Explore BrainMass


Calculating the Current Yield and YTM in the Given Case

Charlotte's Clothing issued a 5 percent bond with a maturity date of 15 years. Five years have passed and the bond is selling for $690. (a)What is the current yield? (b) What id the yeild to maturity? If five years later the yield to maturity is 10 percent, what will be the price of the bond?

Calculating Bond Yields

A bond with 15 years until maturity has a semiannual interest payment of $40. If the bond sells for its par value, what are the bond's current yield and yield to maturity values?

Calculating Return and Variance

Note: Please see the attachment to view the table which is needed for this question. Question: You invest 30% in Ham and 70% in Cheese. Find the return and variance on the portfolio. You must calculate: expected return for both firms; standard deviation or variance (assume it is a population (n observations)) for both firms;

Traditional Finance Paradigm

"As we all saw from this class, many of the building blocks of the traditional finance theory were questioned and challenged when it came to the relevance of such theory to the problems that investors and managers face in the real world every single day. Building blocks like all the risk definitions and tools; and even the whole

Solving Problems in Difficulties in Paying Trade Payables

This case involves the evaluation of Kitty (Hawk Food), Inc., a restaurant food wholesaler in eastern North Carolina. The firm is experiencing difficulty paying trade debt and collecting trade receivables on time, which is causing cashflow difficulties and threatening the creditworthiness of the firm. The case should require 1 t

Income Statement for Marketing Strategy

Regal Flair Enterprises has 2 product lines: jewellery and women's apparel. Cost and revenue data for each product line for the current month are as follows: Product lines

Calculating Healthcare Formulas

What is a sensitivity analysis? How would you use it in planning for future expansions? What role does this kind of analysis play in your work environment and/or your home environment? If you were trying to add a new service to your facility, what ratios would you use to determine if it would be profitable and how long until it

Depreciation and Amortization Problem Set

1. Bay, Inc. purchased a new machine for $50,000 on March 28, 2004. The useful life was expected to be eight years and then they would sell it to the junk yard for $2,000. The machine was sold for $34,000 on October 2, 2008. Assume no depreciation in the year of purchase and a full year of depreciation in the year of sale.

Fieldf/x, TPS, and Investment Decisions

1. What are the advantages that Fieldf/x provides for the owners of professional baseball teams? What are the advantages that Fieldf/x provides for professional baseball players? Are there disadvantages for the players? Support your answers. 2. Discuss the role of a TPS in a service organization. 3. Discuss how the Internet ca

Collection experience improved or declined over period

The CFO has been evaluating his firm's short-term financial management practices. Below are its uncollected balance percentages for the most recent quarter as well as for the previous year's percentages. Month Most Recent Year Previous Year Jan 12% 18% Feb 22%

Calibrated Manufacturing: breakeven, incremental analysis, risk

Calibrated Manufacturing makes an electronic component that is in great demand. The component sells for $20 each. Calibrated's current capacity is 10,000 units per week. For the last few months, however, the company has been receiving new orders at a rate of 14,000 units per week, and now has a substantial backlog. The compa

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

Convertible Preferred Stock - Pechstein Corporation

Pechstein Corporation issued 2,000 shares of $10 par value common stock upon conversion of 1,000 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share. The common stock is trading at $25 per share at the time of the conversion. Record the conversion of the preferred stock. See the

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,

Portfolios in the Stock Market

Select securities to construct a portfolio for Investing INR 20 Lakhs in Indian stock market. State the objective of selecting the securities.

Hedging against Falling Stock Prices

Suppose you own 100 shares of Dell Inc. stock. Today it is trading at $15 per share, but you're worried Michael Dell might retire again, causing the price to go down. How would you protect yourself against his retirement, assuming you don't want to sell the shares today?

Preferred Stock: Pechstein Corporation

Pechstein Corporation issued 2000 shares of $10 par value common stock upon conversion of 1000 shares of $50 par value preferred stock. The preferred stock was originally issued at $60 per share.The common stock is trading at $25 per share at the time of conversion. Record the conversion of the preferred stock.

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

Investment and Time Value of Money

An investment with total costs of $10,000 will generate total revenue of $11,000 for the year. Management thinks that since the investment is profitable, it should be made. Do you agree? What additional information would you want? If funds cost 12 percent, what would be your advice to management? Would your answer be different i