Compute the total overhead variance, the overhead flexible budget variance, and the production volume variance. A. Prepare flexible budget income statements for 7,500, 9,000 and 11,000 units. B. Graph the behavior of the company total costs. C. Why might Cellular Technologies managers want to see the graph you prepared in r
1. Schweser Satellites Inc. produces satellite earth stations that sell for $100,000 each. The firm's fixed costs, F, are $2 million; 50 earth stations are produced and sold each year; profits total $500,000; and the firm's assets (all equity financed) are $5 million. The firm estimates that it can change its production proces
Walk me through the steps to do this on a TI BA II Plus and the rationale. Omega / Alpha Ltd. sold a Preferred stock issue 3 years ago. This Preferred stock has a maturity 20 years from its issue date and pays a $3.00 annual dividend which provides a 12% to its original investors. Since this Preferred stock was sold inte
Walk me through the steps to do this on a TI BA II Plus and the rationale. Von Burns Technologies Ltd. (VBTL) has been growing at a rate of 20% per year in recent years. This same growth rate is expected to last for another 2 years. (Pr. 10-19) a. If D0 = $1.60, k = 10%, gn = 6%, what is VBTL stock worth today?
Walk me through the steps to do this on a TI BA II Plus and the rationale. Your broker offers to sell you some shares of Swift and Co. common stock that has just paid an annual dividend of $2.00 (yesterday). You expect the dividend to grow at the rate of 5% per year for the next 3 years, and, if you buy the stock, you plan t
16 Which of the following may be used to smooth distributable profits from one year to another? A asset revaluation reserve B capital redemption reserve C general reserve D provisions for depreciation 17 A company makes three products for which the following details are given. Prod
Which of the following statements is true of the relative attractiveness of the two proposed payment plans to the firm? a. the variable fee could be increased beyond $.25 per check and that plan could still be preferable b. the fixed fee plan is more attractive c. none fo the above
The following is an example of an explicit agency cost a. the requirement that the firm's finances are audited c. expected bankruptcy costs c. bad debts
Which of the following is an example of a general covenant in a long-term loan agreement? a. asset quality requirement b. working capital restriction c. dividend limitation d. all of the above
The following information relates to a business for a period. Selling price per unit: 100; Variable costs per unit: 60; Total fixed costs: 90,000; Net profit: 15,000. How many units were sold in the period? (Please see attachment for full question)
The proprietors of two businesses, L.L. Sams Company and Melinda Garcia Career Services, have sought business loans from you. To decide whether to make the loans you have requested their balance sheets. L.L. Sams Company Balance Sheet August 31, 20X4 Assets Liabilities Cash $9,000 Accounts Payable $12,000 Account
Is one of the portfolio's expected return not in line with the fractor model relationship? Which one? Can you construct a combination of the other two portfolios that has the same factor sensitivity as the "out-of-line" portfolio? What is the expected return of that combination? What action would you expect investors to take wit
Financial analysis - Standard deviation and expected return. Please see page 159 problem #14
Dode Cicero owns a portfolio of two securities. On the basis of a two-factor model, the two securities have the following characteristics: Security Zero 1 Factor 1 Factor 2 Nonfactor Risk Proportion Factor Sensitivity Sensitivity A
Please see the attached file for the fully formatted problem. In financial mathematics, when valuing cash flows, an important function is the so-called immediate annuity-certain, a_n, which is defined by the relation a_n = v + v^2 + v^3 + ....... + v^n where v:=(1+i)^(-1) and i represents the effective rate of interest
(14.) Scenario Analysis. The common stock of Leaning Tower of Pita, Inc., a restaurant chain, will generate the following payoffs to investors next year: Dividend Stock Price Boom $5.00 $195 Normal economy 2.00 100 Recession 0 0 The company goes out of business if a recession hits. Calculate the expected
Please see the files attached. Financial accounting calculations for Ezzell, Bahnsen and Levine Company. The problems all relate to stock and dividends issues concerning valuation, present value, rate of return. The answers are given in the attachments. The solution must provide all the detail calculations to arrive at the
Jan and Mickey Haggerty graduated from college several years ago. Each majored in biology, and they were fortunate to receive good job offers at graduation; their combined income last year was over $100,000. The Haggertys enjoy a high level of current consumption, but they also have saved about $6000, which is invested in a bank
John is the beneficiary of a trust fund set up for him by his grandmother. If the trust fund amounts to $20,000 earning 8% compounded semiannually and he is to receive the money in equal semiannual installments for the next 15 years, how much will he receive each 6 months?
Problem: Buying a car. A student borrowed $4000 from a credit union toward purchasing a car. The interest rate on such a loan is 14% compounded quarterly, with payments due every quarter. The student wants to pay off the loan in 4 years. Find the quarterly payment.
Have you ever daydreamed about receiving a $1 million check? How would you invest it?
Problem 7 How much would you expect to pay for a stock with the following characteristics? Expected quarterly dividends: $0.70 Expected stock price in 3 years: $15.00 Required market rate of return: 12% You have no expectations regarding dividends after 3 years. Problem 8 How much would you expect to pay for a stoc
1. A stock is currently selling for $40.00. Your analysis indicates that the company should pay $2.00 per quarter in dividends and should continue to do indefinitely. The market requires a return of 20% on stocks of similar risks. Should you buy the stock? Why or why not? Quantify your answer. 2. You are considering borr
Given the following RF = 5% p.a. RM = 12% p.a. RiskM = 10% p.a. Describe how Jenny might optimally invest $1,000,000 in a portfolio of financial assets to earn an expected return of 14% p.a. and determine the risk that she would face in doing so. State all necessary assumptions.
An investment will pay you $45,000 in 6 years. If the appropriate discount rate is 8% compounded daily, what is the present value? Solve using a spreadsheet.
Question: An FI makes a loan commitment of $2,500,000 with an up-front fee of 50 basis points and a back-end fee of 25 basis points on the unused portion of the loan. The takedown on the loan is 50%. What are the total fees earned by the FI at the end of the year, that is, in future value terms? Assume the cost of capital for