Consider the below Consolidated Statement of Operations for the year ending September 25, 2009 and answer the following questions. 1.Use the Percentage Sales Method and a 20% increase in sales to forecast the Consolidated Statement of Operations for the period September 26, 2008 through September 25, 2009. Assume a 15% tax ra
Distinguish between adverse selection and moral hazards as they relate to the insurance industry.
1. Your hospital has the following revenue for the month of July-September: July $2, 000,000 Aug $ 2, 500,000 Sep $ 3,000,000 If 30% of the month's revenue is collected in the same month, 40% is collected in the second month and 30% is collected in the third month, how much of July's revenue is collected in August? and
Can you please assist with the following questions below? Read Chapter II "The Broken Window" and Chapter III "The Blessing of Destruction" 1. Use your own words to summarize the main idea of the broken window fallacy. 2. Choose three of the economic terms and define what you believe have particular applicat
1) Which of the following best describes the goal of the firm? A. The maximization of the total market value of the firm's common stock] B. Profit maximization C. Risk minimization D. None of the above 2) In terms of organizational costs, which of the following sequences is correct, moving from lowe
3. You will receive $5,000 three years from now. The discount rate is 8 percent. a. What is the value of your investment two years from now? Multiply $5,000 _ .926 (one year's discount rate at 8 percent). b. What is the value of your investment one year from now? Multiply your answer to part a by .926 (one year's discoun
1. On April 1, 20X2, Jack company paid $800,000 for all of Ann Corporationâ??s issued and outstanding common stock. Annâ??s recorded assets and liabilities on April 1, 20X2, were as follows: Cash $ 80,000 Inventory 240,000 Prop & Equip (net of Accum Depre of $320,000) 480,000 Li
Indicate (i) how each of the following transactions impacts the fund balance of the General Fund for fund-based financial statements and (ii) what the impact is on the net asset balance of the governmental funds for government- wide financial statements. A. Issue a five-year bond for $6 million to finance general operations.
31. When will the diminishing returns of an additional worker become evident? use the below info to answer # of workers.............Qties of output 0................................0 1................................35 2................................80 3................................130 4..............................
1. If Hudson Inc borrows $500,000 on a 10% add-on basis, payable in 12 equal end-of-month installments, how large would the monthly payments be? 2. If Tapley Inc borrows $600,000 on a 10% add-on basis, payable over 3 years in 36 equal end-of-month installments, how large would the monthly payments be?
1. (Expected Rate of Return and Risk) B. J. Orange Enterprises is evaluating a security. One-year Treasury bills are currently paying 1.9 percent (with little risk - 1 percent). Calculate the investment's expected return and its standard deviation. Should Orange invest in this security or the Treasury bills? You should calculate
Which of the following assets would pay a dividend? US treasury security Municipal bond Preferred stock Corporate bond
U09a1 Portfolio Decisions Lotta As an individual investor, you are attempting to invest in a well-diversified portfolio of mutual funds so that you will be somewhat insulated from any type of economic shock that may occur. ? An investment advisor recommends that you buy four different U.S. growth stock funds. Since these
You have been provided financial information (see following page) of the Crum Company (CC). The firm expects sales to grow by 50% next year, and operating costs should increase at the same rate. Fixed assets were being operated at 40% of capacity this past year, but all other assets were used to full capacity. Underutilized fixe
The organizations are Dell, Ford, UPS, Disney, and Proctor & Gamble. I just need help with part 3 and 4. 1. Determine the five-year average return for each security. 2. Identify the securitiesâ?? industries. 3. Determine the average five-year average return in each industry. 4. Identify three additional stocks
1. Marpor Industries has no debt and expects to generate free cash flows of $16 million each year. Marpor believes that if it permanently increases its level of debt to $40 million, the risk of financial distress may cause it to lose some customers and receive less favorable term from its suppliers. As a result, Marpor's tax rat
Suppose you have decided to become a venture capitalist, but you are worried about capital losses and lower rate of return. Therefore, you must review important information related to financial contracting with optimistic entrepreneurs. 1) What are the important points (terms and conditions, clauses) that you should consider
See attachment for assignment Zymase is a biotechnology start-up firm. Research at Zymase must choose one of three different research strategies. The payoffs (after-tax) and their likelihood for each strategy are shown below. The risk of each project is diverifiable. Strategy Probability P
Suppose you own stock in a company. The current price is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company's management immediately begins fighting off this hostile bid. Is management acting in the shareholder's best interests?
What are the risk tolerance levels of investors? What is your risk tolerance level? Is it better to maximize return or minimize risk? Why? What relationship exists between the size of standard deviation and the level of asset risk?
1. You own your own firm, and you want to raise $30 million to fund an expansion. Currently, you own 100% of the firm's equity, and the firm has no debt. To raise the $30 million solely through equity, you will need to sell two-thirds of the firm. However, you would prefer to maintain at least a 50% equity stake in the firm to r
3 Staffing Company purchased net assets (i.e., assets minus liabilities) of Time Management Inc. for $390,000. Time Management Inc. is a retailer of software, books, seminars and related items. Its net asset has been carried on its books at a total of $183,000. An appraisal of all of Time Management Inc. assets and liabilities r
Faulk Corp is going through a period of growth. The company just paid a dividend of $1.50 per share and expects dividends to grow at a 22% rate for the next 7 years and then level off to a constant rate thereafter. The beta of stock is 1.4, the risk free rate of return is 5%, and the expected return on the market is 11%. The
Zymase is a biotechnology start-up firm. Researchers at Zymase must choose one of three different research strategies. The payoffs (after-tax) and their likelihood for each strategy are show below. The risk of each project is diversifiable. Strategy Probability Pay-off (million) A 100% 75
Raviv Industries has $100 million in cash that it can use for a share repurchase. Suppose instead Raviv invests the funds in an account paying 10% interest for one year. a. If the corporate tax rate is 40%, how much additional cash will Raviv have at the end of the year net of corporate taxes? b. If investors pay a 20% tax r
1. Advise the difference between financing and investment policies in working capital management and in each case provide an example to illustrate the answer. 2. Please note that R on teh below statement stands for South African rand known as ZAR. Mxolisi LTD has a total equity of R500,000. The market risk premium require
Julie is considering buying stock in and only one of the following companies Uninvest.com which runs a website against geared retirement income and has a 10% probability of returning 20% this year and 90% probability of returning 7% or speculate incorporate will invest in type derivate security and has a 50% chance of returning
2. Suppose the market portfolio has an expected return of 10% and a volatility of 20%, while Microsofts stock has volatility of 30%. a. Given its higher volatility, should we expect Microsoft to have an equity cost of capital that is higher than 10%? b. What would have to be true for Microsofts equity cost of capital to be
Hachey Company has accounts receivable of $95,100 at March 31, 2007. An analysis of the accounts shows these amounts. Balance, March 31 Month of Sale 2007 2006 March 65,000 75,000 February 12,600 8,000 Dec and Jan 10.100 2,400 Nov and Oct 7,400 1,100
I would like some help to ensure I am on the right track with these questions, thank you. (one choice per question) In which of the following ways do companies change the composition of their management? [A] The shareholders of a company engage in a proxy contest to replace the current board. [B] The firm can sell new