Transfers of Capital from Suppliers to Recipients
Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital.
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Finance
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You have an opportunity to invest in a business that will pay $200,000 in one year, $400,000 in two years, $600,000 in three years and $800,000 in four years.
Here is an example question how do I calculate this using calculator You have an opportunity to invest in a business that will pay $200,000 in one year, $400,000 in two years, $600,000 in three years and $800,000 in four years. You can earn 12% per year compounded annually on a mutual fund that has similar risk. If it costs $
Accounting and Finance
1) I have answered a few of the 20 attached questions that I need to know if I have answered correctly. 2) I need help with the rest of the problems. Thank you for your consideration. Chapter 9 1. If you invest $8,000 per period for 40 years at 11 percent, how much would you have? a. $4,654,640 b. $6,544,640 c.
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Growth Rates and Common Stock Valuation
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Cost of Retained Earnings Using Beta
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J&B Cost of Debt
J & B Inc. has $5 million of new debt to finance a project with a coupon rate of 12%, paid semiannually and has a par value of $1,000. The bonds will mature in 14 years and are priced at $850, net of flotation costs. If the firm's tax rate is 40%, what is the the cost of debt to J & B (Round to the nearest whole percentage).
"Investing is for the little guy"
You work for an large investment firm and recently wrote a position article on your firm's approach to investing for the small investor, titled "Investing is for the little guy". The article now appears on your company's website. It has, interestingly enough, generated e-mailed responses from potential clients and your firm is a
Risk- standard deviation of returns: A highly risk-averse investor is considering adding one additional stock to a 3-stock portfolio, to form a 4-stock portfolio. Which stock should this investor add to his or her portfolio, or does the choice matter?
A highly risk-averse investor is considering adding one additional stock to a 3-stock portfolio, to form a 4-stock portfolio. The three stocks currently held all have b = 1.0 and a perfect positive correlation with the market. Potential new Stocks A and B both have expected returns of 15%, and both are equally correlated with th
Advantages & disadvantages of 50/50 structure for notes/stock
When Keith created a new corporation as the sole shareholder, he was advised by his accountant to consider 50 percent of the invested amount as the loan and 50 percent for the purchase of stock. Discuss the advantages and disadvantages of this structure, as compared with treating the entire investment as the purchase of stoc
Overview of Accounting and Finance; Analyzing Financial Statements
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Please help review my answers. Correct me if I go wrong and explain the correct solution, if needed. The answers I believe to be correct are marked with a "***." Thank you. Managerial Accounting 1. The cost of a single unit of production in excess of the breakeven point in units is: A) its fixed cost and variable co
Journalize the transactions for common stock
(a) Journalize the transactions, assuming that the common stock has a par value of $5 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share. E12-2 Garza Co. had the following transactions during the current period. Mar. 2 Issued 5,000 shares of $1 par value c
Risky Projects and Discounting Cash Flows
A graph shows a company's common stock returns on the Y axis and the market returns on the X axis. The slope of the regression line represents a. range of NPVs b. standard deviation c. diversifiable risk d. Beta e. diversifiable risk and beta Risky projects can be evaluated by discounting certainty equivalent cash flows
Transportation Industry and Rising Fuel Prices
May I please just have a short answer? I do not need a paper, it is more of an opinion I am looking for. Also It seems that trade surplus is bad in long run, trade deficit is bad in long run...how do we achieve balance? How do we determine the size of trade surplus-->Deficit cycle that would result in optimum economic growth
Stock Valuation Explained
Gentry Can Company's latest annual dividend of $1.25 a share was paid yesterday and maintained its historic 7 percent annual rate of growth. You plan to purchase the stock today because you believe that the dividend growth rate will increase to 8 percent for the next three years and the selling price of the stock will be $40 pe
Sources of Finance for a Limited Company
What are the sources of finance for a limited company? Describe the advantages and disadvantages of using debt in 200 to 300 words with references.
Financial Management
1) In November of each year the CFO of Barker Electronics begins the financial forecasting process to determine the firm's projected needs for new financing during the coming year. Barker is a small electronics manufacturing company located in Moline, Illinois, which is best known as the home of the John Deere Company. The CFO b
Insurance Company Financial Risks
Which of the following insurance company financial risks would be the most concerning to you as a risk manager: Policy reserves are considered marginal. Excessive policy cover in a high risk state such as Texas or Florida. A company that was just fined and reprimanded for improper accounting practices. Identify your choic
Exporting
Increase awareness of export opportunities for a U.S. firm. What federal agencies can be used and what do they provide? What state agencies can be used and what do they provide? List contact information for the agencies.
Cash Flow Analysis and Amortization
Why are depreciation charges relevant to a cash flow analysis? What about amortization?
Electronic Funds Transfers: Value of Money?
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National Widget Company
For the past five years, National Widget company has had a PE ratio of 23. The company's current market price is $43 per share. The company announced todat that its EPS for the past year was $1.80. Based on the company's historical trends, the stock price should be expected to adjust to _____ per share.
Finance for Managers
What are the consequences of a CPA or public accounting firm rendering an opinion based on unethical practices?
Stock Valuation-Supernormal Growth
A company is expanding rapidly and is not paying dividends at this time. Investors expect it to begin paying dividends beginning 3 years from today starting at $1.00. The dividend should grow rapidly - at 50% a year during years 4 and 5. After year 5 the company should grow at 8%/year. If the required return on the stock is 1
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Mulligan Corporation, which is subject to a 30% income tax rate, is considering a $150,000 asset that will result in the following over its seven-year life: Total revenue: $1,190,000 Total operating expenses (excluding depreciation): $770,000 Total depreciation: $150,000 The accounting rate of return on the initial inves