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Finance

Operating vs. Financial Leverage

What is the difference between operating and financial leverage? What is the importance of assessing operating vs. financial leverage?

Advanced Taxation: Stock, type of entity, basis, distributions

Sarah owns 45% of the stock in a C corporation that had a profit of $260,000 in 2011. Kevin owns a 45% interest in a partnership that had a profit of $260,000 during the year. The corporation distributed $30,000 to Sarah, and the partnership distributed $30,000 to Kevin. 1. How much income does Kevin report for 2011? 2. Ho

Financial Analysis Problem of Acme

Please help with solution / explanation for the following problem: Acme Manufacturing is a decentralized corporation. Divisions are treated as investment centers. In recent years, Acme has been running about 11% ROA for the corporation as a whole, and has a cost of capital of 9%. One of their most profitable divisions is

Increase in service level for newspaper stand operating cost change

Suppose that a newspaper stand is operating under the following conditions; paper cost $.4, have no salvage value, and sell for $.80. If the salvage value is increased by$.1, what is the increase in service level? a) .5 b) 1 c) 0.07 d) 0 e) unable to determine given only the above information.

Performance Rating for Northeast Airline Gate Agent

A Northeast Airline gate agent, Chip Gilliken, gives out seat assignments to ticketed passengers. He takes an average of 50 seconds per passenger and is rated 115% in performance. A typical agent is expected to take __ seconds to make the seat assignments (round your response to one decimal place).

Expected Return Portfolio Stocks

Consider the following information for three stocks, A,B,and C, and portfolios of these stocks. The stocks' returns are positively but not perfectly positively correlated with one another ... the correlation coefficients are all between 0 and 1 Stock Expected Standard Deviation Beta

Professional Skills Essay

Describe situations that you have been through which would be appropriate to apply on these two professional skills: 1. Managing Conflict Skills 2. Negotiations Skills Where possible, try to relate all skills in a 'business / financial situation' as my major is Finance. The assignment structure should be as below:

Evaluate the after tax income from two dividend options.

You purchase CSH stock for $40 and it is now selling for $50. The company has announced that it plans a $10 special dividend. Assuming 2008 tax rates, if you sell the stock or wait and receive the dividend, will you have different after tax income? If the capital gains tax rate is 33% and the dividend tax rate is 42%, what is

Playing the stock market: Why would a good stock drop by $3.00 in one day?

Why would a good stock drop by $3.00 in one day? What do you tell your client if the market drops again tomorrow and his stock drops with it? Are some people emotionally unsuited to handle the stresses of the ups and downs of the stock market? Should some people stay out of the stock market? If so, what are their invest

MBA Risk Concepts

Risk that can be eliminated through diversification is called ______ risk. a. unique b. firm-specific c. diversifiable d. all of the above Asset A has an expected return of 20% and a standard deviation of 25%. The risk free rate is 10%. What is the reward-to-variability ratio? a. .40 b. .50 c. .75 d. .80

Whistleblowing Destroying Careers

What would you do if you know that your "whistleblowing" will start a process that will destroy many careers (potentially your own included), the layoffs of many friends and coworkers when the scandal exploded, the loss of many savings and retirement monies. Please provide justification.

Preferred stock

Is preferred stock more like bonds or common stock? Explain.

Constant- growth model for Metatrend's stock

Metatrend's stock will generate earnings of $6 per share this year. The discount rate for the stock is 15%. and the rate of return on reinvested earning also is 5%. a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm:(i) 0%; (ii) 40%,

Estimating the current price of given stock

Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share. a. If the market expects a 10% rate of return on Trend- Line, at what price must it be selling? b. If Trend- Line's earnings per share will be $8, what part of Trend-L

Given the current state of the economy and our financial markets, it it more desirable for firms to raise money through debt or through equity at this time? Corporations almost always need more funds and capital in order to keep running, so not raising funds is not an option. So is debt or equity the best option at this time for a typical corporation given the difficulties of our financial markets?

Given the current state of the economy and our financial markets, it it more desirable for firms to raise money through debt or through equity at this time? Corporations almost always need more funds and capital in order to keep running, so not raising funds is not an option. So is debt or equity the best option at this time for

Estimating the current value of given stock..

Currently a firm is earning $3.80 per share (EPS=$3.80)and has a dividend payout ratio of 70% today and in the foreseeable future. Starting next year EPS is expected to grow by 30% for three years and 20% for the next three years. Starting in year seven the EPS growth rate will gradually decline over three years to 8% and

Accounting and Finance: Balance Sheet and Income Statement

#1. (Balance sheet and income statement) Johnson's Scuba Co. has a weird accountant who reported the balance sheet and income statement items in alphabetical order. Please put these items in the correct format for a balance sheet and income statement for Johnson's Scuba Co. for the year ending January 31. All of the data are in

Harley Davidson Motorcycle X and Y

Harley Davidson sells motorcycle X and Y. Motorcycle X sells for $10,000, has variable cost (labor and material) of $2,000, and requires 10 hours of use of machinery to produce. Motorcycle Y sells for $12,000, has variable costs (labor and material) of $8,000, and requires 2 hours of use of machinery to produce. Harley Davidson

Planning for Early Retirement

USE AN EXCEL SPREADSHEET You are planning for an early retirement, so you decide to invest $5,000 per year, starting at age 27. You plan to retire when you can accumulate $1M. If the average rate of return on your investments is 9.25%, how old will you be when you accumulate the $1,500,000.

Excel Functions - Sumif, Sumifs and Dropdowns AIS

1. Open the excel file and click on the data worksheet. Use the SUMIF function to calculate the total amount of sales in dollars (A/R Change) for each of the four types (Blue, Red, etc). This should match these totals. August Sales in Dollars by Type Blue $33,090.89 Green $36,701.39 Red $37,061.09 White $43,480.92