If you deposit money today in an account that pays 11.8 percent annual interest, how long will it take to double your money? a. 8.47 years b. 11.80 years c. 7.46 years d. 6.21 years e. The answer cannot be calculated without knowing how much money is initially deposited.
A standard criticism of investment banking firms is their approach to valuation which includes determining a price for an offering and then manipulating the input variables into conventional valuation techniques to justify the arrived price. If that is so, wouldn't use of heuristics rather than more sophisticated valuation proc
Discuss the data as found on the financial statements that are used to calculate free cash flow (FCF) for a firm. Graduate Level
Discuss capital formation as it relates to the business form and the life cycle of businesses. How would the business form used by the manager/owner impact the firm's ability to raise capital? Graduate level
What is company's intrinsic value? How does it differ from market value?
Unit 5 Discussion Board Details: The Discussion Board (DB) is part of the core of online learning. Classroom discussion in an online environment requires the active participation of students and the instructor to create robust interaction and dialogue. Every student is expected to create an original response to the open-ende
There are three securities in the market. The following chart shows their possible payoffs: State Probability of Return on Return on Return on Outcome Security1 security2 Security3 1 .15 .25
Explain some major risks inherent in the payroll cycle. How can these risks be mitigated? Level: Master in accounting, and the topic is Internal Control
** Please see the attached file for an Excel formatted copy of the problem description ** Calculate contribution margin, contribution margin ratio break-even units and break-even dollars, and answer the following: Decision Guideline Phonetronix (CVP) Analysis 3-Jul-11 Proposa
Kimberly is a self-employed taxpayer. She recently spent $1,000 for airfare to travel to Italy. What amount of the airfare is she allowed to deduct in each of the following alternative scenarios? a. Her trip was entirely for personal purposes. b. On the trip, she spent eight days on personal activities and two days on busi
Risk in the Production Cycle. Topic: Design the internal controls for inventory and production. Study Level: Master in Accounting.
Jerry's portfolio is invested equally in five stocks (that is, each stock in the portfolio has a weight of 0.20) and has a required return of 9.4%. The risk-free rate is 5% and the market risk premium is 4%. What is the portfolio's beta? Assume that Jerry's portfolio is on the SML. I put answer 1.100 The last stock to this po
Glory (50% of his portfolio is in each stock. Each stock's expected return for the next year will depend on market conditions. The stock's expected returns if there are poor, average, or great market conditions are shown below: Market Condition: POOR Probability: 0.25 Kelevra: -12% Old Glory: -2% Market Condition:AVERAGE Pro
Assume you are a manager over operations and it is budget season. You have been trying for two years to receive approval for two full-time employees. The finance manager does not see how or why you should receive this increase in budget. Provide examples of how you and the finance manager can use integrative negotiation techn
Hedging is often referred to as a means of dealing with risk. Describe some techniques that fall under this concept that could help you deal with an anticipated price increase. Describe the pros and cons of hedging versus not hedging the risk. Use an example where possible.
Having previously identified the location of its Greenfield investment, Acme, a multi-billion public MNE that is incorporated in the U.S., must next obtain external financing for its proposed overseas production facility. It has been estimated that the acquisition will cost $500M and all funds will be secured in the U.S. Your jo
According to the Fisher effect, if the real interest rate is 3 percent and the nominal interest rate is 8 percent, what rate of inflation is the financial marketplace expecting? Explain the reasoning behind your answer. If the nominal rate rises to 11 percent and following the Fisher effect, what would you conclude about the exp
The manager of a life insurance company is trying to decide what annual premium to charge a group of policyholders, each of whom has just received his or her 40th birthday. A check of mortality tables indicates that, for every million persons born 40 years ago, 3percent die, on average, sometime during their 40th year. If the co
What are the linkages among financial decisions, return, risk and stock value? Why are these linkages important? How does the financial manager incorporate these as s/he manages the assets and liabilities of the firm?
Please discuss the following question and use an example if possible. Question: Define control risk and explain the role of control risk assessment in audit planning.
Problem #3 The December 31, 2009 balance sheet of Quayle Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Uncollectible Accounts of $33,000. During 2010, the following transactions occurred: sales on account $1,400,000; sales returns and allowances, $50,000; collections from customers, $1,150
Recommend a strategy or combination of strategies the organization should implement for Ford Motor Company. Need some strategy's and how they would apply.
Question 1: Breaker Company purchased a new piece of equipment on July 1, 2010 at a cost of $300,000. The equipment has an estimated useful life of 5 years and an estimated residual value of $25,000. The current year end is 12/31/10. Breaker records depreciation to the nearest month. The equipment is a Class 8 asset with a ma
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.754 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2,448,000 in annual sales, with costs
Consider an asset that costs $237,600 and is depreciated straight-line to zero over its 6-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $29,700. If the relevant tax rate is 31 percent, the aftertax cash flow from the sale of this asset is $ ???? Round your an
Lincoln Savings and Loan Association 1. Arthur Young was criticized for not encouraging Lincoln to invoke the substance-over-form principle when accounting for its large real estate transactions. Briefly describe the substance over form concept and exactly what it requires. What responsibility, if any, do auditors have when a
Recall that the correlation coefficient is a single value that captures the direction and extent of linear association between 2 random variables (securities). The formula for measuring covariance is equal to the correlation coefficient (rho) multiplied by the standard deviation for security1 multiplied by the standard deviation
Explain why maturity matching principle is important when assessing the use of long-term versus short-term financing, and how a mismatch can be costly to an organization.
1. What is the impact on a transferor if a Sec. 351 exchange involves the assumption of the shareholder's liabilities by the corporation? 2. What conditions need to be met to avoid IRS classification of loans from shareholders as equity (contributions to capital)? 3. What is the tax treatment of losses from worthless stock or
Which of these three companies is the best to invest in? E-Bay, the Walt Disney Company, or Costco? Discuss each company using fundamental analysis and/or technical analysis and choose the best one (using current data). Please list any references you used.