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
Financial Accounting: For each error, describe to a recently hired bookkeeper how it would be shown on a cash reconciliation.
Given the following errors: The bank recorded a deposit of $200 as $2,000.The Company's bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the deposit for the correct amount . The bank Statement shows a check written by the Company f
Given an interest rate of 10% per year, what is the value at the end of 5 years of a perpetual stream of 120$ annual payments starting at the end of year 9? I dont understand the time fator in this question - i.e how do you encorporate year 9 and year 5 into the appropriate formula Please provide the formula, solution and
Lily Cosmetics has annual sales of $500,000,000 $5,000,000 maintains a net after tax profit margin of 5% and has a sales-to-assets ratio of 4 a. What is its return on assets? b. If its debt/equity ratio is 0.5, what is the return on equity?
Why can taking a riskier route be more effective than taking a conservative route when investing? (Example: A company looking to expand)
You are evaluating three different $1,000 maturity corporate bonds to buy. The ABC Company bond has a 7 percent annual coupon with 7 years remaining while the XYZ Company bond has a 10 percent annual coupon with 5 years remaining. You could also buy a newly issued 10-year bond from Widget Company of America that has a 12 perc
A company is considering three different capital projects. Each project will require the same amount of capital outflow. As the CFO you instruct your financial analyst to discount project A's cash stream at 14 percent, project B's cash stream at 12 percent, and project C's cash stream at 17 percent. In doing so, which project
On a very general and high level view what are some of the strengths and weaknesses that a bank's mortgage loan area can have? What are some of the changes that can be made to improve a bank's position as a mortgage lender? What recommendations can be made?
Go to this http://www2.fdic.gov/qbp/ sponsored by the Federal Deposit Insurance Corporation. You will see that this site offers summary data on financial institutions. Click on the link that says "Quarterly Banking Profile." From the dropdown menu that says "Report Date," select the most recent date. Then click on "Complete Q
Identify Citigroup's book value, market value, and levered value according to the M&M model. I just do not know where to get the levered value? Where do I find that?
E1-2 The ledger of Salizer Company at the end of the current year shows Accounts Receivable 110,000 , Sales 840,000, and sales Returns and Allowances 40,000. Instructions : A) If Allowances for Doubtful Accounts has a credit balance of 2,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad
Can someone tell me why the value of a seat on the NYSE has skyrocketed lately?
I need help with the questions below to get me started. Thank you. ----------------------------------- 1. Explain the roles of financial institutions in the global economy. 2. Discuss how the financial services industry is likely to change over the next decade. 3. Discuss how these changes might impact stakeholder
10.) A firm pays a $3.80 dividend at the end of year one (D1), has a stock price of $50, and a constant growth rate (g) of 4 percent. Compute the required rate of return (Ke). 11.) Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particular case, the amoun
How are AMEX and NASDAQ similar, if at all? How are the two exchanges different from one another, if at all? How has the Former WorldCom Inc. Chief Executive Bernard Ebber's case affected WorldCom Inc., and the Telecommunication industry? Explain. After submitting your report, one of the new brokers asks the three question
List three areas that need to be controlled to protect business and why.
1. Using a Microsoft Word document, provide your responses to these steps required for this task, as detailed below. 2. Read the following scenario for this task - As a junior financial analyst in a brokerage firm, you have been asked by your boss to demonstrate the usefulness of the World Wide Web as a convenient resource f
Problem 1 The XYZ Company manufactures clocks. The company's income statement for 2004 is as follows: XYZ Company Income Statement For the Year Ended December 31, 2004 Sales (10,000 clocks @ $40 each) $400,000 Less: Variable costs (10,000 clocks at $20) 200,000 Fixed costs 150,000 Earnings before in
I work in hotel management. How can I increase the company's revenue, how would can I use price elasticity of demand to determine whether to increase or decrease the price? I would like examples and details.
See attached spreadsheet. Problem 1 a. Your portfolio is invested 28 percent each in A and C, and 44 percent in B. The expected return of the portfolio is_______% (Input answer as a percent rounded to 2 decimal places). b. The variance of this portfolio is________ (Round answer to 6 decimal places) and standard dev
See attached files. Mergers & Acquisitions --- the case is about a leverage buyout of Ducati (motorcycles) by Texas Pacific Group (a private equity firm). Attached is: 1) scanned copy of the text of the case 2) plus a scanned copy of: a summary of TPG + several financial statements on Ducati Questions: 1) From
My company showed retained earnings of $400,000 on its balance sheet last year. This year, the company's earnings per share (EPS) were $3.00 and its dividends paid per share (DPS) were $1.00. The company has 200,000 shares of stock outstanding. Showing the computations what is the level of retained earnings on the company's ba
PROBLEMS 6.38 Nonconstant Growth: 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
ROI analysis using DuPont model. Charlie?s Furniture Store has been in business for several years. The firm's owners have described the store as a "high-price, high service" operation that provides lots of assistance to its customers. Margin has averaged a relatively high 32% per year for several years, but turnover has been a r
How can unsound financial planning or reporting lead to litigation, compliance violations, or ethics dilemmas?