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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

The INS and OUTS of Campaign Finance

Review the information provided on the Federal Election Commission's website before opening the assessment: http://www.fec.gov/pages/brochures/pubfund.shtml. You will find answers to the survey there: http://www.zoomerang.com/Survey/?p=WEB228UJCY65PR . Grading for this assignment is pass/fail. You must answer 100% of the questio

Loan factors

An effectively organized loan application reduces the time spent waiting for a response to a loan request. According to John Nelson III, SCORE counselor in Rhode Island and vice president of a major U.S. bank, "in about 80 percent of the cases, the formal request is not complete" (U.S. Small Business Administration, n.d.) What f

Debt to Equity Ratios

Why does the cost of equity increase with an increased use of debt in the capital structure?

Components required to start-up a company's loan package

Imagine you are a loan officer presented with a loan package from a start-up company and one from a well-established company. What specific components would you require in the start-up company's loan package to approve the requested loan? How do your lending requirements for the start-up company differ from those for the establi

order point, safety stock

1.For the following scenario, find the order point (R) needed to provide 95% service level: Average daily demand = 29 units. Standard deviation of daily demand = 5.7 units. Lead time = 3 days (constant). Be sure to display any important intermediate calculations necessary to find your answer. 2.How much safety stoc

Treasury bills (induce to buy)

The following pattern for one-year Treasury bills is expected over the next four years: Year1, 3% Year2, 5% Year3, 6% Year4, 7% a. What return would be necessary to induce an investor to buy a two-year security? b. What return would be necessary to induce an investor to buy a three-year security? c. What return would be n

Managerial Finance Questions

Can someone please provide information on the following: (1) how working capital can impact a company's finances (2) what the company can do to handle short-term debt that is coming due (3) explain current ratio, discuss its implications, and describe a good current ratio (4) describe briefly how businesses make cap

Excel: exponential smoothing forecast

** Please refer to the attached file for the following question ** Develop a forecast for years 2 through 12 using exponential smoothing with ? = .4 and a forecast for year 1 of 6. Plot your new forecast on a graph with the actual data and the naive forecast. Based on a visual inspection, which forecast is better? Please ref

Stakeholders as Competitors

It is hard to believe a competitor is a stakeholder. Isn't the goal of competition to win and perhaps even dominate the market? If so, how can a company have an interest in the on going health of their competitors (except to beat them?) How is a competitor a stakeholder?

The Legality of Price Fixing

A farmer has an agreement for a fixed price of a product that is being sold in interstate commerce for a competitive price. Is this legal? Doesn't the trade commerce have regulations against this type of action?

The Impacts of Ford's Bailout Refusal

I am really struggling with this assignment. I need some direction on how to go about this and what I should use. Evaluate how the refusal of the federal government's bailout fund may have impacted Ford's financial performance negatively and positively.

A bank deposit paying simple interest at the rate

1) A bank deposit paying simple interest at the rate of 5%/year grew to a sum of $3100 in 10 months. Find the principal. 2) RETIREMENT FUNDS: Five and a half years ago, Chris invested $10,000 in a retirement fund that grew at the rate of 10.82%/year compounded quarterly. What is his account worth today? 3) SAVINGS ACCOUNTS

Importance of Beta

What is the importance of beta? Would a prudent investor want to invest in a stock with a high beta, low beta or somewhere in between? Why?

Production Costs - Samco Manufacturing

Samco Manufacturing has always purchased a certain component part from a supplier on the East Coast for $50 per part. The supplier is reliable and has maintained the same price structure for years. Recent improvements in operations and reduced product demand have cleared up some capacity in Samco's own plant for producing comp

Problems with Measuring Cost

What types of problems may arise when measuring cost for short-run cost estimation? Why are they considered problems and what are possible resolutions?

What is Driving Oil Prices

Case Readings: Anderson, R and J. Buol (2005). "What is Driving Oil Prices." The Regional Economist. The Federal Reserve Bank of St. Louis. Retrieved from: http://www.stlouisfed.org/publications/re/2005/a/pages/oil_prices.cfm 1. How do changes in supply and demand effect oil prices? 2. Which two countries are the largest c

Corporations, stocks, and dividends

I need assistance in answering these questions: - Why does a company choose to form as a corporation? What are the steps required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business? - Why is preferred stock referred to as preferred? What are some of the features added