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2 multiple choice questions

Decision tree analysis shows a project to have several possible outcomes the best of which has an NPV of $12M calculated over a five-year life. This best case path has an overall probability of occurring of 20%. A real option is available at an initial cost of $800,000 which will add a single $6M cash inflow to this best case pa

Determine how many dollars of new funds are needed to finance the growth.

Owen's Electronics has 90 operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly w

Financing decision

How do I answer this without knowing risk or any other information. Your boss is considering borrowing $10,000 from a bank at 8% for a project. She has determined that the rate of return on the project is expected to be 12%. She comments that since the project is earning more than the cost of the

Return on investment

What role does the "frequency of payment" have in determining the return on investment?

What is the breakeven point from the given below information?

What is the breakeven point from the given below information? fixed costs $20,000 variable costs 33% of sales avg selling price is $10,000 a) As % of sales, what is its variable or contribution margin? b) If the average sale is $10,000 what is the contribution margin/vehicle? c

Calculating Monthly Saving for the Retirement Fund

Looking for help and how you got the answer especially on how to break out the percentages. You wish to retire in 20 years at which time you want to accumulate enough money to receive an annual annuity of 12,000 for 25 years after retirement. During the period before retirement you can earn 8 percent annually, while after ret

Mathematics of Finance

A printer was purchased for $1200 and has a salvage value of $100. If it is expected to produce a 150,000 copies, a) what is the unit depreciation for the printer? b) if it has printed 12,000 copies the first year, what is the year end depreciation? * do not round off in the middle of the problem

Accounting problem

Here's what I have so far as answer. Please review it carefully. I am stumped on the final two questions. So any insight would be GREATLY appreciated. Instructions: (a) (1) Prepare the journal entry to record the issuance of the bonds on July 1, 2002. (a) (2) Prepare the journal entry to record the accrual of interest

Investment Bankers

Who are the investment bankers for Medtronic, Inc. and Guidant Corp.? Also, what are the roles of investment bankers?

Presenting and creating an image for investment high ranking officers

You have a meeting with a distance learning investment company's CEO and a few other high ranking officers. You are trying to obtain a loan for a distance learning company that you would like to start. Fortunately, you have a mentor to whom you can turn for help. Write your mentor a n email in which you address the following:

Sensitivity of the portfolios: calculate the risk rate.

Based on a three-factor model, consider a portfolio composed of three securities with the following characteristics: Security Factor 1 Sensitivity Factor 2 Sensitivity Factor 3 Sensitivity Proportion A -0.2 3.6 0.05 0.6 B 0.5 10 0.75 0.2 C 1.5 2.2 0.3 0.2 What are the sensitivities of the portfolio to factors 1

Porfolio Analysis

You have been asked to participate in a portfolio analysis and investment seminar where you will be providing information to potential investors. The two main objectives that the organization has asked you to key in on are listed below. You have been asked to limit your scope to the US Stock Markets: 1. How do individual in

Standard Deviation and risk of a portfolio

1) Consider two securities, A and B, with standard deviations of 30% and 40%, respectively. Calculate the standard deviation of a portfolio weighted equally between the two securities if their correlation is: 1. 0.9 2. 0.0 3. -0.9 2) Jean Smith owns a portfolio composed of three securities with the following characteris

The solution to Stock Price

Company Z-prime is like Z in all respects save one: Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. What is Z-prime's stock price? Assume next year's EPS is $15. Additional information: Company Z's earnings and dividends per share are expected to grow indefinitely by 5

Finance questions

1 Joe runs a little parts shop. His hourly labor price to customers is $40 per hour and his hourly material price works out to about 25% of the hourly labor price. His hourly labor cost is about 50% of his hourly labor price, and his material cost and material price are such that he makes 25% on materials. What is his firm's

Fundamentals of Corporate Finance

PROBLEM ONE The returns of Stock A and Stock B have the following distribution: (see attachment) a) Calculate the Expected Return for Stock A and Stock B b) Calculate the Variance and the Standard Deviation for Stock A and Stock B c) Calculate the Coefficient of Variation of each stock d) Calculate the Correlation Coeffic

Value of Unpaid Bills

On average, it takes Microlimp's customers 60 days to pay their bills. If Microlimp has annual sales of $500 million, what is the average value of unpaid bills?

Financial Analysis and Planning

Could you help me calculate the sales-to-assets ratio, the profit margin, and the return on the two firms listed below; Sales Profits Assets Federal Stores $100 $10 $50 General Stores 20 4 20 (Financial data is in th

Financial Manager

The role of the financial manager in maximizing shareholders' value in today's financial market is described thoroughly.

Finance Problems

1.Parker Corp common stock is currently trading at $30/share. The stock is expected to pay a dividend pf $3.00 per share at the end of the year (D1 = 3.00), and the dividend is expected to grow at a constant rate of 5% a year. If the company were to issue external equity, it would incur a 10 percent floatation cost. What are

Changes in the financial services industry

I am looking for additional insight with regard to how changes in the financial services industry over the next decade might impact stakeholder relationships an organization has with financial institutions. I'm not looking for anything too involved, perhaps a couple of paragraphs. Thank you for your assistance.