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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

Portfolio Weights and Expected Returns

A stock has a beta of 1.25 and an expected return of 14%. A risk free asset currently earns 2.1%. 1) What is the expected return on a portfolio that is equally invested in two assets? 2) If a portfolio of the two assets has a beta of .93 what are the portfolio weights? 3) If a portfolio of the two assets has an expected ret

Calculating Portfolio Weights and Expected Returns

1. What are the portfolio weights for a portfolio that has 145 shares of stock A that sells for $45 per share and 110 shares of Stock B that sells for $27 per share? 2. A portfolio has $2,950 invested in Stock A and $3,700 in Stock B. If the expected returns on these stocks are 8% and 11% respectively, what is the expected re

Valuation of Corporate Zero-Coupon Bonds

1.Valuation - corporate bond A $1,000 corporate bond with 10 years to maturity pays a coupon of 8% (semi-annual) and the market required rate of return is a) 7.2% and b) 10%. What is the current selling price for a) and b)? 2.Valuation - options The following information refers to a six-month call option on the stock of

Calculating the Portfolio Beta in the Given Case

A stock portfolio invested 35% in Stock Q, 25% in Stock R, 30% in Stock S, and 10% in Stock T. The betas for these 4 stocks are .84, 1.17, 1.11 and 1.36 respectively. What is the portfolio beta? Please show work in Excel.

Finding Mean and Standard Deviation of Returns

Question #1 Calculate arithmetic average returns, the variances, and the standard deviations for X and Y. Returns Year X Y 1 17 23 2 22 34 3 8 11 4 -15 -32 5 10 21 Question #2 What are the arithmetic and geometric re

Financial Analysis of Proctor and Gamble

1. Using the data in the excel spreadsheet file P&G, forecast the June 30, 2011, income statement and balance sheet for Procter & Gamble. Use the percent of sales method and the following assumptions: 1) Sales in FY 2011 will be $81,000; 2) The tax rate will be 27.26%; 3) Each item that changes with sales will be the five-year a

IRR: PVIFA and Trial and Error Methods

You would like to invest in one of the following assets. Use the present value of an annuity formula and the trial and error method to estimate the Internal Rate of Return or yield for each of the following two investments and decide which is the better investment. A B Initial Investme

Fundamentals of Investments: Risk, Returns, and Forecasting

QUESTION: You have owned the stock of Micro Co Ltd for the last five years. Historical data for the stock are as follows: Market Price of Micro Company's Stock Year Dividend Income Beginning Ending 2008 $1.00 $30.00 32.50 2009 1.20 32.50 35.00 2010 1.30

Holding-Period Returns Question

Mini Case KMP Ch. 6, p. 184 Note: Although not absolutely necessary, you are advised to use a computer spreadsheet to work the following problem. a. Use the price data from the table that follows for the Standard & Poor's 500 Index, Wal-Mart, and Target to calculate the holding-period returns for the 24 months from July 2007 t

Bonds Offer an Advantage Over Investments for Trinity Hospital

See the attached file. The board of directors of Trinity Hospital is working on a five-year strategic plan for the facility. One of the strategic goals is to build a new $1 million cancer research wing in five years. The group is concerned that current economic conditions might reduce revenues over the next five years and they

Long Term Economic Outlook

Discuss long-term economic outlook for the following countries; United States, Western Europe, Japan, Asia ex-Japan, and Latin America and include views on GDP, inflation, interest rates, currencies, and U.S. monetary policy.

Gear Replacement with Tooling Investment

ABC Company is considering replacing a metal gear with a plastic one. The plastic gear will save $0.75 per unit but will require an expenditure of $40,000 for special tooling (each year) to produce the gear. Annual sales are 80,000 units. A. Should the company convert to the plastic gear? What is the expected financial impact

Financial Analysis with Microsoft Excel

Please help answering financial analysis questions, the tables are in the attached file. 1. Using the data presented above: a. Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate excel worksheet. Try to duplicate the formatting exactly. (must be in excel w

Apply time value of money to a personal decision

Simon, a second-year business student at the University of Toronto, will graduate in two years with an accounting major and a Spanish minor. Simon is trying to decide where to work this summer. He has two choices: work full-time for a bottling plant of work part-time in the accounting department of a meat-packing plant. He proba

Bidding on Treasury bills and a 5% return

We are currently bidding on Treasury bills and have determined that we must have a 5% return for a $1,000 T-Bill that will mature in one year. How much would we be willing to bid on the Treasury bill? If we are bidding on a 13 weeks Treasury bill with a 1% return and a 26 weeks Treasury bill with a 2% return for a $1,000 T-bill,

Material Modification

Which of the following statements concerning summary material modification is correct? A. It needs to be revised once every 5 years. B. It explains any changes that occurred to the summary plan description within the last year. C. It is a summary of the annual reports submitted to the IRS. D. It is an attachment to Form 5

Taxable Amount on Distribution

On April 30, Janet, age 42, received a distribution from her qualified plan of $150,000. She had an adjusted basis in the plan of $500,000 and the fair market value of the account as of April 30 was $625,000. Calculate the taxable amount of the distribution and any applicable penalty. A. $30,000 taxable, $3,000 tax penalty

Early Withdrawal Penalty

Which of the following qualified plan distributions will be subjected to a 10% early withdrawal penalty? A. Lonnie, age 45, takes a $400,000 distribution from his profit sharing plan to pay for his son's college tuition. B. Carolyn, age 56, was terminated from UBEIT Corporation. Carolyn takes a $125,000 distribution from the

Advance determination letter

Most qualified plan sponsors seek an advance determination letter from the IRS stating that the plan provisions meet Code requirements. Which of the following statements is accurate about determination letters and their effect in the event of an audit by the IRS? A. the determination letter program is provided as a free servi

Characteristics That Affect Security Yield

Characteristics That Affect Security Yields Identify the relevant characteristics of any security that can affect the security's yield. Impact of Liquidity on Yield What effect does a high credit risk have on securities? Tax Effects on Yields Do investors in high tax brackets or those in low tax brackets benefit more from t

Income Statements and Balance Sheets

Using the income statement and balance sheet below, can you please help me with the following questions? Thank you! a. Calculate the amount of dividends Firm A and Firm B paid using the information given. b. Prepare a statement of cash flows for each firm using the indirect method. c. Analyze the difference in the two

Money Management: Fixed Fee or Percentage of Assets

If a manager receives part of their salary based on how the portfolios they manage are performing then the manager would want to see his or her portfolio have a high return. The money manager might take extra risks that the client may not have normally wanted just so he or she can make extra money for themselves. One way to ke