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Smith Jones Market Company: Preferred and Common Share Holders

Smith Jones Market Company has 3,000 shares 9%, $60.00 par cumulative preferred stock outstanding and 4,900 shares of $3.75 par value common stock outstanding. The company began operations on April 1, 2010. The cash dividends declared and paid during each of the first 3 years of Smith Jones marketing operations are shown. Cal

Par Value Common Stock

Combs Company purchased back 11,00 shares of their $8 par value common stock for $98,000 on May 1 2011. On August 1, 2011, they reissued those shares for $109,000. Please show the effect of both transactions on the accounting equation.

RiskIssue Of Risk And Risk Management

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

Investment Based On Current Economy

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

Determination of Missing Financial Data

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.

Financial Analysis: Blatz Corporation

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

Risk return and value

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

Complete Ratios

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

Analysis Section of Financial Statements

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: Choose and compute 5 of the following from

Comparing the Potential Returns of Investing in Stock

The Jacksons have recently started saving about $300 per month ($3600 per year) for their children's education. They are currently investing this amount in bank CDs each month, but they are now considering investing in stock instead. The Jacksons have never owned stock before. The Jacksons are currently earning an interest rate

Fixed Plant Capacity

My group is about to start a new company that will enter the international microcomputer business. In order to get our new company off the ground, the members of the executive team, (including myself) will need to provide the seed capital (investment money). This is the money that we will use for all the initial expenses relat

Finance Questions on Retirement Account

1. Peggy gets paid every other week (bi-weekly) and her husband Patrick gets paid monthly. Peggy is going to make a $150 deposit from her paycheck every two weeks into a new retirement fund, and Patrick is going to deposit $300 from his paycheck monthly into a new retirement fund. Both accounts earn an effective annual rate of 6

U.S. Trade Deficits

The United States exported almost $2 trillion worth of goods and services in 2010 yet realized a trade deficit of more than $500 million, meaning it imported more than it exported. That has been the case for decades, and some Americans believe this is harming the county. 1. Visit and find the U.S. trade in goods

Estimating the Common Stock from Retained Earnings

** Please see the attached file for the complete problem description** What are three methods for estimating the cost of common stock from retained earnings? Which of these methods provides the most accurate and reliable estimate? Challenge Problem Template Tax rate = 38.0% After Tax

Financial Overview

Complete a financial analysis of McDonalds over the last two years (2009 and 2010) available in annual reports. Replace the numbers provided in the Excel file that is attached. Then write a 2-3 page financial analysis of the company. Addressing the following elelments: Identify your company, its industry, and analyze the impo

Social Security Benefits for Retirees

Just 3 or 4 lines for each - What this article is about? - Explain any concepts/terms/subjects that we might not be familiar with. - How this article is related to personal financial planning and why it's important to us? - What's the implication of this article? - What's your opinion on the issue discussed in the artic

Financial Risk & Business Debt

Financial risk relates to the business debt, which may be incurred by business operations, but business risk is independent of the debt of the business." Could you please explain for me how the liquidity risk affects business risk and/or the financial risk? Perhaps provide me an example too, so I understand this.

Fundamental Concepts of Corporate Finance

1.) What is a firm's fundamental, or intrinsic, value? What might cause a firm's intrinsic value to be different than its actual market value? 2.) Edmund Enterprises recently made a large investment to upgrade its technology. Although these improvements won't have much of an impact on performance in the short run, they ar

Implications of a Change

What are the implications of a change in the return on equity with an increase in debt financing? What is the relationship between business risk, financial risk, and beta (systematic or market risk)? How does the degree of operating and financial leverage change the profitability of the firm when sales levels change signi

External Funding Requirement and Degree of Leverage

Part One: External Funding Requirement Your company, Martin Industries, Inc., has experienced a higher than expected demand for its new product line. The company plans to expand its operation by 25% by spending $5,000,000 for an additional building. The firm would like to maintain its 40% debt to total asset ratio in its

Investment & Portfolio Management

Analysis and Evaluation of International Investments International investment is a prudent part of any investment portfolio. International investment helps to diversify the investment portfolio. Although, international investments are beneficial, they are not risk free. In addition, international investors should be ready wit

Using Mutual Fund Investment Strategies

One way to diversify your portfolio is to invest in the mutual funds. A mutual fund is a professionally managed type of collective investment that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities. Go surf the web and choose one to three mutual funds (stock fund

Common Denominator to Estimate Precise Tradeoffs

In a tradeoff between two decision criteria such as ease of commuting and attractiveness of job, can you use money as a common denominator to estimate precise tradeoffs? State your reasons. Illustrate using the following tradeoff matrix. What sort of salary differences would it take for commute time to trump job attractiveness?

Finance: Insurance Costs

1: Marisa has a policy with replacement cost coverage and 80% co-insurance, and has a loss of $100,000 on her house. The replacement cost is $400,000 and the total policy coverage is $300,000. Since the loss is less than the coverage, she expects to get the full amount of the claim paid by the insurance company. Is she correct?

Real Cost: Spot Rate & Hedging

A US company negotiated a forward contract to buy 100,000 British pounds in 90 days. The company was supposed to use the £100,000 to buy British supplies. The 90-day forward rate was $1.40 per pound. On the day the pounds were delivered in accordance with the forward contract, the spot rate of the pound was $1.44. What was the

Short-Term Versus Long-Term Profits

Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits. In your post, explain what is meant by this statement. Describe how management might decide whether to focus on short term or long term goals and how that decision impacts

Finding the dollar amount of maintenance margin

An American company sells yen futures contracts to cover possible exchange losses on its export orders denominated in Japanese yen. The amount of the initial margin is $20,000, and the maintenance margin is 75 percent of the initial margin. The value of the company's position declines by $6,000 because the spot rate for yen has

Analyzing Fixed and Variable Costs in the Healthcare Field

Choose the best answer for each of the following: 1. In the long run: a. All costs are fixed b. All costs are mixed c. All costs are variable d. Paying a monthly 'budget' amount for utilities is a fixed cost 2. Which of the following is most likely a fixed cost? a. Income taxes b. The cost of merchandise sold c. Dep

Loss/Gain Calculations

Greg recently inherited a large, family-run farm that primarily produces grain for harvest each year. Greg has recently been researching the use of futures contracts to improve his returns on his crop each year and reduce the price risk at harvest time. Greg decides to enter into a futures contract on his grain harvest in March