1. (Answer in Excel) Calculating Nominal Cash Flow: Etonic Inc. is considering an investment of $365,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $245,000 and $70,000, respectively. Both revenues and expenses will g
Please read the Bethesda Mining Company case study and assist the following questions. Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company operates deep mines as well as strip mines. Most of the coal mined is sold under contract, with excess p
I need help with this company that I attached the file! Some help with: 1.Opportunity 2.Risks, Commercial and Currency risk. 3.Mitigating Risks. 4.Rationale. 5.Decision.
Please read the text portion of BP's 2012 annual report and assist with the following: 1. Identify potential real options that might arrive in this firm's business. 2. Are these options industry specific or company specific? 3. How would these options affect their capital budgeting process? 4. Justify your
Please see attachment use word or excel but please show how you got the answer. Question 1: (Cost of Capital) You are provided the following information on a company. The total market value is $38 million. The company's capital structure, shown here, is considered to be optimal. (see attached file for data) a. What
Ethical Standards for Business: should they be universal? Also, do corporations have the right to influence ethics worldwide?
1. Do you feel that it is possible to develop a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical and/or impossible? 2: Do corporations have a right and/or a responsibility to influence ethics in the countries in which they operate?Defend the posit
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a return of 10 percent on the company's stock. What is the current stock price? What will the stock price be in three years?
Research Online Trading Sites and DRIPs you will evaluate the choices in purchasing stock via online brokerage accounts (where you can buy and sell stock via the Internet) and the use of dividend reinvestment plans (known as DIPs and DRIPs) or mutual funds or index funds. For online brokers, you will be looking for the requir
1. Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in the corporate environment. 2. With all investments, there are an expected percentage return and certain types of return that can be expected. Describe the possible forms in which a return could be received for bonds, commo
Martin Software has 9.4 percent coupon bonds on the market with 19 years to maturity. The bonds make semi-annual payments and currently sell for 107.5 percent of par. a. What is the current yield on the bonds? b. What is the YTM? c. What is the effective annual yield?
Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processing experience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, wash
What other hospital department's financials benefit from a bariatric center addition to the hospital?
You just signed a consulting contract that will pay you $38,000, $52,000, and $85,000 annually at the end of the next three years, respectively. What is the present value of these cash flows given a 10.5 percent discount rate? $157,131 $154,880 $139,975 $148,307 $162,910
1. $1,000 face amount bonds of Stalwart Development Corp. are quoted at a price of 102.2 and carry a 6.50 percent coupon. The bonds pay interest semiannually. What is the current yield on one of these bonds? The answer should be a percent 2. A 20-year, 4.8 percent, semiannual coupon bond issued by Cascade has a $1,000 face
Strickler technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 9.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,895,000. Th
Solving for missing pieces in a ratio The Burk Company has the following data: Long-term debt to long-term debt plus equity of 0.6 Current ratio of 1.35 Liabilities are $950 Sales are $4,140 Profit margin is 9.5 percent ROE is 22 percent. Solve for long term assets (net fixed assets).
You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 78 years from now. The appropriate discount rate is 8 percent. What is the present value of your winnings?
The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $40,000 $50,000 1 10,000 8,000 2 1
1. AR store issued 15 year bonds one year ago at a coupon rate of 6.1%. The bonds make semi-annual payments. If the YTM on these bonds is 5.3%, what is the current bond price? 2. NH Co. issued 15 year bonds two years ago at a coupon rate of 8.4%. The bonds make semi-annual payments. If these bonds currently sell for 108%
I need help with the following: 1. Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10% coupon bond sells at par? Two years from now the required return on the same bond is 8%. What is the coupon rate on the bond now? The YTM? 2. Suppos
True/False- 1. The firm's cost of external equity capital is the same as the required rate of return on the firms outstanding common stock_________ 2. Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, but capital raised by selling new sto
Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company's geologist, has just finished his analysis of the mine site. He has estimated that the mine would be more productive for either year, after which the gold would be completely mined. Dan has taken an estimate
1. Future Value. What is the future value of a. $800 invested for 14 years at 11 percent compounded annually? b. $210 invested for 8 years at 9 percent compounded annually? c. $650 invested for 12 years at 8 percent compounded annually? 2. Present Value. What is the present value of a. $803 to be received 18 years from
Components of a Complete Grant Proposal- how to convince funder of need for funding, writing a needs statement, and explains organizational needs and strengths and assessments.
What are the components of a complete grant proposal? How can you convince the funder of your need for funding? What are some tips in developing a well-written needs statement? Explain what organizational needs and strengths assessments are and why you think they are important to the funder.
1.Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy? 2.What are the money markets and what are the capital markets? How do they differ? What are their respective activities? 3.If an asset is called a derivative, what does that mean? Explain your answer an
Exercise A-2 Lower-of-Cost-or-Market Rule The cost of Baxter's inventory at the end of the year was $50,000. Due to obsolescence, the cost to replace the inventory was only $40,000. Net realizable value—what the inventory could be sold for—is $42,000. Determine the amount Baxter should report on its year-end balance she
Please establish an estimated growth rate in earnings and dividends for British Petroleum (BP). Note, in the dividend growth model, "g" is the growth rate for earnings AND dividends. You might want to check historical growth rates for BP (in terms of earnings and dividends). Also, many people rely on analyst forecasts. Be sure t
Question 1: Starbucks opened its first store in Zagreb, Croatia in October 2010. The price of a tall vanilla latte in Zagreb is 25.70kn. In New York City, the price of a tall vanilla latte is $2.65. The exchange rate between Croatian kunas (kn) and U.S. dollars is kn5.6288/$. According to purchasing power parity, is the C
Jacob has an opportunity to invest in a new retail development in his building. The initial investment is $50,000 and the expected cash-flows are as follows: Year 1: $2,500 Year 2: $5,000 Year 3: $5,000 Year 4: $7,500 Year 5: $10,000 Year 6: $10,000 Year 7: $15,000 Year 8: $15,000 What is Jacob's IRR on this investment? (No more
9.12 Operating income versus net income Refer to the selected financial data ( five-year financial summary) on page 709 of the Campbell Soup Company annual report in the appendix. Required: Compare the trend of the operating income ( earnings before interest and taxes) data with the trend of net income ( net earnings attribut