Share
Explore BrainMass

Finance

4798-finance

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

4735-finance

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

Case Analysis

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

Mangerial Finance 476(II)

11. Bonds are thought to be a nice steady investment, paying a certain amount of interest and then repaying your original investment (usually $1,000) after the bond term is up, usually in 10 to 30 years. If you were buying a bond, which is more important to you, the interest rate or the term length? Explain the positives

Managerial Finance 476(II): Present value of cash flows

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

Managerial Finance 476(II)

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?

Managerial Finance 476(II)

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

Finance : Rate of Benefits

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

Finance : Break-Even Point

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

Finance : Break-Even Point

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

Finance : Prime Cost

A machine operator stamps labels on sheets of metal that are later made into cans. Each sheet can make 118 cans. The cost per sheet of metal is $10.60. The operator is paid $9.40 per hour and labels 120 sheets per hour. What is the prime cost of labeling 1 can? a.$.0905 b.$.01 c.$.0105 d.$.011 e.not given

Finance : Salary Increase

Bert will receive a promotion next month. He will receive a 12.5% salary increase, a 5.55% cost of living adjustment, and a 6.8% merit increase. What will his new salary be if his present salary is $26,990? a.$34,212.06 b.$30,775.64 c.$33,683.52 d.not given

Finance : Prime Cost

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

Finance : Percent Defective

Larry checks 400 samples per hour of calculators produced. The production process is in control if 1% or less are defective. At 6am he found 3 of 400 samples defective. At 7am, he found 6. Then, at 8am, he found 1. What percent were defective at 6 am? b.What percent were defective at 7am?

Finance : Dimensions of a Carton

Barry packs books for a bookstore. A new edition of a dictionary is ready to be boxed for shipment. Each dictionary measures 11inches x 8.5in. x 4in. The carton for these books is 1/8 inch thick. What are the dimensions of the cartons if the books are laid flat, in 2 stacks of 6 dictionaries? a.17x11x24 b.32x11x8 c.18x10x12 d

Finance : Break-Even Point

Vedio Inc. produces training videos. The fixed costs total $3,748,500.The selling price per video is $24.95. The variable cost per video is $8.46.What is the break-even point rounded to the nearest number of videos? a.227,320 b.458,211 c.250,345 d.312,323 e.not given

Managerial Finance 476(II)

2. Calculate the aftertax cost of debt under each of the following conditions. Please see attached for table.

Managerial Finance 476 (II)

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?

Finance problem 1

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

The owner of Chips, etc. produces 2 kinds of chips: Lime (L) and Vinegar (V).

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

Managerial Finance 476(II)

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?

Managerial Finance 476(II)

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?

Managerial Finance 476(II)

2. Many economists view a 3% annual inflation rate as "acceptable". Assuming a 3% annual increase in the price of automobiles, how much will a new Saab 93 convertible cost you in 5 years if today's price is $38,000? What is the formula for this answer? a. $32,779 b. $36,110 c. $40,575 d. $42,813 e. $44,052

Returns on stocks, bonds, preferred stock and market

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

OZEN Forward rate agreement with Bank-ZQ: determine cost of loan in two cases

(ii) OZEN Inc plans to borrow £6 million in 180 days. The loan will be taken out at the appropriate LIBOR rate on the day the loan commence and will be repaid in full 90 days later. OZEN Inc would like to lock in the rate it pays by entering into a forward rate agreement with Bank-ZQ. Bank-ZQ agrees to lock in a rate of 11 p

Financial Management

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

Finance Mathematics : Design a Budget

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

Determining which investment is preferrable

Consider two investment alternatives with the following projected cash flows. -Investment #1 (Year 1 is $10,000, Year 2 is $10,000, Year 3 is $10,000). -Investment #2 (Year 1 is $0, Year 2 is $10,000, Year 3 is $25,000). Can we assume that Investment 2 is preferable because its total cash flow over the three-year period i

uniform financial reporting rules

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