1. Why would an inventory turnover ratio be more important for a retailer than a consulting firm? 2. Describe the various flotation costs from issuing stock. How do those flotation costs compare to those from issuing bonds? 3. What signals are provided to investors when a company obtains equity financing? What signals are
1. Cross Rates Suppose the exchange rate between U.S. dollars and the Swiss franc is SFr1.5 = $1, and the exchange rate between the dollar and the British pound is £1 = $1.40. What then is the cross rate between francs and pounds? Round your answer to two decimal places. 2. Effective Cost of Trade Credit The D.J. Masson C
AC1420 Exercise 4.2 The following calculations will be based on the income statement and the balance sheet provided: The net cash flow from operating activities The net cash flow from investing activities The net cash flow from financing activities Comparative Balance Sheet for the Years 2009 and 2010 12/31/
1. Stock Split Suppose you own 4,000 common shares of Laurence Incorporated. The EPS is $8.00, the DPS is $4.75, and the stock sells for $65 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have? What will the adjusted EPS and DPS be? Round your answers to the nearest cent
Requires about 250 words for this complete discussion with good example. Examine the full disclosure principle in financial reporting and discuss why it is important and how should it be used in financial reporting. Choose an example of poor accounting practices and identify the consequences of not following the full disclosu
What are interest rate fundamentals? Explain term structure and risk premiums. How do these concepts come into play in the real world (mortgage rates, bond prices, etc.)?
Every company has capital projects. Identify one new acquisition your company may need. What are some issues you are going to have in estimating the cash flow for your new acquisition? Might this be caused from the initial investment and problems in getting it funded? Issues you might raise may include risks, costs, politics
1. Why is the time value of money important for an individual to understand in regard to their private life? What can an individual do with this information?
1. Identify two publicly traded corporations in the same industry and compare and contrast their current ratios, quick ratios, and debt to equity ratios. Explain what these ratios mean and how they help understand the differences between the two companies.
See the attached file. 1. Using the simple interest method, find the monthly payments on a $2,300 installment loan if the funds are borrowed for 18 months at an annual interest rate of 12%. Use financial calculator to answer the question. Round the answer to the nearest cent. a. $ ??? per month b. How much interest wi
Average corporate tax rates. a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $12,100, $81,700, $299,000, $1.4 million, $9.8 million, and $19.7 million. b. Plot the average tax rates (measured on the y-axis) against the pretax income levels
In the attachment below are questions I am having a hard time figuring out. Can you show your work (formulas) so that I understand how you came to the answers?
For this example, we will assume we are reconciling March 2009 sales. 1) Type 3/12/2009 into cell I16 of the Listings worksheet and press ENTER. This entry records the date of the sale of this item. 2) Select row 16 by clicking its row number heading. This is the row we will transfer to the SALES spreadsheet. 3) S
Compare the difference between GAAP and IFRS treatment of leases.
1. Possible net present values and associated probabilities for a new investment are as follows: NPV -1020 -800 80 450 550 800 Probability .15 .30 .20 .10 .10 .15 What is the expected value______________, median,______________ and mode _________________? 2. You have been given the job of
(Cash for Stock Merger) This problem requires that you integrate the material learned in prior chapters. You have been given the job of evaluating the following merger candidate. You have collected the following cash flow estimates for the acquisition candidate for the proposed merger (in millions): Year 1 2 3
1. A company has warrants on the market that allows people who own it to buy 1 share price at cost $25. a. Calculate the value of the security warrants of the organization if the common shares are sold each at the following rates: (1) $ 20, (2) $ 25, (3) $ 30), (4) $ 100. (NOTE: The value of executing a warrant is the differ
Athens Development Corporation is considering a new product that will be sensitive to both economic conditions and competitor response. The product manager has decided to focus on three economic conditions: weak economy, normal economy, and strong economy. Competitors either will or will not respond with a competitive product,
Explain how important transfer pricing issues are for measuring performance and in the business world. Give an example to illustrate the issues.
How is the concept of "cost of goods sold" different from "contribution margin"?
True or False The major role played by earnings announcements in the valuation of a business (or project) is that earnings announcements are used to revise or refine your forecast of future cash flows. True or False The difference between the yield to maturity and the yield to call is that yield to maturity is the presumed
You place a commercial building into service on February 28th, 2012 costing $2,220,000. What is the depreciation expense allowed by the IRS for this building for tax years 2012? And 2013?
You are opening your own business and estimate the following expenses and revenues: Year 1 Year 2 Year 3 Revenues $900,000 $1,300,000 $1,100,000 Cost of goods sold $550,000 $800,000 $700,000 Accounts payable as a
1. How much will you have at the end of 22 years if put $8680 per year at the end of each year into a saving account earning 1.6% annually? 2. How much do you need to invest today to have $89,000 at the end of 19 years if you can earn 6.5% annually?
Able Corporation has Project A with the following cash flows and a 8.7% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows. Year 0 1 2 3 4 5 6 Cash flow $(312,000) $ 95,000 $120,000 $(260,000) $ 230,000 $260,000 $180,000 Please calculate the net present value __
Given the following information: Total assets: $250,000 Debt (12% interest rate): $150,000 Equity: $40,000 Variable cost of production: $150 per unit Fixed cost of production: $50,000 Units sold: 1000 Sales price: $210 per unit
An office prints 200,000 pages per year. The Dell brand printer costs $1100 and will produce a total of 600,000 copies before it wears out (3 year life). The Cannon brand machine costs $1,800 and will produce 1,000,000 copies in its 5 year life. Maintenance and material costs are $.05 a page for the Dell machine and $.03 with Ca
Describe and evaluate the various approaches for setting transfer prices. How can the use of different approaches between the selling and buying divisions be reconciled? You should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make t
For this assignment, you will use your newly acquired knowledge of the Price-earnings Ratio and the DuPont Model to perform an equity analysis for The ABC firm for the years 2012 and 2013. The following financial information is available for your use: - Revenue: $130,500,000 (2012); $202,560,000 (2013). - Net Income: $22,740
Question 1: Future value of annuity problem. You deposit $8,000 into a retirement account at the end of the next 12 years earning 10% interest, what is the future value of your retirement after 12 years? ----------- Question 2: Part 1) Using a 4.4% discount rate, calculate the Net Present Value, Payback, Profitability Ind