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    Trading problem

    How would you respond to Mr. Helzner? Use concept of market's behavior. Is this evidence of inaccurate price discovery? Are there market structure enhancements that could address Mr. Helzner's concerns? See the picture for a chart of RMI's stock price around this event. See the attached file.

    A problem on expected values:

    Depending upon the state of the economy, Ables Manufacturing Corp. expects to sell the following number of prefabricated buildings. The probability of each state is indicated. What is the expected value of the total sales projection? Outcome Probability Units Price Bad 0.20 100 $20 Normal 0.50 180 $25 Great 0.30 210 $30

    Constant-Growth Model: Rate of Return, Discount Rate

    A stock sells for $40. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is 15 percent and the company reinvests 40 percent of earnings in the firm, what must be the discount rate?

    Optimal Financing and Subsidiary

    Biz, Inc. has a subsidiary in a country where the government allows only a small amount of earnings to be remitted to the United States each year. Should Biz finance the subsidiary with A) debt financing by the parent? B) equity financing by the parent? C) financing by local banks in the foreign country?

    Consolidation of Variable Interest Entities

    Financial Interpretation No. 46R, "Consolidation of Variable Interest Entities," references several of the FASB Concepts Statements in motivating the need to identify and consolidate variable interest entities. FIN 46R also expands the traditional definition of control as provided in Accounting Research Bulletin 51, "Consolidate

    Intersect Investment Scenario - Gap Analysis

    I could use some help. I need to prepare a paper in which I summarize the situation in the Intersect Investment Scenario. Develop a problem statement to realize the most significant opportunities.I need to Remember to consider the following questions as the work is done: a. Describe the situation. What is the situation? What

    Airline Rescheduling Profitability

    Adventure Airline has revenue of $140 million, fixed cost of $100 million, and variable cost of $38 million, which increases in proportion to revenue. Their Planes are flying 70% full of paying passengers. If they reschedule and achieve 75% of the seats full of revenue paying passengers at the same fare, what will be the percen

    A Discussion of Variable, Fixed and Mixed Costs

    If a company were to pay its production manager a salaray of $5,000 per month, and salespersons are paid strictly on commission, at $2 for each case of product sold. The company's salesperson commisions are an example of what? (Variable, fixed or mixed costs?)

    Financial managers: profit versus non profit

    How is the job of a financial manager in a nonprofit organization different from that of a financial manager with a profit‑seeking firm? Should financial managers in non-profit organizations be compensated equally to their counterparts in profit‑seeking firms? Why or why not? Do you see the job of the non-profit

    Financial Performance - Disney

    Please help evaluate Disney organization's financial performance over the past two years using financial ratios. Calculate the following ratios for each year for the following: Current Debt The Walt Disney Company and Affiliated Companies - 2007 Annual Report http://corporate.disney.go.com/investors/annual_reports.ht

    Classifying Cash Flows

    Classify each of the following business activities as an operating, investing, or financing activity. 1. Acquiring inventory for resale. 2. Buying and selling stocks and bonds of other companies. 3. Selling shares of stock to investors for cash. 4. Selling products or services. 5. Buying property, plant, or equipment.

    Example of Variable Cost

    What is the excess of a product's selling price over its variable costs referred to as? a) gross profit b) contribution margin c) gross margin d) manufacturing margin

    The common stock of BJ's Auto Clinic sells for $38.25 a share.

    3. The common stock of BJ's Auto Clinic sells for $38.25 a share. The stock is expected to pay $1.90 per share next month when the annual dividend is distributed. BJ's has established a pattern of increasing their dividends by 2.5 percent annually and expects to continue doing so. What is the market rate of return on this stock?

    Addtional Amount Needed For Down Payment

    23. Marie needs $26,000 as a down payment for a house 4 years from now. She earns 5.25% on her savings. Marie can either deposit one lump sum to day for this purpose or she can wait a year and deposit a lump sum. How much additional money must Marie deposit if she waits for one year rather than making the deposit today?

    Increasing Housing Prices

    You hope to buy your dream house 3 years from now. Today, your dream house costs $247,900. You expect housing prices to rise by an average of 7.5% per year over the next 3 years. How much will you dream house cost by the time you are ready to buy?

    Positive Operating Income

    A company estimates that its fixed costs are $500,000, and its variable costs are $3.00 per unit sold. Each unit produced sells for $4.00. What is the company's breakeven point? In other words, how many units must it sell before its operating income becomes positive?

    Scenario Analysis of a Company

    Scenario Analysis: Your firm, Agrico Products, is considering the purchase of a tractor that will have a net cost of $36,000, will increase pre-tax operating cash flows before taking account of depreciation effects by $12,000 per year, and will be depreciated on a straight-line basis over 5 years at the rate of $7,200 per yea

    External Financing - Tobin Supplies Company

    Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will increase $90,000 to accommodate this sales level. The company has a steady profit margin of 12 percent with a 40 percent dividend payout. How much external financing will Tobin Supplies Company have to seek? Assume there is no

    Arithmetic and Geometric Returns

    P 12-16. Arithmetic and Geometric Returns A stock had the following year-end prices and dividends: Year Price Dividend --------------------------------------------------------- 1 $ 52.22 -- 2 52.58 $ 0.55 3

    Calculating Investment Returns

    You bought one of Great White Shark Repellant Co.'s 7 percent coupon bonds one year ago for $870. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 11 percent. If the inflation rate was 4.3 percent over the past year, your total re

    Break Even Analysis - Hazardous Toys Company

    Hazardous Toys Company produces boomerangs that sell for $8 each and have a variable cost of $7.50. Fixed costs are $15,000. a. Compute the break-even point in units b. Find the sales (in units) needed to earn a profit of $25,000.

    Easter Egg and Poultry Company

    Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000. a. What is the firm's return on assets? b. What is its return on stockholders' equity? c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)?

    Beta, within-firm, and stand-alone risk

    Distinguish among beta (or market) risk, within-firm (or corporate) risk, and stand-alone risk for a project being considered for inclusion in the capital budget. Of the three measures, which is theoretically the most relevant and why?

    Euro and US Dollar

    If the Euro is currently trading at 1.52 to the US Dollar, how many dollars does it take to pay a 900 Euro bill?

    Unit contribution margin..

    Your company's fixed costs are $2 million and variable costs are $5 million. If revenue is $9 million and it sells 1,000,000 units, what is the company's unit contribution margin? Can you show the work?