1- You wish to sell short 100 shares of XYZ Corporation stock. If the last two transactions were at 34.10 followed by 34.15, you only can sell short on the next transaction at a price of : a. 34.10 or higher. b. 34.15 or higher. c. 34.15 or lower. d. 34.10 or lower. 2- Stocks A, B, and C have the same expected return an
You have finally saved $10,000 and are ready to make your first investment. You have the three following alternatives for investing that money: ? A CBS bond with a par value of $1,000, an interest rate of 7.625, and a maturity of 10 years. The bond is selling for $986 ? Alabama Power Company preferred stock with a $50 par
Exercise 5.8 Cash discounts- ROI a. Calculate the approximate annual rate return in investment of the following cash discount: 1. 1/15, n30. 2. 2/10, n60. 3. 1/10, n90. b. Which of these terms, if any, is not likely to be a significant incentive to the customer to pay promptly? Explain your answer. Exercise 5.10 Not
A company purchased a new factory machine for $650,000. The machine is expected to be productive for 5 years and, at the end of the 5 years, it is expected to be worth $50,000 in salvage value. The machine manufactures widgets and is expected to produce 5 million widgets over its productive life. As it eventually turned out,
This company is considering a replacement of an old delivery van with a new one that is more efficient. The old van cost $30,000 when it was purchased 5 years ago. The old van is being depreciated using the simplified straight line method over a useful life of 10 years. The old van could be sold today for $5,000. The new van has
I am in dire need of help on this work. Thanks! Merchants Bank offers to lend you $30,000 at a nominal rate of 6.0%, simple interest, with interest paid quarterly. Gold Coast Bank offers to lend you the $30,000, but it will charge 7.0%, simple interest, with interest paid at the end of the year. What's the difference in the
Seaside Company manufactures and sells small sailboats. Its annual sales are $3.0 million (30 sailboats at $100,000 each). Because of the need to be near the ocean, the company's fixed costs are high, $1.0 million. The variable cost ratio is 30 percent. The owner, Stan, has financed the business with $1.2 million bank loan at 7
Howard Beal co. manufactures molds for casting aluminum alloy test samples. Fixed costs amount to $20,000 per year. Variable costs for each unit manufactured are $16. Sales price per unit is $28. a. What is the contribution margin of the product? b. Calculate the break-even point in unit sales and dollars. c. What
1. Suppose you are a county commissioner faced with deciding how many public health nurses to employ within the county. The following table shows total benefits and total costs from different levels of employment. Fill in the table and answer the questions: Number of public health Total
Write a paper in which you compare and contrast three potential financial outcomes you envision for the initiative I have everything I need except one compare and contrast. The company is JP Morgan Chase & Co. I seem to have reached a road block. Please include in text citation as well as resource information.
You just returned from some traveling thoughout the Americas. You started your trip with $20,000 in your pocket. You spent 3.4 million pesos while in Chile and 16,500 bolivares in Venezuela. Then on the way home you spent 47,500 pesos in Mexico. How many dollars did you have left by the time you returned to the US given the foll
6. You have the following data on three stocks shown below. You decide to use the data on these stocks to form an index, and you want to find the average earned rate of return for 2008 on your index. If you follow the averaging procedure used to calculate the S&P 500 Index return, what would your index's rate of return be? Hi
For each of the following scenarios, discuss whether profit opportunities exist from trading in the stock of the firm under the conditions that (1) the market is not weak form efficient, (2) the market is weak form but not semistrong form efficient, (3) the market is semistrong form but not strong form efficient, and (4) the mar
See attached file. Phoenix Corp. needs $500,000 to finance its growth and it approached a venture capitalist (VC) firm to fund its future growth in business. The VC may agree to supply the funds if terms are acceptable. It asked Phoenix to provide an estimate of EBIT for the next eight years which are given below: Year
A preferred stock pays an annual dividend of $7.00. What is one share of this stock worth to you today if you require a 14% rate of return?
Consider the following two, completely separate, economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together in good times all prices rise together and in bad times they all fall together. In the second economy, stock returns are independent
1. Define simple interest and compound interest. Explain the difference between each. 2. Define annual percentage rate (APR). What effect does frequency of compounding have on the annual percentage yield (APY)? What condition would exist if the APR = APY? 3. What is an ordinary annuity? What is an annuity due? Which is mor
IPrepare a summary comparing Sirius Satellite Radio and XM Satellite Radio's recent fiscal years statements based on the profitability ratios & efficiency levels. Discuss profitability ratios: choose 2 ratios within this category to discuss and relate to our company of choice. Discuss management efficiency ratios: choose 2
As a tool for risk analysis; what are the advantages and disadvantages of sensitivity analysis?
Gearworks, Inc, manufactures parts for industrial machinery. The manufacturing process requires a variety of machines that grind, heat treat, and polish steel into various shapes. Three different product lines are produced using a traditional process-oriented plant layout as follows: A. Discuss the differences in traditional
Bottleneck identification and management at Perma-Clear Glass Company. Perma-clear Glass Company was founded in 1980 by Rob Samson and enjoyed rapid growth as demand for new construction materials exceeded supply. The company became efficient at converting large sheets of glass into various smaller dimensions demanded by resi
California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm's dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock. 1. What is the stock's value? 2. Suppose the riskiness of the stock d
Now, if Zebra's average cost (expenses) were $13.13 (per case) and the Distributors (wholesale) work on a 23% margin and the retailers work on a 20% margin; what would the income per case be for Zebra beer at the following three retails? Please check your answers to the following: 1. $4.99 per 6 pk.
1) I am a man trying to get muscular; please help me write about how I'm going to get in shape to be muscular in the next two years by working on my arms, legs and stomach. Remember I am male. How am I going to get muscular? What it takes with hard work? 2) I need permanent government job in the next 2 years. How am I going
A firm's current investment opportunity schedule and the weighted marginal cost of capital schedule are shown below: Investment Opportunity IRR Initial Investment Schedule A 15% $200,000 B
Risk Return (FAQ) Stock market, market risk. Is it true the Stock Market is a no-win situation? What is market risk? How can I reduce my risk? What is risk -return trade off?
Describes the three forms of an organization: sole proprietorship, a partnership and a corporation. Gives advantages and disadvantages.
Here is a condensed version of your firm's balance sheet: Total Liabilities $30, 000, 000 Preferred Stock 10, 000, 000 Common Stock 60, 000, 000 Total Assets $100, 000, 000 Total Liabilities & Equity $100, 000, 000 If your firm's aftertax cost of debt is 6%, the cost of preferred stock is 10%, and the cost of com
Suppose the RiskFree Rate is 8%, the Expected Return this year on the S&P 500 stock market index is 13%, and the stock of Joe's Junkyard has a Beta of 1.4. Given these conditions what is the required rate of return for Joe's stock?
Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $10,000 will be requi