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Present Value of Cash-flows

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

Security Valuation Models

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

Working Capital Cash Flow Cycle

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

Present Value of Lottery Winnings

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?

Making Investment Decisions with NPV

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

Bonds and Coupon Rates

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%

Finance: Coupon Rates

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

Equity, capital structure, WACC, after-tax cost of debt, stock, and leverage

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

Mini-Case Study: Bullock Gold Mining

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

Time Value of Money problems

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

Management of Financial Institutions Questions

1.Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy? 2.What are the money markets and what are the capital markets? How do they differ? What are their respective activities? 3.If an asset is called a derivative, what does that mean? Explain your answer an

GAAP and IFRS Comparison

Exercise A-2 Lower-of-Cost-or-Market Rule The cost of Baxter's inventory at the end of the year was $50,000. Due to obsolescence, the cost to replace the inventory was only $40,000. Net realizable value—what the inventory could be sold for—is $42,000. Determine the amount Baxter should report on its year-end balance she

British Petroleum Investment Analysis and Recommendation

Please establish an estimated growth rate in earnings and dividends for British Petroleum (BP). Note, in the dividend growth model, "g" is the growth rate for earnings AND dividends. You might want to check historical growth rates for BP (in terms of earnings and dividends). Also, many people rely on analyst forecasts. Be sure t

Purchasing power parity and exchange rates

Question 1: Starbucks opened its first store in Zagreb, Croatia in October 2010. The price of a tall vanilla latte in Zagreb is 25.70kn. In New York City, the price of a tall vanilla latte is $2.65. The exchange rate between Croatian kunas (kn) and U.S. dollars is kn5.6288/$. According to purchasing power parity, is the C

Operating Income, Value, and Profits

9.12 Operating income versus net income Refer to the selected financial data ( five-year financial summary) on page 709 of the Campbell Soup Company annual report in the appendix. Required: Compare the trend of the operating income ( earnings before interest and taxes) data with the trend of net income ( net earnings attribut

Types of Corporate Business

I need some assistance defining the pros and cons of general corporations, Subchapter S Corporations, and Liability Corporations. Also, when an entrepreneur starts a new business what choice of business is the best: - Sole proprietary - Partnership - Corporation

Stockpile Resource Planning (SRP) and Oracle

Review and Explain how the Stockpile Resource Planning (SRP) relate to the Oracle Financial modules make recommendations or Summary and give examples. (Gaps/Fit) Measurable Outcome for both. See the attached file.

Choose the correct option

One year ago, you purchased 400 shares of Analog Devices, Inc. stock for $13.95 a share. You received a total of $120 in dividends and sold the stock for $7,072 today. What is your capital gains yield on this stock? 26.71 percent 26.74 percent 28.85 percent 28.89 percent 31.03 percent The common stock of Baxter

Finance: Price, Salary, Funds, Discounts

1. In 2012, the average vehicle in the US sold for $42,830. In 2002 (10 years earlier) the average selling price was $25,313. What was the annual increase in the selling price over this time period? a) 3.89 percent b) 4.20 percent c) 4.56 percent d) 5.01 percent - not correct answer e) 5.40 percent 2. You have take

Common Stock and Retained Earnings

1. Using the EPSICO, INC Excel Spreadsheet below called " EPSICO, INC BS" Please complete the Balance Sheet for December 31, 2010 Knowing the following: Cash: as of 12/31/10 it increased by $8 Accounts Receivable: Decreased by $10 in July but increased by $16 by the end of the year. Inventory: Due to an error in purchas

Intermediate Finance Questions

1. Why do you think a corporation that is considering investing in a long-term project that will not generate any positive cash flow for several years would fund it by issuing zero-coupon bonds? 2. Which would you expect to have higher interest rates: debentures or mortgage-backed bonds? Please justify your response. 3.

Assessing Financial Decisions

Jim Brock was an accountant with Hubbard Inc., a large corporation with stock that was publicly traded on the NYSE. One of Jim's duties was to manage the corporate reporting department, which was responsible for developing and issuing Hubbard's annual report. At the end of 2012, Hubbard closed its accounting records and initia

Comparable Transaction Analysis for Publicly Traded Target Companies

Company A shares are currently trading at $50 per share. A survey of Wall Street analysts reveals that EPS expectations for Company A for the full year 2003 are $2.50 per share. Company A has 300 million diluted shares outstanding. Company A's major competitors are trading at an average share price / 2003 Expected EPS of 23.0x.

Interest Calculations

Please help with the following problems. Lyle O'Keefe invests $37,400 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Lyle withdrew the accumulated amount of money. (a) Compute the amount Lyle would withdraw assuming the investment earns sim

Three Major Functions of an Organisation

Compare and contrast an organization's three major functions. Analyze the roll of a operations manager. What are the challenges that an om will respond to differently within a industry as opposed to a service industry?

Current USA Financial Standpoint

The events in the financial markets during the past few years have been sweeping and historic, and they have resulted in the biggest federal bailout efforts in history. They have also created gridlock in Washington. What do you think of the government's plans as they stand right now? Are Congress and the President doing the righ

Application or major functional area in the SRP system

Please see the attach document for the project Report. Depending on detail desired, Purchasing: Requisitions; Purchase Orders; Receiving Inventory/WMS: Receive & put-away; miscellaneous transactions; Shelf Life Extension (SLEP); inventory transfers; import 3rd party transactions; physical inventories & cycle counts; 3PL Rec