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Net Benefits: Airline Profits

A new tax is levied on airline profits to finance improvements in the nation's airports. The current market rate of interest is 8%. However, airline profits are subject to a 50% tax. A cost-benefit analysis calculates the percent return to the investment in new air facilities to be 12%. Will net benefits from resource use increa

Finance problem

Nevada Company provided the following information regarding its only product: skateboards. (No inventories at beginning or end of year) Direct materials used $200,000 Direct labor $80,000 Fixed overhead $180,000 Fixed sel

Finance question

You have decided to become a rock concert promoter and have made arrangements with Jerry Jones (and Arlington) to rent the new Texas Stadium for one night for a cost of $1,000,000 plus a $7 per ticket "participation" fee. (He keeps parking and concessions, but handles all security, personnel, clean-up, liability etc). The stadiu


How is inflation today in the United States? In the Southeastern United States? How is inflation measured?

float, collections, financial planning, and investing

1. What is float? What are its four basic components? Which of these components is the same from both a collection and a payment perspective? 2. What is a collection policy? What is the typical sequence of actions taken when by a firm when attempting to collect an overdue account? 3. What is the financial planning process?

Your provided investment included some stocks from Hong Kong, India and US

Your provided investment included some stocks from Hong Kong, India and US, but I would like my equity investment to stay in Hong Kong, US and France financial market. Therefore, please provide 3 stocks from each of the three trading market (Hong Kong, US and France). But please give background and fundamentals information of

Health care finances and process

Identify the three main issues, in your opinion, that are associated with the new health care reform from a health care manager's perspective.

Public Finance and Legislative Procedures

As of 2009, many state governments were experiencing fiscal problems, and tax revenues were falling short of planned expenditures. What factors can influence state revenue collections and expenditures? Why must state governments cut spending or increase taxes when revenues fall short of expenditures? Give examples of the types o


Jake Smith opened his Balinese coffee shop business in downtown Boise on January 1st 2010. On December 31st, 2010, he sat down with his accountant to figure out how his business had done in its first year and heaved a sigh of relief when his accountant reported that his EBT came to $20,000. Revenues, at $1,050,000 looked good. H

Calculate the covariance between the returns of Stock A and Stock B

Portfolios with more than one asset: Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 11.75 percent and 18 percent, respectively. Probabi

Characteristics of an Efficient Portfolio

1.) What are characteristics of an efficient portfolio? How are a portfolio's return and standard deviation determined?  How must assets be evaluated to achieve a minimum variance portfolio? Explain your answer. 2.) What are examples of active and passive portfolio management techniques? Why would a portfolio manager purs

Geometric Average Return

You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year Beginning of year price # shares bought or sold 2005 $50.00 100 2006 $55.00

Returns Vs Risk

You are comparing stock A to stock B. Given the following information, which one of these two Stocks should you prefer and why? Rate of Return if State Occurs State of the Economy Probability of State of the Economy Stock A Stock B Bo

Anticipating Covenant Violation

Foot Locker, Inc., reported an $18 million loss on sales of $1,283 million for the quarter ended August 4, 2007. The quarterly financial filling (10-Q) also contained this warning for investors and creditors. Source: Foot Locker Inc. Form 10-Q for the quarter ended August 4, 2007. "Under the Company's revolving credit and

Risk Management

True or False 1. Pure risk exists when there is uncertainty as to whether loss will occur. 2. If two companies have the same number of exposure units and experience the same average number of losses, then the degree of risk for each company tends to be equal. 3. Risk avoidance is a conscious decision not to expose oneself o

Director of Athletics at Big Time State University (BTSU)

As the Director of Athletics at Big Time State University (BTSU), you have been approached by the president of BTSU about building a new state-of-the-art on-campus arena. She wants to know your ideas regarding the financing of the new facility. What will you tell her?

Intangible Amortization For Palmiero Company

Intangible Amortization For Palmiero Company a) Palmiero purchased a patent from Vania Co. for $1,500,000 on January 1, 2010. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2010. During 2012, Palmeiro determined that the economic benefits of the patent would not last longer tha

Financial analysis of Exxon Mobile, Merck & Co, Target, and Verizon

Select ONE of the four companies for analysis. Exxon Mobil Corp. (XOM) - Merck & Co. Inc. (MRK) - Target (TGT) - Verizon Communications Inc. (VZ) Go to the Yahoo!Finance Web site. Enter the stock ticker symbol or name of the company you wish to analyze in the input field next to Get Quotes at the top of the page and

Funding a Business

If someone believes they can easily double the size of a business within 2 years, but the financial forecast shown in the business plan show the business can not generate enough cash to fuel the growth at that pace and shows that an extra $550k in external capital is needed to meet the goals and objectives they have set for the

PepsiCo and Coca-Cola Financial Analysis

You will assume the role of a financial analyst and create a full analysis between Coca-Cola and PepsiCo. Please explain all calculations and ensure that you answer each and every question thoroughly. You will need to locate Coca-Cola and PepsiCo, Inc annual financial statements for 2007. These can be easily obtained through the

Staffing and Cost Analysis

Your team of employees and you are working on a big project for the hospital's chief financial officer (CFO). Together, you will develop a system to justify the full-time employees of the laboratory department. Decide how many hours during the week the department must be staffed to fully operate. Calculate, using one of t

finance math

Suppose it is May 1985 and the current value of the Greek drachma is Dr 1 = $0.006369, but the expected spot rate 90 days hence is Dr 1 = $0.005980. What is the value of a sales order of Dr 50 million sold on 90-day terms?

Stock metric

If you had to rate Facebook (FB) as a Buy, Hold, or Sell. Discuss the metrics and methodology used in making your determination.

Economic Variables for Finance Manages

Assume that Nike Inc. (NKE) is expanding globally. One way to expand globally is to buy shares of other companies, while other way is to open up new branches. But both options are not risk free. How important is it for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals? Are

Adding Value Through Budgeting

Adding Value Through Budgeting Budgeting is an important part of an organization's overall planning. Through budgeting, each part of an organization's structure can be identified for decision making and control. A reasonable budget can allow an organization to allocate resources and provide a plan and direction for the orga