A company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest. What amount will be in the sinking fund at the end of 10 years?
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Could you help me calculate the sales-to-assets ratio, the profit margin, and the return on the two firms listed below; Sales Profits Assets Federal Stores $100 $10 $50 General Stores 20 4 20 (Financial data is in th
The role of the financial manager in maximizing shareholders' value in today's financial market is described thoroughly.
Please show all work so I can understand your conclusion. Thanks 1. An investment has the following probability of returns. Expected Return Probability -0.20 0.10 -0.05 0.20 0.10 0.40 0.25 0.25 0.40 0.05 a. Compute the expected return
1.Parker Corp common stock is currently trading at $30/share. The stock is expected to pay a dividend pf $3.00 per share at the end of the year (D1 = 3.00), and the dividend is expected to grow at a constant rate of 5% a year. If the company were to issue external equity, it would incur a 10 percent floatation cost. What are
Make sure ALL formulas, calculations, and timelines are clearly shown as these constitute a significant portion of the total marks available Bart Simpson always wanted to buy a digital camera. Homer and Marge go shopping at Sprawl-Mart for the newest digital camera. Sprawl-Mart electronics department sells the new View-Shot 7
I am looking for additional insight with regard to how changes in the financial services industry over the next decade might impact stakeholder relationships an organization has with financial institutions. I'm not looking for anything too involved, perhaps a couple of paragraphs. Thank you for your assistance.
KIC Inc, plans to issue $5 million of perpetual bonds. The face value of each bond is $1,000. The annual coupon on the bonds is 12 percent. Market interest rates on one year bonds are 11 percent. with equal probability, the long-term market interest rate will be either 14 percent or 7 percent next year. Assume investors are risk
WHAT IS UNIVERSAL BANKING? EXPLAIN ITS BENEFITS AND LIMITATIONS?
1. Research the gasoline prices in 1956 (average cost in April) to the cost of gasoline in 2005 (average cost in April) in Tennessee and determine: a. What increase is required in disposable income to meet the difference of the cost of gasoline? b. Considering the choice of substitution. What would you advise your leadershi
Present a financial case for investment in Merck & Co.
I have sample problems with the answers. Please show me in detail the process in obtaining the answer so that I will know how to do it properly on my own and compare it with the way that I am doing the problems. Thank you. 4. A firm wants to use an option to hedge 12.5 million in receivables from New Zealand firms. The premiu
Question: Club Auto Parts' last dividend was $0.50 and the company expects to experience no growth for the next two years. However, Club will grow at an annual rate of 5% in the third and fourth years and beginning with the fifth year, it should attain a 10 percent growth which it will sustain thereafter. Club has a required ra
Calculate the following asset activity ratios for the end of 2005 1.Average Collection Period 2.Inventory Turnover 3.Total Asset Turnover FILE ATTACHED. THANKS! SHORT ANSWER PLEASE Identify four financial ratios and state what they tell you about a firm and why it's important to understand what these ratios me
I have been asked to write a small report for a group of new stock brokers about the American Stock Exchange and the NASDAQ. Visit both the American Stock Exchange (AMEX): http://www.amex.com, and the NASDAQ: http://www.nasdaq.com. 1. How are AMEX and NASDAQ similar, if at all? 2. How are the two exchanges different f
Your work at BM Company has paid off in many thousand of dollars of profit sharing to you this year. You know it is best to diversity your investment and not put it all back into your company through stocks. So, you decide to seek out additional publicly traded companies to invest in. Choose a publicly traded company you ar
See attached file. 1. Assume that the U.S. monetary value of a dollar is 100% (e.g., $1.00=$1.00), in 1956. The Eisenhower Company is worth is $5,000,000.00. Compare the monetary value of the dollar of .75 (e.g., $1.00=$.75), in 2005 to the 1956 monetary value: a. What is the worth of the Eisenhower Company in 2005? b. Wh
1. A Sports sales company, the Eisenhower Corporation in 1956, invested in the stock market the following: ______________________________Portfolio Betas__________________ Security $ Invested Expected Return Beta Kindred Healthcare: $1,000
What are the three forms of business organization and what are the advantages and disadvantages of each form? For a corporation, what is the overall goal of the financial manager? Do you agree with this goal?
After submitting your report, one of the new brokers asks the three questions below and requests a written response: 1. What are the economic functions financial intermediaries perform? 2. What is the role of broker in the financial market? 3. How has that role changed since the inception of on-line investing?
What is financial leverage?
Boeing is the largest commercial airplane manufacturer in the world. In 1996, it began development of the 757-300, a 240-passenger plane with a range up to 4,010 miles. First deliveries took place in 1999, at a price of about $70 million per plane. Assume that Boeing's annual fixed costs for the 757-300 are $950 million, and
Cannon Company has enjoyed a rapid increase in sales in recent years following a decision to sell on credit. However, the firm has noticed a recent increase in its collection period. Last year, total sales were $1 million and $250,000 of those sales was on credit. During the year, the account receivable averaged $41,096. It
11-31. Calculating Portfolio Weights and Expected Return. You have a portfolio with the following: Stock Number of Shares Price Expected Return W 500 $34 12% X 300 22 16 Y 600 78 14 Z 800 53 15 What is the expected return of your portfolio?
4-15. Calculating Rates of Return. Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 1995, Christie's auctioned the William de Kooning painting Untitled. The highest bid of $2.2 million was rejected by the owner, who had purchased the painting at the height of the art
M&M. Offspring Corporation has no debt. Its current total value is $160 million. Ignoring taxes, what will Offspring's value be if it sells $50 million in debt? Suppose now that Offspring's tax rate is 40 percent. What will its overall value be if it sells $50 million in debt? Assume debt proceeds are used to repurchase equit
Case: Concordia Electronic Systems Test: Cost of Capital. Please estimate Concordia's overall cost of capital. What is your estimate of the cost of capital for each of the two divisions? Would you recommend that Concordia use a single company-wide discount rate to evaluate all projects, or different rates for each division?
Question 1: Please estimate Concordia's overall cost of capital. Assume that long term Treasury yields are 6.5%, yields on Treasury Bills are 5.12%, Concordia's tax rate is 40%, and that Concordia's borrowing cost is 8%. Information on equity risk premiums is provided in Exhibit 2. Question 2 : What is your estimate of the
10-4. Calculating Returns. Suppose you bought a 10 percent coupon bond one year ago for $1,140. The bond sells for $1,092 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal rate of return on this investment over the past year? c. I
1. You invest in an investment that pays 22 equal annual payments of $70 at the beginning of each of the next 22 years. What is the present value of this investment given a discount rate of 2% under annual compounding? Choose and place on the answer sheet the best answer from those provided below and attach your supporting work.
Costs of Borrowing. You've worked out a line of credit arrangement that allows you to borrow up to $50 million at any time. The interest rate is .425 percent per month. In addition, 4 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its