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Finance

Principles of Managerial Finance

Why is short-term financial management one of the most important and time-consuming activities of the financial manager? What is net working capital? Why is it important for a firm to minimize the length of its cash conversion cycle? What factors make managing inventory more difficult for exporters and multinational compan

Carrying amount of this investment

Kimm, Inc. acquired 30% of Carne Corp.'s voting stock on January 1, 2007 for $400,000. During 2007, Carne earned $160,000 and paid dividends of $100,000. Kimm's 30% interest in Carne gives Kimm the ability to exercise significant influence over Carne's operating and financial policies. During 2008, Carne earned $200,000 and paid

Finance: Assessing Investments

Growth Enterprises, Inc. (GEI) has $40 million that it can invest in any or all of the four capital investment projects, which have cash flows as shown in Table A below. Type of Project Type of Cash Flow Year 0 Year 1 Year 2 Year 3 A Investment (10,000) Revenue 21,000 Operation Expen

EBIT question

Hyperion, Inc., currently sells its latest high-speed color printer, the Hyper 500, for $350. It plans to lower the price to $300 next year. Its cost of goods sold for the Hyper 500 is $200 per unit, and this year's sales are expected to be 20,000 units. a. Suppose that if Hyperion drops the price to $300 immediately, it

counties such as Germany

How do you deal with counties such as Germany that do not want to spend money like the US to jump start the economy. I think that we can have a set of finance regulations for the world, but how do we deal with nationalism?

Price Elasticity of Demand Activity

Discuss the importance of price elasticity of demand in the context of one specific product or service that your company or organization provides. How elastic do you believe the price of this product or service is?

Covering Chapter 5 - Mathematics of Finance

Show your work (Show the formula, the values of the variables in the formula, and the result of the formula). Final answers should be rounded to the nearest cent (two decimal places). Beware of rounding intermediate results. 1. A resident of the United States has a base income of $23,000 after adjustments for deductions.

Finding equilibrium quantity and price

1) If the market demand and supply functions for pizza in Newtown were QD = 12,000 - 1,000P QS = -4,000 + 1,000P Find the equilibrium quantity and price. 2) Starting with the demand and supplies functions from problem #1, Determine algebraically the new equilibrium price and quantity if (a) the demand function chan

Calculating Equal Monthly Loan Payments

Chrysler is offering a choice of either 48 month 2.0% APR financing, OR $2000 cash back if you pay "cash" on a car purchase. The stated price is $25,000. If you can obtain bank financing at 5.75% APR (monthly compounding), what would be the implied monthly loan payments if use your bank for financing and thus drop the price by t

Ratios

List and define at least two "Activity" and two "Liquidity" ratios. From two S&P 500 companies (must be in the same industry - i.e., GM & Ford), calculate/ compare the ratios chosen. From calculations, what observations can be made regarding the companies operating and/or financial position?

8. easy finance questions based on connected article.

QUESTIONS 1. Calculate a few ratios and compare Reed's results with industry averages. (Some industry averages are shown in Exhibit 4.) What do these ratios indicate? 2. Why does Holmes want Reed's to have an inventory reduction sale, and what does he think will be accomplished by it? 3. Jim Reed had adopted a very loose wo

Ratios can help users assess fiscal condition of companies. This problem calculates and utilizes several primary ratios and financial comparisons to determine how one city compares to another in various spending and revenue trends.

Ratios can help users assess fiscal condition of companies. This problem calculates and utilizes several primary ratios and financial comparisons to determine how one city compares to another in various spending and revenue trends. This case feaures information from a small mid-western town related to revenues, tax collections

Demand Elasticity of Apples

Suppose the price of apples rises from $3 a pound to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to s

Home Builder Supply: Incremental Earnings

Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned war

Step-wise answer to PERSONAL FINANCE

1 to 2 pages long Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $1

Using the index (1985=100) on housing starts in the United States per year

Using the index (1985=100) on housing starts in the United States per year from 1986 to 1997 given in the table below, forecast the index for 1998 a three-year and a five year moving average. Which of your estimates is better if the actual index of housing starts in the United States for 1998 is 163? Index of House Starts in

Pampa Oil Company: investment proposal

The Pampa Oil Company operates oil and gas exploration throughout the panhandle of Texas. The firm recently was approached by a wildcatter named William "Wild Bill" Donavan with the prospect to develop what he thought was a sure thing. Wild Bill owned the lease and wanted to sell it to Pampa to meet some rather pressing gambling

Adjusting entries

The following are selected 2006 transactions of Yosuke Corporation. Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. May 1 Purchased for $60,000 a patent with an estimated useful life of 5 years and a legal life of 20 years. Instructions Prepare necessary adjusting entries

MC on market risk premium

Which of the following statements is correct? (Assume that the risk-free rate is a constant) a. If the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0. b. The effect of a change in the market risk premium depends on the slope of the yield curve.

Stock Valuations

1.) Brown incorporated is expected to pay a 41.50 per share dividend at the end of the year (i.e., D1= $1.50). The dividend is expected to gross at a constant rate of 7% a year. The required rate of return on the stock r, is 15%. What is the value per share of the company's stock? 2.) A company currently pays a dividend of $

Estimate of the stock's current price

A company currently pays a dividend of $2 per share, D(0) = $2. It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, then the dividend will grow at a constant rate of 7% thereafter. The company's stock has a beta equal to 1.2, the risk free rate is 7.5% and the market risk premium

Boehm Incorporated Constant Growth Valuation

Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of the year (i.e., D(1) = $1.50). The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock, r(s), is 15%. What is the value per share of the company's stock?

Janson Bottle Co: bond amortization table

1.) On June 1, 2006, Janson Bottle Company sold $400,000 in long-term bonds for $351,040. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Instructions

Price Elasticity:

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.