3-1 Question 1Assignment 3-1, Question 11a. Calculate the value of the stock today:1. Calculate the PV of the dividends paid during the supernatural growth period:$%$ D1=1.15x1.15=1.3225D2=x=D3=x=PV of Dividends = ++=$2. Find the PV of Turbo's stock price at the end of Year 3:P3^ =____D4____=__ _D3(1+g)______rs-grs-g==PV of P3^ ==$3. Sum the two components to find the value of the stock today:Value of current stock (P0) = $+$=$1b. Calculate P1^ and P2^.P1^ =$ +$ +$ =$P2^ = $ +$ =$1c. Calculate the dividend yields and capital gains yield for Years 1, 2, and 3. Year Dividend Yield+Capital Gains Yield=Total Return1$1.3225/$25.23 ≈ 5.24%+($26.93 - $25.23) / $25.23 ≈ 6.74%≈12%2+≈3+≈ 3-1 Question 2Assignment 3-1, Question 2rps= % 3-1 Question 3Assignment 3-1, Question 33a. Calculate McCaffrey's value of operations.Vop = FCF(1+g) ==$ WACC - g3b. Calculate the company's total value.Total Value =Value of Operations+Value of nonoperating assets=$+$=$3c. Calculate the estimated value of common equity. Value of equity = Total value-Value of debt=$-$=$3d. Calculate the estimated per-share stock price. Price per share =Value of Equity ÷Number of Shares=$÷$=$ 5-2 Question 1Assignment 5-2, Question 1a.Net Present Value (NPV): NPVx =-$10,000+$ +$ +$ +$ =$NPVy =-$10,000+$ +$ +$ +$ =$Internal Rate of Return (IRR):To solve for each project's IRR, find the discount rates that equate each NPV to zero:IRRx=%IRRy=%Modified Internal Rate of Return (MIRR):To obtain each project's MIRR, begin by finding each project's terminal value (TV) of cash inflows:TVx=$6,500 (1.12)^3+$+$+$1,000=$TVy=$+$+$+$3,500=$Now, each project's MIRR is the discount rate that equates the PV of the TV to each project's cost, $10,000:MIRRx=%MIRRy =%Profitability Index (PI):To obtain each project's PI, divide its present value of future cash flows by its initial cost. The PV of future cash flows can be found from the NPV calculated earlier:PVx=NPVx+Cost of X=$+$10,000=$PVy=NPVy+Cost of Y=$+$=$PIx=PVx÷Cost of X=$÷$=PIy=PVy÷Cost of Y=$÷$= FIN 550 Homework Guidelines and Rubric This course uses homework problems to demonstrate competence and allow for practice with calculations unique to finance. Complete all your calculations in the Homework Student Workbook. Then summarize your findings and discuss the implications of the findings for the business or potential business transaction. Follow the instructions for each question in Modules Three and Five and complete the assigned work. Guidelines for Submission: Each homework assignment must be submitted as a 1-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Any sources should be cited according to AP ...

1. 3-1 Question 1Assignment 3-1, Question 11a. Calculate the
value of the stock today:1. Calculate the PV of the dividends
paid during the supernatural growth period:$%$
D1=1.15x1.15=1.3225D2=x=D3=x=PV of Dividends = ++=$2.
Find the PV of Turbo's stock price at the end of Year 3:P3^
=____D4____=__ _D3(1+g)______rs-grs-g==PV of P3^ ==$3.
Sum the two components to find the value of the stock
today:Value of current stock (P0) = $+$=$1b. Calculate P1^
and P2^.P1^ =$ +$ +$
=$P2^ = $ +$ =$1c. Calculate the
dividend yields and capital gains yield for Years 1, 2, and 3.
Year Dividend Yield+Capital Gains Yield=Total
Return1$1.3225/$25.23 ≈ 5.24%+($26.93 - $25.23) / $25.23 ≈
6.74%≈12%2+≈3+≈
3-1 Question 2Assignment 3-1, Question 2rps= %
3-1 Question 3Assignment 3-1, Question 33a. Calculate
McCaffrey's value of operations.Vop = FCF(1+g)
==$ WACC - g3b. Calculate the company's total
value.Total Value =Value of Operations+Value of nonoperating
assets=$+$=$3c. Calculate the estimated value of common
equity. Value of equity = Total value-Value of debt=$-$=$3d.
Calculate the estimated per-share stock price. Price per share
=Value of Equity ÷Number of Shares=$÷$=$
5-2 Question 1Assignment 5-2, Question 1a.Net Present Value
(NPV): NPVx =-$10,000+$ +$ +$
+$ =$NPVy =-$10,000+$ +$
+$ +$ =$Internal Rate of Return
(IRR):To solve for each project's IRR, find the discount rates
that equate each NPV to zero:IRRx=%IRRy=%Modified Internal
Rate of Return (MIRR):To obtain each project's MIRR, begin by
finding each project's terminal value (TV) of cash
inflows:TVx=$6,500
(1.12)^3+$+$+$1,000=$TVy=$+$+$+$3,500=$Now, each
project's MIRR is the discount rate that equates the PV of the

2. TV to each project's cost, $10,000:MIRRx=%MIRRy
=%Profitability Index (PI):To obtain each project's PI, divide
its present value of future cash flows by its initial cost. The PV
of future cash flows can be found from the NPV calculated
earlier:PVx=NPVx+Cost of X=$+$10,000=$PVy=NPVy+Cost of
Y=$+$=$PIx=PVx÷Cost of X=$÷$=PIy=PVy÷Cost of Y=$÷$=
FIN 550 Homework Guidelines and Rubric
This course uses homework problems to demonstrate
competence and allow for practice with calculations unique to
finance. Complete all your calculations in
the Homework Student Workbook. Then summarize your
findings and discuss the implications of the findings for the
business or potential business transaction.
Follow the instructions for each question in Modules Three and
Five and complete the assigned work.
Guidelines for Submission: Each homework assignment must be
submitted as a 1-page Microsoft Word document with double
spacing, 12-point Times New
Roman font, and one-inch margins. Any sources should be cited
according to APA style. In addition, your Homework Student
Workbook must be submitted to
demonstrate all calculations.
Critical Elements Proficient (100%) Needs Improvement (70%)
Not Evident (0%) Value
Accuracy of
Calculations

3. Includes detailed calculations, including
demonstration of each step taken to
accurately complete the problem
Includes calculations that are inaccurate
and/or does not include all of the steps
needed
Includes calculations that are inaccurate
and does not provide an explanation of
calculations
45
Analysis: Implications Includes an explanation of the
implications of the findings for the
business and/or potential business
transaction
Explains the implications of the findings,
but there are inaccuracies or explanation
is insufficient
Does not include an explanation of the
findings
45
Articulation of
Response
Submission has no major errors related to
citations, grammar, spelling, syntax, or
organization
Submission has major errors related to

4. citations, grammar, spelling, syntax, or
organization that negatively impact
readability and articulation of main ideas
Submission has critical errors related to
citations, grammar, spelling, syntax, or
organization that prevent understanding
of ideas
10
Earned Total 100%
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