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    Annual Incremental Earnings

    Daily Enterprises is purchasing a $10.5 million machine. It will cost $55,000 to transport and install the machine. The machine has a depreciable life of 5 years and will have no salvage value. The machine will generate incremental revenues of $4.3 million per year along with incremental costs of $1.5 million per year.

    Finance Problem: Choosing a Bank

    See the attachment. Assume that there are two banks in your area, Bank C and Bank NSC. Assume also that both are federally chartered banks, meaning that they are both subject to periodic examination and have their deposits insured by the FDIC. Also, assume that the deposit insurance coverage limit is $250,000. Both banks are su

    When Should the Company Harvest the Forest?

    Bunyan Lumber, LLC, harvests timber and delivers logs to timber mills for sale. The company was founded 70 years ago by Pete Bunyan. The current CEO is Paula Bunyan, the granddaughter of the founder. The company is currently evaluating a 7,500- acre forest it owns in Oregon. Paula has asked Steve Boles, the company's finance off

    Scott Equipment Organization is investigating various combinations of short- and long-term debt in financing assets. Assume the organization has decided to employ $30 million in current assets and $35 million in fixed assets in its operations next year, provided the level of current assets, anticipated sales, and EBIT for next year are $60 million and $6 million, respectively. The organization's income tax rate is 40%. Stockholders' equity will be used to finance $40 million of assets, with the remainder financed by short- and long-term debt. The organization is considering implementing one of the policies in the diagram. Amount of Short-Term Debt Financial Policy Millions of dollars LTD (%) STD (%) Aggressive (large amount of short-term debt) $24 8.5 5.5 Moderate (moderate amount of short-term debt) $18 8.0 5.0 Conservative (small amount of short-term debt) $12 7.5 4.5 Determine the following for each policy: - Expected rate of return on stockholders' equity - Net working capital position - Current ratio Write a paper in which you evaluate profitability versus risk trade-offs of these policies. Would you rate them low, medium, or high with respect to profitability? Would you rate them low, medium, or high with respect to risk? Format your paper consistent with APA guidelines. *I am simply looking for solutions to finding the answers then I can write the paper myself... please help me.*

    Scott Equipment Organization is investigating various combinations of short- and long-term debt in financing assets. Assume the organization has decided to employ $30 million in current assets and $35 million in fixed assets in its operations next year, provided the level of current assets, anticipated sales, and EBIT for next y

    finance an expansion

    The Thompson Corporation projects an increase in sales from $18 million to $25 million, but it needs an additional $500,000 of current assets to support this expansion. Thompson purchases under terms of 2/10, net 60 and currently pays on the 10th day, taking discounts. The CFO is considering using trade credit to finance the add

    Finance Project: Process of Capital Budgeting & Decision Making

    Five brief articles to reference are found on the "Headlines" page of the menu for GE on Yahoo! Finance. These articles were posted on Thursday, April 21, 2011 and Friday, April 22, 2011. Additionally, as you construct your answers, please reference not only General Electric (GE) but also Citigroup, Inc. (C), Koninklijke Philips

    Finance Problems: Net Cost and Sales

    1) Penn Steelworks is a distributor of cold-rolled steel products to the automobile industry. All of its sales are on a credit basis, net 30 days. Sales are evenly distributed over its 10 sales regions throughout the United States. Delinquent accounts are no problem. The company has recently undertaken an analysis aimed at impr

    comparative analysis

    How could one assess which organization in an industry was best managed from a financial standpoint? How could one use comparative analysis to perform a three-year trend analysis? If an organization was combined with one in a different industry segment, how could comparative analysis be used to estimate its performance?

    NASDAQ and NYSE: How the two exchanges operate, similarities and differences

    You have been asked to write a report for a group of new stock brokers about the NYSE-Euronext and the NASDAQ. Visit both the NYSE Homepage, and the NASDAQ Homepage, and write a paper on how the two exchanges operate. Make sure to address the following three questions: - How are NYSE and NASDAQ similar, if at all? - How

    issues in finance

    SQ20-3 What are the essential characteristics of common stock? SQ20-14 What is the random walk hypothesis? Does research evidence tend to support or deny the validity of this hypothesis? SQ21-9 Discuss the factors that influence the volume of borrowing by individuals and families. What role do you believe inflation play

    Problem 15-12A Finance 370

    15-12A. (Break-even point) You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product. You have developed the following cost structure information for this company. All of it pertains to an output level of 10 million units. Using this information, find the break-

    Stock analysis for a company

    Assume that a company's stock is currently priced at $24.50, its last dividend was $1.55, and you think that the company is capable of 8% growth indefinitely. If you require a 15% return, at what price would you be willing to buy this stock?

    Personal Financial Management

    13.1 Ray's Dilemma: Common Stocks or Mutual Funds? Ray Sutton has worked in the management services division of Strategic Consultants for the past 5 years. He currently earns a n annual salary of about %95,000. At 33, he's still a bachelor and has accumulated about $60,000 in savings over the past few years. He keeps his sa

    Payable Shareholders of Record Stock Dividends

    Instructions: You will complete each of the following problems using Microsoft Excel. In Excel, create a tab for each problem. Solve each problem on the excel tab in a professional manner (make sure your solution is clear and neatly organized). Problem One (Chapter 10): On January 1, 2011, the Seikely-Anderson Company sign

    financial statement fraud exposure areas

    Please help with the following problem. Provide at least 200 words and include references. What are the four different exposure areas that must be examined while detecting financial statement fraud? Provide a detailed answer.

    Planning a Budget for Orlo Company

    See excel attached: Orlo Company is planning their budget for the first half of 2012. Their budgeted sales for the last part of 2011 and the first 6 months of 2012 are as follows: Month Sales Nov-11 $200,000 Dec-11 $150,000 Jan-12 $100,000 Feb-

    Future Value of the Investment

    Details: A grandmother is looking for a plan to finance her new grandchild's college education. She has $25,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is to earn compound interest. Calculate the future value of the investment. You must use

    Kim had the following transactions for 2006: Salary: $Kim had the following transactions for 2006: Salary: $48,000 Damage award (compensatory) for city bus accident: $18,000 Loss on sale of stock investment: $5,600 Loan from father to purchase auto: $14,000 Alimony paid to ex-wife: $8,000 What is Kim's AGI for 2006? 2. John forms a corporation and transfers property having a basis to him of $18,000 and a fair market value of $26,000 to the corporation for 1,000 shares of $10 par stock. One year later, Hal transfers property having a basis to him of $2,500 and a fair market value of $3,500 for 100 shares of the stock. Hal is not related to John. The corporation issued no other stock. How much gain does John recognize on his exchange? What is the basis to John of his 1,000 shares? b. What gain or loss is recognized by the corporation when it issues its shares to John? What is the basis to the corporation of the property it received from John? c. How much gain does Hal recognize on his exchange? What is the basis to Hal of his 100 shares? 3. Shareholders in closely held C-corporations often pay themselves large salaries in order to avoid double taxation on corporate income. Briefly explain the double taxation problem and how paying large salaries to owners avoids it. b. Briefly discuss how the reasonable compensation issue applies to S-corporations. c. Briefly discuss the IRS s position on reasonable compensation for owner-employees of closely held C-corporations.

    1. Kim had the following transactions for 2006: Salary: $48,000 Damage award (compensatory) for city bus accident: $18,000 Loss on sale of stock investment: $5,600 Loan from father to purchase auto: $14,000 Alimony paid to ex-wife: $8,000 What is Kim's AGI for 2006? 2. John forms a corporation and transfers property hav

    business and financial environment

    Consider a newly-listed company of interest to you and using the 2009/2010 annual accounting reports describe its business and financial environment. Subsequently, critically discuss the following topics: a) Write a report for senior managers on how they could improve the company's financial performance and achieve the primar

    Corporate Valuation Models

    Based on the corporate valuation model, Bernile Inc.'s value of operation is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long term debt, $40 million of common stock (par plus pain -in

    Finance: Sales or purchases of Treasury securities to increase the M1 money supply

    Assume there is $400 billion of currency in circulation in the economy outside the banking system, that depository institutions in the economy have $800 billion in checkable deposits, and that those same depository institutions have $80 billion in reserves on deposit at the central bank. All depository institutions are "loaned o