Question 1 1. (Analyzing the cash flow Statement) Goggle, Inc. is an Internet firm that has experienced a period of very rapid growth in revenues over the period 2008-2010. The cash flow statements for Goggle, Inc. spanning the period are below. Choose the best answer for the following question using the information found in these statements: 2. Describe Google's main source of financing in the financial markets over the period. 3. 4. Google's main source of financing in the financial markets over the period was the issuance of common stock for the amount of $985 million. 5. 6. Google's main source of financing in the financial markets over the period was the issuance of debt for the amount of $10 million. 7. 8. Google's main source of financing in the financial markets over the period was the issuance of common stock for the amount of $8,034. 9. 10. Google's main source of financing in the financial markets over the period was the issuance of debt for the amount of $985 million. Question 2 (Analyzing the cash flow Statement) Goggle, Inc. is an Internet firm that has experienced a period of very rapid growth in revenues over the period 2008-2010. The cash flow statements for Goggle, Inc. spanning the period are below. Choose the best answer for the following question using the information found in these statements: How much did Goggle invest in new capital expenditures over the period? (Round to the nearest integer.) The amount that Google invested in new capital expenditures over the period is $15,930 million. The amount that Google invested in new capital expenditures over the period is $14,710 million. The amount that Google invested in new capital expenditures over the period is $16,290 million. The amount that Google invested in new capital expenditures over the period is $11,030 million. Question 3 When managers have little or no ownership in the firm, they are less likely to work energetically for the company's shareholders. We call this type of conflict a(n) __________. agency problem ownership problem management problem moral problem Question 4 (Analyzing the cash flow Statement) Goggle, Inc. is an Internet firm that has experienced a period of very rapid growth in revenues over the period 2007-2010. The cash flow statements for Goggle, Inc. spanning the period are below. Choose the best answer for the following question using the information found in these statements: What years did Goggle generate positive cash flow from its operations? Goggle has generated positive cash flow from its operations during the years 2007 and 2008. Goggle has generated positive cash flow from its operations during the years 2008 and 2009. Goggle has generated positive cash flow from its operations during the years 2009 and 2010. Goggle has generated positive cash flow from its operations during the years 2008, 2009, and 2010. Question 5 (Analyzing the cash flow Statement) Goggle, Inc. is an Intern ...

1. Question 1
1. (Analyzing the cash flow Statement) Goggle, Inc. is an
Internet firm that has experienced a period of very rapid growth
in revenues over the period 2008-2010. The cash flow
statements for Goggle, Inc. spanning the period are below.
Choose the best answer for the following question using the
information found in these statements:
2.
Describe Google's main source of financing in the financial
markets over the period.
3.
4.
Google's main source of financing in the financial markets over
the period was the issuance of common stock for the amount of
$985 million.
5.
6.
Google's main source of financing in the financial markets over
the period was the issuance of debt for the amount of $10
million.
7.
8.
Google's main source of financing in the financial markets over
the period was the issuance of common stock for the amount of
$8,034.
9.
10.
Google's main source of financing in the financial markets over

2. the period was the issuance of debt for the amount of $985
million.
Question 2
(Analyzing the cash flow Statement) Goggle, Inc. is an Internet
firm that has experienced a period of very rapid growth in
revenues over the period 2008-2010. The cash flow statements
for Goggle, Inc. spanning the period are below. Choose the best
answer for the following question using the information found
in these statements:
How much did Goggle invest in new capital expenditures over
the period? (Round to the nearest integer.)
The amount that Google invested in new capital expenditures
over the period is $15,930 million.
The amount that Google invested in new capital expenditures
over the period is $14,710 million.
The amount that Google invested in new capital expenditures
over the period is $16,290 million.
The amount that Google invested in new capital expenditures
over the period is $11,030 million.

3. Question 3
When managers have little or no ownership in the firm, they are
less likely to work energetically for the company's shareholders.
We call this type of conflict a(n) __________.
agency problem
ownership problem
management problem
moral problem
Question 4
(Analyzing the cash flow Statement) Goggle, Inc. is an Internet
firm that has experienced a period of very rapid growth in
revenues over the period 2007-2010. The cash flow statements
for Goggle, Inc. spanning the period are below. Choose the best
answer for the following question using the information found
in these statements:
What years did Goggle generate positive cash flow from its
operations?
Goggle has generated positive cash flow from its operations

4. during the years 2007 and 2008.
Goggle has generated positive cash flow from its operations
during the years 2008 and 2009.
Goggle has generated positive cash flow from its operations
during the years 2009 and 2010.
Goggle has generated positive cash flow from its operations
during the years 2008, 2009, and 2010.
Question 5
(Analyzing the cash flow Statement) Goggle, Inc. is an Internet
firm that has experienced a period of very rapid growth in
revenues over the period 2008-2010. The cash flow statements
for Goggle, Inc. spanning the period are below.
Based solely on the cash flow statements for 2008 through
2010, select the statement that best describes the major
activities of Goggle's management team over the period.
Google's management team has been investing heavily in
working capital and financing them with the issuance of stocks
and internally generated funds.
Google's management team has been investing heavily in capital

5. expenditures and financing them with the issuance of stocks and
internally generated funds.
Google's management team has been spending heavily in paying
cash dividends and financing them with the issuance of stocks
and internally generated funds.
Google's management team has been investing heavily in capital
expenditures and financing them with the issuance of debt and
internally generated funds.
Question 6
1. (Annuity payments) Ford Motor Company's current incentives
include 5.7 percent APR financing for 72 months or $1,100 cash
back on a Mustang. Let's assume Suzie Student wants to buy the
premium Mustang convertible, which costs $34,000, and she has
no down payment other than the cash back from Ford. If she
chooses the $1,100 cash back, Suzie can borrow from the VTech
Credit Union at 7.7 percent APR for 72 months.
· If Suzie chooses 5.7 percent APR financing for 72 months to
buy the premium Mustang convertible, which costs $34,000 =
PMT(62.632529), what will her monthly payment be? (Round to
the nearest cent.)
· If Suzie chooses $1,100 cash back to buy the premium
Mustang convertible and borrows $32,900 from the VTech
Credit Union at 7.7 percent APR for 72 months, how much will
her monthly payment be?
· Which option should Suzie Student choose?

6. Question 7
1. (Bond valuation) The 8-year $1,000 par bonds of Vail Inc.
pay 12 percent interest. The market's required yield to maturity
on a comparable-risk bond is 7 percent. The current market
price for the bond is $1,130.
· What is your yield to maturity on the Vail bonds given the
current market price of the bonds? (Round to two decimal
places.)
· What should be the value of the Vail bonds given the yield to
maturity on a comparable risk bond? (Round to the nearest
cent.)
· Should you purchase the bond at the current market price?
Question 8
1. (Present value) Ronen Consulting has just realized an
accounting error that has resulted in an unfunded liability of
$380,000 due in 30 years. In other words, they will need
$380,000 in 30 years. Toni Flanders, the company's CEO, is
scrambling to discount the liability to the present to assist in
valuing the firm's stock. If the appropriate discount rate is 9
percent, what is the present value of the liability?
Question 9
1. (Calculating rates of return) The common stock of Placo
Enterprises had a market price of $8.34 on the day you
purchased it just one year ago. During the past year, the stock
had paid a dividend of $0.54 and closed at a price of $11.47.

7. What rate of return did you earn on your investment in Placo's
stock? (Round to two decimal places.)
Question 10
1. (Common stock valuation) The common stock of NCP paid
$1.21 in dividends last year. Dividends are expected to grow at
an annual rate of 6.40 percent for an indefinite number of years.
· If your required rate of return is 9.30 percent, what is the
value of the stock for you?
· Should you make the investment?
Question 11
1. (Cost of preferred stock) The preferred stock of Walter
Industries Inc. currently sells for $36.02 a share and pays $3.48
in dividends annually. What is the firm's cost of capital for the
preferred stock?
Question 12
1. (Cost of debt) Sincere Stationery Corporation needs to raise
$531,000 to improve its manufacturing plant. It has decided to
issue a $1,000 par value bond with an annual coupon rate of
10.1 percent with interest paid semiannually and a 15-year
maturity. Investors require a rate of return of 8.7 percent.
· Compute the market value of the bonds.
· How many bonds will the firm have to issue to receive the
needed funds?
· What is the firm's after-tax cost of debt if the firm's tax rate is

8. 32 percent?
Question 13
1. (Weighted average cost of capital) In the spring of last year,
Tempe Steel learned that the firm would need to re-evaluate the
company's weighted average cost of capital following a
significant issue of debt. The firm now has financed 33 percent
of its assets using debt and 57 percent using equity. Calculate
the firm's weighted average cost of capital where the firm's
borrowing rate on debt is 7.9 percent, it faces a 34 percent tax
rate, and the common stockholders require a 19.7 percent rate of
return.
Question 14
(Weighted average cost of capital) As a consultant to GBH
Skiwear, you have been asked to compute the appropriate
discount rate to use in the evaluation of the purchase of a new
warehouse facility. You have determined the market value of
the firm's current capital structure (which the firm considers to
be its target mix of financing sources) as follows:
To finance the purchase, GBH will sell 20-year bonds with a
$1,000 par value paying 8.4 percent per year (paid
semiannually) at the market price of $929. Preferred stock
paying a $2.51 dividend can be sold for $34.03. Common stock
for GBH is currently selling for $49.09 per share. The firm paid
a $4.06 dividend last year and expects dividends to continue
growing at a rate of 4.5 percent per year into the indefinite

9. figure. The firm's marginal tax rate is 32 percent.
· Calculate component weights of capital:
· What is the weight of debt in the firm’s capital structure?
· What is the weight of preferred stock in the firm’s capital
structure?
· What is the weight of common stock in the firm’s capital
structure?
· Calculate component costs of capital:
· What is the after-tax cost of debt for the firm?
· What is the cost of preferred stock for the firm?
· What is the cost of common equity for the firm?
· Calculate the firm's weighted average cost of capital.
· What is the discount rate you should use to evaluate the
warehouse project? (Round to 3 decimal places.)
El bienestar
Describe how these people had or had not been keeping up with
their fitness routines. Include what they had been doing at the
gym, as well as what they had probably been doing or not doing
for their health outside the gym in the past few weeks. Use the
past perfect indicative and name at least two activities for each
person/group.
·
· 1.
__________________________________________________
·
2. __________________________________________________
3. __________________________________________________

10. 4. __________________________________________________
·
·
·
Entre amigos
Fill in the blanks with the verbs in parentheses, using the
present perfect indicative or present perfect subjunctive.
· ADELA ¿Gustavo? ¡Qué guapo estás! Es maravilloso
que (1)_______ (adelgazar) tanto. GUSTAVO Sí, yo
(2)_______ (tomar) dos clases de ejercicios aeróbicos este
semestre y acabo de empezar otra. Y (3)________ (decidir)
levantar pesas tres días por semana también. Pero, Adela, ¿qué
haces tú por aquí? ADELA Hace dos o tres meses que vengo a
este gimnasio. Es que vengo generalmente por la
noche. GUSTAVO Y yo siempre vengo por la mañana. Me
alegro de que tú (4)________ (comenzar) a venir aquí. Oye, ¿te
gusta tu nuevo trabajo en el banco? ADELA Me gusta
muchísimo. (5)__________ (trabajar) allí un mes. (6)_______
(hacer) muchos amigos nuevos. Y tú, ¿todavía trabajas en el
hospital? GUSTAVO Sí, pero (7)__________ (aceptar) un
trabajo en el consultorio del doctor Vargas. ADELA ¡Qué
bien! Creo que te va a gustar mucho. Oye, Gustavo, estás
sudando mucho... ¿ya (8)_________ (ir) a tu clase de ejercicios
esta mañana? GUSTAVO Sí, y también (9)________ (tener)
tiempo de levantar pesas. ADELA Tienes más energía que yo,
Gustavo. Bueno, me alegro de que nosotros (10)_________
(verse). ¡Qué sorpresa!
·
Preguntas
Answer these questions using complete sentences.
· 1. ¿Qué tipo de ejercicio has hecho últimamente?

11. ·
· 2. ¿De cuáles de los beneficios (benefits) del ejercicio
ya habías oído hablar?
·
· 3. ¿Has comido una buena dieta este semestre? Incluye
algunos detalles (details).
·
· 4. ¿Qué has hecho en los últimos años para estar sano/a?
Da detalles.
·
· 5. ¿Qué tipo de deportes habías practicado antes de
asistir a la universidad? Explica.
·
Lectura
Read this magazine article and answer the questions using
complete sentences.
· 1. ¿De qué habla este artículo (article)?
·
·
________________________________________________
_____
·
· 2. ¿Por qué se puede afectar gravemente la salud de una
de cada tres personas?
·
·
________________________________________________
______
·
· 3. Según la revista, ¿por qué es importante visitar un
nutricionista?

12. ·
·
________________________________________________
______
·
· 4. ¿Qué se aconseja que la persona haga con la pirámide
alimenticia?
·
·
________________________________________________
______
·
· 5. ¿Qué puede hacer alguien que nunca haya practicado
ningún deporte con frecuencia?
·
·
________________________________________________
______
·
· 6. ¿Qué se recomienda que haya hecho cada persona
antes de acostarse?
·
·
________________________________________________
_______________
·
Mi héroe/heroína
Think about someone famous who has affected the way you
think about health concerns such as diet and exercise. Write a
paragraph explaining what this person has done that has had

13. such an impact on you.
· Write about what he or she had done before you heard of him
or her.
· Use the perfect tenses.
· If you cannot think of anyone, feel free to use your
imagination. Some well-known names are Dr. Atkins, Richard
Simmons, Lance Armstrong, and Oprah Winfrey.
1.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
________________________________________________