Why should a financial manager have an integrated understanding of the 5 basic finance functions? Why is the corporate governance function considered a finance function?
1. Compute the margin, turnover, and return on investment (ROI) in 2005 for each of FedExâ??s four business segments (Hint: page 99 reports total segment assets for each business segment.) 2. Assume that FedEx established a minimum required rate of return of 15% for each of its business segments. Compute the residual inco
Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise. Recently, Emily and Richard have invested in Faster Distribution Company Incorporated, a small publicly trad
What is the difference between operating and financial leverage? What is the importance of assessing operating vs. financial leverage?
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
16- A calendar-year corporation has negative current E&P of $(500) and accumulated positive E&P of $1,000. The corporation makes a $600 distribution to its sole shareholder. Which of the following statements is true? 17- Grand River Corporation reported taxable income of $500,000 in 2010 and paid federal income taxes of $170,
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
When the insured and the insurer disagree on whether a loss is covered or not, should the insured hire an attorney? Please explain.
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.
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).
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
Provide WIP financial controls for collection, disbursement and approval of funds process in writing to be used as a standard operating procedure / showing clear line of accountability.
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:
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
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
A firm issued a preferred stock which matures in 30 years and carries a maturity value of $45. What is the value of the preferred share?
A firm issued a preferred stock which matures in 30 years and carries a maturity value of $45. The dividend is $4 per year over the 30 year period. The current market discount rate for this stock is 8%. What is the value of the preferred share?
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
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.
Please find the attachment.
A leading broker has advertised money multiplier certificates that will triple your money in nine years; that is, if you buy one for $333.33 today, it will pay you $1,000 at the end of nine years. What rate of return will you earn on these money multiplier certificates?
Is preferred stock more like bonds or common stock? Explain.
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%,
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
Please give at least three lessons that can be learned from the stock market crash of 2002 in the applied business world? What was the significance of the stock market crash of 2002 to managerial finance?
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
#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
Why should real estate investors by real estate in the current market and why shouldn't they use banks or hard money lenders?
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
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.