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Answer only 4 of the following 5 questions:

1. Using DuPont Model, describe what happen with Oracle Corporation

during 2004 to 2006! Give some recommendations to the management to improve the companys performance for the following years! 2. Using forecasted assumptions, forecast ROI and ROE for next 5 years!
3. If you were a Banker, would you release a long term credit to the

company? Why?
4. Oracle Bond is traded currently at $105. Each bond has a par value of

$100, gives 5% interest payable annually, and will due in 7 years. You expect to have return from the bond of 5.8%. Will you invest your money on the bond? What is the maximum offered price that you are willing to purchase the bond? 5. a. Calculate the market required return of the stock for each quarter in 2006.
b. Suppose you were long term investor and you require the company

would give you a return of 9%. What is the maximum price you are eager to purchase the companys stock in the beginning of 2007?

Good luck -

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