What was the average realized return on ASA Robotics Inc.'s stack from 2006 bo 2010?L I. is XXXXXXXXXXBased on the sample data from 2006 to 2010, what is the standard deviation of ASA Robotics Inc.'s...

Solution:
Chapter 1
2: Forms of business organizations
Chartered by a state and is its own entity separate from its owners
Has unlimited life
Easier to transfer ownership in the form of stock
Owners have limited liability
Business Scenario – Type of business
1. – Corporation
2. Proprietorship
3. Partnership
4. Partnership
3. Shareholder value:
Shareholders of the company, maximize, maximize fundamental price of the company’s
common stock
Total wealth = 37.50*150 = 5625
Maximizing
4.Intrinsic values and stock prices
Equal to
Overvalued
For graph: Actual stock price: Overvalued
Intrinsic value: under valued
5.Capital allocation process:
Scenario
1. Indirect transfers through investment banks
2. Indirect transfers through investment banks
3. Direct transfer
4. Indirect transfers through financial intermediatries
6.Financial instruments:
1. State and local govt bonds
2. Commercial papers
3. Eurodollar time deposit
4. Corporate bonds
Capital market:
 Common stock
7.Cost of Money
Option 2 will have higher cost
8. Macroeconomic factors that influence interest rate levels
1.True
2. True
3. False
4. True
9 Financial Institutes:
1. Investment banking
2. Credit union
3. Hedge funds
10 Type of financial markets:
1. Spot markets
2. Money markets
3. Public markets
11 Market for common stock:
Initial public offering: No
Investing in foreign markets: The value of your investment will increase if the value of
the dollar increases relative to the currencies of the investment
12 global economic crisis
Option 1 and 2
Chapter 2: Financial statements, cash flow and taxes
1 Free cash flow and financial statements
Option A
When determining the value of a firm: The timings of cash flows a firm can generate un
determining the value of a firm. All else being equal, cash received sooner is better
FCF – No
Because this calculation fails to include both the working capital and capital expenditures
necessary to sustain the company’s operations,
because this calculation fails to include the increase in working capital required to grow sales
2 Financial statements and reports:
1. Annual report
2. Statement of cash flows
3. Income statement
4. Balance sheet
5. Statement of retained earnings
1. Statement of cash flows
2. Balance sheet
3 Balance sheet
Cash and cash equivalent 1384
Net plant and equipment 4125
Total current assets 469
Retained earnings 1969
The asset side and liability side of a balance sheet list accounts in order of their liquidity
The book value per share of Georgia industries in seond year is 112.50
Decrease
4 Income statement
Operating income in second year $900 million
An increase in earnings before taxes will lead to an increase in net income
Decrease in interest expense will lead to an increase in net income
An increase in operating cost will lead to decrease in operating income
EPS = 18.36
5 Stockholder’s equity
Equity is the sum of shareholder’s capitalprovided by shareholders and retained earnings
Dividend – 17 million
6 Net cash flow
Net income
Current cash flow = 1015 million
7 Cash flow
No
1. Investing activity
2. Operating activity
3. Operating activity
4. Financing activity
Maximum amount of cash = 83 million
8 Analyzing accounting data for managerial decisions
The company is using 45.5 million in net operating working capital acquired by
investor supplied funds
NOPAT is 182.4 million
9 Free cash flow
FCF – Residual cash flow
110764 in free cash flow
Distributing dividends to stockholders
10 Evaluating free cash flows and return on invested capital
Talker corp has higher free cash flow
NOPAT of talker is 225420 and Mobile talk 92820
ROIC of talker is 15.35%...