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Finance

Valuation of a company

Several factors, both internal and external, impact a company's stock price, and the subsequent perceived valuation of a company. Sometimes that perceived value matches that of the financial statements, and other times it is vastly different. Discuss the factors that lead to a valuation of a company's worth compared to that o

The Importance of Beta

I am trying to find out the importance of Beta. I also need to know what kind of investor would invest in high beta and low beta stocks.

Risk and Return Concepts

I need help understanding the concepts of risk and return. I also need to know the importance of portfolio diversification and the relationship to risk and return. Please provide a source where I can find more information on these concepts.

Inheritance and Investment

The owners of a company approach their controller and explain that they have recently inherited a large sum of money. The owners ask the controller whether they should invest the money into the company or into the stock market. What analysis should the controller perform to provide the owners with a reliable answer? How

Financial Services and the Global Economy

Please read the articles that I attached and help me to solve the questions. How JPMorgan Lost $2 Billion Without Really Trying 1. Describe how the operating strategy of the Chief Investment Office changed over the past five years. 2. What financial instrument created the losses for JPMorgan? 3. What were the flaws in JPMo

The Public Financial 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

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

Financial Manager's Budgeting

How should financial managers budget for unforeseen changes and improvements in information technology that require large capital outlays?

Present value of a lease

You are considering a five-year lease of office space for R&D personnel. Once signed, the lease cannot be canceled. It would commit your firm to six annual $100,000 payments, with the first payment due immediately. What is the present value of the lease if your company's borrowing rate is 9% and its tax rate is 35%? (note: the l

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

Depreciable Replacement Cost

You have acquired a new CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-year life of the scanner. Assuming no salvage value and an annual increase in replacement cost of 10 percent, what capital charge per procedure should the hospital levy to provide for replacement cost in

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