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Personal Finance for Investing Savings

Marcia and Phil Helm, a couple in their thirties, have been married for several years. They have no children, and each has a professional career. Marcia is a trainee for a management position at a large department store, and Phil is an engineer at an electronics firm. Their careers have promising futures, but neither has excepti

A Company's Debt Entries

Rolanda Marshall Company, organized in 2006, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2007. 1/2/07 Purchased patent (8-year life) $ 350,000 4/1/07 Purchased goodwill (indefinite life) 360,000 7/1/07 Purchased franchise with 10-ye

Contribution margin, break even point, margin safety ratio, fixed costs

Tyson Company bottles and distributes LO-KAL, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 70 cents per bottle. Management estimates the following revenues and costs. Net sales $2,500,000 Selling expenses-variable $ 90,000 Direct materials 360,000

E-Company - Prepare income statements under variable (contribution margin) and traditional (absorption) costing, What are E's contribution margin ratio, gross profit ratio and operating (net) income ratios, etc..

The E-Company manufactures trendy, high-quality moderately priced watches that it sells on the Internet. As the company's senior financial analyst, you are asked to analyze the overall profitability fo the current year. The CFO has heard that there are two different approaches for preparing income statment.s You are asked to sh

Returns and Deviations of the Economy

Based on the information provided in the attachment, what is the expected return on an equally weighted portfolio of the stocks listed and what is the standard deviation of a portfolio invested 25 percent in A and B and 50 percent in C?

Task 2b: Problem Set

1. Consider a firm with a trading book valued at $100 million. The return of these assets is distributed normally with a yearly standard deviation of 25 percent. The firm can liquidate all of the assets immediately. How much capital should the firm have so that 99 days out of 100, the firm's return on assets is high enough that,

Debt Policy Importance

Executive Chalk is financed solely by common stock and has outstnading 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use the proceeds to buy back common stock. a. How is the market price of the stock affected by the announcment? b. How many shares ca

Limited Liability Corporation and Partnership

Write a 700- to 1,050-word answer in which you explain roles of limited liability corporations and partnerships. If you were establishing your own business, under what circumstances would you choose one instead of the other? APA format

Preparation of a Cash Budget

The preparation of a cash budget serves which of the following purposes? to estimate the amount of cash flows to optimize the price of the firms common stock b. to calculate the amount of future cash flows to achieve the optimal level of financing during the forecast period c. to determine the amount and timing of short-ter

What conditions favor the use of long-term debt?

1. When a number of alternative methods of long-term financing are under considerations; what conditions favor the use of long-term debt? 1a.When a number of alternative methods of long-term financing are under considerations; what conditions favor the use of common stock. Please explain.

A call center owes your company money

Your company has entered into written contracts with the call center in Fabulous County, Florida. Recently, the call center has not been paying for your company's services. The call center owes your company amounts between $15,000 and $25,000. Your committee has the task of deciding whether to bring a lawsuit to collect these am

XYZ Stock

Assume that you plan to buy a share of XYZ stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $9.25 at the end of Year 2. In addition, you expect to sell the stock for $150 at the end of Year 2. Question: If your expected

Comparing borrowing costs

Stephens Security has two financing alternatives: (1) A publicly placed $50 million bond issue. Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20-year life. (2) A $50 million private placement with a large pension fund. Issuance costs are $500,000, the bond has a 9.25% annual coupon

Finance: Use of cash; price movements in markets; sunk cost

51 Which of the following would be classified as a use of cash? a. An increase in accounts payable. b. A decrease in inventories. c. A decrease in accounts receivable. d. An increase in retained earnings. e. An increase in inventories. 53 Empirical evidence shows that financial market price movements are essentially rand

Decomposition equation

18 Which of the following would least likely be considered as signaling a potential problem regarding the "quality of earnings" for a firm? a. the firm has experienced a significant increase in earnings relative to the industry overall b. the firm's accounts receivable account is increasing at a rate faster than the firm's inc

Risky Investments

4. Which of the following would generally be considered the most risky (with respect to volatility of returns)? a. An investment in a portfolio of common stocks b. An investment in a single common stock randomly selected c. An investment in a single corporate bond randomly selected d. an investment in a portfolio of co

Assume wealth

2 If market interest rates are currently 15% and your investment provides you this 15% return, does that imply that you are 15% more wealthy (after vs before this investment return)? Assume wealth is defined as the ability to consume (purchase) goods or services. a. Yes, because with inflation you do indeed have 15% more money


Need help with attached problems. FIN 450 Week 7 Chapter 21 Questions 11. What do 12b-1 fees pay and what is the maximum amount that these fees can be? 15. What regulatory changes have been adopted or are being considered to deal with abuses in the mutual fund industry? Quantitative Problems On January 1, a mut

Investment Fund

For questions 67-68, consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is $1 million. STOCK INVESTMENT BETA EXPECTED RETURN A $200,000 1.5 25% B $300,000 -0.5 4% C $500,

Stock's expected price today

43 Regardless of your work above, assume that D0, which was just paid, = $1.00, D1= $1.20, D2 = = $1.40, D3 = $1.55, D4 = $2.00, D5 = $2.13, D6 = $2.27, and P3 = $80.00. What should be the stock's expected price today, (i.e.. P0)? I encourage you to draw a time line clearly indicating the situation. Again, assume the require

Contingent payoff

31 The simple corporation has an outstanding debt obligation (total of principle and interest due) to the Complex Corporation of $250 (Assume this is Simple's only debt.). It is year end and the total cash flow of Simple from all sources is $325. The contingent payoff to the debt and equity holders of Simple Corporation is: a

Disney's Financial Components

I am looking for a description of where key components of the basic accounting equation are illustrated in the Walt Disney Corporation's financial statements.

Rate of Return on a Bond: Coupon Rate and Par Value

What is the rate of return on a bond that pays a coupon rate of 9%, has a par value of $1,000, matures in five years and is currently selling for $714? (Round to the nearest whole % and assume annual coupon payments). a. 18% b. 13% c. 16% d. 17%.

Share prices

Apex Inc., is a biotechnology firm that is about to announce the results of its clinical trials of a potential new cancer drug. If the trials were successful, apnex stock will be worth $70 per share. If the trials were unsuccessful, Apnex stock will be worth $18 per share. Suppose that the morning before the announcement is s