Suppose that oil prices hit an all time high of $100 a barrel, driving U.S. inflation up to 7% per year. At the same time, increasing foreign competition has generated unacceptably high levels of unemployment in the U.S. You are the Chair of the Federal Reserve. What do you suggest?
Question....if I have 4 companies: Company A - market value of stock is $7900 with a beta of .88 Company B - market value of stock is $1800 with a beta of 1.1 Company C - market value of stock is $11,900 with a beta of .60 Company D - market value of stock is $5,500 with a beta of 1.2 Will the information above offer a
ACME Company's fiscal year ends on December 31. At the end of the first quarter on March 31, ACME owes $40,000 on a vehicle loan that matures in three years. In each of the next four quarters, ACME will be making quarterly payments of $3,000, of which $500 is interest. The amount of the loan balance that should be classified on
At December 31, Amy Jo's Appliances had adjusted account balances in accounts receivable of $311,000 and $970 (debit) in the allowance for uncollectible accounts. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. Bad debt expense fo
Earnings per share for 2010 had been 22.8 pence, and Andrew Osborne expects this to increase to 25 pence per share for 2011. He states that this increase in earnings per share is in line with market expectations of the company's performance. The pattern of recent dividends, which are paid each year on 31 December, is as follow
How would you explain the concept of 'price elasticity of demand'?
3. An investor has a stock portfolio. Each stock (listed below) in the portfolio has the following market values and betas. Stock Market Value Beta Coca-Cola $8,085 0.89 Cisco Systems $1,900
7. Under the accrual basis of accounting, which of the following statements is correct? A. Cash must be paid before expense is recognized. B. Since the depreciation expense is a non-cash item, it is not shown in the Income Statement. C. The Cash Basis is preferred by GAAP since the Cash Basis is simple
For a number of years, Scott McNealy has been Sun Microsystems' leader and champion. Mr. McNealy has carried the company through the wild '90s and has made profits for shareholders. Sun produced products that the industry wanted and needed and McNealy's presence and vision kept Sun on the correct path. What happened to derail th
Not a finance major and need assistance in computation. Mr. Jim owns 1,500 shares of stock in Company X. Company X's 18,750 shares outstanding are publicly traded and come with a pre-emptive right. They are currently trading at $27 a share. Company X is considering issuing 10,500 new shares to help finance the purchase of an
1) Liquidity risk at a financial intermediary (FI) is the risk that promised cash flows from loans and securities held by FIs may not be paid in full. incurred by an FI when the maturities of its assets and liabilities do not match. that a sudden surge in liability withdrawals may require an FI to liquid
Although alpha represents superior performance why can't positive alphas alone guarantee a superior portfolio performance. Please discuss in detail and include at least 2 quality references.
Evaluate the effect of each of the factors listed below by itself and place a check next to each factor that is likely to increase a firm's need for external capital. Place a check next to each factor that increase a firm's AFN. The firm improves its production system and increase its profit margin The firm increases its div
E. none of the choices are examples of common-size financial statements 16. Meaningful peer group analysis requires that members of the peer group: I. are all in a similar industry II. have similar looking ticker symbols III. are of roughly similar size A. I only B. I and II only C. II and III only D. I and
11. Board Bagels, a small cafe in downtown Pittsburgh, had a net sales of $230,000 for the most recent fiscal year, 65% of which were eaten up by its costs. The firm had some baking equipment that cost $45,000 with a salvage value estimated at $5,000 and was being depreciated over 10 years using the straight-line method. Interes
Research Paper Select a company that you are familiar with and write a paper that evaluates all aspects of the company's organization. In the Introduction, please provide some historical background of the company and its financial and international dealings. Some concepts to consider are: ? Culture of the organization
How do I calculate the ratios of Proctor and Gamble's 2010 annual report? What do the ratios conclude about the company's financial strengths and weaknesses?
You just graduated, and you plan to work for 10 years and then to leave out of the country. You figure you can save $1,000 a year for the first 5 years and $2,000 a year for the next 5 years. These savings cash flows will start one year from now. In addition, your brother has just given you a $5,000 graduation gift. If you put t
You hold a diversified portfolio consisting of a $10,000 investment in each of 15 different common stocks (i.e., your total investment is $150,000). The portfolio beta is equal to 0.9. You have decided to sell one of your stocks which has a beta equal to 0.6 for $10,000. You plan to use the proceeds to purchase another stock whi
On December 31,2011 Green company finished consultation services and accepted in exchange a promissory note with a face value of $500,000, a due date of December 31, 2014, and a stated rate of 8%, with interest receivable at end of each year. The fair value of the services is not readily determinable and the note is not readily
Accounts Receivable in the amount of $640,000 were assigned to the Fast Finance Company by Meyers, Inc., as security for a loan of $500,000. The finance company charged a 4% commission on the face amount of the loan, and the note bears interest at 6% per year. During the first month, Meyers collected $330,000 on assigned acco
Why is it harder to assess the performance of a hedge fund portfolio manager than that of a typical mutual fund manager? Please discuss in detail and provide at least 2 quality references.
Could you provide your feedback to these Finance questions? Per question 2, if you find anything from the internet then could you provide references. Please provide your feedback within 200 words. Thanks. 1. I would agree that many investors firmly believe in buy and hold. But stocks can fall and stay down for many years. S
Using data below answer questions: a) Construct time series plot. What pattern exists? b) Use Excel Solver to make quadratic trend equation to forecast team value. c) Use Excel Solver to make exponential trend equation to forecast team value. d) Use Excel Solver to make linear trend equation to forecast team value. Year
Assuming payments are made at the end of each year, what is the annual payment required to retire a $50,000 loan with a term of 5 years and an interest rate of 10%; how much of this payment represents interest at the end of year 1? a: $8,189.87; $5,000 b: $13,189.87; $5,000 c; $13,189.87; $8,189.87 d: $13,189.87; $13
On December 31, 2005, XYZ had a stock price of $55. Calculate the return for XYZ over the previous year if the stock paid a dividend of $3 today (December 31, 2006), and the current stock price is $62.
Question 1 In insurance terminology, a warranty is a promise something has happened or exists (affirmative warranty) or something will happen (promissory warranty). Give two examples of promissory and affirmative warranties. What difference does it make to an insured if false statement made by the insured is considered
Your audit manager has assigned you to train your peers on an audit team about fraudulent financial reporting schemes. Identify and explain 5 fraudulent financial reporting schemes to your peers. Use 2 examples involving accounting transactions to demonstrate each of the schemes that you identified. Show how auditors ca
Identify and explain 5 characteristics that may increase the possibility that financial statement fraud will occur in a company. Use examples to explain the company characteristics.
The new hires are interested in getting your thoughts on the collapse of the financial system in the United States in 2008. They ask about your understanding of American financial markets. -What are the differences between the U.S. banking system and the financial markets? -Are there any regulations for either of these in