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# Finance

### Credit and depreciation

1)Nick has a revolving department store credit card account with an annual percentage rate of 15%. Last month's balance on the account was 423.78. During the current month, he made purchases totaling 123.42 and made a payment of 100. The store uses the unpaid balance method. According to this information, what must be the amou

### After ten years, which job pays the higher salary?

You are offered two jobs. One initially pays \$100,000 annually, and your salary will grow annually at 11.5%. The other pays \$97,000 annually but your salary will grow at 12%. After ten years, which job pays the higher salary?

### A firm has the following investment alternatives. Which investment should be considered ?

A firm has the following investment alternatives: Cash Inflows Year A B C 1 \$500 \$0 \$0 2 \$500 \$400 \$0 3 \$500 \$800 \$0 4 \$600 \$900 \$1900 Which investment should be considered? Use a 9.5% discount rate.

### Compute DOL, DFL, and DCL

A firm has 40,000,000 in revenues, 12,500,000 in fixed costs, 10,250,000 in variable costs and interest of 2,000,000. Compute DOL, DFL, and DCL.

### Using the Sharpe and Treynor Indexes

Assume the following information over a five-year period: ? average risk-free rate =6% ? average return for Crane stock =11% ? average return for Load stock = 14% ? standard deviation of Crane stock return =2% ? standard deviation of Load stock returns = 4% ? Beta of Crane stock = 0.8 ? Beta of Load stock = 1.1 Can yo

### Interest Expenses

200,000 in assets to get into operation with only 2 financing alternatives 1. (all equity-all common stock) 2.50% equity and 50percent debt. You will put the entire 200,000 needed to purchase the assets if 50 percent debt financing is used you will contribute only 100,000 of your own funds and the remaining 100,000 will be obtai

### Security Market Line and Financial Changes

How does the security market line react to changes in the rate of interest, changes in the rate of inflation, and changing investor expectations?

### What is the current price of Klein's common stock?

The last dividend paid by Klein Company was \$1.00. Klein's growth rate is expected to be a constant 4%. Klein's required rate of return on equity is 12%. What is the current price of Klein's common stock?

### Single-Stock and 100-Stock Portfolio Example Problem

Your eccentric uncle died and left you \$100,000. However, the will stipulated that the entire amount must be invested in common stocks. Specifically, \$50,000 must be invested in a single stock (a one-stock portfolio) and the other \$50,000 must be invested in a 100-stock portfolio. You are very risk averse, so you want to mini

### Retained earnings and opportunity cost

Explain in at least 200 words, why retained earnings have an associated opportunity cost.

### What are the different categories of ratios

What are the different categories of ratios? Which category of ratios is of the most importance to a bondholder? Why? Which category of ratios is of the most important to a stockholder? Why? In your personal investments, which ratio is the most important to you? Why?

### Importance of Liquidity Ratios

What are liquidity ratios? Why are they important? How might you use liquidity ratios when making your personal investment decisions? Please properly cite your references. Thanks.

### Global Risk Management

I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand these questions: How could a country risk assessment be used to adjust a project's required rate of return? How could such an assess­ment be used instead to adjust a project's estimated cash flows?

### Pooling of Interests Accounting and Purchase Accounting

Balance Sheet for Mergers: Consider the following pre-merger information about firm X and firm Y. Firm X Firm Y Total earnings \$40,000 \$15,000 Shares outstanding (per mkt Shares) Market \$49

### What governing bodies establish financial reporting parameters? Which is most important?

What governing bodies are responsible for establishing financial reporting parameters? What is their purpose? Which body is the most important? Why?

### Negotiation and financials

1) What is the goal of negotiating? Why is planning critical to the negotiation process? When would an organization negotiate for an item or product instead of releasing a simple purchase order? 2) How do terms and conditions affect your financial targets or budgets?

### Additional Funds Needed

Please see attached. Please work the formula in steps.Last year's sales = So \$400,000 Last year's accounts payable \$40,000 Sales growth rate = g 30% Last year's notes payable \$20,000 Last year's total assests = Ao \$140,000 Last year's accruals \$30,000 Last year's profit margin = M 15.0% Target payout ratio 30.0% a.

### Contribution margin percentage

The LJB Company contribution income statement for the most recent month is presented below: See attached word doc for figures Compute the company's contribution margin percentage and break-even point in both units and dollars.

### Assignment verification

I have completed this assignment, but I wish to make sure I did everything correctly. The grade I will receive for this assignment is very important, because it will make me either pass this class with a good grade, or it will make me fail the class. Please help. Key Financial Data Dreamscape, Inc. Industry Average Ratio F

### Debt securities that are accounted for at amortized cost, not fair value, are

1. Debt securities that are accounted for at amortized cost, not fair value, are held-to-maturity debt securities. trading debt securities. available-for-sale debt securities. never-sell debt securities. 2. Bista Corporation declares and distributes a cash dividend that is a result o

### Financial Techniques Article Analysis

Select for analysis one article from recent periodical or professional and academic journal. Give critical comments for this article support by overall financial techniques. Sum this article up in 500 words: http://www.nytimes.com/2009/06/14/business/14gret.html?_r=1&ref=business

### Adjustable-rate mortgages versus fixed-rate mortgages

How does the initial rate on adjustable-rate mortgages (ARMs) differ from the rate on fixed-rate mortgages? Why? Can you please explain how caps on ARMs can affect a financial institution's exposure to interest rate risk.

### Variable Costs for Low Month

Meals; high-low = 4,900-3,500=1400 Cost; high-low=\$26,000-\$20,500 =\$5,500 The variable cost per meal: \$5,500divided by 1,400 =\$3.93 The variable cost for the low month; \$13,755 Fixed cost; \$20,500-[3,500 * \$3.93] =\$6,745 Px =a + bx 5.77 X =6,745 +3.93X 5.77-3.93=6,745+[3.93-3.93] 1.84X=6,745 1.84X DIVIDED BY 1.84X=6,745

### Break Even Analysis

School Hiker Model Model Sales Unit 40,000 40,000 Selling price per unit \$6.00 \$18.00 variable expense per unit \$2.00 \$10.00 The company's total fixed cost are \$80,000, there are no beginning or ending inventories Question 1 What would be the per unit contribution for each of the two m

### Evaluating overall performance and quality of financial statements

1. Explain how you would go about evaluating the overall performance of a firm. Suppose you have \$100,000 and want to invest the money. How would you proceed to find a good company to put your money in? What is it you are looking for (it has to be in finance terminology)? 2. Discuss the importance of quality in a firm's

### Dilution of Finances

A company currently has 10 million shares outstanding and no debt. They wish to expand. The stock sells for \$50 per share, but the book value per share is \$20. Net income for the company is currently \$18 million. The new facility will cost \$40 million and it will increase new income by \$500,000. Calculate the new book value p

### Purpose of Financial intermediaries

Financial intermediaries serve which of the following purposes? (Points: 2) Allow for indirect investment in the capital markets by households Aid in the flow of funds through the economy Help allocate funds to the best investments All of the above

### Computing the Contribution Margin and Cont Margin Ratio

Fixed expenses for each new edition of the book Copy editing \$3,000.00 Art work \$1,000.00 Typesetting \$36,000.00 Variable expenses per copy of the book Printing and binding \$1.60 Bookstore discounts \$2.00 Salespersons commission \$0.25 Author Royalities

### Setting prices on drugs

If you are working at Johnson & Johnson and one of your responsibilities is to set prices for new drugs. The firm has invented a cure for Aids and is protected by patent. The cost for the one time injection that cures the disease is \$100 and includes amortization of the development cost (The \$1 billion cost to develop the pro

### Accounting Problems

1. You will require \$700 in 5 years. If you earn 5 percent interest on your funds, how much will you need to invest today to reach your goal? a. \$575.34 b. \$548.47 c. \$545.44 d. \$573.35 2. You deposit \$1,000 in your bank account. If the bank pays 4 percent compounded interest, how much will you accumulate in your acc