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    Financing Policy

    I would like assistance with the following question thank you. What are the relative advantages and disadvantages of a conservative asset financing policy and an aggressive asset financing policy?

    Accounting

    Objective: Use cost-volume-profit analysis to evaluate the financial consequences of alternative decisions. Details: The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the prod

    Leverage, Breakeven

    Based on fixed cost of @250,000, Variable costs of $ .25 (25 cents) per unit, production volumes of 3,750,000 units, with an interest expense of $ 226,400, and a selling price of $ 1.50 per unit, what is the degree of operating leverage, the degree of financial leverage, and the break-even quantity?

    Memo

    As your first week at Henley Manufacturing Inc. draws to a close, you find a memorandum on your desk from the company's CEO. The memo outlines sales and earnings goals for next year: sales are expected to increase 15% with net income growing by 20%. The memo says that these goals are ambitious in light of the company's performa

    Finance Q 2, # 5

    Your Company has a portfolio made up of 2 assets, One from the USA and the other from Swaziland. Their information is as follows: USA Swaziland Return 12.2% 18.4% Deviation 10.5%

    DOL, DFL, and DTL of a firm

    The following are from the production statements of LMNO, Inc. 2004 Units Produced - 758,000 Sales Price per Unit - $ 10.75 Variable cost per unit - $ 4.62 Fixed Cost - $ 1,187,250 Interest Cost - $ 119,234 A). What is the DOL of this firm? B). What is the DFL o

    Stock Regression analysis

    1. (18 points) The spreadsheet "Two_factor_model" displays the monthly data for excess return on the market (MKTRF), risk-free interest rate (RF), and the momentum factor (UMD). Pick up two stocks randomly and get their monthly price data from Yahoo! Finance for the period December 1999 - December 2004. a) Calculate the stoc

    DOL, DFL, and DTL

    A firm with sales in 2003 of $ 102,123,000 closed out 2004 with sales of $ 112,250,000 and net operating incomes (EBIT) of $ 25,530,000 and $ 28,758,000 respectively. They also had net income of $ 7,142,000 in 2003 and $ 8,950,000 in 2004. Can you tell me the DOL, DFL, and DTL?

    Portfolio construction

    Which option to select if one can invest in T-bills and only one other option? RoR Beta SD Portfolio A 12.00% 0.7 12.00% Portfolio B 16.00% 1.4 31.00% T-Bills 5.00% S&P 500 13.00% 18.00% ROR=Rate of return SD= standard deviation

    Relevant Cost Analysis

    What are the additional costs of choosing the new process? Worrix Corporation manufactures and sells 3,000 premium quality multimedia projectors at $12,000 per unit e ach year. At the current production level, the firm's manufacturing costs include variable costs of $2,500 per unit and annual fixed costs of $6,000,000. Add

    Solve: Forward Rates

    Question: Suppose Credit Suisse Quotes spot 90 day forward rates of $0.7957-60, 8-13. - What are the outright 90 day forward rates that Credit Swiss is quoting? - What is the forward discount or premium associated with buying a 90-day Swiss francs? - Compute the % bid ask spreads on spot and forward Swiss Francs?

    Budgeting Production for Digitex, Inc.

    Digitex, Inc. had sales of 6,000 units in March. A 50 percent increase is expected in April. The company will maintain 5 percent of expected unit sales for April in ending inventory. Beginning inventory for April was 200 units. How many units should the company produce in April?

    Finance: Amortization Expenses

    Please help with the given problem: Lexicon Inc. bought a patent for $600,000 on January 2, 2001, at which time the patent had an estimated useful life of ten years. On February 2, 2004, it was determined that the patent's useful life would expire at the end of 2007. How much would Lexicon record as amortization expense for t

    Spot or Forward Rate

    Investing $1,000,000 for six months. Considering purchasing US T Bills at 1.810% (6 month rate, not annual), matures in 26 weeks. Spot Exchange Rate is $1.00/Yen100, six month forward rate is $1.00/Yes110, Interest rate in Japan is 15%. I think I should Take the $1m, translate into yet at spot, invest in Japan, hedge with

    Spot Rates and Forward Rate

    Given the following spot rates for various periods of time from today, calculate forward rates from years one to two, two to three, and three to four. Years from today spot rate 1 10.0% 2 5.5% 3

    Calculate Weighted and Internal Returns

    Deposit $40,000 into an account at t=0. At t=1, before the deposit, value of account $44,000. Deposit $10,000 into an account at t=1. At t =2, value of account $50,000. a. Calculate time weighted return b. Calculate internal rate of return.

    Problems

    E3-4 On January 1, 2002, the stockholders' equity section of Ted Parge Corporation shows: common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 50,000 shares for cash at

    Give the adjusting entries that Spiller Services Corporation

    Problem #5 The Spiller Services Corporation was organized on January 1, Year 8. The unadjusted trial balance on December 31, Year 8 after recording transactions that occurred during Year 8 is as follows: (see attached file for data) Required: Give the adjusting entries that Spiller Services Corporation must have made

    Find Beta, Alpha, Coefficient of determination

    Following are ten quarters of return data for Barboo Associates Stock, as well as return data during the same period for a broad stock market index. Using this information, calculate the following statistics for Barboo Associates stock. I.) Beta II.) Alpha III.) Coefficient of determination Quarter Bara

    Finance: Break Even EBIT and Leverage

    The company is comparing two different capital structures. Plan 1 would result in 2,000 shares of stock and $40,000 in debt and plan 2 would result in 4,000 shares of stock and $20,000 in debt. The interest rate is 10%. So if i ignored taxes and compare both of these plans to an all equity plan assuming EBIT is $5,000 and the

    Homemade leverage

    Buffet enterprises is considering a change from its current capital structure. Buffet currently has an all equity capital structure and is considering a capital structure with 40% debt. There are 2,000 shares outstanding at a price per share of $100. EBIT is expected to remain constant at $29,000. the interest rate on the new de

    Cat Farm Word Problem

    Our intrepid investment advisor, Uncle Sal, is recommending that Granny invest in his latest hot stock pick. Granny has asked Sal to provide her with a ratio analysis of his pick, Fluffy's Cat Farms (ticker: FCF) traded on the Cat and Dog Exchange. Granny is considering buying a $50,000 stake in FCF at a buy-in price of $2 per

    Financial management

    I would like assistance with the following problem thank you. Assume that the managers of a hospital are setting the price on a new outpatient service. Here are relevant data estimates[1]: Variable cost per unit $5.00 Annual direct fixed costs $500,000 Annual overhead allocat

    What is the sustainable growth rate?

    A firm's profit margin is 10 percent and its asset turnover ratio is .6. It has no debt, has net income of $10 per share, and pays dividends of $4 per share. What is the sustainable growth rate?

    Ordering problem 2

    It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test on item and choose Michelin tires, XW size 185X14 BSW. A perpetual inventory system has been used, so you examine this as we

    Ordering problem

    The X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses a bout 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more item X, it costs $1