Briefly discuss the focus of the investment decision, the financing decision, and the working capital and short-term operating decisions and how these decisions are interrelated with each other. The expected return and risk of the portfolio are two of the most important measures of attractiveness. Precisely & completely e
Subject: Financial Management Details: 1.A prpoperty and casualty company's revenue for a year is generated from _________. a. the premium income for policies written during the year b. claim expenses depreciated against the real assets of the company c. investment income resulting from the investment of both the reserve
Which company is better to purchase and why? A company B company assets 10,000 25,000 cash 2,000 4,000 acct rec 50,000 80,000 equipment 11,000 18,000 supplies 22,000 34,000 total assets 95,000
10. You decided to play the lottery and (congratulations!) you were the only winner of a jackpot valued at $50,000,000. You contact the lottery and they make you the following offer: $25,000,000 today in a lump sum or $2.5 million a year for the next 20 years paid annually at the end of each year. Assume you can get 10% return o
11. Todd Winningham IV has $4,000 to invest. He has been looking at Gallagher Tennis Clubs, Inc., common stock. Gallagher has issued a rights offering to its common stockholders. Six rights plus $38 cash will buy one new share. Gallagher's stock is selling for $50 ex-rights. a. How many rights could Todd buy with his $4,000?
Discussion Question 2: The European Union has developed the Euro, not only to create a seamless economy within Europe, but also to compete more effectively with the U.S. and the mighty dollar. Do you think the Euro will rival the dollar, long-term, for financial supremacy? Would you buy investments or products in Euro's rather
Teri's annual salary is$17,470. Benefits consist of 1 week paid vacation, 8 paid holidays, 80% of a total health insurance package costing $2100, 3% unemploymnt insurance,6.2% social security,and 1.45% medicare.What is the rate of benefits? a.14.3% b.17.8% c.21.9% d.25.3% e.not given
A company manufactures teddy bears.They have total fixed costs of $232,548.996 in the production of bears. The selling price of each bear is $19.16.The variable cost per bear is $15.15. What is the break even point in number of bears? a.60,100 b.61,233 c.32,455 d.57,993 e.not given
A company produces glue in 8 ounce tubes. The total fixed costs for the production of the glue are $477,999.50. The variable cost per tube is $0.38, while the selling price is $1.16 per tube.What is the break even point in tubes of glue? a.512,840 b.612,820 c.579,930 d.114,690 e.not given
Wholesale company produces circuit breaker containers. The machine operator stamps 15 containers from each strip of aluminum. Each strip costs $1.15. The operator can stamp 540 containers per hour. The direct labor charge is $17.85 per hour. What is the prime cost of manufacturing a circuit breaker container? a.$.32 b.$.03 c
2. Calculate the aftertax cost of debt under each of the following conditions. Please see attached for table.
Discussion Question 1: What impact do changing interest rates have on the price of long-term vs. short –terms bonds? What do you think is happening in the bonds market today? What impact, if any does, does the stock market have on the bond market?
You are considering the purchase of a Treasury bond in the secondary market. Bonds with five years to maturity, paying a half-yearly coupon of 12 per cent per annum, are currently yielding 10 per cent per annum. You wish to purchase a bond with a face value, at maturity, of $1000. A) what price should you pay fro the bond tod
Subject: Mangement Science Details: 1. The owner of Chips, etc. produces 2 kinds of chips: Lime (L) and Vinegar (V). He has a limited amount of the 3 ingredients used to produce these chips available for his next production run: 4800 ounces of salt, 9600 ounces of flour, and 200 ounces of herbs. A bag of Lime chips requires 2
5. You have decided to purchase a home. Congratulations! The home is valued at $200,000 and you seek a mortgage in the amount of $150,000. If you can get a 6% mortgage for 30 years what would be your monthly payment (assume monthly compounding)? What is the formula for this question?
4. I'm thinking that I will need $100,000 for my sons college education (I can dream can't I). If I have 15 years until he enters college, can get a 10% return on my investment and the return is compounded semi-annually (2 times per year), how much do I need to invest EVERY 6 MONTHS? What is the formula for this question?
1. Suppose a stock had an initial price of $84 per share, paid a dividend of $2.25 per share during the year, and had an ending share price of $92. What was the dividend yield? What was the capital gains yield? What was the total return? 2. You bought one of Acme Corporation's 8 percent coupon bonds one year ago for $960.00. T
1. 1. Which of the following would be the best investment based on present value? Assume an annual discount rate of 16% a. An investment that pays $5,000 at the end of each year for 6 years, assuming annual compounding. b. An investment that pays $1,225 at the end of each quarter for 6 years, assuming quarterly compounding
Leslie earns $2000 a month and rents an apartment for $600 a month (utilities included), and also has a credit card with an annual interest rate of 7% and a balance of $1500. She currently has no savings. Design a monthly budget for Leslie so that at the end of two years, the credit card balance is as low as possible and Leslie
Exercises 18-1 1. Allocating resources in the most efficient manner maximizes the wealth of any country. It is generally acknowledge that financial information plays an important role in efficient resource information Question: Given that both of the preceding statements are correct, why are the financial reporting rules in
Create a spreadsheet to address the following problem: A. A hospital has an average accounts receivable balance of $20,000,000 and a collection period of 60 days. B. 60% of receivables are not collected on time. The bills for those receivables must be reworked by the patient billing department and resubmit
With the given calculation as follows what is the estimate of required financing needs for each month during the budget period and how much if any will the company need outside financing base on this assumption? Month Sales Collections Costs incurred Payments(raw material) Administrative+lease Depreciation One time investment I
Subject: Finance Details: a. As the firm moves to consider conditions of capital rationing, it must consider portfolios of capital projects. Precisely and completely describe why this is the case. b. Under conditions of capital rationing and certainty, precisely and completely describe a methodology that you would utilize
I. You may have heard big business criticized for focusing on short-term performance at the expense of long-term results. Explain why a firm that strives to maximize stock price should be less subject to an overemphasis on short-term results than one that simply maximizes profits. II. We claim that the goal of the firm is
1) Briefly discuss the two primary perspectives one should use in financial ratio analysis. How many years should one review the financial statements of a firm?
6.) Assume that Hogan Surgical Instruments co. has $2,000,000 in assets. If its goes with a low-liquidity plan for the assets, it can earn a return of 18 percent, but with a high-liquidity plan, the return will be 14 percent. If the firm goes with a short-term financing plan, the financing costs on the $2,000,000 will be 10 pe
To buy a new plasma TV that costs $3,000, you pay $600 down and finance the remaining $2,400 for 12 months. Find the interest rate the store charges you if your monthly payment is $207.86?
Why should the financial manager be familiar with the business cycle?
Assume you are looking at many companies with equal risk. Which ones have the highest stock prices?
What is the difference between a primary and secondary market?