1. Given the following cash flows, what is the present value if the discount rate is 8%? Yr1 $200, Yr2 $350, Yr3 $800, Yr4 $1,125 a.$1,115.07 b.$1,947.23 c.$2,165.70 d.$2,358.96 e.$2,922.62 6. A bond with an annual coupon of $100 originally sold at par for $1,000. The current market interest rate on this bond i
What is the standard deviation of the returns on a stock given the following information? State of Economy Probability Rate of Return if State Occurs Boom 10% 16% Normal 60% 11%
Bill Gates want to fund a new charter school to forever receive $10 million annually (paid once a year) starting in five years. After the fund is completed in five years, it will earn 8% interest compounded annually. How much per month for the upcoming five years should he invest in a fund at 6% annual interest, compounded mon
Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental free cash flow projections (in mil
This problem has been attempted on Brainmass but it is incorrect and the work is not in excel format. Please work this in excel so I can understand the concept. Additional Funds Needed with Excess Capacity Baxter Box Company's balance sheet showed the following amounts as of December 31st: Cash
A finance problem. Reggie White, a corporate treasurer, is trying to decide which of two 1-year securities to purchase: a negotiable CD with a nominal yield of 6 percent of a municipal security with a nominal yield of 6% or a municipal security with a nominal yield of 4.25%. The issuing municipality is not in the same state a
Please complete the attached practice problems. Resource: Principles of Managerial Finance Problems P14-9 and P14-16 (Ch. 14) Problem P15-9 (Ch. 15) P14-9 Relaxation of credit standards Lewis Enterprises is considering relaxing its credit standards to increase its currently sagging sales. As a result of the proposed r
After taking a closer look at the numbers and doing the financial analysis, you begin to think more strategically, and in a broader context, you anticipate what the CFO would ask or what the head of Strategic Planning might want to know. You think about some of the key issues: - Does this project maximize firm value? - Wha
What specifically is a hedge fund? Why is it difficult to define hedge funds as a specific asset class? Should hedge funds be more regulated or is limiting hedge funds to "sophisticated" investors sufficient? How would you conduct an attribution analysis of a hedge fund manager? What obstacles currently exist with hedge fu
A portfolio manager has a $10 million portfolio, which consists of $1 million invested in 10 separate stocks. The portfolio beta is 1.2. The risk-free rate is 5% and the market risk premium is 6%. ____ 6. What is the portfolio's required return? a. 9.85% b. 12.00% c. 12.20% d. 12.35% e. 6.20% ____ 7. The
The meeting at Superior Living Inc. with the analyst went well. However, you want to crunch the numbers yourself to ensure accuracy. Furthermore, you need to consider the project in the broader context of how the new production facility can help the company increase output and, more importantly, profits. You know that the CFO wi
Please help with the following problem - provide the solution in Excel. Company x recently reported the following 2008 income statement in millions of dollars: sales 700 operating costs including depreciation 500 ebit 200 interest 40 ebt 160 taxes (40%) 64 net income 96 dividends 32 additio
A business owner decides to take out a loan. The loan will have an annual interest rate of 7.5%. The loan of $85,000 will be issued January 1, 2009, and is designated to repay all of the person's credit card debt. Before the loan is finalized the person must produce pro forma financial statements for 2009 showing the year-end
Drew Financial Associates currently pays a quarterly dividend of 50 cents per share. This quarter's dividend will be paid to stockholders of record on Friday, February 22, 2007. Drew has 200,000 common shares outstanding. The retained earnings account has a balance of $15 million before the dividend, and Drew holds $2.5 million
Construct a decision tree for decision situation described in problem 25 and indicate the best decision Decision Analysis Question 25) Fenton and Farrah Friendly, husband and wife car dealers, are soon going to open a new dealership. They have three offers: from a foreign compact car company, from a U.S. producer of full
Please see attached. The Optical Scam Company has forecast a 20 percent sales growth rate for next year. The current financial statement are shown here : Income Statement Sales $ 38,000,000 Costs $ 33,400,000 ___________ Taxabl
Ch 1-12 Explain why you would change your nominal required rate of return if you expected the rate of inflation to go from 0 (no inflation) to 4 percent. Give an example of what would happen if you did not change your required rate of return under these conditions. Ch 2-9 You are a wealthy individual in a high tax bracket.
See attachment. 10. Sustainable Growth Rate The Steiben Company has a ROE of 8.50 percent and a payout ratio of 35 percent. a. What is the company's sustainable growth rate? b. Can the company's actual growth rate be different from its sustainable growth rate? Why or why not? c. How can the company change its sustainable g
Many companies are wondering if they should emulate Sears, Roebuck & Company in its implementation of electronic disbursing. After negotiating new payment terms with each of its suppliers, it quickly built up a significant volume of electronic payments: 1,000 transactions, 60,000 invoices, and $500 million in payment per month.
Blackmon Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $14 per unit. Variable selling expenses are $6 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are $141,000 per year. Determine the break even p
External Equity Financing Northern Pacific Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 30% with a $15 million investment in plant and machinery. The firm wants to maintain a 40% debt-to-total-assets ratio in
What are Sambonoza's financing needs for the coming year? 4-4A. (Financial forecasting-percent of sales) Tulley Appliances, Inc., projects next year's sales to be $20 million. Current sales are at $15 million based on current assets of $5 million and fixed assets of $5 million. The firm's net profit is 5 percent after taxes
Write 500 Words on AT&T in your own words from outside sources about the background of the organization (AT&T) and about Risk identification.
An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the market's rate of return is 16%?
A. Common stock A has an expected return of 10%, a standard deviation of future returns of 25%, and a beta of 1.25. Common stock B has an expected return of 12%, a standard deviation of future returns of 15%, and a beta of 1.50. Which stock is riskier? Explain. b. Suppose rf is 5% and rM is 10%. According to the SML and t
It is a finance problem. Could you please show me the steps of solving this problem? I attached the excel file with this request. The balance sheets of Roop Industries are shown below. The 12/13/2001 value of operation is $ 651 million and there are 10 million shares of common equity. What is the price per share ? Assets
The coursework is attached. Can I please have the references as well as the spreadsheet with calculation. ---------------- Silla Soft Drinks is an independent soft drinks company with a tradition of producing premium soft drinks and giving dependable quality and service, having been manufacturing soft drinks for over 100 yea
Which sector of the U.S. economy is the largest supplier of funds? a.U.S. government b.Corporate business c.State and local governments d.Households Which sector of the U.S. economy is the largest user of funds? a.U.S. government b.Corporate business c.State and local governments d.Households The most acceptable vi
Amax Manufacturing Corp. collects $225,000 per day. The cash manager has just been told of a new collection system using lockboxes that could reduce collection float from seven days to six days by reducing mail and processing float a total of one day. Given the company's opportunity cost of funds of 14 percent and using simple i
If Hinder, Inc., has a 15 percent ROA and a 25 percent payout ratio, its internal growth rate is......percent Storico Cleaning, Inc., had additions to retained earnings for the year just ended of $510,000. The firm paid out $130,000 in cash dividends, and it has ending total equity of $6.8 million. If Storico currently has 65