Jason Inc had after-tax income of $15,000 with 10,000 stock shares outstanding. The two owners are trying to find the equilibrium market value for the stock prior to going public. A similar company had a price/earnings ratio of 5.0. Estimate the market value of Jason stock. Please show formula and example of calculation.
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Company A forecasts that sales next year will be $5,600. If I assume long-term debt remains constant, what is the value for external funds needed (EFN)? I have the financial statement in for below: Income statement Sales Cost of sales Depreciation Interest Tax (35%) $5,000 3,500 800 200 175 Net income Dividends
Introduction to Finance Week 5 - Numerical Exercises S. No. Problems 1 Given the following data for Gary and Co (Millions of Dollars): Balance Sheet Dec 31 200X Cash $45 Accounts Payables $45 Marketable Securities 33 Notes Payables
Question 1 The automatic rejection of one investment upon the acceptance of another investment is the definition of: a)inflation b)differential analysis c)unequal time periods d)mutually exclusive investments Question 2 The cost of capital is sometimes referred to as: a)the dis
Can someone please help me with this? Analyze the importance of factoring in the financial field, showing both immediate and far-ranging consequences. Analyze the advantages and disadvantages of factoring. I need sources to back it up please.
1. Midland national bank selected a sample of 40 student checking accounts. Below are their end-of-month balances. $404 $74 $234 $149 $149 $279 215 123 55 43 321 87 234 68 489 57 185 141 758 72 863 703 125 350 440 37 252 27 521 3
Where do you see the US healthcare system, if healthcare expenditures do not decrease? Please answer in 200 words or less. Why do not-for-profit health care organizations need to generate profits? Please answer in 200 words or less.
A firm has an expected dividend next year of $1.20 per share, a zero growth rate of dividends, and a required return of 10 percent. The value of a share of the firm's common stock is ______. $120 $10 $12 $100 A firm has an issue of preferred stock outstanding that has a stated annual dividend of
Please see the attached file for the fully formatted problem(s). Problem 5-15 Contribution Format versus Traditional Income Statement [LO4] House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $2,500 each. The average cost of an or
Calculate the average monthly return and the standard deviation of these returns for both the S&P 500 and Ford.
Following you will find the end-of-month prices for both the Standard & Poor's 500 Index and Ford Motor Company common stock. 1. Calculate the average monthly return and the standard deviation of these returns for both the S&P 500 and Ford. S&P 500 Ford 2003 November 1,055.61 13.20 December 1,108
Discuss the effect of debt and equity transactions on a company's financial accounts and statements.
Congratulations! You just finished a successful year (YEAR NUMBER 2) as Chief Financial Officer of "Body Fumigation Development" (BFD) and animal extermination facility. The CEO just asked you for a quick, summarized copy of the financial statements. Of course you say, no problem boss, it will only take me a few minutes----NOT!!
Can someone assist me with this problem. I am having trouble with a & b. 16. 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
I have the following task, and I need some help getting started. Loren Seguara and Dale Johnson both work for Sports Products, Inc., a major producer of boating equipment and accessories. Loren works as a clerical assistant in the Accounting Department, and Dale works as a packager in the Shipping Department. During their lun
Given the following: One year U.S government securities 4.5% One year Bank Loans 6.0% Five year U.S government securities 7.0% Five Year bank Loans 9.5% What is the Default Risk Premium on one year bank loans and on Five years bank loans?
Galaxy Corporation is holding a stockholders' meeting next month. Mr. Starr is the president of the company and has the support of the existing board of directors. All nine members of the board are up for reelection. Art Levine is a dissident stockholder. He controls proxies for 30,001 shares. Mr. Starr and his friends on the bo
What major benefits do corporations and investors enjoy because of the existence of organized security exchanges?
Calculate payback period, profitablity index, net present value, IRR, MIRR for the case Bethesda Mining Company.
Problem 1 Delray Technology is considering these two alternatives to finance its construction of a new $2 million plant: (a) Issuance of 200,000 shares of common stock at the market price of $10 per share. (b) Issuance of $2 million, 6% bonds at face value. Complete the table and indicate which alternative is preferabl
I need question 1 and 2 answered. See the case attached. Questions: 1. If Symonds Electronics Inc. were to raise all of the required capital by issuing debt, what would the impact be on the firm's shareholders? 2. What does "homemade leverage" mean? Using the data in the case explain how a shareholder might be able to
Can someone please help me with this? I'm not understanding how to come up with this, or if I am to create my own figures for calculation? Please help. Case study: Develop a personal retirement plan assuming that you'll retire at the age of 65. The plan should specify the amount of money you need to retire, your longevity, an
The American Automobile Association checks the prices of gasoline before many holiday weekends. Listed below are the self-service prices for a sample of 15 retail outlets during the May 2003 Memorial Day weekend in the Detroit, Michigan, area. 1.44 1.42 1.35 1.39 1.49 1.49 1.41 1.46 1.41 1
1. Define the following and give an example: Risk - Return - Risk Preferences - 2. What are the procedures for assessing and measuring the risk of a single asset? When would you do this? 3. How do you measure the return and standard deviation for a portfolio? Would you do this, or have your investment hous
Data Back-Up Systems has obtained a $10,000, 90-day bank loan at an annual interest rate of 15%, payable at maturity. Assume a 365-day year. 1. How much interest (in dollars) will the firm pay on the 90-day loan? 2. Find the effective 90-day rate on the loan. 3. Annualize your result in part b to find the effective annual r
Rosario Company, which is located in Buenos Aires, Argentina, and manufactures a component used in farm machinery. The firm's fixed costs are 4,000,000 p per year. The variable cost of each component is 2,000 p, and the compoents are sold for 3,000 p each. The company sold 5,000 components during the prior years. (p denotes t
Has anyone been to Vatican City in Rome? Wealth is apparent there. Should entities hoard wealth or should they re-invest in society?
1. Janice Smith wishes to accumulate $8,000 by the end of 5 years by making equal annual end-of-year deposits over the next five years. If Janice can earn 7 percent on her investments, how much must she deposit at the end of each year to meet this goal? 2. J& J just issued a bond with a $1,000 face value and a coupon rate
Ways to Save for the Holiday Season Along with good cheer, the holidays bring so many expenses--Christmas parties, travel, decorations and extra grocery costs. And all that is on top of holiday gifts! No wonder many Americans sink further into debt during the holidays--something that many work-at-home moms can't afford to do.
Which of the following decreases a taxpayer's at-risk amount? a. Cash and the adjusted basis of property contributed to the activity. b. Amounts borrowed for use in the activity for which the taxpayer is personally liable or has pledged as security property not used in the activity. c. Taxpayer's share of amounts borrowed for
1) You are considering a project which has been assigned a discount rate of 8%. If you start the project today, you will incur an initial cost of $480 and will receiv cash inflows of $350 a year for three years. If you wait one year to start the project, the initial cost will rise to $520 and the cash flows will incrase to $