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    Efficient Market Hypothesis and Picking Stocks

    The efficient market hypothesis asserts that: a. It is virtually impossible to consistently pick stocks that perform exceptionally well because all publicly available information is immediately reflected in stock prices. b. Studying historic patterns of stock price movements will generally identify winning investments

    Business Growth and Finance

    1. What is the sustainable growth rate of a firm with the following selected financial results? Sales $20,300 Earnings after taxes $1,015 Equity multiplier 2X Assets $10,150 Annual Dividend $406 a. 12% b. 8% c. 10% d. 6% 2. Stock and bond markets a. are independent of each other as to prevailing ra

    Valuation of Stock

    Analysts expect a stock to be selling for $22.00 in one year. it is also expected to pay a $1.00 dividend during the year. if you require a 15% return on this kind of investment, what is the most you can pay for the stock today?

    Projected Selling Price for Stock

    The price of a share of stock today is $25.00. if the return on the share is estimated at 18% and the stock generally pays a dividend of $1.00 per year, what is the projected selling price in one year?

    Variable Cost and using Whats Best software

    Illumina Inc. makes cardboard signs. The most popular signs they make are the Bronx, and Veterans, which require material and labor. They have a contract with Devon Publishing to make 1600 of the Bronx, which sell for $ .75 and require 20 ounces of paper and 5 minutes of labor. They plan on making 2000 of the Veterans, which sel

    ROI question

    Problem: A company decides to buy new equipment for $10,000 with an expected useful life of 4 years. At the end of each of the 4 years, the cash flow from this equipment is expected to be $4000. the rate of return in 8%, what is the ROI?

    Organize this information using a spreadsheet.

    You are shopping for office supplies and furnishings for your company, Financial Outsourcing, Inc. Use the comparative shopping web search engines in the Library to conduct the following research. (Hint: On the "Search Library by Name" tab, search for "comparative shopping" or similar phrases.) You may also use additional Intern

    Amount changes on stock transactions

    Given that Humphrey Dog Toys Inc.'s stock is currently selling for $50 a share, calculate the amount that Elmer D. will make, or lose, on each of the following transactions (assume that all transactions involve 100 shares of stock, and ignore brokerage commissions.) a. If Elmer sold the stock short at $50 per share and repu

    Operating, Financial and Combined Leverage of ITC

    Illinois Tool Company's (ITC) fixed operating costs are $1,260,000 and its variable cost ratio (ie variable costs as a fraction of sales) is 0.70. The firm has $3,000,000 in bonds outstanding at an interest rate of 8%. ITC has 30,000 shares of $5 preferred stock and 150,000 of common stock outstanding. ITC is in the 50%

    Expected Returns and Standard Deviation of Gamma Industries

    1. An investor plans to invest 75% of her funds in the common stock of Gamma Industries and 25% in Epsilon Company. The expected return on Gamma is 12% and the expected return on Epsilon is 16%. The standard deviation of returns for Gamma is 8% and for Epsilon is 12%. The correlation coefficient between the returns for

    Lottery Finance

    The lottery is $60,000,000 and the state offers to pay you $3,000,000 per year for the next 20 years, or you can take the lump sum today of $29,500,000. If you choose to take the $3,000,000 per year for 20years, the state will invest that $29,500,000 today so that it can give you those payments per year for 20 years. What rate w

    Economic Order Quantity Quarter

    ABC Corp. uses 20,000 half inch PVC tubes during a calendar quarter. Ordering costs are $180 per order and carrying costs are $6 per tube per quarter. The economic order quantity is?

    Managerial Finance: Maximizing Market Value of Stock

    XYZ Corporation has earnings of $750,000 with 300,000 shares outstanding. Its P/E ratio is 16. The firm is holding $400,000 of funds to invest or pay out in dividends. If the funds are retained, the after-tax return on investment will be 15 percent, and this will add to present earnings. The 15 percent is the normal return antic

    Investment opportunities/risk in India.

    Investment opportunities and the associated risk based on India's present business climate. This could be public, private, joint venture business relationship with USA company.

    Managerial Finance - cumulative voting procedures of the Beasley Corporation case.

    The Beasley Corporation has been experiencing declining earning, but has just announced a 50 percent salary increase for its top executives. A dissident group of stockholders wants to oust the existing board of directors. There are currently 11 directors and 30,000 shares of stock outstanding. Mr. Wright, the president of the co

    Investment Decisions Questions

    Q1 You have ?500,000 available to invest. The risk-free rate (which is also the rate at which you could borrow) is 8%, and there is a (risky) fund in which you could invest that has an expected return of 16%. What would you have to do to produce a portfolio with an expected return of 22%? Q2 In a world in which your investme

    Financial Environment

    What are the roles of regulatory bodies in the financial market? Which regulatory bodies impact timberland and Nike companies? How are they impacted by regulatory bodies?

    Rate of returns using limit orders for stock transactions

    The stock of Michelle Travel company is selling for 43.00 a share. You put in a limit buy order at 44.00 for one month. During the month, the stock price declines to a low of 38.00, jumps to a high of 53.35, and has a final stock price of 43.00. Ignore commissions. What is the rate of return on this investment, the rate of r

    Calculate percentage gain stock transactions

    Suppose you buy a round lot of Horse Inc stock on 55% margin when it is selling at 38.70 a share. The broker charges an 8 percent annual interest rate and commission are 4.5 percent of the total stock value on the purchase and 5 percent o n the sell. If at year-end you receive a 1.60 per share dividend and sell the stock for 47.

    Expected Returns in Gambling

    Suppose you won the lottery and were offered a choice of either $500,000 in cash or a gamble in which you would get $1 million if a head were flipped but zero if a tail came up. a) What is the expected value of the gamble? b) Would you take the sure $500,000 or the gamble? c) If you choose the sure $500,000, are you

    Explanation of components of cost of toaster

    I'm sure you have a toaster in your home. How much did it cost. Not what you paid for it that is not material to our debate. How much did it cost to make? Is the number you derive a quantitative number or a qualitative number? Why?

    Taxation Case Brief

    The case is THOR POWER TOOL CO. v. COMMISSIONER, 439 U.S. 522 (1979) I included the format & list of doctrines. I would appreciate any help. I am just not experienced in this area and need an example to look over.

    Financial Management Overview

    1) What are the primary responsibilities of a corporate financial staff? 2) Is stock price maximization good or bad for society? 3) Is maximizing stock price the same thing as maximizing profit?

    Beta Computation

    Suppose krf (supposed to read K sub RF) = 8% kM (k sub M) = 11% and kB(k sub B) = 14% A) Calculate stock B's beta B) If Stock B's beta were 1.5, what would be B's new required rate of return?

    Expected Returns

    Suppose you won the lottery and were offered a choice of either $500,000 in cash or a gamble in which you would get $1 million if a head were flipped but zero if a tail came up. a) What is the expected value of the gamble? b) Would you take the sure $500,000 or the gamble? c) If you choose the sure $500,000, are you a r

    Semi-Annual Bond Price Analysis

    Consider an America Off-Line 30 year, semiannual bond. It is issued at par (coupon rate = 6%) today. Interest rates remain at 6% for 5 years, and then GRADUALLY, over 5 years rises to 7%, Then interest rates GRADUALLY fall over 10 years, reaching 5% when the bond has 10 years to maturity remaining. Interest rates then rem

    Preferred Stock

    On January 1, Armada Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred Apr 1 Issued 15,000 additional shares of common stock for $17 per share. June 15 Declared a cash dividend of $ 1 per share to stockholders of