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Operating Division

Your firm would like to evaluate a proposed new operating division. You have forecasted cash flows for this division for the next five years, and have estimated that the cost of capital is 12%. You would like to estimate a continuation value. You have made the following forecasts for the last year of your five-year forecastin

Intel Corporation Analysis

This assignment is on the Intel Corporation: 1. What is the Stockholders' Equity per share for 2012, 2011, and 2010? 2. Is Intel investing adequately in its future and why? 3. What is the amount of Common Stock, Preferred Stock, and Treasury Stock for 2012, 2011, and 2010? 4. What is the Cash Interest Coverage Ratio for Net

Cost Effectiveness of Market Product

1. This is based on another real situation. A company was looking at developing a high throughput urinalysis device for central laboratory hospital settings. The company had only a minor presence in such markets so this was a major strategic initiative. The system would consist of a large analyzer with reagents. Marketing initia

Intel Corporation Treasury Shares

Please help answer the following questions. What number of treasury shares does the Intel Corporation have? What is the number of common shares authorized? How many shares are held by Officers and Directors of the Intel Corporation? What does this tell you? What is the current ratio of total debt to total stockholders eq

Conducting Financial Analysis with Microsoft Excel

Practice Questions - Prepare in Word Document 1. You are asked to prepare a financial forecast for Joan Roberts, the Managing Director and owner of a retail fashion line, whose market share and profits have been steadily dropping over the last two years. Ms. Roberts claims to be "bored" with financial jargon and says she only

Daily working capital activities

Write a 350 word paper in which you explain the concept of working capital management in day-to-day operations and the role of financial managers in ensuring an optimal working capital policy.

Maynard Steel Finance Discussion

Maynard Steel plans to pay a dividend of $3 this year. The company has an expected earnings growth rate of 4% per year and an equity cost of capital of 10%. a. Assuming Maynard's dividend payout rate and expected growth rate remains constant, and Maynard does not issue or repurchase shares, estimate Maynard's share price.

Reasonable estimates of long-run future expected rates of return

If the P/E ratio on the S&P 500 is 10, given historical earnings growth patterns, what would be a reasonable estimate of long-run future expected rates of return on the stock market? Assume a long-run inflation rate of 2.5% per annum. Note: Please explain question in detail so I can better understand.

Calculating mean, variance and standard deviation of returns

1. Suppose a stock had an initial price of $86 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $94. 2. You have observed the following returns on Crash-n-Burn Computer's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. a. What was

Comprehensive annual financial budget analysis

In a report format (APA based but strict adherence not required), answer the following questions, which aid in assessing the quality of the budget document you are reviewing. Write an intro, then use each of those four categories as headings and using the questions as guides assemble them into a coherent narrative. Then do

Project NPV and Gaining Shareholder Votes

1. A firm has debt with a face value of $100. Its projects will pay a safe $80 tomorrow. Managers care only about shareholders. A new quickie project comes along that costs $20, earns either $10 or $40 with equal probabilities, and does so by tomorrow. A. Is this a positive NPV project? B. If the new project can only be finan

Valuation of Corporate Zero-Coupon Bonds

1.Valuation - corporate bond A $1,000 corporate bond with 10 years to maturity pays a coupon of 8% (semi-annual) and the market required rate of return is a) 7.2% and b) 10%. What is the current selling price for a) and b)? 2.Valuation - options The following information refers to a six-month call option on the stock of

Financial Analysis of Proctor and Gamble

1. Using the data in the excel spreadsheet file P&G, forecast the June 30, 2011, income statement and balance sheet for Procter & Gamble. Use the percent of sales method and the following assumptions: 1) Sales in FY 2011 will be $81,000; 2) The tax rate will be 27.26%; 3) Each item that changes with sales will be the five-year a

IRR: PVIFA and Trial and Error Methods

You would like to invest in one of the following assets. Use the present value of an annuity formula and the trial and error method to estimate the Internal Rate of Return or yield for each of the following two investments and decide which is the better investment. A B Initial Investme

Fundamentals of Investments: Risk, Returns, and Forecasting

QUESTION: You have owned the stock of Micro Co Ltd for the last five years. Historical data for the stock are as follows: Market Price of Micro Company's Stock Year Dividend Income Beginning Ending 2008 $1.00 $30.00 32.50 2009 1.20 32.50 35.00 2010 1.30

Holding-Period Returns Question

Mini Case KMP Ch. 6, p. 184 Note: Although not absolutely necessary, you are advised to use a computer spreadsheet to work the following problem. a. Use the price data from the table that follows for the Standard & Poor's 500 Index, Wal-Mart, and Target to calculate the holding-period returns for the 24 months from July 2007 t

Bonds Offer an Advantage Over Investments for Trinity Hospital

See the attached file. The board of directors of Trinity Hospital is working on a five-year strategic plan for the facility. One of the strategic goals is to build a new $1 million cancer research wing in five years. The group is concerned that current economic conditions might reduce revenues over the next five years and they

Long Term Economic Outlook

Discuss long-term economic outlook for the following countries; United States, Western Europe, Japan, Asia ex-Japan, and Latin America and include views on GDP, inflation, interest rates, currencies, and U.S. monetary policy.

Financial Analysis with Microsoft Excel

Please help answering financial analysis questions, the tables are in the attached file. 1. Using the data presented above: a. Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate excel worksheet. Try to duplicate the formatting exactly. (must be in excel w

Apply time value of money to a personal decision

Simon, a second-year business student at the University of Toronto, will graduate in two years with an accounting major and a Spanish minor. Simon is trying to decide where to work this summer. He has two choices: work full-time for a bottling plant of work part-time in the accounting department of a meat-packing plant. He proba

Bidding on Treasury bills and a 5% return

We are currently bidding on Treasury bills and have determined that we must have a 5% return for a $1,000 T-Bill that will mature in one year. How much would we be willing to bid on the Treasury bill? If we are bidding on a 13 weeks Treasury bill with a 1% return and a 26 weeks Treasury bill with a 2% return for a $1,000 T-bill,

Taxable Amount on Distribution

On April 30, Janet, age 42, received a distribution from her qualified plan of $150,000. She had an adjusted basis in the plan of $500,000 and the fair market value of the account as of April 30 was $625,000. Calculate the taxable amount of the distribution and any applicable penalty. A. $30,000 taxable, $3,000 tax penalty

Advance determination letter

Most qualified plan sponsors seek an advance determination letter from the IRS stating that the plan provisions meet Code requirements. Which of the following statements is accurate about determination letters and their effect in the event of an audit by the IRS? A. the determination letter program is provided as a free servi

Characteristics That Affect Security Yield

Characteristics That Affect Security Yields Identify the relevant characteristics of any security that can affect the security's yield. Impact of Liquidity on Yield What effect does a high credit risk have on securities? Tax Effects on Yields Do investors in high tax brackets or those in low tax brackets benefit more from t

Income Statements and Balance Sheets

Using the income statement and balance sheet below, can you please help me with the following questions? Thank you! a. Calculate the amount of dividends Firm A and Firm B paid using the information given. b. Prepare a statement of cash flows for each firm using the indirect method. c. Analyze the difference in the two

Money Management: Fixed Fee or Percentage of Assets

If a manager receives part of their salary based on how the portfolios they manage are performing then the manager would want to see his or her portfolio have a high return. The money manager might take extra risks that the client may not have normally wanted just so he or she can make extra money for themselves. One way to ke