5. Preferred stock valuation (perpetuity model): return on preferred stock. Calculate the rate of return on preferred stock given the following data: price $25, preferred annual dividend $1.25.

1. Opening a new theme park, such as the Shanghai Disney Resort (company's fourth and largest theme park in Asia), is a major capital budgeting project even for Disney. A project of this scale requires coordinated planning across all functions of a business that you are studying in your Integrated Core classes. Choose and discuss three items on the income statement that you think will be impacted by this new undertaking. Explain why you chose those particular items, and how those items are impacted by the marketing, management and operations decisions of the company.

2. Choose and calculate three financial ratios for Disney for the last two years. Make sure to select ratios that you think would be impacted by opening a new theme park in a foreign country and explain your reasoning. Identify a competitor of Disney and contrast the two companies ratios. Explain why you selected this competitor. Describe how the decisions made by management, marketing and operations functions of the company can impact, and hopefully improve, these financial ratios.

3. Disney is a company with a significant brand value that is closely tied to its family friendly image. Discuss how any violations of ethics and integrity in the company might affect its investors, customers and employees, and ultimately impact the company's overall financial performance. Provide examples of any such events at Disney and discuss how they were handled by the company.

1. Valuing Bonds in Excel Freedonia Township is planning to issue a 30-year bond with a face (par) value of $20,000,000 to construct a new sports and recreation center. The Township will make interest payments twice each year. The stated interest rate (coupon rate) on the bond is 4.5 percent. A. Calculate the amount of the semi-annual interest payments that will be made on the bond. Explain your method and/or copy work in from Excel. B. Calculate how much Freedonia Township will realize from the bond offering if interest rates are 4 percent at the time of the offering. C. Calculate how much Freedonia Township will realize from the bond offering if interest rates are 4.75 percent at the time of the offering. D. In a couple of sentences, explain why the amount the Freedonia will raise from the bond offering varies depending on the interest rate effective at the time of the offering.

III. Mortgages in Excel Extraordinary Families, a foster family agency, needs to borrow $250,000 in the form of a mortgage to update family meeting and overnight space to comply with state law. It agrees to repay this mortgage in monthly payments over 10 years, making a single payment of principal and interest at the end of each month. It agrees to a 4 percent annual interest rate on the loan. (A) Use the PMT function in Excel to determine what the monthly payment will be. An explanation is found on pp. 218-219 of Finkler. Please remember that you need to divide the 4 percent interest rate by 12 to reflect monthly rather than annual payments, and multiply the period (10) by 12 as well. (B) One of the board members thinks that the organization should limit its mortgage payment to $1500 per month, and fund-raise to pay whatever "balloon" payment would be required at the end of the payment period. They want to know what the amount of the remaining liability would be. Use the FV function in excel to determine how much liability would be left at the end with the same terms listed above, and a $1,500 monthly payment. Hint: be sure to enter $1,500 as a negative in the formula. If you need help with the formula, refer to this resource.

Describe how Disney hedge FX risk recently ? if at all? What has been net profit/loss? Note: Put data in tables

You are the chair of a nonprofit pottery studio, "You are Fired." The board has been offered the opportunity to purchase the studio space for $2,000,000, and can use part of its reserve fund to pay for the $400,000 down payment. It can get a twenty-year mortgage with end-of- month payments at a 4 percent annual rate of interest. Please answer the questions below: Format answers with commas to separate thousands, hundred thousands and provide decimal places as noted in the answer. a. How much will the organization have to finance with the mortage? Please round to two decimal places, e.g., 2,400,000.00 not 2,400,000. b. What is the effective periodic interest rate and number of periods for this mortage? • Periodic Interest Rate: (Please round to five digits (e.g., 0.0020, not 0.002 or 0.2 percent) • Number of Periods: (Please round to the one (e.g, 450 not 450.00) c. Use the information from (a) and (b) and the payment function in Excel to determine the amount of the mortgage payment. • PMT= $ (Please round to two decimal places)

Case: Ameritrade --- Questions 1) What factors should Ameritrade management consider when evaluating the proposed advertising program and technology upgrades? 2) According to the Capital Asset Pricing Model (CAPM), what is the cost of capital for Ameritrade? Present and justify your estimates of the asset beta, the risk-free rate, and the market risk premium. Note that Ameritrade does not have an equity beta estimate as the firm has been publicly traded for only a short period of time. What comparable firms do you use in this case? What are their asset betas?

Cost of Capital Calculate an estimate of the weighted-average cost of capital for Chick-fil-A, using the data previously provided. All of the relevant formulas are listed on the following page.