Question #1Using the financial statements of Hewlett Packard Co. answer and calculate the following for Qtr 1/2008.
a. What stock exchange in this stock being traded on?
b. What is the stock symbol for this company?
c. Current Ratio

d. Quick Ratio =

e. Receivables Turnover =

f.Total Assets Turnover =

g.Networking Capital =

h.Inventory Turnover=

i.Day’s Inventory=

j.Debt / Equity Ratio =

k. Net Margin =

l.Asset Turnover=

m.Calculate Return on Equity =

n.Calculate Return on Assets =

o.Leverage Factor =

Question #2Suppose that the annual expected rates of inflation over each of the next five years are 5 percent, 6 percent, 9 percent, 13 percent, and 12 percent, respectively. What is the average expected rate of inflation over the 5-year period?

a.6%
b.7%
c.8%
d.9%
e.10%

Question #3You have been tasked with determining the company’s Net Present Value and PV of expected cash flows on a 10- year project, the company wants to determine the cash flow using a discount rate of 10%. The initial investment is $100,000 and the expected cash flows are:
a.Years 1, 2 and 3 = $25,000 each year
b.Years 4, 5 and 6 = $50,000 each year
c.Years 7, 8, 9 and10 = $75,000 each year

Question 4 If a project cost $50,000 and was expected to return $15,000 annually, what is the estimated payback period?

Question 5 If a project cost $750,000 and was expected to return $15,000 annually, what is the estimated payback period?

Question 6 For a capital budgeting proposal, assume this year’s cash sales are forecast to be $500, cash expenses $225, Expenses $75 and depreciation $50. Assume the firm is in the 25 percent tax bracket. Using the methods discussed in the chapter, determine the project’s after-tax cash flow and fill in the following blanks.
a.Depreciation ____________________
b.Earnings before taxes _______________
c.Taxes __________________________
d.Net income ________________________
e.After Tax Cash Flow ______________________

Question 7 A clothing company creating another line of sweaters with the came style, with little noticeable difference is called _____________________________________________.

Question 8 Using the following financial information provide the following information.
Common Equity $ 19,659.61
Shares Outstanding $ 231.86
Total Assets $ 21,423.89
Net Income $ 50,000.00
Sales $ 75,000.00
Market Price (share) $ 400.00
Book Value (share) $ 325.00

a.Book Value per share _____________________________________
b.ROI (Bonus) ____________________________________________
c.ROA (Bonus) ___________________________________________
d.M/B Ratio (Bonus) _______________________________________

Question 9 For a capital budgeting proposal, assume this year’s cash sales are forecast to be $2,000, cash expenses $1,225, Expenses $200 and depreciation $300. Assume the firm is in the 15 percent tax bracket. Using the methods discussed in the chapter, determine the project’s after-tax cash flow and fill in the following blanks.
a.Depreciation ____________________
b.Earnings before taxes _______________
c.Taxes __________________________
d.Net income ________________________
e.After Tax Cash Flow ______________________

Question 10You have been tasked with determining the company’s Net Present Value and PV of expected cash flows on a 10- year project, the company wants to determine the cash flow using a discount rate of 12%. The initial investment is $250,000 and the expected cash flows are:
a.Years 1, 2 and 3 = $75,000 each year
b.Years 4, 5 and 6 = $10,000 each year
c.Years 7, 8, 9 and10 = $25,000 each year