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    Ethics of Product Recall: Consumer Safety Vs Company Interests

    You are the CFO for a small firm that makes kitchen appliances. While conducting field tests, you discover a design flaw in one of your most popular models that will likely cause the death of one or two consumers. A product recall, however, will bankrupt your company, and force you to lay off every employee, and also leaving you

    Westmont Industries Cash Flow Analysis

    5. The comparative balance sheet of Westmont Industries at December 31, 2007, reported the following: 12/31/07 12/31/06 Current assets: Cash $10,600 $15,500 Accounts Receivable 28,600 29,300 Inventories 51,600 53,000 Prepaid expenses 4,200 3,700 Current liabilities: Notes payable (for i

    Firm's information systems department receives many requests

    1. A firm's information systems department receives many requests for proposed projects to improve the system. Each project proposal is processed, using the proposing department's estimate of benefits and the information systems departments' estimate of project costs. The costs are incurred within three months of project adopt

    Profit and Break Even Points

    1. C-V-P Analysis The Last Outpost is a tourist stop in a western resort community. Kerry Yost, the owner of the shop, sells hand-woven blankets for an average price of $30 per blanket. Kerry buys the blankets from weavers at an average cost of $21. In addition, he has selling expenses of $3 per blanket. Kerry rents the buil

    The Last Outpost is a tourist stop in a western resort community.

    1. C-V-P Analysis The Last Outpost is a tourist stop in a western resort community. Kerry Yost, the owner of the shop, sells hand-woven blankets for an average price of $30 per blanket. Kerry buys the blankets from weavers at an average cost of $21. In addition, he has selling expenses of $3 per blanket. Kerry rents the buil

    Investor Profile - Sprint Nextel Corporation

    Using Sprint Nextel Corporation, I need to identify two lenders the firm uses, identify the investment bank the firm uses to issue stock and identify and discuss the role these intermediaries play for the firm.

    Risk-Free Rate and Cost of Debit

    Assume that the risk-free rate increases. What impact would this have on the cost of debit? What impact would it have on the cost of equity?

    Three years ago a piece of equipment was purchased for $10,000.

    17. Three years ago a piece of equipment was purchased for $10,000. Assuming an eight-year life and straight-line depreciation, financial statements for the third year will show: a. depreciation expense of $3,000 on the income statement, and accumulated depreciation of $3,000 on the balance sheet. b. depreciation expense of $

    Excel to determine a value

    Please see attached file. In finance one sees equations like: 160000 = 100((1+i)360 - 1)/i Determine the value of i.

    Price of Stock Calculated

    Company A's stock is selling for $45 today. You are expecting a dividend of $4 next year and a capital gains yield of 10%. Calculate the price of the stock 1-year from now. ---------------- I have no idea where to start on this problem, I was thinking to use the FV fucntion in Excel but it seems pieces are missing, please as

    International Finance: Break Even Salvage Value

    A project in Malaysia costs $4,000,000. Over the next three years, the project will generate total operating cash flows of $3,500,000, measured in today's dollars using a required rate of return of 14%. What is the break-even salvage of this project?

    Stock out cost determination

    I need to determine stockout cost for a problem but don't think I have enough information. 40 percent of stockouts will result in a back order with a cost of $5.00 per back order; 40 percent of the stockouts result in a lost sale and a profit of $50.00 per unit; and 20 percent of the stockouts result in a lost customer and wi

    Fisher Effect Interest Rates

    16. If you invest in CDs earning an interest rate of 9%, the interest is taxable in the 28% bracket, and inflation is 5%, what is the real rate of interest you receive after tax? 17. If you invest in CDs earning an interest rate of 4%, the interest is taxable in the 28% bracket, and inflation is 3%, what is the real rate of

    Fisher Effect and Present Value

    12. What is the present value of $1,000 to be received 10 years from now if the required real rate of return is 3% compounded annually and the expected rate of inflation is 5% compounded annually? 13. What is the present value of $1,000 to be received 1 year from now if the required real rate of return is 4% and the expected

    Fisher Effect Equilibrium Rates

    10. Suppose the equilibrium real rate is 3% and the expected rate of inflation in the U.S. is 4%. What is the equilibrium nominal interest rate? 11. What is the equilibrium nominal 1-year interest rate if the required real rate of return is 3% and the expected rate of inflation is 5%?

    Financial Analysis - The debt ratio is a measure of a firm's

    Part I True/ False 1. Goodwill is computed as the residual between the total value of the company less the sum of the value of all its identifiable tangible and intangible assets? T or F 2. Total Assets must Equal Total Liabilities minus Owner's Equity. T or F 3. Working capital is current assets less total liab

    A Company Cannot Meet Its Payroll

    You come to work on pay day and hear a rumor that the company cannot meet its payroll obligation. Discuss the information, assuming you have access, you would review to determine if this rumor is true. Assuming the rumor is true, describe how you would remedy the situation. Note: if you use company financial information in your

    Rate of return on weekly investments, Lock box

    8) A company's weekly cash position is as follows: ? Week 1 $24,000 ? Week 2 $34,000 ? Week 3 $10,000 ? Week 4 $15,000 The annual interest rate for investments is 12% what return can the company earn on these weekly investments. 9) A company with most of its customers in New York, has decided to consider using a loc

    Applied Finance for Decision-Making

    Details: Look at Superior's balance sheet and analyze it. Be sure to focus on working capital, current ratio, short-term and long-term debt. End with a bulleted summary addressing the CFO's concerns as related to these areas. Please List References.

    Computing values and ratios

    See attachment for full problem description Instructions: Compute these values and ratios for 2006 and 2007. a)earnings per share b)working capital c)current ratio d)debt to total assets ratio e)free cash flow f)based on the ratios calculated discuss briefly the improvement or lack thereof in financial position and ope

    International Finance on the Mexican Peso

    16. Forward Rate Forecast. Assume that you obtain a quote for a one-year forward rate on the Mexican peso. Assume that Mexico's one-year interest rate is 40 percent, while the U.S. one-year interest rate is 7 percent. Over the next year, the peso depreciates by 12 percent. Do you think the forward rate overestimated the spot ra

    International Finance - Oregon Co.'s

    20. Forward Hedge. Would Oregon Co.'s real cost of hedging Australian dollar payables every 90 days have been positive, negative, or about zero on average over a period in which the dollar weakened consistently? What does this imply about the forward rate as an unbiased predictor of the future spot rate? Explain.

    Cost Classifications

    The following are cost associated with manufacturing firms, merchandising firms, or service firms: A. Legal services for an accounting firm B. Car leases for company management C. Oil used to serve manufacturing equipment D. Office supplies for a grocery store E. Entertainment expense for clients F. Travel expenses for d

    Beta of the Stock

    Question: My company's stock is now selling for $40 a share. The stock is expected to pay $2 dividend at the end of the year. The stock's dividend is expected to grow at a constant rate of 7% a year forever. The risk-free rate is 6% and the market risk premium is also 6%. What is the stock's beta?