## FIN/370 Finance for Business

Select one of the publicly traded corporations listed below and obtain the most current SEC Form 10-K (annual financial report) from the company’s web site (Do not use the Annual Report that is sent to shareholders):

The company I’m using is Apple corporation.

Calculate and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:

• Current Ratio
• Inventory Turnover
• Debt Ratio
• Time Interest Earned
• Gross Profit Margin
• Equity Multiplier
• Return on Assets
• Net Profit Margin
• Return on Equity (Use three ratio DuPont method)

Compare and contrast your company’s ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other Internet sources, and provide a detailed answer and analysis as to why your company’s ratios are different than the industry/competitor standard.

Prepare your analysis in a minimum of 875 words in Microsoft® Word. The use of Microsoft® Word tables is encouraged.

Cite the source of the industry/competitor ratio information.

Format your assignment consistent with APA guidelines.

## FIN/370 Finance for Business

Complete the following Questions and Problems from each chapter as indicated.

Show all work and analysis.

Prepare in Microsoft® Excel® or Word.

A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?

For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?

A proposed new investment has projected sales of \$635,000. Variable costs are 44 percent of sales, and fixed costs are \$193,000; depreciation is \$54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?

Dog Up! Franks is looking at a new sausage system with an installed cost of \$540,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for \$80,000. The sausage system will save the firm \$170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of \$29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?

Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is \$9.64 per unit, and the variable labor cost is \$8.63 per unit.

a. What is the variable cost per unit?

b. Suppose NSI incurs fixed costs of \$915,000 during a year in which total production is 215,000 units. What are the total costs for the year?

c. If the selling price is \$39.99 per unit, does NSI break even on a cash basis? If depreciation is \$465,000 per year, what is the accounting break-even point?

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.

Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.

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