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Ratios & Cash Flows

I am not understanding how to obtain the OCF. I know that you have to add the depreciation expense and subtract the tax, but I am very confused. I know that you must divide the current assets by the current liabilities but when I do it, it doesn't work. Please help. Hammett, Inc., has sales of $19,720, costs of $9,310, de

Reacquistion of Stock

On June 15, Bunting Corporation reacquired 12,000 shares of its $10 par value common stock for $18 per share. Bunting uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit: a. Common Stock for $120,000 b. Common Stock for $120,000 and Paid-in Capital in Ex

Calculating Investment

Patton Corporation owns 2,500 of the 10,000 outstanding shares of Forman Corporation. During 2013, Forman Corporation earns $1,500,000 and pays cash dividends of $120,000. What amount should Patton show in the investment account on December 31, 2013 if the beginning of the year balance in the account was $1,000,000? a. $1,0

Interpret the given measures.

What does it mean if a domestic mutual fund has a beta coefficient of 1.25, an alpha coefficient of 2.25 and an R-Square of 75? Explain each measurement and then interpret what these measurements mean for this mutual.

Determining the stock price

Common Stock of Coquihalla Corporation will pay a dividend of $8.00 in the upcoming year, and dividends are expected to grow 5% per year in the future. Your required rate of annual return is 12% . Using the Constant Dividend Growth Model calculate the current price of the Common Stock.

Google's Financial Condition

I need help with evaluating the financial condition of Google and its ability to achieve the strategic objectives as discussed in the annual report. Please provide references - annual report attached.

Compute the productivity ratios for the old and the new production systems.

Howard, Inc produces carbon graphite fiber shafts for Calloway golf clubs. Last year their average monthly production included 19,000 shafts using 1 shift of 3 technicians working 20 days a month and 8 hours a day. Of the items produced, 15% were deemed defective and were scrapped due to poor tensile strength. Recently, Howar

Price Changing

The Healthy Spring Water company sells bottled water for offices / homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2,000 bottles per day. The company's daily income and costs: Sales revenue: $ 40,000 Variable cost : $ 16,000 Fixed cost: $ 20,000 1. What is the maximum sales los

Insurance and Risk Retention

1. How could loss control approaches be used to reduce the risk of injury to construction company employees and a medical transporter by car? 2. What can be done when the cost of insurance is too high? 3. What are some disadvantages of increased risk retention?

Industry Standards

Please obtain industry standards for ratios for Microsoft and two of its competitors, Oracle Corp and Apple.

Stock Variance Standard Deviation

The standard deviation of the market index portfolio is 20%. Stock A has a beta 1.5 and residual standard deviation of 30%. A) What would make for a larger increase in the stock variance, an increase of 1.5 in its beta or an increase of 3% in its residual standard deviation? B) An inventor who currently holds the market i

Developing financial plans

I need help with developing the rudiments of a financial plan. The questions are relative to an etiquette and image consultant, one-owner, corporation type business. 1.Explain the financial requirements for the venture, including the amounts needed for cash flow and profitability. 2.Create a cost of operating report for your

Calculate the variance and standard deviation in the given case.

A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100. Probability .10, .50 and .40. Payoff is $500, 100 and 0. net Profit is $400, 0 and -100. What are the expected cash payoff and expected rate of return? Calculate the variance and stan

The Power - or Curse - of Compounding

Chapter 4 in the Finance: Applications and Theory textbook by Cornett, Adair, and Nofsinger provides an introduction to the main concepts of the time value of money for a single cash flow amount. These concepts are important in finance, because cash flows analyzed in most of finance occur at various periods of time, and adjustme

Buy sell recommendation

Make recommendations: on the following two companies: Pep Boys O'Reilly Automotive Inc From an investor's perspective of whether one should buy/sell/remain neutral on both stocks. From a lender's perspective of whether or not a short-term and/or long-term loan should be made to either company. From a manager's perspecti

Calculate the expected return and standard deviation of this portfolio.

The U.S. market has an expected return of 12% and a standard deviation of 22%. An index mutual fund that matches the Morgan Stanley Europe, Australia, and Far East Index (EAFE) has an expected return of 14% and a standard deviation of 30%. The U.S. market and the EAFE fund have a correlation coefficient of 0.5%. Kramer was con

Country Risk Assessment for Iran for the current year

You are working for McDonalds Corporation. You want to do a Country Risk Assessment for Iran for the current year to decide whether you should operate a Franchise there. Explain how you would proceed? What data would you need; How would you use them?

Finance Question-The commando motorcycle company

The commando motorcycle company has decided to become decentralized and split it's operations into two divisions. Motor and Assembly.Both divisions will be treated as investment centers. The motor division is currently operating at it's capacity of 30,000 motors per year Direct Materials = $30 Direct Labor = 50 Variable Ma

Finance Problem-Niesen Corporation

Niesen Corporation has two major business segments-consumer and commercial. Data for the segment and for the company for August appear below: Sales Revenues, consumer = $690,000 Sales Revenues, Commercial = $310,000 Variable Expenses, consumer = $290,000 Variable expenses, commercial = $164,000 Traceable fixed expenses,

Finance- The Litton Company

The Litton Company has established Standards as follows: Direct Material: 3 pounds per unit @ $4 per pound = $12 per unit Direct Labor: 2 hours per unit at $8 per hour = $16 per unit Variable Manufacturing Overhead: 2 hours per unit @$5 per hour = $10 per unit Units Produced = 600 units Direct Material Used = 2000 poun

Finance- MooreHouse Clinic

MooreHouse Clinic uses client visits as it's measure of activity. During December, the clinic budgeted for 3,700 Client visits, but it's actual level of activity was 3690 client visits. The clinic has provided the following data concerning the formulas used in it's budgeting and it's actual results for December. The personal

Most publicly traded companies are analyzed by numerous analysts

Most publicly traded companies are analyzed by numerous analysts. These analysts often don't agree about a company's future prospects. In this exercise you will find analysts' ratings about companies and make comparisons over time and across companies in the same industry. You will also see to what extent the analysts experience

Long-term debt financing

Assume Venture Healthcare sold bonds that have a 10-year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. Suppose that two years after the bonds were issued, the required interest rate fell to 7%. What would be the bonds value? Suppose that two years after the bonds were issued, the required interest rat

Washburn Guitars: Using Break-Even Points

In Washburn's factory, what is the break-even point for the new line of guitars if the retail price is $349? Using Washburn guitars, explain shifting the demand curve versus moving along the demand curve. Discuss the factors that affect the demand for Washburn guitars.

Healthcare finances reimbursement

I would like pros and cons of the following reimburesments: Prospective-payment, Cost-reimbursement, Discounted-charge, Flat-rate reimbursement. How does each of the reimbursement system affect the departments of health care companies and healthcare providers.

Mortgage Loans and Monthly Payments

6) You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments a) if the interest rate is 16% per year what is the amount of the monthly payment? Answer: PMT = 1,358.89 b) if you can afford to pay 1500 per month and need to borrow 100,000 how many months would it take to pay off the mortgage?

The price elasticity of demands

For the product or service that your employer provides to market (or a product offering of your choice from a company of interest), discuss in detail whether you believe the demand for that product or service is relatively elastic or relatively inelastic. What is the price elasticity of demand and what in general determines t

Research design -Gasoline prices

As we have recently experienced, the instability in the price of gasoline has created sudden increases in prices. Mostly these increases are from changes in the supply, but can the gas companies pass all the increases along to the consumer? Some of the gas companies would like to discover or test the elasticity of demand, or at