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What is Driving Oil Prices

Case Readings: Anderson, R and J. Buol (2005). "What is Driving Oil Prices." The Regional Economist. The Federal Reserve Bank of St. Louis. Retrieved from: http://www.stlouisfed.org/publications/re/2005/a/pages/oil_prices.cfm 1. How do changes in supply and demand effect oil prices? 2. Which two countries are the largest c

Corporations, stocks, and dividends

I need assistance in answering these questions: - Why does a company choose to form as a corporation? What are the steps required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business? - Why is preferred stock referred to as preferred? What are some of the features added

What financial problems may occur if a company has:

What financial problems may occur if a company has: - a high average collection period - has a history of paying its accounts payable late - a cash-only sales policy and it doesn't offer or accept any credit - a high percentage of bad debts, - reputation for having a substantial backlog of orders - and often takes twic

Constructing an Appropriate Portfolio.

You are the financial adviser to three individuals, a young person with high risk tolerance, a middle-aged person with medium risk tolerance and an old person with low risk tolerance. Here are the current conditions: - Risk free asset earning 12 % per year - Risky asset (or market portfolio) with expected return of 30% per

Risk Management in Emerging Markets

Risk Management in Emerging Markets Emerging markets pose different challenges from operational to financial risks; yet emerging markets often reveal possibilities for diversification and economic growth. How might an organization considering operations in an emerging market alter its risk management framework for that market?

Buying Products Regardless of Price

I need your opinion on the following the question: Provide the name of a product that you would continue to buy regardless of price. Why would you continue to buy that product?

Long-term investment

The management of Mitchell labs decided to go private in 2002 by buying in all 3 million of its outstanding shares at 19.50 per share. By 2006 management had restructured the company by selling off the petroleum research division for 13 million, the fiber technology division for 9.5 million, and the synthetic products division f

Sources of Financing for Best Hardware

Best Hardware is considering financing for two activities. The first activity deals with the expansion of the business' warehouse to house inventory as demand is growing. The second activity consists on purchasing inventory for increased demand expected during the summer (an usual occurrence). What sources of financing would you

Accounting/Finance Return on Investment

Myuncle is working in a company managing their investment center. I approached him with the sales of a large piece of equipment that can help the company save money in the end. My uncle explains to me you that he can't purchase the equipment because he doesn't want the ROI to decrease in value. What persuasive argument can I use

Calculating Annual Benefits

An employer uses a final pay formula to determine retirement payouts to its employees. The annual payout is 3 percent of the average salary over the employees' last three years of service times the total years employed. Calculate the annual benefit under the following scenarios. Year Average salary during

profit from the price discrepancy

An investor notices that an ounce of gold is priced at $318 in London and $325 in New York. What action could the investor take to try to profit from the price discrepancy? Which of the six trading activities would this be? What might be some impediments to the success of the transaction?

Quantifying Risks Evaluations

Please help with quantitatively evaluating the following data by calculating the expected impact, the standard deviation, and the coefficient of variation for each risk. Additionally, what do these statistics tell you about the possible risks? For commodity price risk, there is a 25% chance that oil prices will increase, whic

Investment decisions, challenges for a health care organization.

a). What types of decisions would need to be made before the investment is made? Indicate the main kinds of information/data needed to evaluate this capital investment project. b). Consider a health care organization with which you are familiar with and present one or two challenges that are likely to arise during this decisi

The Goal Seek Command

I am managing a conference at my college. My fixed costs are $15,000. I must pay the 10 speakers $700 each, and the college union $300 per conference participant for food and lodging costs. I am charging each conference participant who is not also a speaker $900, which includes the conference fee and their food and lodging costs

New city council person for the City of Scottsdale, Arizona

You are a new city council person for the City of Scottsdale, Arizona. You are aware that several cities have been in the news recently for financial crises for which the council or board is being held accountable. The governing bodies have been criticized for not being aware of the negative signals and trends that obviously led

Payroll Adjustments

Billings Village is considering shifting its payroll period from twice a month to monthly. Total payroll for the year is $80 million. Billings can earn 6% on its invested money. How much would the village save from such a change? Should it shift its payroll period to monthly.

Lowest Amount of Stock Traded

One of your relatives has come into a significant amount of money recently, and wants to invest $100,000 dollars in a stock which is listed either on the New York Stock Exchange (NYSE) or the NASDAQ. This relative has asked you to recommend three stocks, and will choose from one of the three you recommend. You may use one of

Health care organization: Budgeting & Sources of Funding

1.) Select any health care organization with which you are familiar with in the United States (or one that you would like to learn more about), and think about the role of budgeting in that particular organization. Conduct research, as needed, to find out more about the budgeting process of this organization. 2.) Bring to m

Identifying Key Risk Indicators

Identifying Key Risk Indicators Key risk indicators (KRI) act as signals for sound risk management, potentially helping to prevent or prepare for risk exposure. (1) Please describe KRI. (2) Identify and describe two key risk indicators that might be implemented to measure the potential for this risk to the organizati

What are some risk management techniques?

What are some risk management techniques? How would you use portfolio management to assess the risk and return of an investment? Predict how the results would be different based on different risk preferences? What is a sensitivity analysis? What is a scenario analysis? How would you apply each one to a potential investment op

This addresses price analysis based on channel & venue.

As a growing number of producers pursue multichannel distribution, they could probably learn some lessons from the masters at the game- the big soda companies. Think of all the places in your community where you can purchase a Coke or a Pepsi. How is the soda promoted differently through each channel? How does the price chang

Yield Curve

I have 2 questions I need help with: 1. Should a yield curve influence a borrower's preferred maturity of a loan? 2. Should there be a global Central Bank?

Firms Purchasing other Corporations

Please help answer the following questions. - Why do firms purchase other corporations? - Do firms pay too much for the acquired corporation? - Why do so many acquisitions result in shareholder losses?