discuss elements
  of each step.5. Create a "As-is", "Should-be"
  process model for

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• Hand in Problem Set 2 
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• Hand in Problem Set 2 Please hand a paper copy of
  your work to your class teacher at the beginning
  of class 8 (week 9).Thorndike Oil (TO) is a
  diversified company with two operating divisions
  Oil and Telecom which represent 70 and 30 of
  the firms value, respectively. TO has no debt on
  its balance sheet. To estimate the cost of
  capital for each division, TO has identified one
  principal competitor for each of its two
  divisions. The competitors are pure-plays, i.e.,
  they are not diversified and operate in only one
  industry each. They maintain a constant
  Debt-Equity ratio at all times. Assume that the
  debt of the two competitors is risk-free, the
  risk-free interest rate is 1, the expected
  return on the market portfolio is 6 and that the
  CAPM holds. Competitor VP-Oil ABampB-Telecom
  Equity Beta 0.8 1.5 D/E 2/6 1/4 a. Estimate the
  expected return on TOs equity. Now assume that
  TO is considering a change in its capital
  structure that will increase its leverage.

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• lease agreement for production equipment
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• Multiple Choice1. On January 1 of the current
  year, Tire Company enters into a five-year lease
  agreement for production equipment. The lease
  requires Tire Co to pay 12,500 per year in lease
  payments. At the end of the five-year lease term,
  Tire Co can purchase the equipment for 30,000.
  The fair value of the equipment 75,000. The
  estimated useful life of the equipment is 10
  years. The present value of the lease payments is
  50,000. The present value of the purchase option
  is 20,000. Tires controller believes the
  purchase option price is sufficiently below the
  expected fair value of the equipment at the date
  the option becomes exercisable to reasonably
  assure its exercise. Tire Co would normally
  depreciate equipment of this type using the
  straight-line method. What amount is the carrying
  value of the asset related to this lease at
  December 31, of the current year?

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• Practice Set Chapters 21 and 25
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• Practice Set Chapters 21 and 25 1. Name B
  Corporation is considering a copy machine that
  can be leased for 4,000 a year for 6 years. The
  company's marginal tax rate is 27 percent and the
  yield to maturity on the company's debt is 5.9
  percent. Compute the cost to lease if lease
  payments and associated tax savings are at
  the ?a. beginning of each year Cost to lease
  Present value of future cash flows 4000
  4000/1.059 4000/1.0592 4000/1.0593
  4000/1.0594 4000/1.0595 4000/1.0596 ?b.
  end of each year?Cost to lease Present value
  of future cash flows 12000/1.059
  12000/1.0592 12000/1.059312000/1.0594
  12000/1.0595 12000/1.059612000/1.0597
  2. You want a new automobile for personal use.

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• The Bureau of Economic Analysis 
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• To answer this question, you must obtain data
  from the Bureau of Economic Analysis
  (BEA),http//www.bea.gov, on the U.S. balance of
  payments (BOP) tables. You can either
  use theinteractive tables or the "US
  International Transactions" pre-formatted tables
  released onDecember 15, 2016, (link). Obtain the
  following annual data for United States in 2015
• .1. Based on table 1.1, what is the trade balance
  (TB) for goods, services, and total?
• 2. Based on table 1.1, what is the net factor
  income from abroad (NFIA), net unilateraltransfers
   (NUT), and the current account (CA)?
• 3. Based on table 1.2, what is the most important
  component of net factor receipts fromabroad and
  net factor payments abroad?
• 4. Based on table 1.1., what is the balance of
  the financial account (FA) as defined
  in thetextbook?

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• The Finance Department of Zeta Auto Corporation
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• Introduction
• You have recently been hired as a Financial
  Analyst in the Finance Department of Zeta Auto
  Corporation which is seeking to expand
  production. The CFO asks you to help decide
  whether the firm should set up a new plant to
  manufacture the roadster model, the Zeta Spenza.
• Deliverable
• Write a report providing the CFO with your
  recommendation whether Zeta should set up the
  plant to produce the Spenzas and support your
  recommendation by in-depth analysis in Excel. In
  your report, explain the results of each portion
  of your analysis (represented by the tabs on the
  Excel template). Submit all the completed Excel
  worksheets with the completed responses to the
  questions posed to support your report and
  recommendation. Provide a one-page Executive
  Summary summarizing the results of your analysis
  and recommendation.
• Steps to Completion

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• what percentage of all jobs in the United States?
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• The service sector makes up approximately what
  percentage of all jobs in the United States? a.
  12 b.40 c. 66 d. 79 e. 90
• 2. Which is not true regarding differences
  between goods and services? a. Tangible goods are
  generally produced and consumed simultaneously
  services are not. b. Most goods are common to
  many customers services are often unique to the
  final customer. c. Services tend to have a more
  inconsistent product definition than goods. d.
  Services tend to have higher customer interaction
  than goods. e. All of the above are true.
• 3. Which is not true regarding differences
  between goods and services? a. Services are
  generally produced and consumed simultaneously
  tangible goods are not. b. Services tend to be
  more knowledge-based than goods. c. Services tend
  to have a more inconsistent product definition
  than goods. d. Goods tend to have higher customer
  interaction than services

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• Zeta Spenza Project Given MACRS Schedule
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• Introduction
• You have recently been hired as a Financial
  Analyst in the Finance Department of Zeta Auto
  Corporation which is seeking to expand
  production. The CFO asks you to help decide
  whether the firm should set up a new plant to
  manufacture the roadster model, the Zeta Spenza.
• Deliverable
• Write a report providing the CFO with your
  recommendation whether Zeta should set up the
  plant to produce the Spenzas and support your
  recommendation by in-depth analysis in Excel. In
  your report, explain the results of each portion
  of your analysis (represented by the tabs on the
  Excel template). Submit all the completed Excel
  worksheets with the completed responses to the
  questions posed to support your report and
  recommendation. Provide a one-page xecutive
  Summary summarizing the results of your analysis
  and recommendation

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THANK YOU