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NAV for mutual funds

An open end mutual fund has the following stocks: STOCK SHARES STOCK PRICE A 9,000 $68 B 13,000 39 C 8,600 49 D 12,500 82 If there are 50,000 shares of the market fund what is the NAV? Suppose the fund has liabilities of $110,000. What


Eastman Kodak Company produces and sells cameras, film, and other imaging products. A condensed 2000 income statement follows (in millions): Sales $13,994 Cost of goods sold 8,019 Gross Margin 5,975 Other operating expenses 3,761 Operating income $2,214 Assume that $1,800 million of the cost of goods sold

Nominal and Ordinal Data

5 slides with Speaker Notes One of the products that Company W makes is snack foods. The Research and Development department of Company W has developed a new formula for one type of snack food that is cheaper to make than the current formula. They want to test the new formula with consumers. They want to see if consumers can

Finance: should the Helms buy Stock, CDs or MMFs with their liquidity?

Marcia and Phil Helm, a couple in their thirties, have been married for several years. They have no children, and each has a professional career. Marcia is a trainee for a management position at a large department store, and Phil is an engineer at an electronics firm. Their careers have promising futures, but neither has excepti

Accept or Reject the Offer to Sell 500 Ares of Timberland

You own 500 acres of timberland, with young timber worth $40,000 if logged now. This represents 1,000 cords of wood worth $40 per cord net of costs of cutting and hauling. A paper company has offered to purchase your tract for $140,000. Should you accept the offer? You have the following information: Years Yea

Economic Order Quantity and Average Cycle Stock

Michael Traci, the very new inventory manager at Magyar Gold Supplies, is considering using the economic order quantity for controlling inventory. He wants you to apply the EOQ to a sample product, the Super-Z wedge. The Super-Z Wedge has an average demand of 30 units/period with an ordering cost of $30/order. The cost of carryi

Description of Bailment

A bailment where money is paid from one party to the other is usually described as: a. solely for the benefit of the bailee. b. for the mutual benefit of the bailor and the bailee c. solely for the benefit of the bailor or bailee, depending on which received the money that changed hands. d. solely for the benefit of the ba

Financial Management Risk Premiums

I need step by step explained answer, in order to double check my solution. Two stocks: need market risk premium, fair price, portfolio weights, equilibrium expected return. Consider two stocks, A and B, with the following expected returns and betas Expected Return Beta A 9.55% 0.80 B 10.98% 1.10 The risk

Dynastatics Corporation: Building Financial Models

Building Financial Models. The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (that is, assets net of depreciation) by $200,000 per year for the next 5 years and forecasts that the ratio of revenue

Cost of Capital: Debt or Equity

Given the current state of the economy and our financial markets, is it more desirable for firms to raise money through debt or through equity at this time? Corporations almost always need more funds and capital in order to keep running, so not raising funds is not an option. So is debt or equity the best option at this time for

Intermediate Accounting -- Stockholders' Equity -- 5 Multiple Choice

41. In January 2007, Castro Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2007, Castro Corporation reacquired 1,000 shares of its outstanding stock for $12 per share. The acquisition of these treasury shares a. decreased total stockholders' equity. b. increa

CheckPoint is based on GM financials of the 2004 annual report: compute ratios

4. CheckPoint: Financial Ratios · Resource: The General Motors Web site This CheckPoint is based on financials of the 2004 annual report for General Motors, which was just discussed in this weekʼs discussion questions. · Due Date: Day 5 [Individual forum] · Compute the following four ratios for General Mot

Purchase Budget for Lima

A manufacturing company manufactures a product called Formido. Each unit of Formido requires two pounds of Lima. The budget calls for production of 8,000 units of Formido during the third quarter. The ending inventory of Lima is forecasted at 3,000 pounds for the second quarter and 2,000 pounds for the third quarter. How many po

CAPM, Risk: For each of the scenarios below, explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning.

1. For each of the scenarios below, explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning. a. A large fire severely damages three major U.S. cities. b. A substantial unexpected rise in the price of oil. c. A ma

Current and Other Ratios

What financial information does the current ratio measure? How does the current ratio relate to the other liquidity ratios? Which financial ratios would you use - and how - to determine whether a company will be able to meet its commercial bank loan payments?

45 Multiple Choice Problems Regarding Accounting issues

1. Which of the following is not considered an asset? A. Equipment B. Dividends C. Accounts receivable D. Inventory Answer: _______________ 2. These are selected account balances on December 31, 2010. Land (location of the corporation's office building) $100,000 Land (held for future use) 150,000 C

Calculating the Impact of a Stock Split

Please help with the following problem. Provide step by step calculations for each. You own 8% of the Standlee Corporation's common stock, which most recently sold for $98 before a planned two-for-one stock split announcement. Before the split there are 30,000 shares of common stock outstanding. a. Relative to now, what wil

Maximizing Profitability

Please see attached document. Toxemia Salsa Company manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The following information was taken from last year's income statement segmented by flavor (brackets indiciate a negative amount): Wimpy Mild Medium Hot Atomic Contribution

Contribution margin ratio

Devlin Company has two divisions, C and D. The overall company contribution margin ration is 30% with sales in the two divisions totaling $500,000. If variable expenses are $300,000 in Division C, and if Division C's contribution margin ratio is 25%, then sales in Division D must be?

Managerial Finance- Project X and risk

Corp. considering two potential projects, X and Y. In assessing the projects' risks, the company estimated the beta of each project versus both the company's other assets and the stock market, and it also conducted thorough scenario and simulation analyses. This research produced the following numbers: Expected NPV Standa

Lashgari Company: Calculate the current stock price

The Lashgari Company is expected to pay a dividend of $1 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5% per year in the future. The company's beta is 1.2, the market risk premium is 5%, and the risk-free rate is 3%. What is the company's current stock price?

A Mutual Fund Manager: Average Beta

A mutual fund manager has a $20.0 million portfolio with a beta of 1.50. The risk-free rate is 4.50%, and the market risk premium is 5.50%. The manager expects to receive an additional $5.0 million which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 1

Using the AFN Equation to Calculate the AFN for the Coming Year

Chua Chang & Wu Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales = S0 $200,000 Last year's accounts payable $50,000 Sale

Clayton Industries: What is the AFN for the coming year?

Clayton Industries is planning its operations for next year, and Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions. Last year's sales = S0 $350 Last yea