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Finance

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

Calculating the Value-at-Risk

Please help with the following problems. a) National Bank Asia wants to hire fresh young graduates to work in their Market Risk Management department. As you are preparing your interview, you need to understand some key questions, such as why do we use 500 days or more to evaluate the VaR in a historical simulation? b) Th

Financial Analysis Sheet

1. The current price of a stock is $65.88. If dividends are expected to be $1 per share for the next five years and the required return is 10%, then what should be the price of the stock be in 5 years when you plan to sell it? If the dividend and the required return the same, and the stock price is expected to increase by $1, w

Money and Inflation

Predictions of inflation or deflation can lead you to make completely different investment decisions. For example, if you think inflation will increase dramatically it is a good idea to invest in real estate. Your home will be worth a lot more in the future, and the amount you owe will shrink quickly as a result of inflation.

PMPM Rate for Primary Care Physicians

You are trying to establish a PMPM rate for Primary Care Physicians. Actuarial estimates project 2,500 visits per 1,000 members per year. You have contracted with a Primary Care Medical group at $45.00 per visit with a $5.00 copayment that you will receive. What PMPM rate should you set? A. $11.25 B. $9.38 C. $1

Amortization Schedules: Straight Line, Spencer Company

Use Excel if possible. 1) (Amortization Schedules - Straight Line) Spencer Company sells 10% bonds having a maturity value of $300,000,000 for $2,783,724. The bonds are dated January 1, 2012, and mature January 1, 2017. Interest is payable annually on January 1. 2) (Amortization Schedules - Effective-Interest) Assume the s

Net Community Benefit Expense

A hospital incurs $10 million of cost to treat Medicaid patients and receives $7 million in payment. Actual charges for these Medicaid patients were $20 million. The net community benefit expense that would be reported in Schedule H of IRS Form 990 would be? A. $10 million B. $7 million C. $3 million D. None of

Assessment of Hospital Financial Performance

Write a 4 page case review that assesses hospital financial performance from attached table. Review should also interpret the hospital's statements of cash flow; present an overview of the hospital's financial position using the Du Pont equation as a guide; Use ratio analysis to identify the hospital's specific financial streng

Financial Analysis of Subway and Its Competitors

I need help creating overview analysis of Subway restaurant and its competitors? -Overview of the Corporation (Subway) -Subway's financial status and financial statements -Recommendations regarding of the future Company

Subway Finance Charts and Graphs

I need help creating 5-6 tables/graphs/charts of Subway finance including: Financial Statements, Income Statement, Balance Sheet, Cash Flow Statement, Key Statistics, Ratio Calculation and Analysis The information is in these links below! http://www.moneycontrol.com/stocks/company_info/cash_flow.php?sc_did=SFA01 http://money.

Finance: Discount Period

1) Determine the amount to be paid within the discount period for purchase with an invoice price of $7,745, subject to credit terms of 2/10, n/30.

Portfolio Management: Short Selling Method

John has just started investing, and one of his friends was mentioning how he could use short selling as an effective method to drive up his returns when the market started to go down. John decides that this idea is worth a try and decides to sell 100 shares of Stock A for $125 per share. -What is John's maximum loss risk he

Analytical Procedures Casuccio Aurora Manufacturing Inc.

(Analytical procedures) The following data was taken from the production and account­ing records for Casuccio Manufacturing, Inc. From the book, Modern Auditing 8th Edition, Part 4: Auditing the Transaction Cycles. Chapter 15: The Expenditure Cycle (Pages 729-730) Q15-23 and Chapter 14: The Revenue Cycle (Page 675) Q14-26.

Functional area of finance

How and why is the functional area of finance important in the four phases of strategic management discussed?

Community Hospital: Investments and Annual Savings

Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for six days on average. The hospital is exploring a lock-box arrangement that promises to cut the six days to one day. If these funds released by the lock-box arrangement can be invested a

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

Saving for College: Inflation and Investment

Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her next four years of college. Assuming the annual tuition is paid at the beginning of the college year and you expect her freshman annual tuition to be $20

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