Create a presentation that you will make to management. Use the following assumptions: Assume the risk-adjusted cost of capital is 12%, compute net present value (NPV) for each proposal. Include the cash flows from salvage value and the tax benefits of depreciation (assume 5-year straight-line). Incorporate the research data
A company will pay a $2 per share dividend in 1 year. The dividend in 2 years will be $4 per share, and it is expected that dividends will grow at 5 percent per year thereafter. The expected rate of return on the stock is 12 percent. a. What is the current price of the stock? b. What is the expected price of the stock in a
I am doing a comparison between 2 companies .. Johnson & Johnson and Procter & Gamble these two companies are 2 that trade the similiar products and are in the same industry. How can I find the finance information shown below? Are there explanations with these questions as well? (Please provide site information if used)
Assume you've decided to buy a diversified (i.e., not a sector fund) open-end mutual fund investing in U.S. common stocks. Because there are thousands of these funds available, you need to shorten your list. Describe the factors that will be important to you as you narrow your choices.
Please answer the following multiple choice problems: 1). Value-added costs are standard costs based on A) Practical standards. B) Ideal usage standards. C) Cycle time. D) The value added. 2) Which of the following must occur before one can calculate the return on investment ratios for the subunits of an organi
Risk management relates to reducing the cost of risk, meaning reducing the cost of the actual management of risk. People invest their money, whether it's in bonds or stocks, with the hope of acquiring profit or gains. The question one shall ask regarding risk management, is the risk appropriate given the returns? a) Therefor
Ethics Case BYP 1-7 Wayne Terrago, controller for Robbin Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him-advertising. During the year the company had instituted an expensive advertising campaign to sell some of its slower-moving products. It was still too ea
Companies have relied on external funding because of the following reason: A)reaction to the economy B)need for expansion C)change in the cost of capital D)all of the above
1. Butler Sales Company is a distributor that has an exclusive franchise to sell a particular product made by another company. Butler Sales Company's income statements for the last two years are given below: This Year Last Year Units sold 200,000 160,000 Sales revenue $1,000,000 $800,000 Less cost of goods s
(See attached file for full problem description) --- Current Ratio 1.09 1.41 Quick Ratio 0.60 1.00 Total Debt Ratio 48.00% 77.80% TIE 6.20 3.20 BEP N/A N/A FATO N/A N/A You have been given the following information. Complete a Balance Sheet and Income Statement for 2005. All figures are in millions. Also b
Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu
Old Alfred Road, who is well-known to drivers on the Maine Turnpike, has reached his seventieth birthday and is ready to retire. Mr. Road has no formal training in finance but has saved his money and invested carefully. Mr. Road owns his home-the mortgage is paid off-and does not want to move. He is a widower, and he wants to b
ON 12/31/05, XYZ INC. PURCHASED A NEW PIECE OF EQUIPMENT FOR $1,200,000. A LOAN IN THE TOTAL AMOUNT WAS TAKEN OUT TO PURCHASE THE EQUIPMENT. THE TERMS OF THE LOAN ARE AS FOLLOWS: INTEREST RATE: 8% # OF MONTHLY PYMTS: 48 MONTHLY PAYMENT: 29,101.50 PYMT DUE ON: FIRST OF EACH MONTH BEGINNING 1/1/06
(See attached file for full problem description) --- 2. Gulf and Northern total current assets, net working capital, and inventory for each of the past four years is as follows: 1999 2000 2001 2002 Total current asset Net working c
As the discount rate becomes higher and higher, the present value of infows approaches: A) 0, B) minus infinity, C) plus infinity, D) need more information
You have determined the profitability of a planned project by finding the present value of all the cash flow from that project. Which of the following would cause the project to look less appealing, that is, have a lower present value? a. The discount rate decrease. b. The Cash flows are extended over a longer period of t
You must show all your work on this homework to receive credit. Downloadable Financials Data Return to Hoover's Annual Financials Annual Financials Income Statement (All dollar amounts in millions except per share amounts.) Dec 04 Dec 03 Dec 02 Revenue 13,564.70 12,358.60 11,356.60 Costs of Good
One task of a financial manager is to do research on the main competition to the firm you work for. Do some research using Yahoo Finance and other search engines on these two competitors, then write a two to three page paper answering the following question: Is your reference company more or less risky to the point of view o
True or False Once opportunity costs are recognized they typically do not result in a direct reduction of cash but must be allocated as a cash outflow.
True of False Other factors held constant, higher CCA rates have the effect of reducing taxes and increasing cash flows.
True or False When the Board of Directors carefully selects and then appoints the management team, this is an example of an indirect agency cost.
1. Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given below: Possible Sales Market Reaction in Units Probabilities Low response . . . . . . . . . . . . . 20 .10 Moderate response . . . . . . . . . 40 .30 High respons
How do you journalize treasury stock transactions?
Sara Lee Corporation earned revenues of $17.7 billion during 20x1 and ended the year with net income of $2.3 billion. During 20x1, Sara Lee collected $18.0 billion from customers and paid cash for all of its expenses plus an additional $0.4 billion on 20x0 expenses left over from the preceding year. Answer these questions abou
Firms with a high degree of operating leverage are: a)easily capable of surviving large changes in sales volume, b)usually trading off lower levels of risk for higher profits, c)significantly affected by changes in interest rates, d)trading off higher fixed costs for lower per-unit variable costs.
Question 1 In the scientific method, model parameters are: a. always changing b. constant during the process of solving a specific problem c. defined as decision variables d. found in the model solution process Question 2 The components of break-even analysis are: a
I would just like someone to check this and tell me if I'm on the right track with this or totally off. Thanks! --- BE2-20 Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. What a
Gordon Company issued $1,000,000, 10 year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. What amount will be in the sinking fund at the end of 10 years? How do I set this up to calculate?
Using the following financial information, calculate the current ratio and inventory turnover ratio for Wal-Mart and Target. What does it tell you? Discuss. Wal-Mart Balance Sheet Wal-Mart Get Balance Sheet for: View: Annual Data | Quarterly Data All numbers in thousands PERIOD ENDING 31-Jan-05 31-Jan-04 31-J
2. (Recording the Issuance of Common and Preferred Stock) Kathleen Battle Corporation was organized on January 1, 2003. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no par common stock with a stated value of $1 per share. The following stock transactions were completed duri