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Use LP to determine the optimal investment

A client asks his stockbroker to invest $100,000 for maximum annual income, subject to the three conditions: 1. Spread the investment over no more than three different stocks. 2. Put no more than 40 percent of the money into any one stock 3. Put a minimum of $10,000 into an oil stock. The broker has identified three stock

Financial Analysis Word Problems

1. Company is purchasing new equipment for $120,000. You estimate the life of this equipment is 6 years and you will depreciate it in a straight line over 5 years to be conservative and assume no terminal value. The administration, maintenance and insurance cost for the equipment to be estimated to be $8,000 per year. If your co

Treasury Bills

As the cash manager of your company, you wish to buy $1,000,000 in 30-day Treasury bills. You obtain the following bid/ask quotes from three dealers: -Dealer A 3.01 3.00 -Dealer B 3.02 3.01 -Dealer C 2.99 2.98 Which dealer should be selected? State the appropriate quote and calculate the price

Financial Analysis - Fast Track Sports Company

The Fast Track Sports Company was started by John Ross early in 2012. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company operates a retail store that sells sporting goods and related apparel. Business was so good during the first year of operation that Jo

Rate of Return-Investment Theory

Scenario: Roger has just been hired as chief portfolio officer of Bear United Capital. As part of this new position, he has been asked to assemble a model portfolio from a set of assets. The assets in the model portfolio include the following: Please see attached word document for data set. Using the above assets from th

Integrity in Financial Reporting

"Some crooked top management companies are tempted to falsify their financial information in order to look better than they are. Therefore it is essential for financial reporting to have integrity. This makes the integrity of financial reporting a fiduciary duty and an ethical issue". The Sarbanes-Oxley Act (SOX) was signed

Excel/Simulation Model/Replacing Old Data Used

See the attached file. Build a water treatment plan to serve a growing community. New data has to replace the old one, I marked the new one it in RED( Project-Q.docx). Take liberties with whatever you think need to be changed: Such as: a) Current rate for water is $1.83/100 the old one used $1.56/1000 gallons. c) Peak

Important to improve the financial performance of the company

ABC Construction LLC is a construction company owned by Mr. Mohammad (a civil engineer by profession). Mr. Mohammad established the company seven years ago in Dubai. Now it has branches in other Emirates. The company is doing well in terms of business but Mr. Mohammad is not satisfied with the financial matters of the company as

Best Method of Finance

Identify in each of the FOUR situations given below, the best method of finance. Situation one: Alpha Waffles need to expand and increase their market share by 40% in the next 2 years. They would need to improve their packaging and spend money on advertising. We know that the current interest rate is 15% and banks are reluct

10 Ways to Create Shareholder Value

Article critique: - I need to summarize authors arguments - Evaluate facts or data pertaining to finance and value - Summarize the validity of the arguments - Determine whether the arguments are supported using elements of financial persuasion - Determine whether the author omits important financial data - Evaluate the fin

P&L Statement, Breakeven Point, Profits, Discount Proposals

5.4) General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs $10,000,000 Variable cost per inpatient day $200 Charge (revenue) per inpatient day $1,000 The hospital expects to have a patient load of 15,000 inpatient days

Personal Finance: Insurance Policies

Christina Haley of San Marcos, Texas, age 61, recently suffered a severe stroke. She was in intensive care for 12 days and was hospitalized for 18 more days. After being discharged from the hospital, she spent 45 days in a nursing home for medically necessary nursing and rehabilitative care. Christina had a comprehensive health

Valuation of a company

Several factors, both internal and external, impact a company's stock price, and the subsequent perceived valuation of a company. Sometimes that perceived value matches that of the financial statements, and other times it is vastly different. Discuss the factors that lead to a valuation of a company's worth compared to that o

The Importance of Beta

I am trying to find out the importance of Beta. I also need to know what kind of investor would invest in high beta and low beta stocks.

Inheritance and Investment

The owners of a company approach their controller and explain that they have recently inherited a large sum of money. The owners ask the controller whether they should invest the money into the company or into the stock market. What analysis should the controller perform to provide the owners with a reliable answer? How

Financial Services and the Global Economy

Please read the articles that I attached and help me to solve the questions. How JPMorgan Lost $2 Billion Without Really Trying 1. Describe how the operating strategy of the Chief Investment Office changed over the past five years. 2. What financial instrument created the losses for JPMorgan? 3. What were the flaws in JPMo

The Public Financial Sector

1. What is the purpose of an audit in the public sector? 2. Why is public financial management important? 3. Outline and discuss the six key principles around which we have developed the American tax system. Provide examples of each principle. 4. What is the difference between an audit and program evaluation in the public se

Finance in the Public Sector

1. What is the purpose of an audit in the public sector? 2. Why is public financial management important? 3. Outline and discuss the six key principles around which we have developed the American tax system. Provide examples of each principle. 4. What is the difference between an audit and program evaluation in the public se

Discount Rates and Risk Tolerance

What's (in your opinion) discount rate for the following types of equities? How do you determine that rate? a. A risk free equity (a Treasure Note- called risk free because if they can't pay, your money is worthless!) b. A CD at a South America bank paying in their local currency c. A stock in a company that has a secure

Profit Maximization, Rate Increase, and Charges

To maximize the amount of profit realized from a rate increase, charges should be increased most in departments with: A. High charge payer mix/high write-offs for bad debt, charity, & discounts B. Low charge payer mix/low write-offs for bad debt, charity, & discounts C. High charge payer mix/low write-offs for bad debt

Analyzing a company and making comparisons

Assess the financial position of the Netflix 2011 financial statement in comparison to Redbox their competitor. The emphasis is on cash flow for this analysis. 1. Compute the return on assets, profit margin and asset utilization rate of both companies. 2. Assess Netflix's competitive financial position. 3. Compute the free

Financial Statements: Stockholder's Equity

Select 2 companies in the same industry (for example, the home improvement industry or the candy industry). Use the Internet to find the companies' financial statements. From the financial statements, list the different components from the Stockholder's Equity section. Read the footnotes to the financial statements to see what t

Stock Review: Genuine Parts Company

Select a company: Genuine Parts Company Will the company be successful in the future or not? Identify some highlights from the company's investors relations section of their website. What stock exchange is the company listed on? What was the 12 month rate of return (% gained or lost) to investors (the Holding Period Retu

Rate of Return and Incremental Investment

Please explain how the highlighted question in the attached document (all of the steps in solving the ROR incremental investment in business activity) was calculated etc. Thank you! -- What is the rate of return (after tax) on ABC's incremental investment in business activity? (Hint: because the benefit of the investment is

Patton-Fuller Financial Ratios

Using the ratios calculated in week 2 discuss, describe and explain 2 reasons to replace the CEO. Patton-Fuller Ratios Assignment Learning Team B HCS/405 Health Care Financial Accounting January 8th 2013 2009: 1. Current Ratio: 128,867/23,807 = 5.41:1 2. Quick Ratio: 22,995+59,787/23,807 82,782/23,807 = 3.48:1 3.

Five Strategies Required for Investing Money

An investor has many choices that need to be made before investing his/her money. Identify five strategies that need to be reviewed before an investor can reach his/her personal goals. Discuss the advantages and disadvantage to each strategy.

Finance Departments and Training CEO's

With the proliferation of corporate takeovers, leveraged buyouts, and restructuring in the U.S., it would seem that chief financial officers (CFO) hold the keys to executive wisdom. Recruiters report a growing trend of grooming CFO's for chief executive officer (CEO) positions, with some estimating that nearly 25% of top corpora