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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

Cost of Internal Equity Capital and External Equity Capital

1.The common stock for Grapevine Plumbing Company currently sells for $40 per share. If a new issue is sold, the flotation cost is estimated to be $7 per share. The company had earnings of $2.00 per share four years ago. Next year, the company expects to have earnings of $3.22 per share. The company maintains a constant dividend

Loan Amortization

Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments. As the CFO of Messineo, LLC you must prepare a report of the pertinent information in a short summary for the CEO. a. Calculate the annual end of year loan payment amou

Balance Sheet, Income Statement, or Both

Do the following categories of ratios get their information from the balance sheet, the income statement, or both? a. Liquidity Ratios b. Profitability Ratios c. Turnover Ratios d. Capitalization Ratios.

Corporate vs. Shareholder Conceptions

Referring to the case file attached, can somebody guide me through the following question: The case describes two conceptions of managers' responsibilities (on the ninth page). Which do you favour: the shareholder conception or the corporate conception? Does your stance make a difference in this case?

Finance Question: How to de-bias a forecaster's opinion

Question 1 Say the level of the market as measured by the Dow Jones Industrial Average is currently at 12,000. A forecaster has made a prediction of 13,300 for the level of the market in one year, along with a 95% confidence interval whose lower bound is 12,500 and whose upper bound is 14,500. You know from experience that

Have you worked for minimum wage? Would you favor increasing minimum wage?

Have you ever worked for the minimum wage? If so, for how long? Would you favor increasing the minimum wage by a dollar? By two dollars? By five dollars? Explain your reasoning. Explain how your answer might change from today's high unemployment vs. two or three years from now when the unemployment rate has returned to about 5%.

Complete amortization schedule. Allen Corp: Classify transactions

See attached file for format of the tables. Problem 1. Villarente Company issued 5-year $200,000 face value bonds at 95 on January 1, 2012. The stated interest rate on these bonds is 9%, and the effective interest rate is 10.33%. Use the effective interest rate method to complete the amortization schedule below. Cash P

Given the expected return on a portfolio, calculate the standard deviation.

You own a portfolio that has 35% invested in asset A, and 65% invested in asset B. Asset A's standard deviation is 12% and asset B's standard deviation is 18%. The correlation coefficient between the two assets is -0.7. The expected return on the portfolio is 13%. What is the portfolio standard deviation? 1. 8.5% 2. 9.3%

Role of Global Organizations and Consortiums

Identify a non-North American project in the global arena that was funded by a consortium of public and private financial institutions. Discuss the nature of the consortium and evaluate the role of each player. Assess the impact of the consortium's involvement on the project.

Finance: Evalulate Jane's Three Possible Investments in Stock

Jane is considering investing in three different stocks or creating three distinct two-stock portfolios. Jane considers herself to be a rather conservative investor. She is able to obtain forecasted returns for the three securities for the years 2010 through 2016. The data are as follows: Earning before depreciation, interest

Sunflower Incorporated: Changes and Implementations

Using appropriate terms and theories, analyze the case provided. The analysis should answer the following questions: - How would you determine whether Albanese managed the pricing and purchasing changes at Sunflower successfully? Do you think the changes were implemented successfully? Why or why not? - What might Albanese

short term and long term financing

I need help figuring this out. Short-term and long term financing Biochemical corp required $500,000 in financing over the next three years. The firm can borrow the funds for three years at 10.60 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead,

Recommendations for setting admission prices

12) The local space museum has hired you to assist them in setting admission prices. The museum's managers recognize that there are two distinct demand curves for admission. One demand curve applies to people ages 12 to 64, whereas the other is for children and senior citizens. The two demand curves are:

Choosing the Most Important Financial Statement

Pretend that you are potentially either an investor, vendor, creditor, or employee (just pick one) of a company - healthcare related, or otherwise. As such, which Financial Statement for that company is the most important to you? Why?

The Process of Underwriting

Explain the purpose of underwriting and describe the steps in the underwriting process. Which step do you think is most important and why?

Collins System Inc. Financing Plans

Collins System inc., is trying to develop an asset financing plan. The firm has 300,000 in temporary current assets and 200,000 in permanent current assets. Collins also has 400,000 in fixed assets. Construct 2 alternative financing plans for the firm. One of the plans should be conservative, with 80 percent of assets financ

Strategic Corporate Finance: Time Value of Money for Apple Inc.

Time value of money calculations for Apple Inc bonds Suppose Apple is selling a bond that will pay you $2000 in one year from today. Keep in mind that if Apple has financial difficulties in one year you might not get your full $2000 back. Given that a dollar one year from now is always worth less than a dollar today, you most

Investment Portfolio Endowment Choices

Ferris, an investment management firm located in New York, has recently been retained as the endowment fund manager for a small Midwestern college. The firm is attempting to determine a best investment portfolio for its client and has reduced overall consideration to six alternative investments to add to the college portfolio. I

Equity - Middleton Clinic

Middleton Clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2006. One year later, at the end of 2007, the clinic had $575,000 in assets and $380,000 in equity. What was the clinic's dollar growth in assets during 2007, and how was this growth financed? San Mateo Healthcare had an equity ba