Alpha Corporation and Beta Corporation are identical in every way except their capital structures. Alpha Corporation, an all-equity firm, has 5,000 shares of stock outstanding, currently worth $20 per share. Beta Corporation uses leverage in its capital structure. The market value of Beta's debt is $25,000. The cost of this debt
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Velcro Saddles is contemplating the acquisition of Pogo Ski Sticks, Inc. The values of the two companies as separate entities are $20 million and $10 million, respectively. Velcro Saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $500,000 per year in perpetuity. Velcro Sa
Fly-by-night Couriers is analyzing the possible acquisition of Flash-in the pan Restaraunts. Neither firm has debt. The forecasts of Fly-by-night show that the purchase would increase its annual after-tax cash-flow by $600,000 indefinately. The current market value of Flash-in -the-Pan is $20 million. The current market value of
I am looking for a simple template to keep track of 3 stocks daily or weekly for 10 weeks with the capacity to graph results.
1. What is an example of a situation that requires the establishment of a contingent liability? Why should a company establish a contingent liability? How does the establishment of a contingent liability impact earnings? 2. What is an example of a potentially unethical accounting situation? Why is the situatio
What are the principal differences between Secured Creditors, Unsecured Creditors, Preferred Stockholders and Common Stockholders? During a partial or complete liquidation, what is the priority of asset distribution? When you are considering two different financing plans, does being at the level When does insider tradin
Identify situations that might lead to unethical practices and behavior in accounting. Then, examine the impact of the Sarbanes-Oxley Act on financial statements. Based on that prepare one question for discussion.
Select a Fortune 500 company and retrieve financial data for the company for a period of 5 years. And, answer the following: a. Identify two or three major financial trends. b. Calculate three key financial ratios. c. Develop several financial recommendations. d. Locate an article that appraises the dangers of basi
Obtain financial information for Raytheon. You should begin by obtaining an annual report for the company. You should also explore the company's Web site and the Company Directories and Financial Reports. Write a 5 page paper with the following information. b. Prepare a 2001 - 2005 trend table of the financial ratios below
Who has most to lose (the lender or borrower) when financing fixed assets with variable rates?
DQ 1 a. What is the purpose of depreciation? Does the book value of a fixed asset (cost minus accumulated depreciation) tell a user what the asset is worth? Why or why not? Should the financial statements reflect the value of fixed assets? Why or why not? b. What are the different methods used to calculate depr
Calculate the tax you would save by contributing 6% of your income to an IRA if your income was $135,000 gross pay and $107,000 net.
Interpreting these measurements. (Attached) What is the importance of them. And what is the difference between the performance of them compared to the market index. Company R Rf Standard Deviation Sharpe Measure Walt Disney 8.11 4.6 3.786 0.927 Ford 11.886 4.6 3.786 1.925 Microsoft 6.958 4.6 3.786 0.623 Lowe's 6
Please help with the following problem. You have been scouring The Wall Street Journal looking for stocks that are "good values" and have calculated the expected returns for five stocks. Assume the risk-free rate (rRF) is 7 percent and the market risk premium (rM - rRF) is 2 percent. Which security would be the best investm
Cardinal Company has the following obligations at December 31: (a) a note payable for $100,000 due in 2 years. (b) a 10-year mortgage payable of $300,000 payable in ten $30.000 annual payments. (c) interest payable of $15,000 on the mortgage. and (d) accounts payable of $60.000. For each obligation, indicate whether it should he
Is the geometric average of the quarterly returns equal to the single per-period return that would give the same cumulative performance as the sequence of actual returns?
Are all stocks traded only on the NY stock Exchange?
You have been scouring The Wall Street Journal looking for stocks that are "good values" and have calculated the expected returns for five stocks. Assume the risk-free rate (rRF) is 7 percent and the market risk premium (rM - rRF) is 2 percent. Which security would be the best investment? (Assume you must choose just o
The Jamesway Printing Corporation has current assets of $3.0 million. Of this total, $1.0 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Jamesway has $1.5 million in current liabilities. a. What are the currentand the quick ratios for Jamesway?
Armhurst Corporation is the maker of fine fitness equipment. Armburst's bank has been pressuring the firm to improve its liquidity. Which of the following actions proposed by the CFO do you believe will actually achieve this objective? Why or why not? a. Sell new equity and use the proceeds to purchase a new plant site.
What does an efficient market hypothesis holds?
What does the security market line (SML) depict?
Specialists on the New York Stock Exchange do all of the following except: a. Act as dealers for their own accounts b. Execute limit orders c. Help provide liquidity to the marketplace d. Act as odd-lot dealers
What kind of risks should I look out for when investing in stock?
Seeking assistance clarifying objectives of questions. The Company has determined that earnings and dividends will decline at a rate of 5% annually. Assume that Ks=11% and Do=$2.00. What will be the price of the Company's stock three years from now? a.$27.17 b.$6.23 c.$28.50 d.$10.18 e.$20.63
Both Rhonda and Andy have joined your small business owners group and are recounting their troubles with acquiring their finances. This leads to a discussion on the following: 1. Why is it so difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures? 2. How can a firm emp
If you are a family of four how would you calculate how much life insurance you would need to protect your financial future? Yes, one would turn to a personal agent but what calculations would be utilized to assist in the process?
How does Exchange Trade Funds relate to Market timing? Please explain.
Ralph Emerson thought he'd been a librarian long enough, and when the opportunity to open a small tobacco, pipe, and cigar shop in the newly renovated downtown business district arose, he was ready to act. Pipe Dreams is a franchisor of smoke shops, and was founded eight years ago by a noted tobacconist in New York City. The con
1. Why do companies issue bonds? Would you rather buy a bond at a discount or a premium rate? Why or why not? What is the determining factor of whether a bond is sold at a discount, face, or premium? 2. What are the payroll taxes paid by employees? What are the payroll taxes paid by the employer? What types of