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    Break-even analysis

    Airport Connection provides shuttle service between four hotels near a medical center and an international airport. Airport Connection uses two 10 passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is shown below. Fare revenues (1,440 fares) $36,000

    Calculating the per capita cost of each police officer

    The average cost of employing each police officer per year if $30,000 for a small twon. The current population of the town is 1,000. Calculate the per capita cost per police officer. Explain why the increase in population can result in increased per capita taxes, even though the per capita cost per police officer declines with p

    Although appealing to more refined tastes, art as a collection

    Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby's sold a Edgar Degas' bronze sculpture at an auction for a price of $10,311,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,377,500. What was his annual rate of

    Calculating Risk-Adjusted Performance Using Sharpe

    See the attached file. 1. Consider the following three investments. Assume that T-bills yielded a constant 3 percent. Calculate the risk-adjusted performance of each of the funds, using the Sharpe measure. Year A B C 2003 5% 4% 6% 2004 0% 1 1 2005 5 4 10 2006 8 10 18 2007 5 5 7.

    Mr. Darden sold his house for $165,000. He bought it for $55,000 nine years ago. What is the annual return on his investment? (Convert this problem into a present value yield, by using the table in the back of your text. Show all work/calculations/formulas)

    Mr. Darden sold his house for $165,000. He bought it for $55,000 nine years ago. What is the annual return on his investment? (Convert this problem into a present value yield, by using the table in the back of your text. Show all work/calculations/formulas)

    Leverage Ratios and EPS

    Earnings per share (EPS) for Valcor, Inc. are $3 at a sales level of $2 Million. If Valcor's degree of operating leverage is 2.0 and its degree of combined leverage is 8.0, what will happen to EPS if operating income increases by 3 percent?

    Evaluating financial health of two banks

    A security analyst calculates the following ratios for two banks. How should the analyst evaluate the financial health of the two banks? Bank A Bank B ROE 22% 24% ROA 2% 1.5% Equity Multiplier 11X

    Finance: Carl's Custum Candles Capacity Requirements

    See the attached file. 1) Carl's Custom Candles manufactures small batches of candles for local retail shops. Carl has established a relationship with 3 local shops, and needs to determine how many candle making machines to purchase. Details of the customers' order requirements are shown below. Analyze Carl's capacity require

    Finance Question

    Your great aunt Matilda put some money in an account for you on the day you were born. This account pays 8% interest per year. On your 21st birthday the account balance was $5,033.83. The amount of money that your great aunt Matilda originally put in the account is closest to: A. $1,200 B. $800 C. $600 D. $1,000

    Calculating Bank Fees on a Loan

    You take a loan on $500,000 for 30 years at the annual nominal interest rate of 6% compounded monthly. The loan installments also have to be paid monthly. The bank's APR is 6.7%. What is the amount of the fees the bank is charging you?

    Principles of Knowing Your Customer

    ?What are the general principles of KYC (Knowing your customer)? ?Who should be verified, and what is meant by low risk and high risk when it comes to customers and products? Discuss at least three low risk and three high risk characteristics or types of each. ?When should it be done and how? Include the different data s

    Coca-Cola Company and PepsiCo Stock Comparison

    See attached file. The CEO of your organization has asked your Learning Team to analyze the companies listed in Problem BYP13-4, of Financial Accounting: Tools for Business Decision Making. Resources: Problem BYP13-4 (Ch. 13) of Financial Accounting: Tools for Business Decision Making; and Section 4.2 (Ch. 4) of Communicat

    Prepare forecasts of the income statement, balance sheet

    See the attached file for additional data for Kodak. INCOME STATEMENT For Year Ended Dec. 31 (in million) 20x6 20x5 20x4 Net sales.............................................$13,234 $13,994 $14,089 Cost of good sold....................................8,670

    How you would consider financial analysis

    How you would consider financial analysis. What are some of the characteristics of income statement, balance sheet and cash flow statement - from the perspective of the story told by each statement? How does accrual accounting come into play in statements? It is true that certain 'sets' of ratios tend to be used more by cre

    Factor Models: Systematic Risk of the Stock

    see attachment 3. Factor Models. Suppose a factor model is appropriate to describe the returns on a stock. The current expected return on the stock is 10.5 percent. Information about those factors is presented in the following chart: Factor ? Expected Value

    Continuous Compounding, Forward Rate, Value of FRA

    These questions are adapted from Fundamentals of Futures and Options Markets, 7th ed., John C. Hull. Chapter 4 The 6-month, 12-month, 18-month, and 24-month zero rates are 3.00%, 3.50%, 4.00%, and 4.50% with semi-annual compounding. Q I: What are the rates with continuous compounding? Q2: What is the forward rate fo

    Finance PV, FV, Nominal versus effective rate

    a) Explain why the sign we use for present value or future value variables is important when we use Excel or a financial calculator to solve time value of money problems? Also explain how it work (i.e., tackle the "how" as well as "why). b) True or False - Nominal versus effective rates. Let's make sure we all understand th

    Investment policy statement for the Franklin's retirement planning

    Mr. Franklin is 35 years of age, is in excellent health, and pursues an active life style. He is married and his spouse is the same age and is in good health. Both Mr. and Mrs. Franklin are school teachers who earn about $60,000 per year. Both of them plan to retire at age 62. Each of them will receive pensions equal to 65%

    Bonds Finance Annual Interest Income

    There's a commercial bank is only answer I loan portfolio $100 million for 30 year fixed-rate mortgages with annual payments and who's only liabilities are single 90,000,000 1 yr certificate of deposit which gets reissued every year at the market rate of interest.  the 30 year mortgages have an average interest rate of 6% and C

    Average Daily Trading Volumes for the Sample Groups of Stocks

    You have assembled the following information about the daily trading volume for the following two sample groups of stocks during a recent five-day period. The Second Sample was randomly selected. Stock Symbols & Daily Trading Volume - First Sample Days 1 2 3 4 ? 5 MKC

    Potential Problems with an Agency Relationship

    The recent experience of the U.S. financial sector with the so called subprime crisis and the attendant attempts at financial market reform have centered to some large extent on the behavior of executives in those firms who have had alleged conflict of interest relationships. In financial theory we call this "the agency problem"

    Financial Management: Define terms and their roles in finance

    Resource: Financial Management Define each term below and identify their roles in finance. ? Finance ? Efficient market ? Primary market ? Secondary market ? Risk ? Security ? Stock ? Bond ? Capital ? Debt ? Yield ? Rate of return ? Return on investment ? Cash flow Format your paper consistent with APA gu