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    The Concept of Semi-Annual Compounding

    Adjust the annual formula for a future value of a single amount at 12 percent for 10 years to a semiannual compounding formula. What are the interest factors (FV IF) before and after? Why are they different?

    Common Stocks

    Choose a stock that you like- it can be any company in any industry. Then visit Yahoo Finance at http://finance.yahoo.com/?u . Once there, enter the ticker symbol for your stock in the space provided so that you can be taken to pages where you will see a comprehensive set financial information- including the latest price- relate

    Choose a stock...

    Choose a stock that you like- it can be any company in any industry. Then visit Yahoo Finance at http://finance.yahoo.com/?u . Once there, enter the ticker symbol for your stock in the space provided so that you can be taken to pages where you will see a comprehensive set financial information- including the latest price- relate

    Continuously compounding

    Which amounts represents the end value of investing $80,000 for 3 years at a continuously compounded rate of 12%? I am not sure how to calculate a problem which has continuous compounding - I know you have to use the e function, but I do not understand or know how.. Can I just substitute the value of e into the forumla?

    Value of a perpetual stream of payments

    Given an interest rate of 10% per year, what is the value at the end of 5 years of a perpetual stream of 120$ annual payments starting at the end of year 9? I dont understand the time fator in this question - i.e how do you encorporate year 9 and year 5 into the appropriate formula Please provide the formula, solution and

    Imagine you have a meeting with the CEO and other high ranking officers of a company that invests in distance learning start-ups. Your objective is to obtain a loan for a distance learning company that you would like to start. Fortunately, you have a mentor to whom you can turn for help.

    Using a business-like tone and format, compose a letter that would be suitable to send as an email to this mentor. Address the following so that your mentor can be of assistance to you: 1. Analyze the audience (be creative and imagine who the CEO and other officers are). This means answering the questions: What would be impor

    Calculate for the Common Stock Value

    Scenario: A Steel Company will pay a dividend of $1.50 per share in the next 12 months (D1). The required date of return (Ke) is 10 percent and the constant growth rate is 5 percent. Compute P0. (For parts b, c, and d in this problem all variables remain the same except the one specifically changed. Each question is independent

    Calculating ROA and ROE for finance.

    Lily Cosmetics has annual sales of $500,000,000 $5,000,000 maintains a net after tax profit margin of 5% and has a sales-to-assets ratio of 4 a. What is its return on assets? b. If its debt/equity ratio is 0.5, what is the return on equity?

    Investing

    Why can taking a riskier route be more effective than taking a conservative route when investing? (Example: A company looking to expand)

    Analyzing Theory of Constraints

    Theory of Constraints in a non-profit organization. University Bookstore is a nonprofit retail outlet for textbooks, computers, and general merchandise (including trade books, supplies, and university-licensed apparel and gifts). It is located near the main campus of State University and controls the majority of the local mar

    Finance - Smith Devices' case

    Smith Devices is contemplating the purchase of National Widget Company. The values of the two companies as separate entities are $20 million and $10 million, respectively. Smith estimates that by combining the two companies it will reduce marketing and administrative costs by $500,000 per year in perpetuity. Smith is willing

    Finance - three different $1,000 maturity corporate bonds to buy

    You are evaluating three different $1,000 maturity corporate bonds to buy. The ABC Company bond has a 7 percent annual coupon with 7 years remaining while the XYZ Company bond has a 10 percent annual coupon with 5 years remaining. You could also buy a newly issued 10-year bond from Widget Company of America that has a 12 perc

    Finance - three different capital projects

    A company is considering three different capital projects. Each project will require the same amount of capital outflow. As the CFO you instruct your financial analyst to discount project A's cash stream at 14 percent, project B's cash stream at 12 percent, and project C's cash stream at 17 percent. In doing so, which project

    Discussing the Existence of a Financial Analyst

    Question: In an efficient equity market, where there are no mispriced stocks, no one can make abnormal rates of return. If this is the case, how would you then justify the existence of well-paid financial analysts in all states?

    Mortgage Lenders

    On a very general and high level view what are some of the strengths and weaknesses that a bank's mortgage loan area can have? What are some of the changes that can be made to improve a bank's position as a mortgage lender? What recommendations can be made?

    Federal Deposit Insurance Corporation

    Go to this http://www2.fdic.gov/qbp/ sponsored by the Federal Deposit Insurance Corporation. You will see that this site offers summary data on financial institutions. Click on the link that says "Quarterly Banking Profile." From the dropdown menu that says "Report Date," select the most recent date. Then click on "Complete Q

    Current Stock Price

    I am at a loss at to how to calculate the stock price. Please help. The growth rate for McDonalds is expected to be 10% for one year. After that, the dividend rate is expected to grow at a rate of 6% indefinitely. McDonald's shareholders require a rate of return on equity equal to 11%. The last dividend the company paid w

    Modern Investment Theory II

    In an efficient equity market, where there are no mis-priced stocks, no one can make abnormal rates of return. If this is the case, how would you then justify the existence of well-paid financial analysts in all states?

    Allowance for Doubtful Accounts; Finance Charges; Sales of Receivables

    E1-2 The ledger of Salizer Company at the end of the current year shows Accounts Receivable 110,000 , Sales 840,000, and sales Returns and Allowances 40,000. Instructions : A) If Allowances for Doubtful Accounts has a credit balance of 2,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad

    Portfolio Theory

    According to portfolio theory, people should hold more than one asset (or investment) in their portfolios. The idea is that if some investments do poorly, other investments in the portfolio can compensate for the poor investments. Some experts claim, however, that not all people in a society follow this prescription. In other wo

    Interest and Calculation of Cost of Debt of Bond

    Given the following: bond value: 20,000 maturity: 15 years rate: 7% (face value of $1,000) selling: at 92% semi annual payments What is the value of I (interest) when entered in a math calculator? (I continue to get syntax errors with my multiple attempts).

    Evaluating financial health

    In general, what questions would you ask to decide how to weight financial ratios when evaluating the financial health of an entity?

    Portfolio diversification

    According to portfolio theory, people should hold more than one asset (or investment) in their portfolios. The idea is that if some investments do poorly, other investments in the portfolio can compensate for the poor investments. Some experts claim, however, that not all people in a society follow this prescription. In other wo

    Credit Analysis

    Credit Analysis. Financial ratios were described in Chapter 17. If you were the credit manager, to which financial ratios would you pay most attention?

    Finances

    Lock Boxes. Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $2,000. The bank's charge for operating the lock boxes is $.40 a check. The interest rate is .015 percent per day.