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Corporate Finance a. Calculate the dollar amount of acceptable accounts receivable collateral held by Springer Products. b. The bank reduces collateral by 10% for returns and allowances. What is the level of acceptable collateral under this condition? c. The bank will advance 75% against the firms acceptable collateral (after adjusting for returns and allowances). What amount can Springer borrow against these accounts?

1) Springer Products wishes to borrow $80,000 from a local bank using its accounts receivable to secure the loan. The banks policy is to accept as collateral any accounts that are normally paid within 30 days of the end of the credit period, as long as the average age of the account is not greater than the customers average pay

Commons Goals of Financial Managers

Please help answer the following questions. Provide at least 200 words in the solution. What are some common goals for financial managers? How do goals of a non-profit organization's financial manager differ from goals of a for-profit organization's financial manager?

Medicaid Program State Comparison

Search the internet for a Medicaid program and select the state in which you reside and another state for comparison. Complete the attached matrix describing how your state's Medicaid program is administered. Included in the matrix is: The oversight agency; Funding for the program; The state's Medicaid fiscal agent and

Public Stewardship Paper

Public Stewardship Paper Locate an Article on fiscal management summarize findings including reccommendations. Also include the importance of responsible public stewardship.

Finance Excel Problem - Pistachio, Inc.

Pistachio, Inc. is thinking of building a bakery to introduce French cookies, so-called macarons, to the Newark market. A preliminary marketing study, which cost $75,000 and which was completed last year, showed a significant demand for macarons in the Newark area. The bakery is expected to last for 25 years. Its initial cost is

InBev: One of the World's Largest Beverage Producer

InBev, one of the world's largest beverage producer, marketer and distributor made a very significant expansion internationally in 2008/9. What did they do? How did they increase their "global footprint"? Was it successful up to this point? What has happened since then in terms of the footprint? How's the "marriage' these days?

Journal entries to record salaries and wages plus payroll tax expense

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2011, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base. Salaries $ 452,000 Federal income taxes to be withheld 90,400 Federal unemployment tax rate 0.80% State unemployme

financial management

The Robinson Company has the following current assets and current liabilities for these two years: 2010 2011 Cash and marketable securities $ 50,000 $ 50,000 Accounts receivable 300,000 350,000 Inventories 350,000 500,000 Total current assets $700,000 $900,000 Accounts payable $200,000 $250,000 Bank loan 0 150,000 Accru

You own Stock in Lewis Striden

You own stock in the Lewis-Striden Drug Company. Suppose you had expected the following events to occur last month: a. The government would announce that real GNP had grown 1.2 percent during the previous quarter. The returns of Lewis-Striden are positively related to real GNP. b. The government would announce that inf

Finance: Fair Markets and Assessing Risk

An important aspect of the decision-making process is the consideration of risks associated with the options in an opportunity set. Measuring the risk of available options can drastically alter the decisions made by an organization's senior management team. Are markets like the NYSE, NASDAQ, and CME fair markets? Why? Why is

Stock: The Rago Corporation

The Rago Corporation had the following stock outstanding from 2009 through 2012: Preferred stock: $100 par value, 8 percent cumulative, 5,000 shares authorized, issued, and outstanding Common stock: $10 par value, 100,000 shares authorized, issued, and outstanding The company paid $30,000, $30,000, $94,000, and $130,000 in di

Great Depression and Moral Hazard

How an understanding of adverse selection and moral hazard can help us better understand financial crises. The greatest financial crisis faced by the United States was the Great Depression, from 1929 to 1933. Go to This site contains a brief discussion of the factors that led to the

Realignment, restructuring and lateral shift

Discuss the following terms related to structure and staffing: realignment, restructuring and lateral shift. Choose the term you believe to the most detrimental to the organization and staff. Why?

Finance: Sensitivity Analysis

You need to decide how to invest a graduation gift of $1000. The annual rate of return is given in the next table for each of the three different types of investments and three different states of the economy. Recession Stable Economy Expansion Investment A 2.5% 2.5%

Risk-Neutral Probability Models

Please see attached Show that the risk-neutral probabilities in the Cox-Ross-Rubinstein model are given by equations (6.15). ------------------------------------------------------------------------------------- (See attached pages for relevant information from the textbook) 188 Chapter 6 is preferable to taking

Investment Questions.

Question 1 The primary role of organized security exchanges is to raise capital (money) for firms. Answer TRUE FALSE Question 2 In an "underwriting" the investment banker guarantees the firm selling the securities a specified amount. Answer TRUE FALSE T Question 3 In a "best

Explain the issue of related party transactions

Explain the issue of related party transactions not being arm's length transactions and the risk that transactions with related parties might not be valued at the same amount as they would be with an independent third party. Is it simply because the actual amount of the transaction would be higher with a third party?


After you answer each question you must also explain whether your answer affects corporations and individuals positively or negatively. Please number your answer to match each question number. GENERAL FRAUDULENT PRACTICES 1. What measures do you have in place to help your organization fight fraud? 2. How, if at all, does yo

Evaluating financial health of two banks

A security analyst calculates the following ratios for two banks. How should the analyst evaluate the financial health of the two banks? Bank A Bank B ROE 22% 24% ROA 2% 1.5% Equity Multiplier 11X

Finance: Carl's Custum Candles Capacity Requirements

See the attached file. 1) Carl's Custom Candles manufactures small batches of candles for local retail shops. Carl has established a relationship with 3 local shops, and needs to determine how many candle making machines to purchase. Details of the customers' order requirements are shown below. Analyze Carl's capacity require

Finance Question

Your great aunt Matilda put some money in an account for you on the day you were born. This account pays 8% interest per year. On your 21st birthday the account balance was $5,033.83. The amount of money that your great aunt Matilda originally put in the account is closest to: A. $1,200 B. $800 C. $600 D. $1,000

Principles of Knowing Your Customer

?What are the general principles of KYC (Knowing your customer)? ?Who should be verified, and what is meant by low risk and high risk when it comes to customers and products? Discuss at least three low risk and three high risk characteristics or types of each. ?When should it be done and how? Include the different data s

Coca-Cola Company and PepsiCo Stock Comparison

See attached file. The CEO of your organization has asked your Learning Team to analyze the companies listed in Problem BYP13-4, of Financial Accounting: Tools for Business Decision Making. Resources: Problem BYP13-4 (Ch. 13) of Financial Accounting: Tools for Business Decision Making; and Section 4.2 (Ch. 4) of Communicat