You have a meeting with a distance learning investment company's CEO and a few other high ranking officers. You are trying to obtain a loan for a distance learning company that you would like to start. Your meeting with the CEO and other officers of the distance learning investment company will last for 35 minutes. You must g
Anne Teak, the financial manager of a furniture manufacturer is considering operating a lock box system. She forecasts that 400 payments per 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 $0.40 a check. The interest rate is .015 per day. a. If the l
A Department store has the following credit terms the finance charge. If any is based on the previous balance before payments or credits are deducted. The rates are 1.5% per month up to $1,000 and 1.25% per month on amounts in excess of 1,000. These are annual percentage rates of 18% and 15% respectively. Find the new balance fo
A department store has the following credit terms. The finance charge if any is based on the previous balance before payments or credits are deducted. the rates are 1.5%per month up to $1,000and 1.25%per month in excess of 1,000.There is no finance charge if the full amount of the new balance is paid within 30 days after the cyc
You have received a $10,000 bonus which you would like to invest for your child's education. Calculate the value of the bonus in ten years if invested in each of the following: Option 1: A money market fund that has a current interest rate of 1.75%. Option 2: U.S. Series I bonds (use the current interest rate for I bonds)
I need help with the following problems: 1. Hazardous Toys Co. produces boomerangs that sell for $8 each and have a variable cost of $7.50. Fixed costs are $15,000. (a) compute the break even point in units. (b) Find the sales (in units) needed to earn a profit of $25,000. 2. Sean Penn and Penci
Many corporate acquisitions result in losses to the acquiring firms' stockholders. Accordingly, why do firms purchase other corporations? Are they simply paying too much for the acquired corporation? A co-worker asks your opinion. Specifically state the reasons for your argument.
Financial ratios are important to the understanding of the financial health of a company. You and your colleagues work for a financial services firm. Your are discussing the merits of the various financial ratios. Identify four financial ratios and state what they tell you about a firm and why it's important to understand what t
Click attachment 1 for selected financial statements for Micro Chip Computer Corporation, and answer questions 1, 2, and 3 below based on the financial data. 1. Determine the year-to-year percentage annual growth in total net sales. 2. Based only on your answers to question #1, do you think the company will hit its sales
Which is preferable, a loan with a lower present value or a loan with a lower periodic installment?
What are the three forms of business organization? What are the advantages and disadvantages of each form? For a corporation, what is the overall goal of the financial manager? What is the objective of this firm? Do you agree with this goal? Why or why not?
I am preparing for my FINAL examination(s)...I would like to have these problems solved - so that I can use them for study references in answering like problems. Thank you. --- 1. Global Utilities Company (GUC) follows a policy of paying out 60 percent of its net income as cash dividends to its shareholders each year. Th
Need some assistance on the following problem. Have an exam and this is a sample problem I cannot figure out. Please include all formulas so I can get a better grasp on this topic. RATE OF RETURN Scenario Probabiltiy Stocks Bonds Recession
What are the roles of regulatory bodies in the financial market? Which regulatory bodies impact pepsi and coca-cola companies? How are they impacted by regulatory bodies?
Decision tree analysis shows a project to have several possible outcomes the best of which has an NPV of $12M calculated over a five-year life. This best case path has an overall probability of occurring of 20%. A real option is available at an initial cost of $800,000 which will add a single $6M cash inflow to this best case pa
Visit both the American Stock Exchange (AMEX): http://www.amex.com, and the NASDAQ: http://www.nasdaq.com , and write on how the two exchanges operate. Make sure to address the following three questions in details: 1. How are AMEX and NASDAQ similar, if at all? 2. How are the two exchanges different from one another, if at
Use the annual information (see the atached file) to answer. Calculate the following asset activity ratios for the end of 2005: 1. Average Collection Period 2. Inventory Turnover 3. Total Asset Turnover * Please show all work, including formulae and calculations used to arrive at financial values.
I need help with the following: Suppose that you want to purchase a new truck from a local dealership. The dealership is offering 2.0% financing for 4 years (term= 48 months). They are also offering a $3,000 cash rebate (subtracted from the purchase price) for an externally financed deal. You are able to secure a note fro
Drake Company is planning to expand production because of the increased volume of sales. The CFO estimates that the increased capacity will cost $2,000,000. The expansion can be financed either by bonds at an interest rate of 12% or by selling 40,000 shares of common stock at $50 per share. The current income statement (before e
Owen's Electronics has 90 operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly w
3. Therapeutic Systems sells its products for $8 per unit. It has the following costs: Rent $120,000 Factory labor $1.50 per unit Executive salaries $112,000 Raw material $.70 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $6, compute the
A company is thinking about changing the layout of the facilities with these estimations in mind: -Machine moving and reintallation will cost $100,000 -Total sales will increase by 20% to $1,200,000 b/c of a decrease in production cycle time required under the new plant layout. Average contribution margin (sales dollars - f
Problem: $4000 deposited at 12% interest compounded monthly will grow to $43570.22 in 20 years. What is the i, n, P, and F for this situation? a. 12%; 20; $4000; 43570.22 b. 0.01; 20; $4000; $43570.22 c. 0.15; 240; $43570.22; $4000 d. 0.01; 240; $4000; $43,570.22 e. none of the above
How do I answer this without knowing risk or any other information. Your boss is considering borrowing $10,000 from a bank at 8% for a project. She has determined that the rate of return on the project is expected to be 12%. She comments that since the project is earning more than the cost of the
What role does the "frequency of payment" have in determining the return on investment?
What is the breakeven point from the given below information? fixed costs $20,000 variable costs 33% of sales avg selling price is $10,000 a) As % of sales, what is its variable or contribution margin? b) If the average sale is $10,000 what is the contribution margin/vehicle? c
Just looking for hints ... You have been asked to provide your expertise and opinion on the issue below to a Congressional Committee On the discussion board state your position on this issue: Pharmaceutical companies are unfair in charging prices that so far exceed the costs of the chemicals in their products, especial
Looking for help and how you got the answer especially on how to break out the percentages. You wish to retire in 20 years at which time you want to accumulate enough money to receive an annual annuity of 12,000 for 25 years after retirement. During the period before retirement you can earn 8 percent annually, while after ret
A printer was purchased for $1200 and has a salvage value of $100. If it is expected to produce a 150,000 copies, a) what is the unit depreciation for the printer? b) if it has printed 12,000 copies the first year, what is the year end depreciation? * do not round off in the middle of the problem
Here's what I have so far as answer. Please review it carefully. I am stumped on the final two questions. So any insight would be GREATLY appreciated. Instructions: (a) (1) Prepare the journal entry to record the issuance of the bonds on July 1, 2002. (a) (2) Prepare the journal entry to record the accrual of interest