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Finance Problems

1. Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one more technician. Each new patient is expected to bring in $3,000 per year in additional revenue, with variable costs estimate

Pricing

Allied Laboratories is combining some of its most common tests into one-price packages. One such package will contain three tests that have the following variable costs: Disposable syringe $3.00 $3.00 $3.00 Blood Vial 0.50 0.50 0.50 Forms 0.15 0.15 0.15 R

Entries: Loan Between Young Company & Dobson Industries

Young Company lends Dobson Industries $30,000 on January 1, 2010, accepting a 9-month, 12% interest note. If Dobson dishonors the note and does not pay it in full at maturity but Young expects that it will eventually be able to collect the debt, which of the following entries should most likely be made by Young Company? a.ca

A deposit of $350 earns the following interest rates

see attachment A deposit of $350 earns the following interest rates: • 8 percent in the first year, • 6 percent in the second year, and • 5 percent in the third year. What would be the third year future value? The time line for this problem is: Period 0 8% 1 6% 2 5% 3 years Cash Flow -350

Finance Problems: Risk Free Rate of Return

Find attached finance problems I appreciate helping and solving in advance. 1. The risk free rate of return is 8 percent; the expected rate of return on the market is 12 percent. Stock X has a beta coefficient of 1.3, an earnings and dividend growth rate of 7 percent, and a current dividend of $2.40. If the stock is selling f

Company's Key Financial Data Compared with Corresponding Ones

See the attached file. The Ivory Furniture Company (Financial Analysis) The Ivory Furniture Company is a manufacturer of home and office furniture and such household hardware items as curtain rods, picture hangers and the like. The company was formed in the early 1990's as a consolidation of four smaller furniture suppliers

Compute the Cash Collections from Sales for Each Quarter

The sales budget for your company in the coming year is based on a 20 percent quarterly growth rate with the first-quarter sales projection at $150 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, -$16, -$8 and $12 million, respectively. Generally, 50 percent of the sales can be col

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

Hypothesis Testing for Coca Cola

Based on Coca Cola, compute the company's daily stock returns over the past year. The null hypothesis is that the stock's daily return over the past year is equal to 0 percent. The alternative hypothesis is that the stock's daily return over the past year is not equal to 0 percent. Make a decision on whether or not the sto

How do you calculate the annual scholarship payment?

A scholarship provider has $500,000 which she will invest today to fund a scholarship forever. She expects to earn 8% on her money each year. If she wants to begin paying out the scholarship starting today, what will the annual scholarship payment be? $40,000.00 $37.037.04 6,750,000.00 $36,800.00

Calculating the monthly mortgage payment

You are purchasing a home and plan to take out a 25 year mortgage loan for $300,000. The interest rate on your loan will be 10% compounded monthly. What will the monthly payments on your mortgage be? $2,726.10 $227.18 $33,050.42 $1,672.88 $3,085.84 $2,754.20

What is the current value today of a stock?

What is the value today of a stock that will pay a dividend of $1.00 one year from now, a $1.50 dividend in year two and a dividend of $2.00 three years from now if its expected price in year three is $25? The stock has a required rate of return of 8%. $22.35 $23.64 $5.02 $36.95 $4.28 $22.37

Business/Finance: Stock Exercises

1. Which of the following statements is CORRECT? a. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio. b. If you were restricted to investing in publicly traded common stocks, yet you wanted to minimize the riskiness of your portfolio as measured b

Article Critique

This assignment requires that you review an article from one of the journals listed below* that relates to a topic of interest in organizational theory. The article should not be more than five years old. Select an article that has sufficient content that you can write a review of two pages in length. References require. Li

Elasticity and the Minimum Wage...

What are your thoughts about minimum wage legislation? What kind of a price-control policy is this? Who gains? Who loses? Are there alternatives to this legislation for achieving the same policy objectives? What role do demand and supply elasticities play in determining outcomes?

Apply the payback method.

A 4000 dollar investment with the following cash flow for two alternatives Year Invest X Invest Y 1 1000 1300 2 800 2800 3 700 100 4 1900 5

The answer to Investment Policy

Do you think working with an investment policy may prevent investors from optimizing their returns? Is it beneficial to investors? Why?

What is external funds need (EFN) for REM Co?

The most recent financial statements for REM Co. are shown below: Income Statement Sales 400 Costs 200 Taxes 50 Net Income 150 Balance sheet Assets 1200 Total 1200 Debt 600 Equity 600 Total 1200 Assets and costs are proportional to sales. Debt is not. A dividend of $90 was paid, and

Maturity Premium

Which of the following statements is correct? a. The maturity premiums embedded in the interest rates on U.S. Treasury securities are due primarily to the fact that the probability of default is higher on long-term bonds than on short-term bonds. b. The pure expectations theory of the term structure states that borrowers g