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Problems Associated with Asymmetric Information

Choose an area where someone would have insurance. Now use your knowledge of the problems associated with asymmetric information to explain why the insurance companies might include deductibles as part of their policies.

Financial Industry Structure

Select a large retailer who collaborates with a finance company. Who did you select, who do they collaborate with, and what are the benefits of collaboration between the large retailer and the finance company? Please cite the source

The Difference Between Price and Values in Stocks

What is the right price for a stock? Is it book value, liquidation value or is it simply its market price at a given moment of time? Would you value a privately-owned company where there is no market value different than a publicly owned company where there is a market price every day? Is there a difference between "price"

ESOP's and Employee Account Diversification

Black, Inc. is an ESOP-owned company with three employees: Kermit, age 62, who has participated in the plan for 21 years; Isaac, age 38, who has participated in the plan for eight years; and Nathan, age 28, who has participated in the plan for seven years. Which of the following correctly describe Black, Inc.'s obligation to per

Salary-Only Deferral Contributions

Not wanting to make employer contributions to a qualified plan, Jack Thrifty establishes a 401(k) plan for his small business that permits only salary-deferral contributions by participants. Which of the following statements concerning the plan is (are) correct? I. The employer cannot be required to make top-heavy required c

Age-based Profit Sharing Plan

Which of the following statements regarding an age-based profit sharing plan is correct? A. An age-based profit sharing plan provides a greater benefit to those plan participants whose earnings exceed the Social Security wage base and who are over 50 years old. B. An age-based profit sharing plan only provides a benefit to t

401K Statements

All the following statements concerning contributions to a 401(k) plan are correct EXCEPT A. A 401(k) plan can include employee after-tax contributions in addition to employee pre-tax salary deferrals. B. A 401(k) plan can include a matching contribution feature in which the plan sponsor agrees to match employee salary defer

Benefits of Combining Different Types of Analysis

I need some additional information on trends of analysis. Internal and external users would benefit equally from using vertical, horizontal, or ratio analysis. However, what if users combined two types of analysis? Is it possible to combine this vertical analysis with horizontal analysis to identify trends? If so, then how so? W

Financial Statement Application

As EEC's corporate business financial analyst, you will be required to provide the EEC board of directors and executive management team with essential financial information on the management of the EEC enterprise. In a memo to the board of directors, discuss the information found in each of the following financial statements and

The Challenges of Forecasting

Just looking for your thoughts - Multiple bullet points would be acceptable. Minimum of five bullet on each question with explanation where necessary What are the consequences of under/over forecasting? What are the current challenges of the forecasting methods, models, process and practices? Recommendations that can impr

The Purpose of Hedging

The basic premise behind either a short or a long hedge is that as the price of the underlying commodity changes, so too will the price of a futures contract based on that commodity. Question: What would be your comments to this post?

Advanced Corporate Finance

Assuming you are working for Apple Inc and part of your compensation takes the form of stock options. Apple's current share price is $491. The exercise price of your stock option is $520. The value of the stock option is equal to the difference between Apple's stock price and the exercise price of $520, at the time that yo

Identify two projects or events that required an investment

H2O Innovations: Capital Investments Choose and discuss two projects (one current, one long term) that require an investment for your firm, H20 Innovations. One should be a 'current project' and the other long-term investment project. Explain what source of funds would be acceptable and explain your reasoning.

Value of Money Discussion

I need help with the scenario below, please. Work out how many years (10) to go before you retire, now look back the same number of years, and see how much the dollar has fallen in value from then to now. The US Government has the statistics. 1. Why take a risk with your money? 2. Find the interest paid on risk-fre

Banks and Banks Management

Please choose 2 banks and comparison shop for the best deal on a new personal checking account. You may do this via phone, internet, or in person. Summarize what makes this the best deal above the others you looked at. One must be a savings bank and the other must be a commercial bank. Make sure to give us the name of the bank

Publicly-owned firms and measuring wealth of stockholders

Please help with this homework assignment. Question 1 The primary goal of a publicly-owned firm interested in serving its stockholders should be to Maximize expected total corporate profit. Maximize expected EPS. Minimize the chances of losses. Maximize the stock price per share. Maximize expected net income. Q

Steps in the acquisition process

An acquirer has several choices when it comes to paying for the target. Explain in detail five factors that are likely to determine an acquirer’s choice of payment method. It is not sufficient to simply list points; you must explain how each factor determines the acquirer’s preference? Jupiter Corp. is considering an a

Calculating Variable Cost

1. A firm is reviewing a project with labor cost of $9.90 per unit, raw materials cost of $22.63 a unit, and fixed costs of $8,000 a month. Sales are projected at 10,000 units over the three-month life of the project. What are the total variable costs of the project? 2. Which of the following statements concerning variable c

Corporate finance calculations

1. Calculate the difference between daily and annual compounding, given the following information: (a) PV: $52,000, (b) NPER: 30, and (c) RATE: 10%. 2. Calculate the PMT on a mortgage, given the following information: (a) PV: $439,000, (b) RATE: 4%, and NPER: 30. 3. Calculate the present value of a lump sum payment with the

Calculating Net Book Value of Assets

See the attached file. QUESTION 1: A Company purchased equipment for $20,000. Management estimates that the equipment will have a useful life of five years and salvage value of $5,000. Calculate a) net book value of the equipment at the end of the third year using the straight-line method of depreciation; and b) depreciati

Analyzing and Comparing the Given Savings Strategies

Monica and her friend Linda each believe they have a superior savings plan. Monica saved $4,500 at the end of each year for 15 years and then let her money grow for 30 years. Linda did not begin saving until 15 years later, at which time she began to save $4,500 at the end of each year for 30 years. They both earned 6% on their

Quantitative Methods in Business

Question about sets and set theory: Why is it important to be able to identify sets and theory as related to business? Questions about functions: What applications do you think functions have for the business world? Can functions be used to predict next year's profits, or how much your company will grow? Questions about

Financial Intermediaries Discussion

Please describe briefly. 1. Consider whether you would buy a used car from a person or from a dealership. What are the pros and cons of each and how does that relate to the chapter material? 2. Discuss two factors that may affect a person's credit score and apply the notion of moral hazard to your response. Thanks

Evaluating capital gains yield and holding period returns

Q1. Today, you sold 200 shares of SLG, Inc. stock. Your total return on these shares is 12.5%. You purchased the shares one year ago at a price of $28.50 a share. You have received a total of $280 in dividends over the course of the year. What is your capital gains yield on this investment? Q2. The returns for IMB over the l

Calculate WACC at different capital structures.

Chandeliers Corp. has no debt but can borrow at 7.4 percent. The firm's WACC is currently 9.2 percent, and the tax rate is 35 percent. a. What is the company's cost of equity? (Round your answer to 2 decimal places. (e.g., 32.16)) b. If the firm converts to 35 percent debt, what will its cost of equity be? (Round your an

Various Corporate Finance Problems

See the attached file. CHAPTER 4: PROBLEM 2 (a through c) A. B. C. Present Value 2,500 2,500 2,500 Interest Rate 6% 8% 6% Number of Years 10 10 20 Future Value = CHAPTER 4: PROBLEM 3 A. B. C. D. Future Value = 15,451 51,557 886,073 550,164 Interest Rat

Corporate Finance: Returns, Prices, Equity

CHAPTER 10: PROBLEM 1 Beginning Stock Price $84 Ending Stock Price $96 Dividend $1.40 Percentage Total Return = CHAPTER 10: PROBLEM 12 Stock Return the past 5 years -17.62% 15.38% 10.95% 26.83% 5.31% Holding Period Return for the Stock = (Note: Subtr