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Do CFOs Really Make Good CEOs

Do you think finance departments are the best place to train future CEOs? Provide two actual examples of CFOs of publicly-traded companies who became CEOs of publicly-traded companies within the past 5 years. Do these individuals have the CPA and/or CFA designations?

Finance Question-The commando motorcycle company

The commando motorcycle company has decided to become decentralized and split it's operations into two divisions. Motor and Assembly.Both divisions will be treated as investment centers. The motor division is currently operating at it's capacity of 30,000 motors per year Direct Materials = $30 Direct Labor = 50 Variable Ma

Finance Problem-Niesen Corporation

Niesen Corporation has two major business segments-consumer and commercial. Data for the segment and for the company for August appear below: Sales Revenues, consumer = $690,000 Sales Revenues, Commercial = $310,000 Variable Expenses, consumer = $290,000 Variable expenses, commercial = $164,000 Traceable fixed expenses,

Finance- The Litton Company

The Litton Company has established Standards as follows: Direct Material: 3 pounds per unit @ $4 per pound = $12 per unit Direct Labor: 2 hours per unit at $8 per hour = $16 per unit Variable Manufacturing Overhead: 2 hours per unit @$5 per hour = $10 per unit Units Produced = 600 units Direct Material Used = 2000 poun

MooreHouse Clinic Expenses

MooreHouse Clinic uses client visits as it's measure of activity. During December, the clinic budgeted for 3,700 Client visits, but it's actual level of activity was 3690 client visits. The clinic has provided the following data concerning the formulas used in it's budgeting and it's actual results for December. (see the attac

Most publicly traded companies are analyzed by numerous analysts

Most publicly traded companies are analyzed by numerous analysts. These analysts often don't agree about a company's future prospects. In this exercise you will find analysts' ratings about companies and make comparisons over time and across companies in the same industry. You will also see to what extent the analysts experience

Long-term debt financing

Assume Venture Healthcare sold bonds that have a 10-year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. Suppose that two years after the bonds were issued, the required interest rate fell to 7%. What would be the bonds value? Suppose that two years after the bonds were issued, the required interest rat

Washburn Guitars: Using Break-Even Points

In Washburn's factory, what is the break-even point for the new line of guitars if the retail price is $349? Using Washburn guitars, explain shifting the demand curve versus moving along the demand curve. Discuss the factors that affect the demand for Washburn guitars.

Healthcare finances reimbursement

I would like pros and cons of the following reimburesments: Prospective-payment, Cost-reimbursement, Discounted-charge, Flat-rate reimbursement. How does each of the reimbursement system affect the departments of health care companies and healthcare providers.

Cardinal Paz Corp.

Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions. Feb. 1, 2010 Sharapova Company common stock, $100 par, 200 shares $37,400 April 1 U.S. government bonds, 11%, due April 1, 2020, interest payabl

Long Term Investment Analysis

A company is planning to invest $75,000 (before taxes) in a personnel training program. The $75000 outlay will be charged off as an expense by the firm this year (Year 0). The returns estimated from the program in the forms of greater productivity and less employee turnover are as follows (on an after-tax basis): Years 1-10:

Small Investors in the Stock Market

You work for a large investment firm and recently wrote a position article on your firm's approach to investing for the small investor, titled "Investing Is for the Little Guy." The article now appears on your company's Web site. It has, interestingly enough, generated e-mail responses from potential clients, and your firm is as

Mortgage Loans and Monthly Payments

6) You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments a) if the interest rate is 16% per year what is the amount of the monthly payment? Answer: PMT = 1,358.89 b) if you can afford to pay 1500 per month and need to borrow 100,000 how many months would it take to pay off the mortgage?

Systematic Risk and Stock Price

AKA's stock is currently selling for $11.44. This year the firm had earnings per share of $2.80 and the current dividend is $0.68. Earnings are expected to grow 7% a year in the foreseeable future. The risk-free rate is 10 percent and the expected market return is 14.2 percent. What will be the effect on the price of AKAs' stock

The price elasticity of demands

For the product or service that your employer provides to market (or a product offering of your choice from a company of interest), discuss in detail whether you believe the demand for that product or service is relatively elastic or relatively inelastic. What is the price elasticity of demand and what in general determines t

Research design -Gasoline prices

As we have recently experienced, the instability in the price of gasoline has created sudden increases in prices. Mostly these increases are from changes in the supply, but can the gas companies pass all the increases along to the consumer? Some of the gas companies would like to discover or test the elasticity of demand, or at

Maximizing Shareholder Return

Maximizing shareholder returns usually implies that the firm must also satisfy customers, employees, suppliers, creditors and other stakeholders. First, rank stakeholders as to expected risk and return and then rank stakeholders as to their importance to the organization's success. Explain your ranking differences and/or similar

Corporate Insiders & Outside Investors

Do empirical studies support or reject the notion that corporate insiders earn abnormal profits on their trades? What about outside investors who mimic their trades? What forms of market efficiency, if any, are supported by these studies?

Sensitivity Analysis vs. Scenario Analysis

Explain the difference between sensitivity analysis and scenario analysis. Offer an argument for the proposition that scenario analysis offers a more realistic picture of a project's risk than does sensitivity analysis.

Calculating Retirement Savings

A person plans to retire today and expects to begin living off their retirement savings beginning one year from now and continuing until death. Identify and explain key variables that will influence the amount of income that can be taken from retirement saving annually until death. How will increasing and decreasing these key va

Financial Analysis of Nissan

Provide a summary of financial analysis for Nissan for 2010 and 2011: Current Ratio Quick Ratio Cash Ratio Total Debt Ratio Debt Equity Ratio Times Interest Earned Return on Equity Return on Total Assets Net Profit/Sales Expense/Sales Asset Turnover Price Earnings Ratio

Additional Financing Required - Jones Company

Jones Company sales last year were $25 million and its total assets were $8 million. Accounts payable were $2 million and common stock and retained earnings were $5 million. Jones sales are forecasted to be $30 million this year, earnings after tax are expected to be 3% of sales, and dividends of $250,000 are expected to be paid

Additional Financing Needed With Nonproportionate Increase

ICU has current assets of $800,000 and net fixed assets of $1,400,000. The firm expects its sales to climb 25 percent next year from its current level of $3,500,000. ICU's only current liability is accounts payable of $1,200,000. If both current assets and current liabilities will increase proportionately with sales, what additi

Calculating Mutually Exclusive Projects

Trail Guides, Inc., is currently evaluating two mutually exclusive investment. After doing a scenario analysis and applying probabilities to each scenario, they have determine that the investments have the following distributions around the expected NPVs. Profitability NPV A NPV B 15% -$

healthcare budgets and management structure

As a member of the finance team, you have been asked to prepare the upcoming yearorganizational budget for your dietary department at Krona Community Hospital. After reviewing specific data, internal input, and external input from various sources, you find that the executive managerment team would like the gudget to reflect the

Stock Valuation Question

The stock valuation approach discussed in the text uses discounted cash flows concepts to calculate the theoretical value of a stock. The most popular academic approach is the dividend growth model. If a stock does not pay a dividend, this model cannot be used. What might be an alternative method or approach to valuing a s