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[SOLVED] PHL hip hop research paper
Your research paper assignment is to write an 8-10 pg. double-spaced paper (i.e. including work cited page) on the topic of your choice. You must use 5 article sources from the Hip Hop Studies Reader that we have not read.
You must also integrate any of our class readings into your argument. Feel free to see me for help and/or possible outlines. It is standard format of 12 pt. font, Times New Roman, and one inch margins. Please put a title to your essay and center it on the page. Also put your name and our classroom information on the top-left corner of the page. Use MLA parenthetical citations.
Here are few things to keep in mind when writing your paper.
1) Introduction Central Idea and Thesis: The first paragraph should grab the reader’s attention. The thesis (i.e. what you will argue) is clearly stated. Show the reader why the topic matters.
2) Organization: The essay should be well-organized. One idea follows another in a logical sequence with clear transitions.
3) Understanding of Text: The essay should clearly lay out the main argument of the authors you are reading. Demonstrate a clear grasp of a difficult concept with a good example. Pay attention not simply to the content of the author’s argument but also the methods by which they address an issue.
4) Critical Evaluation of the Text: Critical evaluation is not always negative it can be positive. On the negative side you can briefly step outside a view and raise an objection to it from a different perspective. After raising an objection you may offer a response that tries to minimize the force of an objection. On the positive side you can try and extend someone’s view and apply it to a different situation or you could show why the argument is original or a good reminder or may point out various strengths in the author’s argument or approach. Whether you show limitations of a view or its strengths or both you must give reasons in support of your evaluations. Please try and give a sophisticated response to the text that is clear and demonstrates that you “got what he/she tried to say” and you critically thought about it.
5) Mechanics: Try and have few, if any, spelling, punctuation, organization, grammar or usage errors.
Grading Rubric
Problem Identification: Identify and thoroughly explore the issue and significant underlying issues. Capture the multi-faceted and dynamic nature of a complex issue.
Context and Assumptions: Considers integral contexts and background information, surfacing assumptions and address the ethical dimensions underlying the issue.
Data/Evidence: Demonstrate skill in search, selection, and source evaluation. Examine evidence and its source, question accuracy, relevance, and completeness. Demonstrate an understanding of how facts shape but may not confirm opinion.
Integration of Diverse Perspectives: Seek out, weigh and effectively integrate diverse, uncomfortable or contrary views. Analyze other positions in an accurate, nuanced, and respectful fashion.
Develops Own Perspective: Clearly present and justify your own position. Demonstrate ownership for constructing knowledge or framing original questions.
Conclusion: Identify, discuss, and extend conclusions and/or consequences. Considers ambiguities and raises questions.
Fin315 Final Exam
Question 1
Table 9.2
A firm has determined its optimal structure which is composed of the following sources and target market value proportions.
Debt: The firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. A flotation cost of 2 percent of the face value would be required in addition to the premium of $50.
Common Stock: A firm’s common stock is currently selling for $75 per share. The dividend expected to be paid at the end of the coming year is $5. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.10. It is expected that to sell, a new common stock issue must be underpriced $2 per share and the firm must pay $1 per share in flotation costs. Additionally, the firm has a marginal tax rate of 40 percent.
The firm’s cost of a new issue of common stock is ________. (See Table 9.2)
Answer
| [removed] | 10.2 percent | |
| [removed] | 14.3 percent | |
| [removed] | 16.7 percent | |
| [removed] | 17.0 percent |
Table 9.2
A firm has determined its optimal structure which is composed of the following sources and target market value proportions.
Debt: The firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. A flotation cost of 2 percent of the face value would be required in addition to the premium of $50.
Common Stock: A firm’s common stock is currently selling for $75 per share. The dividend expected to be paid at the end of the coming year is $5. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.10. It is expected that to sell, a new common stock issue must be underpriced $2 per share and the firm must pay $1 per share in flotation costs. Additionally, the firm has a marginal tax rate of 40 percent.
The firm’s before-tax cost of debt is ________. (See Table 9.2)
Answer
| [removed] | 7.7 percent | |
| [removed] | 10.6 percent | |
| [removed] | 11.2 percent | |
| [removed] | 12.7 percent |
Table 10.4
A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows:
The new financial analyst does not like the payback approach (Table 10.4) and determines that the firm’s required rate of return is 15 percent. His recommendation would be to
Answer
| [removed] | accept projects A and B. | |
| [removed] | accept project A and reject B. | |
| [removed] | reject project A and accept B. | |
| [removed] | reject both. |
What is the payback period for Tangshan Mining company’s new project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3 and $1,800,000 in year 4?
Answer
| [removed] | 4.33 years | |
| [removed] | 3.33 years | |
| [removed] | 2.33 years | |
| [removed] | None of these |
Should Tangshan Mining company accept a new project if its maximum payback is 3.25 years and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3 and $1,800,000 in year 4?
Answer
| [removed] | Yes. | |
| [removed] | No. | |
| [removed] | It depends. | |
| [removed] | None of these |
Which capital budgeting method is most useful for evaluating the following project? The project has an initial after tax cost of $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, -$2,900,000 in year 2, $2,700,000 in year 3 and $2,300,000 in year 4?
Answer
| [removed] | NPV | |
| [removed] | IRR | |
| [removed] | Payback | |
| [removed] | Two of these |
A firm has common stock with a market price of $100 per share and an expected dividend of $5.61 per share at the end of the coming year. A new issue of stock is expected to be sold for $98, with $2 per share representing the underpricing necessary in the competitive capital market. Flotation costs are expected to total $1 per share. The dividends paid on the outstanding stock over the past five years are as follows:
The cost of this new issue of common stock is
Answer
| [removed] | 5.8 percent. | |
| [removed] | 7.7 percent. | |
| [removed] | 10.8 percent. | |
| [removed] | 12.8 percent. |
Evaluate the following projects using the payback method assuming a rule of 3 years for payback.
Answer
| [removed] | Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because its payback period is longer than 3 years. | |
| [removed] | Project B should be accepted because even thought the payback period is 2.5 years for project A and 3.001 project B, there is a $1,000,000 payoff in the 4th year in Project B. | |
| [removed] | Project B should be accepted because you get more money paid back in the long run. | |
| [removed] | Both projects can be accepted because the payback is less than 3 years. |
Question 9
Which of the following capital budgeting techniques ignores the time value of money?
Answer
| [removed] | Payback | |
| [removed] | Net present value | |
| [removed] | Internal rate of return | |
| [removed] | Two of these |
Table 9.2
A firm has determined its optimal structure which is composed of the following sources and target market value proportions.
Debt: The firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. A flotation cost of 2 percent of the face value would be required in addition to the premium of $50.
Common Stock: A firm’s common stock is currently selling for $75 per share. The dividend expected to be paid at the end of the coming year is $5. Its dividend payments have been growing at a constant rate for the last five years. Five years ago, the dividend was $3.10. It is expected that to sell, a new common stock issue must be underpriced $2 per share and the firm must pay $1 per share in flotation costs. Additionally, the firm has a marginal tax rate of 40 percent.
Assuming the firm plans to pay out all of its earnings as dividends, the weighted average cost of capital is ________. (See Table 9.2)
Answer
| [removed] | 9.6 percent | |
| [removed] | 10.9 percent | |
| [removed] | 11.6 percent | |
| [removed] | 12.1 percent | |
Question 11
What is the NPV for the following project if its cost of capital is 15 percent and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,300,000 in year 4?
Answer
| [removed] | $1,700,000 | |
| [removed] | $371,764 | |
| [removed] | ($137,053) | |
| [removed] | None of these |
A firm is evaluating two independent projects utilizing the internal rate of return technique. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has a initial investment of $120,000 and cash inflows at the end of each of the next four years of $40,000. The firm should
Answer
| [removed] | accept both if the cost of capital is at most 15 percent. | |
| [removed] | accept only Z if the cost of capital is at most 15 percent. | |
| [removed] | accept only X if the cost of capital is at most 15 percent. | |
| [removed] | None of these |
Question 13
When the net present value is negative, the internal rate of return is ________ the cost of capital.
Answer
| [removed] | greater than | |
| [removed] | greater than or equal to | |
| [removed] | less than | |
| [removed] | equal to |
There is sometimes a ranking problem among NPV and IRR when selecting among mutually exclusive investments. This ranking problem only occurs when
Answer
| [removed] | the NPV is greater than the crossover point. | |
| [removed] | the NPV is less than the crossover point. | |
| [removed] | the cost of capital is to the right of the crossover point. | |
| [removed] | the cost of capital is to the left of the crossover point. |
Consider the following projects, X and Y where the firm can only choose one. Project X costs $600 and has cash flows of $400 in each of the next 2 years. Project B also costs $600, and generates cash flows of $500 and $275 for the next 2 years, respectively. Which investment should the firm choose if the cost of capital is 25 percent?
Answer
| [removed] | Project X | |
| [removed] | Project Y | |
| [removed] | Neither | |
| [removed] | Not enough information to tell |
What is the IRR for the following project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,300,000 in year 4?
Answer
| [removed] | 15.57% | |
| [removed] | 0.00% | |
| [removed] | 13.57% | |
| [removed] | None of these |
able 9.1
A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions.
Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of
2 percent of the face value would be required in addition to the discount of $40.
Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share.
Common Stock: A firm’s common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm’s marginal tax rate is 40 percent.
The weighted average cost of capital up to the point when retained earnings are exhausted is ________. (See Table 9.1)
Answer
| [removed] | 7.5 percent | |
| [removed] | 8.65 percent | |
| [removed] | 10.4 percent | |
| [removed] | 11.0 percent |
When evaluating projects using internal rate of return,
Answer
| [removed] | projects having lower early-year cash flows tend to be preferred at higher discount rates. | |
| [removed] | projects having higher early-year cash flows tend to be preferred at higher discount rates. | |
| [removed] | projects having higher early-year cash flows tend to be preferred at lower discount rates. | |
| [removed] | the discount rate and magnitude of cash flows do not affect internal rate of return. |
Table 9.1
A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions.
Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of
2 percent of the face value would be required in addition to the discount of $40.
Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share.
Common Stock: A firm’s common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm’s marginal tax rate is 40 percent.
The firm’s before-tax cost of debt is ________. (See Table 9.1)
Answer
| [removed] | 7.7 percent | |
| [removed] | 10.6 percent | |
| [removed] | 11.2 percent | |
| [removed] | 12.7 percent |
able 9.1
A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions.
Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of
2 percent of the face value would be required in addition to the discount of $40.
Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share.
Common Stock: A firm’s common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm’s marginal tax rate is 40 percent.
The firm’s cost of retained earnings is ________. (See Table 9.1)
Answer
| [removed] | 10.2 percent | |
| [removed] | 13.9 percent | |
| [removed] | 12.4 percent | |
| [removed] | 13.6 percent |
Allen, Business Finance
9.4 Find the following values assuming a regular, or ordinary, annuity:
a The present value of $400 per year for ten years at 10 percent
= $400 x 6.145
= $2,458.00
b The future value of $400 per year for ten years at 10 percent
= $400 x 15.937
= $6,374.80
c The present value of $200 per year for five years at 5 percent
= $200 x 4.329
= $865.80
d The future value of $200 per year for five years at 5
= $200 x 5.526
= $1,105.20
9.6 Consider the following uneven cash flow stream:
Year Cash Flow PV Factor Present Value
0 $0
1 250 0.909 227.25
2 400 0.826 330.40
3 500 0.751 375.50
4 600 0.683 409.80
5 600 0.621 372.60
Total 1,715.55
=======
a What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?
$1,715.55
9.7 Consider another uneven cash flow stream:
9.7
Year Ca Year Cash Flow PV Factor Present Value
0 $2,000 1.000 2,000.00
1 2,000 0.909 1,818.00
2 0 0.826 0.00
3 1,500 0.751 1,126.50
4 2,500 0.683 1,707.50
5 4,000 0.621 2,484.00
Total 9,136.00
=======
a. What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent?
$9,136.00
b What is the value of the cash flow stream at the end of Year 5 if the cash flows are invested in an account that pays 10 percent annually
Year Cash Flow FV Factor Future Value
0 $2,000 1.611 3,222.00
1 2,000 1.464 2,928.00
2 0 1.331 0.00
3 1,500 1.210 1,815.00
4 2,500 1.100 2,750.00
5 4,000 1.000 4,000.00
Total 14,715.00
=======
9.9 Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.75 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 20-year U.S. Treasury bonds) is 6 percent, what is the present value of your winnings?
Present Value of Annuity of Annuity of $1,750,000 for 20 years
Immediate Payment $ 1,750,000
Annuity for 19 years at 6% (1,750,000 x 11.158) $19,526,500
Total $21,276,500
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