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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

Long Term Financial Decisions

Sun Coast Savings Bank was founded in l97l in Safety Harbor, Florida, which is just across the bay from Tampa. Safety Harbor is very popular with people who work in Tampa but do not wish to live within the city itself. Per-capital income in Safety Harbor is substantially above the national average; in fact, the town has a rep

Designing an Operating Mechanism

As a leader, your job is to define the operating mechanisms for your organization, use them to align the teachable point of view (TPOV), and create positive emotional energy. While you may not be in a top leadership role, you can still make the most of the operating mechanisms you have and create new ones. Before creating or

3.22 Sosa Corporation recently reported an EBITDA

3.22 Income statement: Sosa Corporation recently reported an EBITDA of $31.3 million and $9.7 million of net income. The company has $6.8 million interest expense, and the corporate tax rate is 35 percent. What was the company's depreciation and amortization expense? Amount

Find the intrinsic value of the stock

Find the intrinsic value of the stock of company ABC using the following data: risk free rate = 5% market risk premium = 8% Expected market return = risk free rate + market risk premium beta = 0.9 ROE = 12.5% dividend payout ratio = 0.22 Dividends for the next 4 years are expected to be .59, .67, .76, .85. Subsequent

Key financial information of Abercrombie and Fitch

ABERCROMBIE AND FITCH HENNES & MAURITZ Prepare a table for a period of three years showing some key financial information for the two companies listed above. Include four items from the balance sheet, four items from the income statement, and four items from the statement of cash flow for each company.

How has PCAOB impacted Waste Management

How has PCAOB impacted Waste Management? Give the functions and responsibilities of the Public Company Accounting Oversight Board (PCAOB) and how has PCAOB impacted Waste Management? Write an annotated bibliography of the 12 or more resources you have identified. Describe each resource and assess its value in 1 to 2 paragrap

Cost calculation: markup price, contribution margin and breakeven volumes.

Diamond Machine Technology makes a tool for sharpening the blades of pruning sheers and grass clippers. The company has invested $250,000 in developing this sharpener, which it would like to make back in the first year. This tool is about the size of a piece of chewing gum and costs $3 to make. Fixed costs for the sharpener are

raising funds

Being a financial manager of a large firm, you need $70 million over the next year. What are the more likely alternatives for you to borrow or raise $70 million? What are the issues that would surround your final decision of where and how to raise these funds? Compare and contrast the various options available to you in the

What are the different ways a company can raise their products' prices?

During periods of overdemand, companies can either ration their product or raise their prices. What are the different ways a company can raise their prices? Note: APA format is required for references and in-text citation; and one of reference sources should be the book "Marketing Management (14 edition)", Philip Kotler and K

Diversification

we assumed that you have $100,000 in your bank account that can be invested. Suppose you invested your $100,000 in the shares of the Nike Inc. (NKE) (http://www.nikebiz.com/; http://money.cnn.com/quote/quote.html?symb=NKE). Based on your current situation, your portfolio cannot be considered a "diversified portfolio" because you

Inflation and Monetary Policy

Zero Inflation? Most economists and financial analysts generally agree that inflation is a bad thing and should be kept to a minimum. But should inflation be zero? This is an entirely different matter subject to much debate. Read the articles below and do some of your own research in the Cyber Library and/or Internet

Vessels Corporation - The earnings per share of common stock is what number? Why?

5. Vessels Corporation's net income for the most recent year was $2,532,000. A total of 200,000 shares of common stock and 200,000 shares of preferred stock were outstanding throughout the year. Dividends on common stock were $3.80 per share and dividends on preferred stock were $1.25 per share. The earnings per share of common