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    Explain the roles of financial institutions in the global economy

    Other means graduate level a. Explain the roles of financial institutions in the global economy. b. Discuss how the financial services industry is likely to change over the next decade. c. Discuss how these changes might impact stakeholder relationships your organization has with financial institutions

    Rates of Return on an Investment

    If James Smith Lines does not change their dividend and investors expect a 14% return on their investment, what do they expect their price to be one year from now? Do not use Time Value Money. Attached is an Excel file from my homework problem (#15) that has James Smith Lines' information.

    Floatation Cost Example Problem

    Lewis Morris Crew spends $350,000 in bureaucratic expenses in their IPO. The underwriter sells 3 million shares at an offer price of $9.63, charging Lewis Morris Crew 50 cents per share in spread. The stock closes at $12. What was the floatation cost as a fraction of funds raised? Ans: 33.14%

    Risk Management in Investments

    Risk management relates to reducing the cost of risk, meaning reducing the cost of the actual management of risk. People invest their money, whether it's in bonds or stocks, with the hope of acquiring profit or gains. The question one shall ask regarding risk management, is the risk appropriate given the returns? a) Therefor

    Floatation cost problem

    Lewis Morris Crew spends $350,000 in bureaucratic expenses in their IPO. Their underwriter sells 3 million shares at an offer price of $9.69, charging Lewis Crew 50 cents per share in spread. The stock closes at $12. What was the total floatation cost as a fraction of funds raised? Ans: 32.26%

    Calculating the nominal yield of the bond

    A bond with a $114 annual coupon, maturing in 10 years at a value of $1000 has a current market price of $920. What is the nominal yield of the bond? A)9.5% B)12.4% C)11.4% D)none of the above

    Managerial Finance

    Ajax Corp. has a bond with a coupon rate of 12%, maturing in 15 years at a value of $1000 per bond. The current market price is $960. What will the current yield be? A)12.7%, B)12.5%, C)11.5%, D)none of the above

    Managerial Finance

    Companies have relied on external funding because of the following reason: A)reaction to the economy B)need for expansion C)change in the cost of capital D)all of the above

    Accounting 2 Problems

    1. Butler Sales Company is a distributor that has an exclusive franchise to sell a particular product made by another company. Butler Sales Company's income statements for the last two years are given below: This Year Last Year Units sold 200,000 160,000 Sales revenue $1,000,000 $800,000 Less cost of goods s

    Finance 201 Problem

    (See attached file for full problem description) --- Current Ratio 1.09 1.41 Quick Ratio 0.60 1.00 Total Debt Ratio 48.00% 77.80% TIE 6.20 3.20 BEP N/A N/A FATO N/A N/A You have been given the following information. Complete a Balance Sheet and Income Statement for 2005. All figures are in millions. Also b

    Explain how to arrive at the appropriate derivation of a cost.

    Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu

    Investment, Time Value of Money, Savings and Interest

    Old Alfred Road, who is well-known to drivers on the Maine Turnpike, has reached his seventieth birthday and is ready to retire. Mr. Road has no formal training in finance but has saved his money and invested carefully. Mr. Road owns his home-the mortgage is paid off-and does not want to move. He is a widower, and he wants to b

    Finance

    1a. A person is going to make deposits in an account as follows: The 1st deposit will be for $10 and deposits will keep on increasing by $5 each year for 50 years. 1st deposit will be $10 2nd deposit will be $15 3rd deposit will be $20 and so on. (Remember there are 50 deposits) If the rate of interest is 10% find the Pre

    Managerial Finance

    The Net Present Value Method is a more conservative technique for selecting, A) assumes that cash flows are reinvested at the project's internal rate of return, B) concentrates on the liquidity aspects of investment projects C) assumes that cash flows are reinvested at the firm's weighted average cost of capital, D)none of

    Managerial Finance

    A firm's stock is selling for 78. The next annual dividend is expected to be 2.70. The growth rate is 9%. The flotation cost is 5.00. What is the cost of retained earnings? A) 13.09%, B)12.46%, C)12.75%, D)none of the above

    Managerial Finance

    Dr. J. wants to buy an IBM personal computer which will cost 2,788 four years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 7% annual return. How much should he set aside? A)697.00, B)627.93, C)823.15, D)531.81

    calculate the present value of all changes in cash flow

    An equipment replacement decision, under incremental analysis, requires, A) calculating the present value of all cash flows associated with the new equipment minus the salvage value of the old asset, B) calculating the present value of all changes in cash flow from the old equipment to the new equipment, C)subtracting the purc

    Mortgage amortization

    ON 12/31/05, XYZ INC. PURCHASED A NEW PIECE OF EQUIPMENT FOR $1,200,000. A LOAN IN THE TOTAL AMOUNT WAS TAKEN OUT TO PURCHASE THE EQUIPMENT. THE TERMS OF THE LOAN ARE AS FOLLOWS: INTEREST RATE: 8% # OF MONTHLY PYMTS: 48 MONTHLY PAYMENT: 29,101.50 PYMT DUE ON: FIRST OF EACH MONTH BEGINNING 1/1/06

    Description of Liquidity ratios

    (See attached file for full problem description) --- 2. Gulf and Northern total current assets, net working capital, and inventory for each of the past four years is as follows: 1999 2000 2001 2002 Total current asset Net working c

    Monopolies & oligopolies

    You have been contracted by an economic consulting firm to determine the economic structure and possible future actions of OPEC, the Organization of Petroleum Exporting Countries. 1. Explain the difference between a monopoly and an oligopoly, and a cartel. 2. Provide an example of a monopoly, an oligopoly, and a cartel.

    Cost associated with retained earnings

    Retained earnings has a cost associated with it because A)new funds must be raised, B)there is an opportunity cost associated with stockholder funds, C)Ke >g, D)flotation cost increase the cost of funding

    Managerial Finance-value of any asset

    In a general sense the value of any asset is the A) value of the dividents received from the asset, B) present value of the cash flows received from the asset, C) value of past dividends and price increases for the asset, D) future value of the expected earnings discounted by the asset's cost of capital.

    Managerial Finance

    A firm's stock is selling for $78. The next annual dividend is expected to be 2.70. The growth rate is 9%. The flotation cost is 5.00. What is the cost of retained earnings? A)13.09%, B)12.46%, C)12.75%, D)none of the above

    Rate of Return Managerial Finance

    Joe Nautilus has 120,000 and wants to retire. What return must his money earn so he can receive annual benefits of 20,000 for the next 14 years. A)12%, B)Between 12% and 13%, C)14%, D)Greater than 15%

    Total Interest

    Mr. Nailor invests 5,000 in a certificate of deposit at his local bank. He receives annual interest of 8% for 7 years. How much interest will his investment earn during this time period? A)2,915, B)3,570, C)6,254, D)8,570

    Managerial Finance

    As the discount rate becomes higher and higher, the present value of infows approaches: A) 0, B) minus infinity, C) plus infinity, D) need more information