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ROA, ROE, and Plowback Ratio

Marquez Inc. has announced $50,000 in net income after paying taxes of $26,000 and interest of $20,000. They intend to pay $17,000 of net income as dividends. Their assets have averaged $600,000 over the past year, during which their total debt ratio has averaged 40%. Given this information, answer the following about the compan

International Finance

If an American company were to expand in Brazil and could not raise the finances needed for the expansion operation in Brazil, what are the other options for raising the finances needed?

Financial Management - Masters Question

A stock's return has the following distribution: Demand for the Probability of This Rate of Return Company's Products Demand Occuring if This Demand Occurs Weak 0.1 (50%) Below Average 0.2

Testing claim of beating the market

You are considering hiring an investment advisor to help you manage your portfolio. This advisor tells you that she has consistently "beaten the market" over the last 5 years. You ask the advisor to prove her claim. a. In words, describe what it would mean for her to have "beaten the market." You may refer to CAPM as needed to

Internal Guidelines for Legal and Ethical Requirements

Need to understand this question can you give me an example: "The CFO of your company has asked you to develop a set of internal guidelines that will ensure that the finance department adheres to the highest ethical standards for financial forecasting without consideration of any legal requirements, develop a set of procedure

Is debt good or bad in this case?

Is debt good or bad in this case? A. Corporate debt has expanded dramatically since World War II. B. The rapid expansion of corporate debt is the result of: 1. Rapid business expansion. 2. Inflation. 3. At times, inadequate funds generated from the internal operations of

Highland Cable Company Financing

Highland Cable Company is considering an expansion of its facilities. Its current income statement is as follows: Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000 Less: Variable expense (50% of sales) . . . . . . . . . . . . . . 2,000,000 Fixed expense . . . . . . . . .

Accounting (preparing revised income statement)

I need help with a tough case. I have tried to analyze it but feel that I am not coming up with the right answer. Can you please give me your opinion? Sarang, here are some answers to your questions: comments: Hello Nice to see the posting. Had a detailed look at the case. I can help you on this. However, I need few cla

Financial Analysis

Exhibits 2 and 5 contain the comparative balance sheet and income statement for Dell Computer Corporation. Assume you are the chief financial officer. 1. Compute liquidity ratios (working capital and current ratio) and profitability ratios (profit margin, asset turnover, return on assets, debt to equity ratio, and return on e

Finance: Earnings per Share and the Break-Even Point

Please answer the following: 1. Ensco Lighting Company has fixed costs of $100,000, sells its units for $28, and has variable costs of $15.50 per unit. a. Compute the break-even point. b. Ms. Watts comes up with a new plan to cut fixed costs to $75,000. However, more labor will now be required, which will increase varia

The Rivoli Company

1. The Rivoli Company has no debt outstanding, and its financial position is given by the following data: Assets (book= market) $3,000,000 EBIT $500,000 Cost of equity, rs 10%

Holders of stock

Please discuss the economic and legal differences between holders of common stock, preferred stock and general creditors. Where do they each stand with regard to the payment of dividends and distributions in liquidation?

Calculating Ratios

Airline Company Balance Sheet As of December 31, 2003 Assets Cash........................................................... $ 30,000 Account receivable....................................... 50,000 Inventory..................................................... 80,000 Net plant and equipment...........

Multiple Choice

L. What is the primary goal of financial management? a. Increased earnings b. Maximizing cash flow c. Maximizing shareholder wealth d. Minimizing risk of the firm 2. Gross profit is equal to A. sales minus cost of goods sold. b. Sales mi

Stock Valuation

Which is the best approach to common stock valuation and why?

Corporate Finance Multiple Choice Questions

1. The concept of compound interest refers to: A) earning interest on the original investment. B) payment of interest on previously earned interest. C) investing for a multi-year period of time. D) determining the APR of the investment.

Finance problem

(See attached file for full problem description) --- 22. On January 1, Beckman, Inc., purchases 60 percent of the outstanding stock of Calvin for $36,000. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,000.The fair market value of the machine is $50,000, and the remaining useful

Important information about personal finance

Kim and Dan Bergholt are both government workers. They are considering purchasing a home in the Washington D.C. area for about $280,000. They estimate monthly expenses for utilities at $220, maintenance at $100, property taxes at $380, and home insurance payments at $50. Their only debt consists of car loans requiring a monthly

Risk

Scenario: The Hammons, Tim (35), Anna (32), children Mary (13) and Mark (11), consider themselves among the typical up and rising middle class. Overall, by today's standards, they have achieved a fair level of success: they are buying a home, have a modest savings account, and hold some investments. After serving 4 years i

3-5 year Financial Projections for Pfizer, Inc.

Based on the strategic plan analysis posted earlier of Pfizer, Inc, please provide financial projections for at least the next 3-5 years. These financial projections must be based upon YOUR recommendations for the company NOT a rehash of the company's projections. You must select the financial ratios, projections, information,

Finance Question and Process

Baker brothers have a DSO of 40 days. The company's average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Data for Barry Computer Company and its industry averages follow. a) Calculate the indicated ratios for Barry. b) Construct the extended Du Pont equation

Graphical break-even analysis

Draw two break-even graphs-one for a conservative firm using labor-intensive production and another for a capital-intensive firm. Assuming these companies compete within the same industry and have identical sales, explain the impact of changes in sales volume on both firms' profits. Although no exa

Expected Return

Distribution of rates of return on stock is as follows: State of Economy Probability of State Occurring Stock Return % Depression 0.1 -4.5 Recession 0.2 4.4 Nor

Negative Variances

What methods are most effective in communicating negative variances to management? Is corrective action always necessary after identifying variances? Why or why not? When is it necessary to become a "whistle blower"?