FM test results

[Raymond Tenorio]

Hey gang, how did your study session go? Anyone feeling generous with the answers to the sample final?

[Clarice]

Ray,

Just got home from AT review.

Our review session went well and able to finish almost all of the questions.

I am in the process of rewriting them again. The three short answers in the previous emails should be correct...I will try to post the other ones tomorrow or Lauren has a photo copy if she does mind to forward.

Clarice

Sent from my iPhone

[Raymond Tenorio]

thanks!!

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Thanks,

Raymond

[Lauren Fanuzzi]

I am actually trying to turn it into a cheat sheet and found some of the answers from the previous years class as well. 

Will send that tomorrow.

Lauren

[Clarice]

That is great . Thank you. Please be Careful that some of the answers may not be right from prior year. Since we may have different assumptions given the questions are not all that clear... Best is to go by the notes ... Good luck to everyone.

Sent from my iPhone

[Lauren Fanuzzi]

I would suggest to look it over and make sure the answers are correct. It will be in Word so you can change it if you have something different. I was more going for the actual process then if the answer is right, since its going to be different on the exam.

Lauren

[Sarah Greer]

Gang -
Here is the latest on my cheat sheet - still working on it though.
welcome to use it.

Ray - we got through most of them.
My work is a total illegible mess.  But from what we can tell on the capital restructuring problem (taking on debt) - it is a near copy cat of his example in class.
but answers to get you started:
1) $9145.37
2) Choose A: $87,00 (over B $85,600)
3) take the lease option: $61,047.8 (vs. $61,405.1)
4) 8.998%
5) 100-80=20 million at LTF of 12% = 2.4 million
6) choose 3/10 ( cost of foregoing 14.11% > K)
7)

Cash & Operating Cycles

Age of inventory = 365/Inventory Turnover Rate

Cash Cycle (cc) = Age of inventory + age of receivables – age of payables; 36.5 + 60 - 45 = 51.5 day cash cycle
cash turnover = 365 days/CC = 365/51.5 = 7.087 Cash t/o
Minimum Cash Balance = COGs/cash _t/o

10million/7.087 = $1,411,103.43; K=10%

Cost of maintaining minimum cash balance = $141,103.43

8)
33.79% >K do not factor,  borrow from the shark
9) We skipped this one! but I think I I got it:
5 + (12-5)1.10 = 12.7%
10)
P0=56
P1=62.72
P10=173.93 (about)
II
NPV=35.71
27.761>K (20%)
III
hold out for a drown out version by clarice.
IV
11.39%

Sarah

[Raymond Tenorio]

This is great. Thank you all!

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Thanks,

Raymond

[Saquiba Syed, M.D.]

Thank you all...love u guys..good luck..

[Lauren Fanuzzi]

Did anyone see the answer to the lease question from the cheat sheet that was sent. It was a bit different from ours. I was wondering if anyone else got that answer for the lease the car question.

[Clarice Ma]

Lauren,

Sarah approached the problem in terms of FV and the cheat sheet
approached it in the PV and both are acceptable method, it seems like
the cheat sheet's calculation is not correct, FV should be zero and
one dollar at the end should be a separate calculation.

I will work on it later.

Clarice

On Wed, May 9, 2012 at 12:55 AM, Sarah Greer <skgr...@gmail.com> wrote:

[Clarice Ma]

Lauren,

I calculated the lease question on the sample exam....close enough to
the cheat sheet. Hope that helps...

Sarah please review your answer, I did not take the FV approach...it
seems like it will take long to get all future values together.

I feel like the more problems I do ....the less that I know.

Clarice