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Percent of Sales Table

Following this balance sheet for 2006 Assets Cash $15,000 Accounts Receivable 90,000 Inventory 60,000 Current Assets $165,000 Fixed Assets 60,000 Total Assets $225,000 Liabi

Market Value, Cost of Capital, and Total Income Available

The U Co. and the L Co. are identical in all aspects except that U Co. is all-equity financed while L Co. has $1,000 debt in 6% perpetual bonds outstanding (on which $60 of interest is paid each year). Both firms have expected net operating income of $300 (forever). Both firm distribute as dividends all income available to sha

Liquidity Ratios

Using the attached Balance Sheet and Income Statement calculate the following ratios: 1) Liquidity ratios a) Current ratio b) Acid-test (quick) ratio c) Receivables turnover d) Inventory turnover Riordan Manufacturing, Inc. Consolidated Balance

Finance: Calculating the Value of a Stock

Using the following information on Bear Corporation and the dividend discount model, calculate the value of Bear Corporation's stock. Growth: 12% ROE: 15% Earnings Per Share Last Year: $10.00 Beta: 1.50 Risk Free Rate: 5.00% Market Risk Premium: 6.00%

Profit and Contribution

Explain the difference between profit and contribution in an objective function. Why is it important for the decision maker to know which of these the objective function coefficients represent?

Corporate Finance, calculating annual returns

A. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the divide

Graham Enterprises Stock Price

Graham Enterprises anticipates that its dividend at the end of the year will be $2.00 a share (D1) The dividend is expected to grow at a constant rate of 7 percent a year. The risk-free rate is 6 percent, the market rate is 5 percent, and the company's beta equals 1.2 What is the expected price of the stock 5 years from now?

Reporting of stock ownership

Furriers purchased one thousand shares of Loose Corporation stock on January 10, 2005, for $800 per share and classified the investment as securities Available for Sale. Loose's market value was $400 per share on December 31, 2005. As of December 31, 2006, Dicker still owned the Loose's stock whose market value has declined to $

Finding the Optimal Market Price

5. The probability distribution for kM for the coming year is as follows: Probability kM 0.05 7% 0.30 8 0.30 9 0.30 10 0.05 12 If kRF = 6.05% and Stock X has a beta of 2.0, an expected constant growth rate of 7 percent, and D0 = $2, what mar

Accounting and Finance Questions

25. Planning for future growth is called: A. Capital Budgeting B. Financial forecasting C. Working Capital Management D. Financial management 26. The percent of sales method of financial forecasting shows us the relationship between ___________ and financing needs. A. changes in the level of assets B. chang

Accounting and Finance Questions

18. Which of the following best describes the a payment for materials purchased A. Cash Receipt B. Cash Disbursement C. Cash Incentive D. None of the Above 19. Hazardous Toys Company produces boomerangs that sell for $8 each and have a variable cost of $7.50. Fixed costs are $15,000. Compute the Break-Even po

T Values, Market Performances, and Descriptive Statistics

1. The table t value associated with 21 degrees of freedom and used to compute a 90% confidence interval is _______. 2. Circuit boards for wireless telephones are etched, in an acid bath, in batches of 100 boards. A sample of seven boards is randomly selected from each lot for inspection. A particular batch contains two defe

Managerial Accounting - Cost Allocation

1- Variable and Full Costing The following information relates to Porter Manufacturing for fiscal 2006, the company's first year of operation.: Selling price per unit $ 120 Direct material per unit $ 60 Direct labor per unit $ 20 Variable manufacturing overhead per unit $ 5 Variable selling cost per dol

Finance and investment questions

Eliminate the wrong answer (or write the answer A, B, C, or D, next to the question). (I don't need extra explanation for the answers) 1. Which of the following best describes real capital? A. Money B. A place where the president lives C. Long-term plant and equipment D. Interest notes 2. __________ refers to

Start Up Company Finance Calculations

3.4) A start-up company selling color-keyed carnauba car wax borrows $40,000 at an interest rate of 10% per year and wishes to repay the loan over a 5-year period with annual payments such that the third through fifth payments are $2000 greater than the first two. Determine the size of the first two payments. 3.11) How much

Suppose someone tells you the only thing that matters is cost when deciding to provide a good or service internally or externally. That is, if you can do it cheaper internally, then that is how it should be done. Or, on the other hand, if an external supplier can do it cheaper, then you should use that supplier. What is your response?

Suppose someone tells you the only thing that matters is cost when deciding to provide a good or service internally or externally. That is, if you can do it cheaper internally, then that is how it should be done. Or, on the other hand, if an external supplier can do it cheaper, then you should use that supplier. What is your res

Corporate finance - construct Cumberland's Year 2 income statement.

See attached file for full problem description. Here are the balance sheets as given in the problem: Cumberland Industries December 31 Balance Sheets (in thousands of dollars) Year 2 Year 1 Assets Cash and cash equivalents $91,450 $74,625 Short-term investments $11,400 $15,100 Account

Managerial Accounting

RealTimeService offers computer consulting, training and repair services. For the most recent fiscal year, profit was $230,000 as follows" Consulting Training Repair Total ________________________________________________ - Sales:

Negotiating a Star Player's Pay

Assume that you are the manager of a professional soccer team and that you are negotiating a contract with your team's star player. You can afford to pay the player only 1.5 million a year over three years (the remaining life of his contract). The player's agent insists that the player will not accept a contract with a nominal v

Managerial Accounting

If you had a business and your accountant told you to either expense it all, or to capitalize it all, what would your response be? Make a decision and prepare an argument for it, backing it up with what the short and long term effects of your decision will likely be, how this will affect your business financially and in day to

Implicit Cost of Demand and Financial Intermediation

A financial intermediation has estimated the following annual costs for its demand deposits: management cost per account = $140, average account size = $1,500, average number of checks processed per account per month = 75, cost of clearing a check = $0.10, fees charged to customer per check = $0.05, and average fee charged per c

Finance: What do you expect will happen to Aerotech's stock?

1. Aerotech, an aerospace-technology research firm, announced this morning that it has hired the world's most knowledgeable and prolific space researchers. Before today, Arotech's stock had been selling for $100. Assuming that no other information is received over the next week and the stock market as a whole does not move. a.

Treasury and Municipal Bonds

A) Why banks hold Treasury bills and municipal bonds in their investment accounts. Why do they hold few corporate securities? b) Why the U.S. public has not accepted the concept "The free market is the best regulator of business" for regulating depository financial institutions. (In other words, why is there much less opposit

River Beverages: Budgeting

Hilton, Chapter 18, Case 18.48, River Beverages Overview River Beverages is a food and soft-drink company with worldwide operations. The company is organized into five regional divisions with each vice president reporting directly to the CEO, Cindy Wilkins. Each vice president has an R&D department, controller, and three di

Tastee Fruit Company: Standard Cost

TasteeFruit Company is a small producer of fruit-flavored frozen desserts. For many years its products have had strong regional sales on the basis of brand recognition. However, other companies have begun marketing similar products in the area, and price competition has become increasingly important. John Wakefield, the company'