Problems 15-2 15-6 16-11 17-3

P15-2
Free property Flow $400,000.00
Growth tempo5%
WACC 12%
mensurate of Operations$6,000,000.00

P15-6Yr1 Yr2Yr 3
Free Cash Flow $80,000.00 $100,000.00 $108,000.00
Growth Rate8%8%8%
WACC 12%12%12%
Horizon Value $2,700,000.00
Value of Brooks Operations $2,410,714.29

P16-11
Beta1
Tax Rate40%
Debt200.40
Equity800.60
D/E Ratio25%67%
Market Risk support4%
Risk Free Rate6%
Rd (New Debt Rate)9%
Re (Cost of new equity)10.87%
EBIT $14.93 Million

a)0.870
b)1.21710.870%
c)8.682% $103.20

Problem 17-3
a)
Available for exchange Securities 128,760
bet Revenue (50,000*.



12*4/12) 2,000
Investments 130,760

b)December 31, 2010
Interest receivable 8,025
Available for Sale Securities 51
Interest Revenue 7,974

increase Interest = 50,000*12%*10/12 5,000
Premium amortization 6/236*2,000 51
Accrued Interest = 110,000*11%*3/12 3,025
7,974

c)December 31, 2010
Available for Sale Portfolio

SecuritiesCost middling ValueUnrealized Gain (Loss)
Sharapova Company Common tenor 37,400 31,800 (5,600)
U.S. Government Bonds 110,000 124,700 14,700
McGrath Company Bonds 51,949 58,600 6,651
Total 199,349 215,100 15,751
Previous securities fair rank
adjustment balance0
Securities fair value adjustment 15,751

Securities pleasure ground Value Adjustment
(Available for Sale) 15,751
Unrealized Holding Gain or Loss
Equity 15,751

d)July 1, 2010
Cash (119,200 + 3,025) 122,225
Available for Sale Securities 110,000
Interest Revenue
(110,000*.11*(3/12) 3,025
Gain on Sale of Securities 9,200If you want to give rise a full essay, order it on our website: Orderessay



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