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Financial Analysis of Lowe Over the Past 5 Years

For Lowe's Inc. (stock ticker: LOW): Briefly discuss the outlook for stocks and your industry based on economic analysis. Use economic data over the past 5 years as the basis for the analysis and outlook. Thanks

Is a Sinking Fund an Attractive Feature for Bond Investment?

When investing in bonds, there are a multitude of differences with risk level, time to maturity, and specific provisions, etc. One such provisional feature is known as a sinking fund. As an investor, would you consider a sinking fund provision as an attractive feature for a bond investment? Why?

High Business & Financial Risk in Industry

Total risk is equal to business risk plus financial risk. Companies then manage total risk by balancing the two. A low risk business like a bank, can take a lot of financial risk. Banks are often financed with up to 92% debt. Deposits are amounts owed by the bank and therefore a form of debt. Up until the financial crisis, only

Future Value of Single Sum and Holding Period Return

1. Future value of single sum problem. You put $1,000 in an investment account which earns 7% over the next 20 years, what is the future value of this investment? 2. Holding Period Return Based on the following information calculate the holding period return: P0 = $14.00 P1 = $17.40 D1 = $ .42

Finance questions on different concepts

1. Which of the following statements concerning common stock and the investment banking process is not correct? A. The preemptive right gives each existing common stockholder the right to purchase his or her proportionate share of a new stock issue. B. If a firm sells 1,000,000 new shares of Class B stock, the transaction

Time Value of Money: Future Valuation

You hold $2000 as a customer deposit, but the customer wants to make sure he does not loose on the opportunity cost of the dollars. You agree to pay the customer 10% interest during the holding period. At the end of 3 years you need to return the deposit and the interest to the customer. How much will you have to give the cus

Asset Management and Financing

Questions: What are the pros and cons of just-in-time (JIT) inventory system? Can JIT inventory systems be used by healthcare providers? Please explain your answer.

Calculating a Car's Current Value

Today you buy a used car. The dealer accepts a down payment of $2,000 and lets you pay $1,900 per year for 5 years. The interest rate on the loan was 6%. How much was the car?

Market Equilibrium and Bonds

What is meant by the term "market equilibrium", and why is this important within the study of supply and demand for the Bond Market?

Valuation - Present and Future Value

We examined two important topics in finance this week: (a) present and future values and (b) security valuation. What is the importance of present and future values. What factors must be considered when calculating present and future values? What other qualitative factors play into present and future value decisions? Perhaps

Public vs private sector

Describe and discuss differences that are apparent between government and business budget making? Are there any similarities in their profit motives? Please provide at least two examples to support your perspectives. Respond to at least two of your classmates' postings.

Economic Relationship: The U.S Dollar

While nations of the world had previously tied their currencies to the gold standard, that practice abandoned in favor of linking currencies directly through floating exchange rates. Due to the dominance of the United States in economic and financial matters, the US dollar became the "reserve currency" of the world. Other coun

Annual Percentage Rate vs. Effective Annual Rates

Please help with the following problem. Provide at least 300 words in the solution. Do you think that lending laws should require lenders to report Effective Annual Rates (EAR) or Annual Percentage Rates (APR)? Why? What are the impacts of EARs versus APRs to the borrowers?

Risk and Return Estee Lauder and Lowe's

Consider the following annual returns of Estee Lauder and Lowe's Companies: Compute each stock's average return, standard deviation, and coefficient of variation.  Estee Lowe's Year Lauder Companies 2006 20.4% -6.0% 2005 -26.0% 16.1% 2004 17.6% 14.2% 2003 49.9% 48.0% 2002 -16.8% -19

Interest Rates on Bonds

You are considering an investment in 30-year bonds issued by a corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 3.50 percent. Your broker has determined the following information about economic activity and the corporation bonds: 1 Year T-bill Rate

Financial Statements and Ratio Analysis

I am having a hard time figuring this out and need help. I am attaching all the info. I cant seem to figure it out. Cross-sectional ratio analysis: Use the financial statements on Fox Manufacturing Company for the year ended December 31, 2009, along with the industry average ratios to: a. Prepare and interpret a complete

Owen Davis Company - Balance Sheet Creation

Use the appropriate items from the following list to prepare in good form Owen Davis Company's balance sheet at December 31, 2009. Item December 31, 2009 Item December 31, 2009 Accounts payable $ 220 Inventories $ 375 Accounts receivable 450 Land 100 Accruals 55

Investment Considerations

If you are an investor, why do you want to invest in the security market? Why do you want to invest in the stock market?