Finance Problems

See attached file for full problem description.

1. Suppose sales were $38,873, $45,626, and $57,689 for the years 2000, 2001, and 2002, respectively. Compute the annual growth rate in sales for 2001 and 2002. Compute the arithmetic average growth rate based on the annual growth rate calculations. Using the arithmetic average growth rate, compute the forecast for sales for 2003.

2. Suppose forecasted sales are $46,117 and the gross profit margin is expected to be 30.00 percent. If the forecasted ratio of inventories to cost of sales is 25.00 percent, compute the forecasted inventories balance for the pro forma financial statements.

8. Compute the NPV of the two investments using the certainty-equivalent approach. Identify the preferred investment

9. How is the information regarding store count and growth in total revenues presented in Figure 5-14 possibly misleading?
Figure 5-14: Starbucks Corporation: Store Count and Growth Rate in Total Revenues, 1993- 2002

10. Identify each of the following decisions as strategic or normal:
1. The decision to advertise in the Daily Sun newspaper or the Daily Journal newspaper
2. The decision to institute a new line of sportswear for a men's clothing manufacturer
3. The decision to raise the targeted return on equity from 12 percent to 14 percent
4. The decision to finance the firm with approximately 40 percent debt and 60 percent equity
5. The decision to raise capital by selling bonds through Investment Banking Firm A or through Investment Banking Firm B

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1. Suppose sales were $38,873, $45,626, and $57,689 for the years 2000, 2001, and 2002, respectively. Compute the annual growth rate in sales for 2001 and 2002. Compute the arithmetic average growth rate based on the annual growth rate calculations. Using the arithmetic average growth rate, compute the forecast for sales for 2003.

Annual growth rate in sales for 2001 is

$45,626 - $38,873 x 100 = 17.37%
$38,873

Annual growth rate in sales for 2002 is

$57,689 - $45,626 x 100 = 26.44%
$45,626

17.37% + 26.44% = 43.81/2 = 21.905%

The forecast for sales for 2003 is

$57,689 x 1.21905 = $70,326

2. Suppose forecasted sales are $46,117 and the gross profit margin is expected to be 30.00 percent. If the forecasted ratio of inventories to cost of sales is 25.00 percent, compute the forecasted inventories balance for the pro forma financial statements.

Address Following:
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Sample Exam problems July 09.
1. How much do you have to invest today at an annual rate of 8%, if you need to have $5,000 six years from today?
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There is an attachment with 15 short problems attached.
Please review the problems and assist with solutions as described.
Must use Excel financial functions when possible.
There is more than 1 tab.
Thanks

Troy Fin 3332 Semester Project
The Project is to be completed off line but answered utilizing the quiz format.
Online course contains questions matching those on the various sheets in this workbook.
Workbooks/ spreadsheets are not to be e-mailed, unless requested.
Click on each worksheet below.

Please help with the following finance-related problems.
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