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Prefer that Congress Increase or Decrease the Depreciation?

Montejo Corporation expects sales to be $ 12 million, operating costs other than depreciation are expected to be 75 percent of sales, and depreciation to be $ 1.5 million during the next year. All sales revenues will be collected in cash, and costs other than depreciation must be paid during the year. Montejo's interest expense

Incremental Costs and Benefits

Crafty Tools manufactures an electric motor that is uses in several of its products. Management is considering whether to continue manufacturing the motors or to buy them from an outside source. This is the following information that is available. 1-The company needs 10,000 motors per year. The motors can be purchased from an

Calculate a bid price in the given case.

Dahlia Enterprises needs someone to supply it with 114,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract. It will cost you $810,000 to install the equipment necessary to start production; you'll depreciate this cost straight-line to zero

Calculations of Discount and Investment Rates

We are purchasing a 28-day Treasury bill, during a normal year (non-leap year), and want to find out both the discount rate and the investment rate. If we purchase the bill for $998, what are the two rates? If we purchase a 91 day Treasury bill for $995, what are the two rates? (Show all work/calculations/formulas.)

Proposal for a Finance Dissertation

I am needing assistance. I am practicing a dissertation process and want to be clear about my knowledge of each component of the process. I am trying to create an overview of a proposal for a finance dissertation based upon using statistical tools for financial research and risk assessment / portfolio theory. At a minimum, the

Methods for Analyzing Financial Ratios

Financial ratios by themselves provide very little information about a firm. We need to compare ratios across firms in similar industry sectors. The two methods for analyzing financial ratios for a firm are: time trend analysis and similar group analysis. Elaborate on how each of these methods can be helpful in understanding how

Cost of retained earnings, new common stock and debt

The management of a conservative firm has adopted a policy of never letting debt exceed 30 percent of total financing. The firm will earn $10,000,000 but distribute 40 percent in dividends, so the firm will have $6,000,000 to add to retained earnings. Currently the price of the stock is $50, the company pays a $2 per share divid

Capitation Payment Methodologies

Discuss capitation payment methodologies between payers and providers, and Medicare or Medicaid with commercial Managed Care organizations (MCO). Explain at least three important aspects that you as a medical business professional would need to understand when negotiating payment contracts either between a provider and the MCO,

Financial and Economic Basics

Give a brief background on the following topics: 1. Government insurances and payment expectations 2. Commercial insurances and payment expectations 3. Liability insurances and payment expectations 4. Self-pay/ cash pay patients and payment expectations. 5. Focus on the ways in which these types are different from one a

Robert Shiller: democratizing finance

You have been asked to write a 'briefing' article for The Economist analysing the debate initiated by Robert Shiller about democratising finance and comparing this with the kinds of regulatory measures that have been adopted in the OECD countries in the wake of the recent financial crisis. The issues you need to consider in your

Finance & Accounting

Finance & Accounting Answer the following: 1. What three accounting statements help the manager monitor a firm's performance? What can the balance sheet tell the firm about its assets and financial structure? 2. What are three types of business organizations? Explain briefly. 3. Calculate the annual depreciation cha

Finance Dividends and Investment Strategy

ABC pays dividends over the next 4 years: 2.50; 3.20; 4.75; and 5.20 beginning in period 1 1. After the 4th year the firm projects constant growth of 3%. Assuming investors need an 11% return, what is the current share price? 2. The CFO has proposed new investment opportunities and needs to present them to the board for app

Real Estate Finance Problem Set

1. The difference between the rate of return on assets and the cost of borrowing is: (A) financial leverage (B) spread (c) debt service (D) none of the above 2 When the rate of return on assets exceeds the cost of borrowing, it represents: (A) negative spread (B) positive spread

Funding for a Business

In 2-3 pages: 1. I need funding options (For a US Business; I'm a US resident so maybe US Funding options) available for a Start Up Business. 2. I need THREE clear examples of such. 3. Please help me to understand the things I need to have to get funding and to get accepted and why I may not get funding, any possible pr

Decision Tree and Estimation

Mark is looking at the forecasts of expected economic growth. He plans to invest $120,000 in an investment whose return would depend on the economic conditions. It is estimated that the economy will have a high growth with a probability of 25%, normal growth with a probability of 50% and a slow growth with a probability of 25%.

Retirement system

If the Social Security retirement system was a private retirement system, it would be declared bankrupt. Discuss why this is so and why the Social Security system can continue to pay benefits despite the fact that it can be considered bankrupt. Discuss why the Social Security tax rate has increased so much in recent years. What

Cost-benefit analysis to reduce air pollution in a city

How would you set up a cost-benefit analysis of a program to reduce air pollution in a city? Carefully indicate the items you would include, such as benefits and costs, and discuss the problems encountered in measuring these benefits and costs.

Calculate the minimum bid value in the given case.

A company has posted a request for bid on 230k cases of widgets per year over the next 5 years. Determine what bid price makes the most sense as a potential supplier. An Initial investment of 1 million is required to begin production. This investment will be depreciated using the straight line to zero method throughout the co

Walmart's Financial Health

I choose Walmart. Provide a financial summary of your selected company's financial health. Define 2 financial concepts and how they played a major part in the company's financial press. Based on your research of your company's financial health, describe the company's financial health.

Portfolio expected return and volatility

I need some guidance for the following scenario: You manage a portfolio that consists of 70 percent in S & P 500 index stocks and 30 percent in a Crude Oil ETF. Over the past 10 years the S & P 500 has had an average monthly return of 1.2 percent and a monthly return volatility of 2.2percent. Over the same period, crude oil h

Coefficient of Variation, Risk and Return

Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship. Std Dev. Exp. Return Company A 7.4

President Obama and Federal Appropriations

- Identify three (3) areas where President Obama wants to increase federal appropriations. - Identify three (3) areas where President Obama wants to decrease federal appropriations. - Analyze and describe four (4) governmental expenditures each from the federal, state, and local budgets that will have a greater impact on the n

Financial Management: Risk and Return

1) Based on the following information calculate the holding period return: P0 = $10.00 P1 = $12.00 D1 = $1.22 2) Risk & Return and the CAPM. Based on the following information, calculate the required return based on the CAPM: Risk Free Rate = 3.5% Market Return =10% Beta = 1.08 3) Risk and Return, Coefficient of V

Median Voter Theorem

Find several articles that assess the validity of the median voter theorem. Critique advantages and disadvantages of the median voter theorem in elections, public goods, and majority rule.

finance perspective and relate this to the stakeholder approach

1. Define the goal of the firm from a finance perspective and relate this to the "stakeholder" approach. 2. Relate the importance of economics and accounting to finance. 3. Define progressive taxes and why it is particularly important to the corporate form of business. 4. Contrast the information provided in the balan

Cost estimation

Controller completed a cost study of the firms' material handling department in which he used work measurement to quantify departments' activity. Factor unit used in the work measurement study was hundreds of kg of equipment unloaded or loaded at the company's loading dock. Month units of activity material handling dpt cost