Imagine you work as a business consultant. Companies and governmental entities hire your firm to make recommendations for streamlining business operations, such as to make companies more fiscally sound. You are asked by your supervisor to present at a local business conference on the subject of financial sustainability. Your aud
Practice Question 2-6 In its most recent financial statements, Newhouse Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings were $780 million. How much in dividends was paid to shareholders during the year? Practice Question 2-7 The Talley Corporation had a taxable i
I wonder if reverse stock splits are very common. I haven't heard of those very often. Why would a company want to do this? Also to be listed on a stock exchange stocks generally must maintain a certain minimum price per share. What is the threshold? Reverse stock splits do occur. They are not nearly as common as... D
Helen recently received a credit card with a nominal interest rate of 21 percent. With the card, she purchased some new clothes for $250. The minimum payment on the card is only $20 per month. If Helen makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card? a. 11.4 months b. 14.2 months c. 19.9 months d. 8.0 months e. The card will never be paid off.
Helen recently received a credit card with a nominal interest rate of 21 percent. With the card, she purchased some new clothes for $250. The minimum payment on the card is only $20 per month. If Helen makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card? a. 11.
A standard criticism of investment banking firms is their approach to valuation which includes determining a price for an offering and then manipulating the input variables into conventional valuation techniques to justify the arrived price. If that is so, wouldn't use of heuristics rather than more sophisticated valuation proc
Discuss the data as found on the financial statements that are used to calculate free cash flow (FCF) for a firm. Graduate Level
Discuss capital formation as it relates to the business form and the life cycle of businesses. How would the business form used by the manager/owner impact the firm's ability to raise capital? Graduate level
Unit 5 Discussion Board Details: The Discussion Board (DB) is part of the core of online learning. Classroom discussion in an online environment requires the active participation of students and the instructor to create robust interaction and dialogue. Every student is expected to create an original response to the open-ende
There are three securities in the market. The following chart shows their possible payoffs: State Probability of Return on Return on Return on Outcome Security1 security2 Security3 1 .15 .25
** Please see the attached file for an Excel formatted copy of the problem description ** Calculate contribution margin, contribution margin ratio break-even units and break-even dollars, and answer the following: Decision Guideline Phonetronix (CVP) Analysis 3-Jul-11 Proposa
Kimberly is a self-employed taxpayer. She recently spent $1,000 for airfare to travel to Italy. What amount of the airfare is she allowed to deduct in each of the following alternative scenarios? a. Her trip was entirely for personal purposes. b. On the trip, she spent eight days on personal activities and two days on busi
Risk in the Production Cycle. Topic: Design the internal controls for inventory and production. Study Level: Master in Accounting.
Hedging is often referred to as a means of dealing with risk. Describe some techniques that fall under this concept that could help you deal with an anticipated price increase. Describe the pros and cons of hedging versus not hedging the risk. Use an example where possible.
The manager of a life insurance company is trying to decide what annual premium to charge a group of policyholders, each of whom has just received his or her 40th birthday. A check of mortality tables indicates that, for every million persons born 40 years ago, 3percent die, on average, sometime during their 40th year. If the co
What are the linkages among financial decisions, return, risk and stock value? Why are these linkages important? How does the financial manager incorporate these as s/he manages the assets and liabilities of the firm?
Please discuss the following question and use an example if possible. Question: Define control risk and explain the role of control risk assessment in audit planning.
Problem #3 The December 31, 2009 balance sheet of Quayle Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Uncollectible Accounts of $33,000. During 2010, the following transactions occurred: sales on account $1,400,000; sales returns and allowances, $50,000; collections from customers, $1,150
Question 1: Breaker Company purchased a new piece of equipment on July 1, 2010 at a cost of $300,000. The equipment has an estimated useful life of 5 years and an estimated residual value of $25,000. The current year end is 12/31/10. Breaker records depreciation to the nearest month. The equipment is a Class 8 asset with a ma
Lincoln Savings and Loan Association 1. Arthur Young was criticized for not encouraging Lincoln to invoke the substance-over-form principle when accounting for its large real estate transactions. Briefly describe the substance over form concept and exactly what it requires. What responsibility, if any, do auditors have when a
Determine the Correlation of Determination (r squared), Correlation coefficient "r" (rho symbol = ), Determine (calculate) the Covariance (formula given above) between GM and S&P500
Recall that the correlation coefficient is a single value that captures the direction and extent of linear association between 2 random variables (securities). The formula for measuring covariance is equal to the correlation coefficient (rho) multiplied by the standard deviation for security1 multiplied by the standard deviation
Explain why maturity matching principle is important when assessing the use of long-term versus short-term financing, and how a mismatch can be costly to an organization.
Which of these three companies is the best to invest in? E-Bay, the Walt Disney Company, or Costco? Discuss each company using fundamental analysis and/or technical analysis and choose the best one (using current data). Please list any references you used.
What is the meaning of 'mitigate the risk' in the modern financial world? Explain.
Taylor Systems has just issued preferred stock. The stock has a 12% annual dividend and a $100 par value and was sold at $97.50 per share. In addition, flotation costs of $2.50 per share must be paid. a. Calculate the cost of the preferred stock. b. If the firm sells the preferred stock with a 10% annual dividend and nets $9
When you look at designing tests you have to first look at what objectives are you're trying to achieve. For example if you look at cash in banks you know that there are two main objectives: Rights and Existence. The first refers to the right to own without restriction. There are accounts that can be pledged as collateral for a
Using the table identify the "crossover point" AND briefly describe the significance when the crossover rate is greater than the cost of capital for mutually exclusive projects. Why is the IRR method less reliable when evaluating mutually exclusive projects? Discount Rate(%) NPV of Project A NPV of Project B 0
Determine the liquidity position of Blackwood Company with the provided financial information. 1. Determine the liquidity position of Blackwood Company with the provided financial data Blackwood Company Balance Sheets as of December 31, (all numbers in thous
Complete the comprehensive problem that uses the financial statements of Intel for 2008 to illustrate financial ratio analysis.
Ratio Analysis -Comprehensive problem 2008 data. A) Compute the following profitability measures for the year ended December 27,2008: 1. Return on investment , based on net income (perform a DuPont analysis). 2. Return on equity, based on net income. 3. Price/earnings ratio. Use $14.18 as the year-end market price. 4.
Write a briefing memo to convince the management to invest in a new HRIS. Imagine you are the head of the HR department in a company. Your department plans to propose an HRIS initiative to management. As the department head, you will prepare this briefing memo. Make sure you include the following points in the memo: What is
For a recent year, Wicker Company had the following sales and expenses: Sales $14,700 Food and packaging $4,133 Payroll 3,700 Occupancy (rent, depreciation, etc.) 4,327 General, selling, and administrative expenses 2,100 $14,260 Income from operations $440 Assume that the variable costs consist of food and p