SOLUTION MANUAL FOR Foundations of Finance: The Logic and Practice of Financial
Management 4th Edition by Arthur J. Keown J. William Petty, John D. Martin
4TH EDITION
, Solutions Manual
FINANCIAL
MANAGEMENT
Principles And Practice
Fourth Edition
2
, Solutions Manual
To Accompany
Financial Management: Theory And Practice Edition By Timothy J. Gallagher And Joseph D.
Andrew, Jr.
This Solutions Manual Provides The Answers To All The Review Questions And End-Of-Chapter
Problems In Financial Management: Principles And Practice, By Gallagher And Andrew. The Answers
And The Steps Taken To Obtain The Answers Are Shown.
We Remind Our Readers That In Finance There Is Often More Than One Answer To A Question Or
To A Problem, Depending On One’s Viewpoint And Assumptions. We Provide One Answer To Each
Question And Show One Approach To Solving Each Problem. Other Answers And Approaches May Be
Equally Valid, Or Judged Even Better According To Each Individual’s Preference.
3
, Table Of Contents
Answers To End-Of-Chapter Problems ................................................................................................................................. 10
Chapter 2 Solutions ............................................................................................................................................................ 12
Answers To End Of Chapter Problems ................................................................................................................................. 13
Chapter 3 Solutions ............................................................................................................................................................ 18
Answers To End-Of-Chapter Problems ................................................................................................................................. 21
Chapter 4 Solutions ............................................................................................................................................................ 22
Answers To End-Of-Chapter Problems ................................................................................................................................. 25
Chapter 5 Solutions ............................................................................................................................................................ 31
Answers To End-Of-Chapter Problems ................................................................................................................................. 32
Net Profit Margin 24.71% 29.23% ................................................................................................................................ 42
Return On Assets 18.15% 20.97% ................................................................................................................................. 42
Current Ratio 4.00 ........................................................................................................................................................ 44
Chapter 6 Solutions ............................................................................................................................................................ 45
Answers To End-Of-Chapter Problems ................................................................................................................................. 46
Chapter 7 Solutions ............................................................................................................................................................ 52
Answers To End-Of-Chapter Problems ................................................................................................................................. 54
Chapter 8 Solutions ............................................................................................................................................................ 67
Answers To End-Of-Chapter Problems ................................................................................................................................. 69
Chapter 9 Solutions ............................................................................................................................................................ 75
Answers To End-Of-Chapter Problems ................................................................................................................................. 76
Chapter 10 Solutions .......................................................................................................................................................... 82
Answers To End-Of-Chapter Problems ................................................................................................................................. 84
Chapter 11 Solutions .......................................................................................................................................................... 95
Answers To End-Of—Chapter Problems .............................................................................................................................. 96
Chapter 12 Solutions .......................................................................................................................................................... 96
Answers To End-Of-Chapter Problems ............................................................................................................................... 100
B) Preferred Stock ........................................................................................................................................................ 102
Kp = 10% ........................................................................................................................................................................ 102
Chapter 13 Solutions ........................................................................................................................................................ 111
Answers To End-Of-Chapter Problems ............................................................................................................................... 112
Chapter 14 Solutions ........................................................................................................................................................ 121
Answers To End-Of-Chapter Problems ............................................................................................................................... 122
Chapter 15 Solutions ........................................................................................................................................................ 128
Answers To End-Of-Chapter Problems ............................................................................................................................... 129
Chapter 16 Solutions ........................................................................................................................................................ 132
Answers To End-Of-Chapter Problems ............................................................................................................................... 133
Chapter 17 Solutions ........................................................................................................................................................ 139
4
Management 4th Edition by Arthur J. Keown J. William Petty, John D. Martin
4TH EDITION
, Solutions Manual
FINANCIAL
MANAGEMENT
Principles And Practice
Fourth Edition
2
, Solutions Manual
To Accompany
Financial Management: Theory And Practice Edition By Timothy J. Gallagher And Joseph D.
Andrew, Jr.
This Solutions Manual Provides The Answers To All The Review Questions And End-Of-Chapter
Problems In Financial Management: Principles And Practice, By Gallagher And Andrew. The Answers
And The Steps Taken To Obtain The Answers Are Shown.
We Remind Our Readers That In Finance There Is Often More Than One Answer To A Question Or
To A Problem, Depending On One’s Viewpoint And Assumptions. We Provide One Answer To Each
Question And Show One Approach To Solving Each Problem. Other Answers And Approaches May Be
Equally Valid, Or Judged Even Better According To Each Individual’s Preference.
3
, Table Of Contents
Answers To End-Of-Chapter Problems ................................................................................................................................. 10
Chapter 2 Solutions ............................................................................................................................................................ 12
Answers To End Of Chapter Problems ................................................................................................................................. 13
Chapter 3 Solutions ............................................................................................................................................................ 18
Answers To End-Of-Chapter Problems ................................................................................................................................. 21
Chapter 4 Solutions ............................................................................................................................................................ 22
Answers To End-Of-Chapter Problems ................................................................................................................................. 25
Chapter 5 Solutions ............................................................................................................................................................ 31
Answers To End-Of-Chapter Problems ................................................................................................................................. 32
Net Profit Margin 24.71% 29.23% ................................................................................................................................ 42
Return On Assets 18.15% 20.97% ................................................................................................................................. 42
Current Ratio 4.00 ........................................................................................................................................................ 44
Chapter 6 Solutions ............................................................................................................................................................ 45
Answers To End-Of-Chapter Problems ................................................................................................................................. 46
Chapter 7 Solutions ............................................................................................................................................................ 52
Answers To End-Of-Chapter Problems ................................................................................................................................. 54
Chapter 8 Solutions ............................................................................................................................................................ 67
Answers To End-Of-Chapter Problems ................................................................................................................................. 69
Chapter 9 Solutions ............................................................................................................................................................ 75
Answers To End-Of-Chapter Problems ................................................................................................................................. 76
Chapter 10 Solutions .......................................................................................................................................................... 82
Answers To End-Of-Chapter Problems ................................................................................................................................. 84
Chapter 11 Solutions .......................................................................................................................................................... 95
Answers To End-Of—Chapter Problems .............................................................................................................................. 96
Chapter 12 Solutions .......................................................................................................................................................... 96
Answers To End-Of-Chapter Problems ............................................................................................................................... 100
B) Preferred Stock ........................................................................................................................................................ 102
Kp = 10% ........................................................................................................................................................................ 102
Chapter 13 Solutions ........................................................................................................................................................ 111
Answers To End-Of-Chapter Problems ............................................................................................................................... 112
Chapter 14 Solutions ........................................................................................................................................................ 121
Answers To End-Of-Chapter Problems ............................................................................................................................... 122
Chapter 15 Solutions ........................................................................................................................................................ 128
Answers To End-Of-Chapter Problems ............................................................................................................................... 129
Chapter 16 Solutions ........................................................................................................................................................ 132
Answers To End-Of-Chapter Problems ............................................................................................................................... 133
Chapter 17 Solutions ........................................................................................................................................................ 139
4
