Colin's Haberdashery Products is considering a project that would have an initial cost of $285,000 and a 4-year life. The project's assets will be depreciated using straight-line depreciation to a zero book value over the life of the project. Projected cash flow from the project is forecast at $83,650, $92,850, $94,350 and $93,2
1. Last year Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets? 188.5 million 2. Europa Corporation is financing an ongoing construction project. The
Calculate the average rate of return, standard deviation and CV for each of the given stocks and portfolio.
You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, stocks A and B, have the following historical returns: Year a b 2009 -20.00% -5.00% 2010 42 15 2011 20 -13 2012 -8
Is it legitimate for local and national government agencies to use taxpayer money to help small companies export?
1. Answer in Excel. NPV versus IRR: Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both Projects require an annual return of 14 percent. Year____Deep water Fishing____New Submarine Ride 0_______-$950,000___________-$1,850,000 1________ 370,000______________90
1.Describe how the U.S. financial markets impact the economy, businesses, and individuals. 2.Explain the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today's economic environment. Provide support for rationale. 3.Explain how interest rates influence the U.S. and glo
XYZ Motors just issued 225,000 zero coupon bonds. These bonds mature in 20 years, have a par value of $1,000, and have a yield to maturity of 7.45 per cent. What is the approximate total amount of money the company raised from issuing these bonds? (Assume semi-annual compounding)
I need a tutor to help guide me with this assignment. I would prefer for a tutor to direct me in completing the work. This assignment is a walk through a set of financial data for a hypothetical company. It will help the to understand better the theoretical background behind the calculation of stock prices and the reaction of
Put together a business summary of the following in the SRP System with CDC. Three to Four Paragraph each. a) Business Impact b) Measurable Gains c) Modernization Impact d) Key points e) Justification
Backwater Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.5 percent. The current yield on these bonds is 5.85 percent. How many years do these bonds have left until they mature? Page Enterprises has bonds on the market making annual payments, with nine years to maturity, and selling for $954. At this
Using the option prices given below, give an example of a zero cost collar and explain how it could be used to hedge a long position in the underlying asset. You may assume the underlying asset is an equity currently at $100. Maturity Strike Calls Puts ====================================== 3
1. (Answer in Excel) Calculating Nominal Cash Flow: Etonic Inc. is considering an investment of $365,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $245,000 and $70,000, respectively. Both revenues and expenses will g
Please read the Bethesda Mining Company case study and assist the following questions. Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess p
I need help with this company that I attached the file! Some help with: 1.Opportunity 2.Risks, Commercial and Currency risk. 3.Mitigating Risks. 4.Rationale. 5.Decision.
Please read the text portion of BP's 2012 annual report and assist with the following: 1. Identify potential real options that might arrive in this firm's business. 2. Are these options industry specific or company specific? 3. How would these options affect their capital budgeting process? 4. Justify your
Please see attachment use word or excel but please show how you got the answer. Question 1: (Cost of Capital) You are provided the following information on a company. The total market value is $38 million. The company's capital structure, shown here, is considered to be optimal. (see attached file for data) a. What
Ethical Standards for Business: should they be universal? Also, do corporations have the right to influence ethics worldwide?
1. Do you feel that it is possible to develop a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical and/or impossible? 2: Do corporations have a right and/or a responsibility to influence ethics in the countries in which they operate?Defend the posit
Research Online Trading Sites and DRIPs you will evaluate the choices in purchasing stock via online brokerage accounts (where you can buy and sell stock via the Internet) and the use of dividend reinvestment plans (known as DIPs and DRIPs) or mutual funds or index funds. For online brokers, you will be looking for the requir
1. Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in the corporate environment. 2. With all investments, there are an expected percentage return and certain types of return that can be expected. Describe the possible forms in which a return could be received for bonds, commo
Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, wash
You just signed a consulting contract that will pay you $38,000, $52,000, and $85,000 annually at the end of the next three years, respectively. What is the present value of these cash flows given a 10.5 percent discount rate? $157,131 $154,880 $139,975 $148,307 $162,910
1. $1,000 face amount bonds of Stalwart Development Corp. are quoted at a price of 102.2 and carry a 6.50 percent coupon. The bonds pay interest semiannually. What is the current yield on one of these bonds? The answer should be a percent 2. A 20-year, 4.8 percent, semiannual coupon bond issued by Cascade has a $1,000 face
Strickler technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 9.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,895,000. Th
You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 78 years from now. The appropriate discount rate is 8 percent. What is the present value of your winnings?
The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $40,000 $50,000 1 10,000 8,000 2 1
1. AR store issued 15 year bonds one year ago at a coupon rate of 6.1%. The bonds make semi-annual payments. If the YTM on these bonds is 5.3%, what is the current bond price? 2. NH Co. issued 15 year bonds two years ago at a coupon rate of 8.4%. The bonds make semi-annual payments. If these bonds currently sell for 108%
I need help with the following: 1. Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10% coupon bond sells at par? Two years from now the required return on the same bond is 8%. What is the coupon rate on the bond now? The YTM? 2. Suppos
True/False- 1. The firm's cost of external equity capital is the same as the required rate of return on the firms outstanding common stock_________ 2. Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, but capital raised by selling new sto
Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be more productive for either year, after which the gold would be completely mined. Dan has taken an estimate
1. Future Value. What is the future value of a. $800 invested for 14 years at 11 percent compounded annually? b. $210 invested for 8 years at 9 percent compounded annually? c. $650 invested for 12 years at 8 percent compounded annually? 2. Present Value. What is the present value of a. $803 to be received 18 years from