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Purchase of New Car Options: Debt vs. Equity

You are considering the purchase of new car. You have negotiated with the salesperson at the dealership and you can purchase the vehicle for $30,000. You have $8,000 that you can use as a down payment. Prior to going into the dealership, you have set an absolute limit of $375 for the amount of monthly payments that you can m

Arguments for & against financial earnings projections

Suppose that Jimmy Cliff, a financial writer, recently stated that "there are substantial arguments for including earnings projections in annual reports and the like. The most compelling is that it would give anyone interested something now available to only a relatively select few - like large stockholders, creditors, and atten

Assessing Auto Loans

1. Search the internet and locate the sale price for the car of your dreams. 2. For the purpose of this exercise, you can ignore sales tax. 3. Determine the annual interest rate for your loan using information from a local bank or an internet ad. Reduce this rate by 2%. This is r, but expressed as a decimal. 4. Decide t

Additional Procesing Decision with a Production Constraint

Mega Chemical Company produces ZylexA and a related product called Zylex B. Zylex B, which sells for $15.00 per gallon, is made from a base of ZylexA plus additional ingredients. It takes 25 minutes to manufacture a gallon of ZylexA and an additional 10 minutes to manufacture a gallon ZylexB. ZylexA sells for $9.00 per gallon. T

Considerations in corporate finance

A) What are your thoughts regarding if ethics can be taught? Can we teach people right from wrong from a business ethics perspective? B) What are some questions an associate should ask when considering a particular action that impacts a firm? C) What are some things firms can do to promote ethical behavior and help limit

2-2 Entries for note payables

On August 31, Jenks Co. partially refunded $180,000 of its outstanding 10% , note payable, made 1 year ago to Arma State Bank by paying $180,000 plus $18,000 interest (having obtained the $198,000 by using $52,400 cash and siging a new 1-year $160,000 note discounted at 9% by the bank) 1. Make the entry to record the partial

Using Financial Ratios to Make Recommendations and Improvements

Choose a public company, and present findings from your financial analysis in a report. Your report must include the following: Describe why the company was chosen. Give a description of the operating profit margin. Give a description of the asset turnover. Give a description of the equity multiplier.

Role of the Federal Reserve

Discuss why financial institutions are heavily regulated, with specific focus on their ability to increase or reduce the money supply. How does the Federal Reserve currently regulate financial institutions in the United States, and what effect has such regulation had on the U.S. financial services industry? What are the benefits

Amortization of Premium

Assume the same set of facts for Stacy Company as in Problem 10-2 except that the market rate of interest of January 1, 2008, is 8% and the proceeds from the bond issuance equal $10,803. Required 1. Prepare a five year table (similar to Exhibit 10-5) to amortize the premium using effective interest method 2. What is the to

Make-or-Buy Decision

Make-or-BuIncremental Analysis - Make or Buy Decision y Decision. Please see attachment.

Allocated Cost and Opportunity Cost.

Allocated Cost and Opportunity Cost. Binder Manufacturing produces small electric motors used by appliance manufacturers. In the past year, the company has experienced severe excess capacity due to competition from a foreign company that has entered Binder's market. The company is currently bidding on a potential order from Dac

Public Finance

Why is it difficult to predict the effect of a comprehensive income tax on saving? Explain an individual's choice between consumption and saving.

financial health of a company

If you were to get a physical from your Doctor and they only took your blood pressure prior to stating that you are in good health, would you be concerned? If you have noticed in your readings starting in Chapter 3 that there has been explanation of the methods by which you could determine the financial health of a company. Name

Break even

Michael Bordellet is the owner/pilot of Bordellet Air Service. The company flies a daily round trip from Seattle's Lake Union to a resort in Canada. In 2010 the company recorded an annual income before taxes of $8,083 although that included a deduction of $70,000 reflecting Michael's "salary". Price $360

Excel spreadsheet buildings

You can purchase a new building within the city limits for $525,000. The city will offer a special incentive reducing the price by $25,000. The city will finance the building over a period of 20 years at a 5.25% APR Should you pay the loan off 5 years early the city will rebate you an additional 10% of the purchase price

Corporate Fiance

1) Float and weighted average delay: your neighbor goes to the post office once a month and picks up two checks, one for $17,000 and one for $6,000.The larger check takes four days to clear after it is deposited; the smaller one takes five days. a) What is the total float for the month b) What is the average daily float c) Wh

engage in illegitimate political behavior

You are the sales manager of a specific territory in Missouri for a company that manufactures highly specialized electrical parts. Your boss, the head of sales for Missouri, is being temporarily moved to California for a few months during which time the sales chief of Kansas would be handling his responsibilities. Before leaving

Total risk

What constitutes total risk, and how is it measured? Of the two components of total risk, discuss which one investors can eliminate? Explain the remaining risk, and how is it measured?

High-Low Profit Equation

See the attached file. PROBLEM P4-9 - High-Low, Profit Equation Rhetorix, Inc. produces stereo speakers. Each unit (a pair of speakers) sells for $900 Below is information on production/sales and costs for 2010. "Production and Sales in Units" "Production Costs" "Selling and Admin.

Expected Payoff Calculation

Use the information for the question(s) below. JR Industries has a $20 million loan due at the end of the year and under its current business strategy its assets will have a market value of only $15 million when the loan comes due. JR is considering a new much riskier business strategy. While this new riskier strategy can be

Soft Money/Financial Security as a Kickback

When Does Financial Support Become a Kickback? Consider the case of what is referred to as soft money within the securities industry. According to critics, a common practice in the securities industry amounts to little more than institutionalized kickbacks. "Soft Money" payments occur when financial advisor receive payments f

Preparing an Opportunity Cost Analysis

RLJ Technologies provides custom servics to its loyalty customers from Monday through Friday. David Lee, the co-owner, believes it is important for the employees to have Saturday and Sunday off to spend with their families. However, he also recognizes that this policy has implications for profitability, and he is considering st

Wal-Mart and Industry Comparison with Ratio's

I am seeking 800 words on the subject below, It must include current 2011 and 2012 referrences, referrences are not included in the 800 word count. Subject: What is Wal-Mart's position in the industry including a comparison of the company to its competitors. Good metrics to determine a company's position in the industry a

Public Finance

Analyze various methods of government financing in their budget, and provide a synthesis of the strengths and weaknesses of these methods, as well as their long term effects.