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Solving for the Present Value and Future Value

Answer these problems and show your work: 1. Calculate the present value of the following lump sums: a. $100,000 to be received five years from now with a 5% annual interest rate b. $200,000 to be received 10 years from now with a 10% annual interest rate 2. Calculate the future value of the following lump sums: a. $100

Personal Finance and Investment Opportunities

Pam, 43 Josh, 45 Children ages 16, 14, and 11 Monthly income $4,900 Living expenses $4,450 Emergency fund $5,000 Assets $262,700 Liabilities $84,600 With three dependent children, the Brocks are assessing t

Cash Flows, Growth Rate and EPS

1.8 For a given share price of a firm's stock, the lower the EPS the lower the price-earnings ratio. true or false? 1.9 Cash flows from operating activities relate to the buying and selling of long-term assets. true or false? 1.11 Growth rate: Petry Corp. is a growing company with sales of $1.25 million this ye

Applying Capital Budgeting and Risk Evaluation

Reply to the following: In choosing a particular project, there is a lot of financial planning that must take place. In the Marine Corps, we also use a planning process in developing plans for appropriate action. This process consists of six parts: problem framing, the course of action development, the course of action war-

Portfolio Return and Beta

Jamie Peters invested $100,000 to set up the following portfolio 1 year ago. (see attachment for table). a. Calculate the portfolio beta on the basis of the original cost figures. b. Calculate the percentage return of each asset in the portfolio for the year/ c. Calculate the percentage return of the portfolio on the basis of

The Calculation of Individual Costs and WACC

Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weights: 40% long-term debt, 10% preferred stock, and 50% common stock equity (retained earnings, new common stock, o

Marketing Plan for a Product

Choose a company, a product/service that a company would launch, and a specific geographic area to do that. Develop a Marketing Plan. Develop the situational analysis, the market analysis, competition analysis and SWOT matrix.

Ford Company Capital Budgeting Project Mini-case

The market value of Fords' equity, preferred stock and debt are $7 billion, $3 billion, and $10 billion, respectively. Ford has a beta of 1.8, the market risk premium is 7%, and the risk-free rate of interest is 4%. Ford's preferred stock pays a dividend of $3.5 each year and trades at a price of $27 per share. Ford's debt trade

Present Value of an Annuity - Compounding and Payment Periods

A 5-year annuity of ten $5,300 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. 1. If the discount rate is 12 percent compounded monthly, what is the value of this annuity five years from now? 2. If the discount rate is 12 percent compounded monthly, what is the value three y

Finance Integrative Case

See attachment to review but only need the 2 below: f. Track Software paid $5,000 in dividends in 2015. Suppose that an investor approached Stanley about buying 100% of his firm. If this investor believed that by owning the company he could extract $5,000 per year in cash from the company in perpetuity, what do you think t

Property and health insurance decisions

Life situation: Pam 36 Josh 38 Three kids ages (9,7,4) Financial Data: Monthly income-43,000 Living expenses-4,075 Assets-50,850 Liabilities-99,520 The Brocks are assessing their health insurance coverages. Since Josh's current employer offers him only 30 days of sick leave, they need to consider this factor when as

Jerry Rice and Grain Store Exercise

Jerry Rice and Grain Store Exercise Jerry Rice and Grain Stores has $4,000,000 in yearly sales. The firm earns 3.5 percent on each dollar of sales and turns over its assets 2.5 times per year. It has $100,000 in current liabilities and $300,000 in long-term liabilities.

Common stock value for Dennis and Dennis Research Inc

The common stock of Denis and Denis Research, Inc., trades for $60 per share. Investors expect the company to pay a $3.90 dividend next year, and they expect that dividend to grow at a constant rate forever. If investors require a 10% return on this stock, what is the dividend growth rate that they are anticipating?

Capital Budget Appraisal to Purchase New Equipment

A competitive hospital maintains current equipment and purchases new in order to stay current with the latest technology. If you were evaluating the capital budget performance of a hospital what factors would you consider justifying taking on more debt to purchase new equipment for a surgical unit?

Application: Investing in the Stock Market

Reply to the following: I started investing in stock 2 years ago and I have always wondered how bonds work, but never took the time to research on them. I have seen how many local governments use bond to raise money for their municipality, but I have always seen that many people lose money. Bonds are used to borrow money from

Investment: Bond and Stock Valuation

Reply to the following: This week's discussion is another area that I lack familiarity and direct life application. I have done simple evaluations of investment worth, but nothing scientific. The closest application of any of the rules would be the payback rule. For example, purchasing a good car can be a payback evaluation.

Interest Rates and Bond Prices

Reply to the following: What is the relationship between Bonds and interest rates? Interest rates and bond prices have what is called an "inverse relationship" which means that when one goes up, the other goes down and vice versa of course though this relation might not seem obvious at first, the reasons are fairly simple.

Yield To Maturity of the Bond

Each of the bonds shown in the following table pays interest annually. Bond A $1,000 Coupon interest rate 9% Years to maturity 8 Current Value $820 Bond B $1,000 Coupon interest rate 12% Years to maturity 16 Current Value $1,000 Bond C $500 Coupon interest rate 12% Years to maturity 12 Current Value $560 Bond D $1,000 Cou

Bond value and time: constant required returns and interest rate

Pecos Manufacturing has just issued a 15-year, 12% coupon interest rate, $1,000-par bond that pays interest annually. The required return is currently 14% and the company is certain it will remain at 14% until the bond matures in 15 years. a. Assuming that the required return does remain at 14% until maturity, find the value

Nominal Interest Rates and Yield Curves

Nominal interest rates and yield curves A recent study of inflationary expectations has revealed that the consensus among economic forecasters yields the following average annual rates of inflation expected over the periods noted. (Note: Assume that the risk that future interest rate movements will affect longer maturities mo

Mortgage Comparison in Real Estate

Part I: Select a piece of real estate (residential, commercial, warehouse, land). Any number of resources can be used (www.realtor.com is one option). You will need to include a listing sheet/link with your submitted assignment. Part II: Determine a down payment. A standard down payment is 20%, however you may offer justifi

Future Value for IRA Investment

Problem 1: Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA). The IRA will earn a 10% return over the next 40 years. a. If Hal makes annual end-of-year $2,000 de

Building a Balance Sheet Using Ratios

Complete the balance sheet of Flying Roos Corporation. Please refer to the attached document. Flying Roos Corporation Balance Sheet as of December 31,2011 Assets: Liabilities

Comparing Industry Ratios and Turnover

Trademark corps financial manger collect the following information for its peer group to compare its performance against that of its peers. Ratios trademark peer group dso 33.5 days 27.9 days total assets turnover 2.3 3.7 inventory turnover 1.8 2.8 quick ratio .6 1.3 a. Explain how trademark is

Adjusted Trial Balance, Income Statement, and Memo

You are just starting an internship at a small public accounting firm. You receive a memo from the intern supervisor that outlines the assignment. - Include one excel folder with different tabs for the adjusted trial balance, the income statement, and the balance sheet. A multi-step income statement and a classified balanc

Planning and budgeting

1-Why are planning and budgeting so important to an organizations success? 2-Briefly describe the planning process. Be sure to include summaries of the strategic, operating and financial plans. 3-Describe the components of a financial plan. Consider the following hospital data:

Present and Future Value Relationship

Please explain and support your reactions to the following questions: •What is the relationship between Present Value and Future Value? •What are the calculations involved with PV and FV? •How can you apply these concepts to a personal or business situation you are familiar with - please explain and support with terms

Break-Even / Fixed Cost Analysis on Food and Beverages

Food and Beverages at Southwestern University Football Games Southwestern University (SWU), a large state university in Stephenville, Texas, 30 miles southwest of the Dallas/Fort Worth metroplex, enrolls close to 20,000 students. The school is the dominant force in the small city, with more students during fall and spring th