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    Corporate Financial and Structure Analysis

    Analyze the corporate financial decision-making process at Lockheed Martin. Conduct a capital structure analysis in which you examine the various debt/equity instruments used by Lockheed Martin, as well as the impact on EPS, PE Ratios, and price per share.

    Proposing a Zero-Balance Account

    Zero-balance account Union Company is considering establishment of a zero balance account. The firm currently maintains an average balance of $420,000 in its disbursement account. As compensation to the bank for maintaining the zero-balance account, the firm will have to pay a monthly fee of $1,000 and maintain a $300,000 non-in

    Evaluating Proposed Relaxation

    Relaxation of credit standards Lewis Enterprises is considering relaxing its credit standards to increase its currently sagging sales. Because of the proposed relaxation, sales are expected to increase by 10% from 10,000 to 11,000 units during the coming year; the average collection period is expected to increase from 45 to 60 d

    Effective Annual Rate and Loans

    Effective annual rate A financial institution made a $10,000, 1-year discount loan at 10% interest, requiring a compensating balance equal to 20% of the face value of the loan. Determine the effective annual rate associated with this loan. (Note: Assume that the firm currently maintains $0 on deposit in the financial institution

    Health Insurance Word Problem

    A health insurance policy pays 65% of physical therapy costs after a $200 deductible. In contrast, an HMO charges $15 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $50 each?

    Creating an Investment Policy

    Mr. Jones is 45 years old and is in good health. He is married, and has two children aged 17 and 18. He and his wife own all shares in a Limited Liability Company that owns a tavern and adjacent restaurant presently valued, based on future cash flow projections, at $5.9 million. The property around the tavern and restaurant

    Gentry Shoe Corp: Allowable Margin Purchases

    Laurn has a margin account and deposited $50,000. Assume the prevailing margin requirement is 40 percent, commissions are ignored, and Gentry Shoe Corporation is selling at $35 per share. a- How many shares can Laurn purchase using the maximum allowable margin? b- What is Laurn's profit (loss) if the price of Gentry's s

    Management Costs of Two Alternatives

    Gamma Corporation is considering a two-step buyout of Delta Corporation. Delta Corporation has 2,000,000 shares outstanding and its stock price is currently $40 per share. In a two-step buyout, Gamma Corporation will offer to buy 51% of Delta Corporation's shares outstanding for $68 per share in cash, and the balance in a second

    New stock issue, subscription price and value of one right

    Gold Mining Corporation is seeking to raise $10,000,000 through a rights offering. The company presently has 1,000,000 shares of common stock outstanding at a current market price of $25 per share. (a) How many new shares must be sold via the rights offering if the subscription price of the new stock is $20 per share? (b

    Increase in Retained Earnings

    Elite Trailer Parks has an operating profit of $200,000. Interest expense for the year was $10,000; preferred dividends paid were $18,750.00 and common dividends paid were $30,000. The tax was $61,250. The firm has 20,000 shares of common stock outstanding. What was the increase in retained earnings for the year?

    Mutual fund

    Check out a couple of mutual fund companies (e.g. vanguard.com, tiaa-cref.com) and analyze what types of funds and services they offer. What is the best mutual fund and which is the best mutual fund company? Explain (8-10 sentences).

    Finance Problem: Ben Bates Case Study

    Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become and investment banker. He feels that a MBA degree would allow him to achieve his goal. After examining schools, he has narrowed his choice to either Wilton University or Mount P

    Reserve Price and Escrow Service

    1. Define the term "reserve price" and explain how the use of a reserve price can affect the progress and outcome of an auction. 2. Describe the services offered by an online auction escrow service. Name one advantage and one disadvantage of using this type of an escrow service.

    Element Cost Classification

    Given the following cost elements, determine the total percentage in each of the four major quality cost categories. Please show each cost element's cost classification. Cost Element Amount ($) Incoming test and inspection 7,500 Scrap 35,000 Quality Training 0 Inspection 25,000 Test

    A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean.

    A real estate agent in the coastal area of Georgia wants to compare the variation in the selling price of homes on the oceanfront with those one to three blocks from the ocean. A sample of 21 oceanfront homes sold within the last year revealed the standard deviation of the selling prices was $45,600. A sample of 18 homes, als

    Compute the Arithmetic Annual Rate of Return

    During the past five years you owned two stocks that had the following annual rates of return: Year Stock A Stock B 1 0.18 0.09 2 0.6 0.04 3 -0.15 -0.11 4 -0.01 0.04 5 0.11 0.05 a) compute the arithmetic annual rate of return for each stock. Which stock is most desirable by this measure? b) Compute th

    Corporate finance

    Darlene wishes to accumulate $50,000 by the end of 10 years by making Equal annual end-of-the year deposits over the next 10 years. If Darlene Can earn 5 percent on her investments, how much must she deposit at the end of each year? a. $3,975 b. $6,475 c. $5,000 d. $4,513 A corporation is considering expanding operat

    Price of bonds after discount

    1a. What is the cash flow of a 6% coupon bond that pays interest annually, matures in 7 years, and has a principle of $1,000? 1b. Assuming a discount rate of 8%, what is the price of the bond? 1c. Assuming a discount rate of 8.5%, what is the price of the bond? 1d. Assuming a discount rate of 7.5%, what is the price of

    Miller-Orr Cash Management Approach

    A company uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000. Explain what each of these points represents; then explain how the system will work.

    Automobile Insurance Coverage

    Becky has 25/50/10 automobile insurance coverage. If 2 other people are awarded $35,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?

    Estimating an Affordable Mortgage and Monthly Payment

    Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation: Monthly gross income $2,950 Down payment to be made- 15% of purchase price Other debt(monthly payment) $160 Monthly estimate for property taxes and insurance $210 30 year loan

    Comparing two car purchase proposals

    Based on financial and opportunity costs, which of the following do you believe would be the wiser purchase? Vehicle 1: A 3 year old car with 45,000 miles, costing $6,700, and requiring $385 of immediate repairs. Vehicle 2: A 5 year old car with 62,000 miles, costing $4,500, and requiring $760 of immediate repairs.

    Comparing buying alternatives

    Tammy is considering the purchase of a home entertainment center. The product attributes she plans to consider and the weights she gives to them are as follows: Portability .1 Sound projection .6 Warranty .3 Tammy related the brands as follows: Portability Sound Projection Warranty Brand A 6

    Advanced Financial Planning Discussion Question

    I have to answer these questions below in 350 words. I have been reading the chapter and don't fully understand these questions: Discuss the four types of ratios used in balance sheet analysis and the importance of each? Discuss different ways a financial manager can determine his/her future financing needs. Include ways

    Standard Deviation of Return for a Portfolio

    Stock X has a standard deviation of return of 10%. Stock Y has a standard deviation of return of 15%. The correlation coefficient between stocks is 0.5. If you invest 60% of the funds in stock X and 40% in stock Y, what is the standard deviation of a portfolio? Justify your answer.

    Votes

    17.9. Higgins Metal Company was established in 1980. Four years later the company went public. At that time, Henry Higgins, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to 10 votes per share. The normally traded common stock, designated as Class B, i

    Common stockholders

    Folic Acid, Inc. has $20 Million in earnings, pays $2750000 interest to bondholders, and $1800000 in dividends to preferred stockholders. a. What are the common stockholders' residual claims to earnings? b. What are the common stockholders' legal, enforceable claims to dividends?

    Utility and Risk aversion

    In Problem 3-28, you helped the medical professionals analyze their decision using expected monetary value as the decision criterion. This group has also assessed their utility for money: U(-$45,000) = 0, U(-$40,000) = 0.1, U(-$5,000) = 0.7, U($0) = 0.9, U($95,000) = 0.99, and U($100,000) = 1. Use expected utility as the decisio

    Performance of Time Warner

    I have to answer the question below in 300 words. I have been reading the chapter and don't fully understand this question: What conclusions can you draw about Time Warner Inc. performance over the last five years in terms of liquidity, activity, leverage, profitability and market value ratios?