Compute the present value of a $100 cash flow for the following combinations of discount rates and times: a. r = 8 percent. t = 10 years. b. r = 8 percent. t = 20 years. c. r = 4 percent. t = 10 years. d. r = 4 percent. t = 20 years.
Cleveland Compressor and Pnew York Pneumatic are competing manufacturing firms. Their financial statements are printed below. a. How are the current assets of each firm financed? b. Which firm has the larger investment in current assets? Why? c. Which firm is more likely to incur carrying costs, and which is more likely to
9. Assuming that a government will collect its sales taxes in sufficient time to satisfy the available criterion, it would ordinarily recognize revenue from sales taxes in its governmental fund statements a. when the underlying sales transaction takes place b. on the date the merchant must remit the taxes to the gover
7. Central City was awarded two state grants during its fiscal year ending September 30, 2003: a $2 million block grant that can be used to cover any operating expenses incurred during fiscal 2004 and a $1 million grant that can be used any time to acquire equipment for its police department. For the year ending September 30, 20
9.2. One year ago, Mr. Seth Cohen invested $10,400 in 200 shares of First Industries, Inc. stock and just received a dividend of $600.00. Today, he sold the 200 shares as $54.25 per share. a. What was his capital gain? b. What was your total return? c. What was your total dollar return? d. What was the stock's dividend yi
A. Develop a list of two financial goals that you would like to achieve over the next ten years. They might include a major vacation, a car purchase, a home improvement, or a college education for one of your children. Once your goals are written, develop a three-column table showing the goals, the future date for each, and the
Is it true that the "flatter" or more nearly horizontal, the demand curve for a particular firm's stock, and the less important investors regard the signaling effect of the offering, the more important the role of investment bankers when the company sells a new issue of stock?
Why are traditional financial analysis techniques criticized when they are used to justify new technologies? Explain.
Drive in Surgery is studying the possibility of opening a satellite center in the far west part of the metro area. At a minimum, DISC needs a $190,000 profit at the satellite center to keep to their financing. Based on DISC's experience at its present surgi-center, the new center would require about $115,950 in fixed costs. D
What are the four primary categories of financial ratios? Why is it important to compare financial ratios to industry averages?
You have a 2 million portfolio consisting of a 100,000 investment in each of 20 different stocks. The portfolio has a beta equal to 1.1. You are considering selling $100,000 worth of one stock which has a beta equal to 0.9 and using he process to purchase another stock which has a beta equal to 1.4. What will be the new beta of
A mutual fund announces that the salaries of its fund managers will depend on the performance of the fund. If the fund loses money, the salaries will be zero. If the fund makes a profit, the salaries will be proportional to the profit. Describe the salary of a fund manager as an option. How is a fund manager motivated to behave
Volatility cannot be directly observed for calculation purposes of the option pricing model. Therefore, it may be determined from: historic volatility. forward-looking volatility. implied volatility. any of the above.
Ross owns 918 shares of OJC. There are 13 directors to be elected: 31,000 shares of common stock are outstanding. There is cumulative voting. a. How many votes can be cast for directors? b. How many votes does Betsy control? c. What percentage of the vote does Betsy control?
Please create a spread sheet in Excel for work. How would I lay it out? It consists of Hotel, Banquet and Mics charges for my department I need a bill to category, Charge $ amount, Description of the charge, Name of the event if any. This is the first time I have done this and I want it to look good for my boss, plus it
What do you think is the best way to invest in Canada or Financing for a company?
Divisional contribution Margin $700,000 Profit Margin Controllable 320,000 Profit Margin traceable 294,400 Average assed investment $1,280,000 Company uses responsibility account concepts when evaluating performance, the division manager is contemplating the following three inves
Weyerhauser is a U.S based forest products firm. In June Weyerhauser delivers a shipment of raw lumber to Japan. The y55,000,000 receivables is due 180 days. The firm's foreign exchange advisors believe the yen will be at about y115/$ then, Current spot rate is y110/$ Weyerhauser has received 180 day forward quote of y108/$. If
Case 1: A lawyer withdraws his entire capital account from his law firm and uses the funds to finance the purchase of a home in which he resides. On the same day, the lawyer borrows an equivalent amount of funds by way of bank loan and deposits the funds to his law firm. Issue: Is the interest expense on the bank loan dedu
Please help answer the following question. Explain to me how the price of a new security is determined?
Following this balance sheet for 2006 Assets Cash $15,000 Accounts Receivable 90,000 Inventory 60,000 Current Assets $165,000 Fixed Assets 60,000 Total Assets $225,000 Liabi
If I have a store that had a net income in 2005 of $90,000, some of the financial ratios from my annual report are: Profit Margin - 12% Return on Assets - 20% Debt to Assets Ratio - 55% I need to calculate the following: a. Sales b. Total Assets c. Total Asset Turnover d. Total Debt e. Stockholders? Equity f. Retu
The U Co. and the L Co. are identical in all aspects except that U Co. is all-equity financed while L Co. has $1,000 debt in 6% perpetual bonds outstanding (on which $60 of interest is paid each year). Both firms have expected net operating income of $300 (forever). Both firm distribute as dividends all income available to sha
Using the attached Balance Sheet and Income Statement calculate the following ratios: 1) Liquidity ratios a) Current ratio b) Acid-test (quick) ratio c) Receivables turnover d) Inventory turnover Riordan Manufacturing, Inc. Consolidated Balance
Using the following information on Bear Corporation and the dividend discount model, calculate the value of Bear Corporation's stock. Growth: 12% ROE: 15% Earnings Per Share Last Year: $10.00 Beta: 1.50 Risk Free Rate: 5.00% Market Risk Premium: 6.00%
Buffalo Company's earnings are expected to grow rapidly for the next 12 years and then settle down to a more normal, long-term growth rate. Assuming the equity cost of capital for Buffalo is 15%, the growth rate for the rapid growth period is 20%, and the growth rate for the normal growth period is 8%, use the H-model to value
What type of socio economic risks does Mexico have?
Explain the difference between profit and contribution in an objective function. Why is it important for the decision maker to know which of these the objective function coefficients represent?
A stock is not expected to pay a dividend over the next 4 years. Five years from now the company anticipates that it will establish a dividend of $1 a share (D5=$1). Once the dividend is established, the market expects that the dividend will grow at a constant rate of 5% per year for the indefinite future. The risk-free rate is
A. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the divide