The Asian financial crisis of 1997-98 started with the devaluation of the Thai baht in July 1997 and was followed by financial panic that spread to Malaysia, Indonesia, the Philipines and South Korea (albeit to a lesser extent). What do you think are the main causes of this crisis? Are there factors that are critical in any expl
Juan, a friend of yours, just inherited some money from his great-aunt and is trying to decide how to invest it. He has come up with some companies that he's interested in and has been doing a little research online. You meet for lunch, and while you're waiting for your order, you ask him how the research is going. "It's ama
What would happen if financial projections were based on incorrect data? For example, if your booked accounts receivable is significantly higher than the actual accounts receivable and cash inflows, does your expense budgeting change? Would your cash flow change? How would you handle suppliers or capital budgeting for this time
Most organizations spend half or more of their operating budgets on employee wages and benefits. With an investment as high as this, it is important that the organization leverage the greatest possible return. At the same time, much has been written about the role of compensation as a motivator of employee performance. -Do yo
1. Does The American Red Cross receive or has ever received earmark grants? 2. Should earmarks be totally abolished as suggested by Senator McCain or should they continue and be examined to ensure they go to services for people as originally suggested by President Obama? 3. What do you think about earmark funding and appropria
From an economic growth and prosperity level, we have to look at the role of the financial system. We know that high inflation means higher interest rates, which lead to less purchasing power and more investing (investors like higher interest rates!). However, lower interest rates spark more lending for business growth, home and
How can the corporate income tax, as administered in the United States, affect the choice between equity and debt finance?
What is leveraged recapitalization and what effects does it have on the value of equity?
Incomplete financial statements for Tanner Company are given: Compute the missing amounts on the company's financial statements. ***Full details are available in the 3 attachments. --------------------------------- Tanner Company Income Statement For the Year Ended December 31 Sales..................................
Calculate the sustainable growth based on the following information: Earnings after taxes = $23,000 Equity = $110,000 d=48.7%
Control theory originated with the goal of managing small, mechanical operations but it has since been applied in broader contexts. For this assignment, select a service operation (a bank, hospital, auditing company, financial consulting, etc.) and apply control theory to a particular process within the business. Explain how th
The ethics problem is: Assume that you are the CFO of a company contemplating a stock repurchase next quarter. You know that there are several methods of reducing the current quarterly earnings, which may cause the stock price to fall prior to the announcement of the proposed stock repurchase. What course of action would
Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion. It also has $750 million in debt outstanding. Galt Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt. Assume perfect capital markets. Suppose you are a shareholder in
Calculate the variance and standard deviation of the given portfolios. S&P 500 Japanese Returns 10% 10% Standard deviation 10% 14% Beta 1 Correlation to S&P 500 -0.2
What are the criteria in which an applicant must meet to qualify for life insurance.
At the end of 2012, SeaScape Industries has 100,000 shares of common stock outstanding and had earnings available to the common shareholder of $200,000. Tara Company, at the end of 2012 had 12,000 shares of common stock outstanding and had earned $25,000 for common shareholders. SeaScape's earnings are expected to grow
Your company, a medium-sized manufacturer of widgets, has just held the annual end of year "State of the Business" meeting for all employees. The president discussed how well the company has been doing, focusing on presenting the Income Statement for the last year. During the meeting, he used terms like product costs, and period
Alternative sources of energy are being discussed as part of the national debate. One of the sources is wind power. you may look into a search engine of your choice for articles on wind power. How would you go about estimating demand for this energy source? How many wind farms exist now and how many will exist in the future? Usi
1 New bank started its first day of operations with $6 million in capital .A total of $100 million in checkable deposits is received .The bank makes a $25 million commercial loan and another $25 million in mortgage loans .If required reserves are 8%, what does the bank balance sheet looks like. 2 New bank decides to invest
One of your newer clients is the Senior Lending Officer of a local bank. He is new to his position and does not have a lot of experience in risk management. You plan to meet with him over lunch to bring him up to speed on what he has to know about risk, particularly in the case of a bank. - Give an example of measuring the t
If you were the CFO of a company, how might you go about implementing the strategy of not paying bills?
Step 1: Identify an example of a recent price adjustment. This can be a new sale price, a price increase or a special offer. Step 2: Research the history of the price for this product, including competitive influences. • Consider what led the company to make the price adjustment. Was it proactive or reactive? • What was
Discuss the risks the Google faces and the actions they take to mitigate those risks. Refer to the Management Discussion and Analysis section of the annual report for this information. As part of your response consider whether you think the risk mitigation techniques are reasonable. Discuss what others concerns or advice yo
You plan to meet with her on her first day of work to discuss one of the foundational issues behind all financial decisions, regardless of whether an individual investor is involved, a small company, or a large diversified corporation; i.e. the issue of risk and risk management. Discuss the following specific issues from bot
Suppose you have $50,000 that you must invest. Generally, how will you invest it? What are your reasons for this investment? Please comment on the risk, liquidity, safety, diversity, and potential return on investment on some of the investments mentioned here. Please consider the current state of the economy -- a weak h
Financial Management You are given the following selected financial information for The Blatz Corporation. (See the attached file for the chart) Required: Calculate accounts receivable, inventory, current assets, current liabilities, debt, equity, ROA, and ROE.
You are given the following selected financial information for The Blatz Corporation. Income Statement.........Balance Sheet COGS $750..................Cash $250 Net Income $160...........Net fixed assets $850 Ratios ROS: 10% Current ratio: 2.3 Inventory Turnover: 6.0
1. Firm ABC's stock has a 50% chance of producing a 25% return, a 30 % chance of producing a 10% return and a 20 % chance of producing a -28% return. What is the firms expected rate of returns? 2. A 2- stock portafolio with a total value of $100,000. $37500 is invested in stock A with a beta of .75 and the remainder is inves
Find the ratios: Current Ratio Quick Ratio Days Sales Outstanding Total Asset Turnover Total Debt Ratio Profit Margin ROA ROE Fixed Asset Turnover Price Earnings Ratio Market to Book Value Based on the ratio analysis you just conducted how good of financial shape do you think this firm is in? Why? When
Define what is included in a management discussion and analysis section of a financial statement (that cannot be found elsewhere). Essays Click the link below to view Microsoft Corporation's (MSFT) 2011 Annual Balance Sheet: http://finance.yahoo.com/q/bs?s=msft+Balance+Sheet&annual Choose and compute 5 of the following from