Earnings per share Dividend per share Return on Assets Return on Equity

Prepare a Common Size Analysis and Trend Analysis for three years for the income Statement, Balance Sheet and Cash Flows Statement of Excel Corporation (there is a separate worksheet for each of these analyses). Once you have completed the Common Size and Trend Analyses, review your work and prepare a written summary of Insights to management of how the Excel Corporation is performing (there are two separate worksheets for your written analysis). Download the attached spreadsheet (https://ms.devry.edulm/content/1840/83883FIN332)FIN332 Week4 Homework.xlsx)..

Every new iPhone comes with a basic one-year warranty. If defects in materials or workmanship are discovered in one year from the date of retail purchase, Apple will repair or replace the iPhone at no cost to the customer. Recently, a batch of iPhone 6s devices was discovered to have a defect that causes them to shut down unexpectedly when the battery charge level reaches about 30%. Apple has issued a battery replacement program for these iPhone 6s devices. 1. Assume that Apple makes a quarterly adjusting entry using the percent-of-sales method to estimate warranty expense for all new iPhones sold during the quarter. How will this adjusting entry impact Apple's balance sheet? Its income statement? 2. Is the adjusting entry for warranty expense an accrual or a deferral? Explain. 3. Now think about the battery replacement program for the affected iPhone 6s devices. When a customer brings in his/her iPhone 6s for a battery replacement under the battery replacement program, how will this transaction impact Apple's balance sheet? Its income statement?

1. If you set aside $5,000 per year (i.e., one deposit of $5,000 each year) in a Roth IRA for the next 25 years (the first contribution is to be made exactly one year from now, so use an ordinary annuity setup), how much will you have at your retirement in 25 years if your IRA earns 8% APR, compounded monthly?

1. Your grandmother is trying to determine the value of her bond portfolio and turns to you for help. Find the current market values of the components of your grandmother's portfolio. a) 100 zero coupon bonds with a $1,000 face value and 3 years to maturity. The YTM on these bonds is 4.8% (assume annual compounding here). What is the total value of these 100 zero coupon bonds? b) 75 bonds with a $1,000 face value and a coupon rate of 6%. These bonds have 8 years left to maturity and pay coupons on a semiannual basis. The YTM of these bonds is 5.2%. What is the total value of these 75 bonds?

Question 4 Smith (2019) suggests that natural classification, that tell what was purchased rather than why, is used predominately by higher education institutions and includes categories such as, O Hospitals, institutional support and depreciation... O Revenue, expense, debits and credits O Instruction, research and public services O Salaries and wages, benefits, supplies, and utilities

Question 5: Use Goal Seek to evaluate how sensitive NPV is to inflation and one other input you choose. Based upon the results, is this project risky as it relates to either input? Explain.

Question 2 Estimate the weighted average cost of capital for Procter & Gamble Co. (ticker PG), using the income statement and balance sheet data for year 2021 for PG from www.morningstar.com, and using the historical stock price data for PG and VFINX from www.finance.yahoo.com. You will also need to look up the market cap for PG. (Do not use balance sheet and income statement from finance.yahoo.com, it has errors in it. Make sure you use year 2021 data from the balance sheet and income statement on Morningstar - do not use the TTM column.) Note: Follow the video example on Moodle! (This question doesn't require a written answer) 1. Create a sheet in your Excel file (Q2a) that estimates the weighted average cost of capital, listing the necessary inputs and calculations. Obtain any necessary data from the sources listed above. To estimate PG's cost of equity, use the Capital Asset Pricing Model, assuming 2.5% risk-free rate and 5.5% market risk premium. Calculate your own beta (see below). Link to the beta, calculated on sheet b, using a cell reference. 2. Create a second sheet (Q2b), where you estimate PG's beta, using historical prices with DAILY frequency for the following dates: starting date 07/01/2020, and ending date 07/01/2021 (note: input the dates 7/1 using the calendar icon, when you click "done" the dates showing may be 6/30, that's okay). Use finance.yahoo.com to download the prices for PG and VFINX (make sure you use the ADJUSTED CLOSE price). Use the SLOPE function to estimate beta. Insert a scatter chart that shows the trendline from regressing returns of PG on the VFINX returns, and displays the estimated equation.

Assignment 3: Stock Valuation Overall Goal: we are slowly building the report to be presented at the end of the semester. At this time, 1) Use Excel to value your stock and formulate the decision if your stock should be bought or sold. You will be uploading only Excel work for this assignment. You should apply one of the valuation techniques we studied in class to the valuation of your selected stock. Stock Valuation Techniques covered in class: • Discounted Dividend Model (DDM). • Corporate Valuation Model (DCF or WACC). • Relative Valuation Techniques (Multiples Approach). For all of those, assume that the discount rate, which is equal to the investors' required rate of return, is 10%. If you select one of the Discounted Cash Flow Methods (DDM and WACC): 1. When selecting your method, consider changes in sales and expenses (from financial statements) that imply assumptions about growth rates of the company over time. Once you understand how to compute each measure of cash flow, you can estimate cash flow for each year. 2. You are allowed to make assumptions. But must clearly state your assumptions and justify them. 3. Estimate the value of your company's Common Stock using one of the methods. For this, create a new Excel sheet; title it "Discounted Cash Flow Method". Set Up a table with data and your assumptions. Show your calculation of the Present Value (PV) of the stock. The calculation must be formula-driven. 4. Compare your estimated value of your stock with the current market price of the company's common stock (the price that is current for your stock in the market (Yahoo/Finance). For this, record the price of your stock with the date you obtained that price. Compare two values side-by-side. 5. Based on this comparison, make a recommendation of whether it makes sense to buy or sell your selected stock. For this, type your recommendation next to the price comparison.

Based on the information presented above, answer the following questions. 1. (12 marks) Calculate the incremental free cash flow during the project's life (starting from Year 0 to Year 5). Show workings. 2. (13 marks) Calculate the NPV, payback period and IRR of the project. Should the project be accepted? Show workings and explain your answer(s).