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Repurchasing shares and equity

Cash $43,700 Fixed assets $310,000 Total $353,700 Equity $353,700 Total $353,700 Suppose Chevelle has announced it is going to repurchase $12,600 worth of stock. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurcha

Cost of Debt: Pre-tax and After-tax Cost of Debt

Jones, Inc. is trying to determine the cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 107 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually. What is the company's pre-tax cost of debt? If the tax rate is 35 percent, what is t

Yum! Case Study

Review the requirements of the Chapter 3 Mini-Case, parts b through j. Then apply those requirements to do a horizantal and vertical analysis of Yum! Brands, which is a real company. (More details provided in attachments.)

What is open systems theory?

Please provide help with the following questions: What is open systems theory? How can open systems theory be used to understand an organization? How can open systems theory might apply to USAA (Fortune magazine's top 100 companies to work for?

Australian Prudential Regulation Authority

In a recent Australian Treasury discussion paper (Sept 2012) it was suggested that the Australian Prudential Regulation Authority (APRA) should be given 'sweeping new powers to step in and take control of banks' to prevent them from collapse during a financial crisis - discuss. Demonstrate thorough understanding of the scope

Financial Staff and Issues

Fundamentals of Financial Management Integrated Case Questions (u01s1): What are the primary responsibilities of a corporate financial staff? What are the most important financial management issues today? Why?

Methods of Overheads Allocation

A company which makes sophisticated mobile telephones has designed a new casing for its product which requires a different finish to the previous casing because the material type is a recently developed synthetic material and much stronger and more scratch-resistant than the previous plastic material used for the product casing.

Calculate the multiple factor productivity for the given service combinations.

The three person crew worked their way through the neighborhood, mowing lawns, edging, apply fertilizer and weed treatments where necessary and collecting all the clippings for use as mulch as part of their new green initiative. Their pricing scheme appears in Table A and the mix of orders and service costs appear in Table B (a

Enterprise value and beta of business assets

In Mid-2012, AOL Inc. had $100 million in debt, total equity capitalization of $3.1 billion, and an equity beta of .90 (as report on Yahoo! Finance). Included in AOL's assets was 1.5 billion in cash and risk free securities. Assume that the risk free rate of interest is 3% and the market risk premium in 4%. A - What is AOL's en

Compute the Net Present Values of Projects

Lang Industrial (LISC) must choose between two different conveyor belt systems. X costs $236,000, has a four-year life, and requires $74,000 in pretax annual operating costs. Y costs $336,000, has a six-year life, and requires $68,000 in pretax annual operating costs. In either case, the systems will be depreciated straight-line

Investment Stocks Case Study

Please help in this investment stock case study: Your best friend consults you for investment advice. You learn that his tax rate is 35%, and he has the following current investments and debts: ■ A car loan with an outstanding balance of $5000 and a 4.8% APR (monthly compounding) ■ Credit cards with an outstanding balan

Replacing Machines

One year ago, your company purchased a machine used in manufacturing for $110,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $150,000 today. It will be depreciated on a straight-line basis over 10 years, after which it has no salvage value. You expect that the new ma

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