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Finance

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

Corporate Finance - Net Advantage

Please assist with describing the industry conditions, the financial position of the company (relative to the industry and the company as a whole), the economic outlook of the company, and why you as a potential investor would or would not invest in this company. In determining your answer, please be sure to address some of the

EBIT for a Levered Firm

For a levered firm, EBIT is equivalent to: 1. net income 2. proforma earnings 3. operating profit 4. net income before taxes

Investor Behavior

Which assumptions regarding investor behavior are required by the CAPM? 1. Investors try to maximize their wealth 2. Investors consider only risk when making investments 3. Investors are risk averse 4. Investors adopt a long-term perspective

M & M Proposition I

Which is not an assumption underlying M & M proposition I? 1. No arbitrage 2. No taxes 3. Corporate investments are risk-free 4. Symmetric information

"Real" Activities

Which of the liabilities form part of a company's "real" activities? 1. short-term debt 2. accounts payable 3. accrued operating expenses 4. long-term debt

Various Mathematics Problems

Please show the work on the answers asked. 1 - If during an election there were 6372 registered voters and 3560 registered voters voted, what percentage of the registered voters actually cast a vote? If there were 10,000 people in the district, what percent of the population voted in the election? What percent of the populati

Accounting for Non-Accountants

You have been asked by the CEO of your company to give a presentation to the students at a local college. You were specifically asked to discuss the role of an accountant. 1. Explain the purpose and objective of accounting. 2. What is the purpose of corporate governance, and why is it important to the company? 3. Why is an

Signs of a Profitable Firm

1. Which of the following statements is CORRECT? a. Typically, a firm's DPS should exceed its EPS. b. Typically, a firm's EBIT should exceed its EBITDA. c. If a firm is more profitable than average (e.g., Google), we would normally expect to see its stock price exceed its book value per share. d. If a firm is more profitable

Corporate Finance - Calculating Leverage

Assume that a firm has the following Income Statement. Use this data to determine the business risk and the financial risk as measured by the degree of operating leverage and the degree of financial leverage, respectively. Also, determine the combined leverage as found with the degree of combined leverage. Utilize these risk m

EBIT Vs. Optimal Leverage

Define EBIT and discuss why the optimal level of leverage from a tax-saving perspective is the level at which interest equals EBIT. Does this have a connection with under-leveraging corporations,both domestically and internationally?

Cost Value Equipment

Get started by watching the 'Should I Buy New Equipment Now?' video in the link below then answer the following questions. http://media.pearsoncmg.com/ph/esm/chet_cleaves_cbsm9e_12/tools/RealWorldCase_before.htm The engraving department uses an aging rotary engraver to engrave plaques and trophies. The machine has been rel

Operating, investing and financing activities

The following information reflects cash flow and other activities of Framer Company for six months ended June 30 Paid for equipment $45,000 Paid for income taxes $ 3,000 Paid for insurance

Flexible and Static Budgets

The three components involved in the creation of a budget are revenues, expenses, and the statistics (volume). A. In what order are each component determined and why? B. What is the differences between a static and flexible budget? C. As a manager, which type of budget would you prefer to operate under? Why?

Variable, Fixed and Semi Variable Expenses

Please define and explain the following type of expenses and give an example of a business activity from your profession that may change the amount of variable expenses with each definition. a) Variable expense: b) Fixed expense: d) Semi variable or Mixed expense: Please identify if you would assign each of the following

Price Comparison Study

Pizza comparisons of Dominos & Little Caesars. What is the best pizza deal in your area? How do you conduct comparative shopping when different pizza stores have different size pans? Are prices for some large pizzas for a particular store proportional to the amount of pizza for each size? Does any combination of two pan si

Finance Question: Beta and Risk

You are working as an intern at Coral Gables Products, a privately owned manufacturing company. You got into a discussion with the Chief Financial Officer (CFO) at Coral Gables about weighted average cost of capital calculations. She pointed out that, just as the beta of the assets of a firm equals a weighted average of the b

Debt-Equity, APV, and WACC

Problem 14-2 Assume that MM's theory holds with taxes. There is no growth, and the $40 of debt is expected to be permanent. Assume a 40% corporate tax rate. a. How much of the firm's value is accounted for by the debt-generated tax shield? b. How much better off will UF's a shareholder be if the firm borrows $20 more an

Alternative Investment decisions

Describe the two distinct sets of project alternatives dealt with in every evaluation. In your description, identify an example of each set. Following the descriptions, discuss why the comparison of investment alternatives is difficult when each alternative is useful, even outside of the project.