1. How could loss control approaches be used to reduce the risk of injury to construction company employees and a medical transporter by car? 2. What can be done when the cost of insurance is too high? 3. What are some disadvantages of increased risk retention?
12. Piedmont Enterprises currently pays a dividend (D0) of $1 per share. This dividend is expected to grow at a 20 percent per year for the next 2 years, after which it is expected to grow at 6 percent per year for the foreseeable future. If you require a 15 percent rate of return on an investment of this type, what price do you
Please obtain industry standards for ratios for Microsoft and two of its competitors, Oracle Corp and Apple.
The standard deviation of the market index portfolio is 20%. Stock A has a beta 1.5 and residual standard deviation of 30%. A) What would make for a larger increase in the stock variance, an increase of 1.5 in its beta or an increase of 3% in its residual standard deviation? B) An inventor who currently holds the market i
I need help with developing the rudiments of a financial plan. The questions are relative to an etiquette and image consultant, one-owner, corporation type business. 1.Explain the financial requirements for the venture, including the amounts needed for cash flow and profitability. 2.Create a cost of operating report for your
There are few, if any, real companies with negative betas. But suppose you found one with B=-,25. A. How would you expect this stock's rate of return to change if the overall market rose by an extra 5%? What if the market fell by an extra 5%? B. You have $1 million invested in a well-diversified portfolio of stocks. Now
Hayacinth Macaw invests 60% of her funds in stockI and the balance in stock J. The standard deviation of returns on I is 10%, and on J it is 20%. Calculate the variance of portfolio returns, assuming: A. the correlation between the returns is 1.0 B. The correlation is .5 C. The correlatio is 0.
A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100. Probability .10, .50 and .40. Payoff is $500, 100 and 0. net Profit is $400, 0 and -100. What are the expected cash payoff and expected rate of return? Calculate the variance and stan
Chapter 4 in the Finance: Applications and Theory textbook by Cornett, Adair, and Nofsinger provides an introduction to the main concepts of the time value of money for a single cash flow amount. These concepts are important in finance, because cash flows analyzed in most of finance occur at various periods of time, and adjustme
Make recommendations: on the following two companies: Pep Boys O'Reilly Automotive Inc From an investor's perspective of whether one should buy/sell/remain neutral on both stocks. From a lender's perspective of whether or not a short-term and/or long-term loan should be made to either company. From a manager's perspecti
Electronic Fraud and Cyber Attacks: In an increasing wired world, what should Corporation of the world do to protect the Financial Privacy of Individuals?
The Current Exchange Rate between Japan and U.K. is One British Pound Equals 150 Japanese Yen. The one year Annual Interest Rate in Japan is 1%, while the Annual Interest Rate in U.K. is 4%. Given this, what would you expect the Forward Rate to be between Japanese Yen and British Pounds, one year from now?
Explain the Greek and the European crisis and its cause and effects.
Using Excel QM show and solve the following problem: The dean of Western college of business must plan the school's course offerings for the fall semester. Student demand makes it necessary to offer at least 30 undergraduate and 20 graduate courses in the term. Faculty contracts also dictate that at least 60 courses be offered
I need information in regards to Carolina medical center in North Carolina and planning and budgeting and explaining on the topics below. http://www.carolinashealthcare.org/ 1. Describe the overall planning process and the likely components of CHS's financial plan. Be sure to include discussion as to how you arrived at an
Risk Free rate 4% and the expected return on the market portfolio is 12%. Using the capital asset model: (a). What is the risk premium on the market? (b). What is the required return on an investment with a beta of 1.5? (c). If an investment with a beta of .8 offers an expected return of 9.8%, does it have a positive NPV?
Dr. Howard He is planning for his golden years. He will retire in 20 years, at which time he plans to begin withdrawing $50,000 annually to pay for his living expenses during retirement. He is expected to live for 30 years following his retirement. His financial advisor thinks he can earn 7% annually before his retirement and 10
Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%. Please show calculation.
The U.S. market has an expected return of 12% and a standard deviation of 22%. An index mutual fund that matches the Morgan Stanley Europe, Australia, and Far East Index (EAFE) has an expected return of 14% and a standard deviation of 30%. The U.S. market and the EAFE fund have a correlation coefficient of 0.5%. Kramer was con
You are working for McDonalds Corporation. You want to do a Country Risk Assessment for Iran for the current year to decide whether you should operate a Franchise there. Explain how you would proceed? What data would you need; How would you use them?
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?
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
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,
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 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. 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
Define translation exposure and transaction exposure. How do these risks affect a manufacturing organization considering expansion to India or Brazil.
What is the amount of a loan required to increase total liabilities by 10%? (See the attachment).
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
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.