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Finance

Jobs in the Money

Enter the home page of the Jobs in the Money web site (http://www.jobsinthemoney.com/index.php?action=adv_search) and page through the finance positions listed. If the salaries are listed, what skill sets or job characteristics lead to the variation in salaries? Describe some of the requirements for prior work experience (if any

Company X: Principles of Finance

Company X wants to create additional supply development space. The additional space will cost $450,000. The expansion can be financed either by bonds at an interest rate of 8%, or by selling 40,000 shares of common stock at $20 per share. Current Income Statement Sales

Comparing Borrowing Costs - Stephens Security

See the attached file. A2. (Comparing borrowing costs) Stephens Security has two financing alternatives: (1) A publicly placed $50 million bond issue. Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20-year life. (2) A $50 million private placement with a large pension fund. Issua

Coca Cola and PepsiCo: Which One to Buy the Stock?

Review the company's financial statements for Pepsi and Coke. Examine how the stockholders equity section of each company. What these two company's disclose about their stockholders equity section differs. Which parts do they have in common? Is there anything about their Stockholder's Equity that is distinctive to the business?

Price of a Stock, Buy on Margin, Sell Short, Rate of Return

1. Underwood Industries just paid a dividend of $1.45 per share. The dividends are expected to grow at 25% rate for the next eight years and then level off to a 7% growth rate indefinitely. If the required return is 12%, what would be the price of the stock today? 2. You have ordered your broker to purchase 100 shares each of

Finance: Short Run and Long Run Supply and Demand

Why do you believe that it is important for managers to understand both short run and long run supply and demand? Cite one hypothetical or real life example that illustrates your response. The demand for audio CDs has greatly increased over the last decade. According to the laws of supply and demand, price rises as demand inc

Company amortization of franchise over longest period of time

Company bought a window franchise from on January 2, 2010 for $100,000. A research company estimated that the remaining useful life of the franchise was 50 years. Its unamortized cost on the company books at January 1,2010, was $15,000. The company has decided to write off the franchise over the longest possible period. How much

Finance: Effects of increase in inventory turns for Toys by Tom

See the attached file for the graphs included. Attached are simplified versions of the balance sheet and income statement. Use this information to answer the question below: A 15% increase in inventory turns would bring this ration to _____, suggesting _____in_____. A. 109 days; a deterioration; profitability B. 4.8

Capitalizing vs. Expensing

(Capitalizing versus expensing) BeyTravel Agency is a small firm owned by David Bey that has just purchased $20,000 worth of computer upgrades. Under current tax laws, Bey has a choice of expensing or depreciating a small investment such as this. Bey's marginal tax rate is 40%. a. What is the present value of the deprecia

Multiple-Choice Finance Question

A company builds a new plant and finances its construction by issuing stock. Which ratio is least likely to be affected, all else being equal? A. Net fixed assets to total assets B. Debt to asset ratio C. Debt to equity ratio D. Current ratio

Supernormal growth model and common stocks

(Supernormal growth model) Gebhardt Corp. has recently undertaken a major expansion project that is expected to provide growth in earnings per share of 400% within the coming year and 75% growth in each of the subsequent three years. After that time, normal growth of 3% per year forever is expected. The cash dividend was 10 cent

Assessing the Risk of Material Misstatement

These all need to be based on the United States 1) Explain the three steps associated with assessing the risk of material misstatement 2) How would the auditor change the audit strategy if a risk is a financial statement level risk versus an assertion level risk? 3) What is a substantive test and what is its purpose?

Treasury stock transactions

Andruw Jones Comapny had the following stockholders equity as of January 1, 2008. Common Stock, $5 par value, 20000 shares issued $100,000 Paid-in-Capital in excess of par 300,000 Retained earnings

Multiple choice: Norville Creations, Excalibur Corporation, Controllable margin

3. Norville Creations wants to achieve an after-tax profit of $45,000 for the year ended December 31, Year 1. The company sells its product for $35 per unit and has a contribution margin ratio of 15%. the company's fixed costs are currently $150,000 and its tax rate is 25%. How many units must Norville selll to achieve its after

Financial Forecasts

You are the manager of the high school athletic team division of On Your Mark, a manufacturer of athletic equipment and apparel, which has recently gone through the initial public offering (IPO) process and has become a public company. On Your Mark has annual sales revenue of approximately $50 million and makes seven unique and

Retirement Plan Investments

Assume that you are setting up your retirement plan by considering two investment plans together. (your retirement in 30 years). You want to earn a total of $1,000,000 after 30 years from two investment plans. o First investment plan: You currently have $40,000 in the bank and decide to invest the $40,000 in a money market acc

Cost of Living

What would happen to the purchasing power of the U.S. dollar if the base period for the cost of living index were 1980 = 100 and the index reached the following levels in the indicated years? a) 1985â?"116 b) 1990â?"127 c) 1995â?"134

Operating Cycle Changes: Increase, Decrease, or No Change

Changes in the operating cycle. Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate and increase, the letter d for a decrease, and the letter n for no change. a. Receivables average goes up b. Credit repayment times for customers are increased c. Inventory turnover goes from

Finance Question

Imagine that you were hired recently as a financial analyst for a relatively new, highly leveraged ski manufacturer located in the foothills of Colorado's Rocky Mountains. Your firm manufactures only one product, a state-of-the-art snow ski. The company has been operating up to this point without much quantitative knowledge of t

Finance

Annie Oakley is purchasing a home for $215,000. She will finance the mortgage for 15 years and pay 7% interest on the loan. She makes a down payment that is 20% of the purchase price. a. Find the monthly payment, including principal and interest. b. Calculate the total interest Annie will pay over the 15 year period.

Finance Excel Review Questions

See the attached file. REVIEW QUESTIONS ALREADY IN EXCEL FORMAT. Given Solution Legend HI Oil Dec-09 Dec-08 = Value given in problem Sales $13,368.00 $12,211.00 = Formula/Calculation/Analysis required Cost of Goods Sold (10,591.00) (9,755.00) = Qualitative analysis or Short answer required

Financial pressure and ratios

A firm faces financial pressures from attempting to grow too rapidly. Which of the following ratios would you expect to be impacted the most by these pressures? Why? Current ratio Quick ratio Inventory turnover ratio Days sales outstanding Fixed assets turnover ratio Total assets turnover ratio Debt ratio Times-inter

Home financing options

For a home that is priced at $599,000.00 and a down payment of 20% $119,800. - Research 2 different financing options. Use Excel (or other approved spread sheet) to create an amortization schedule for the life of both financing options. - Write an analysis that compares and contrasts the two financing options in detail

Principal vs interest in loan payment

You just got a mortgage to buy your first house from ABH bank. Do you think you are going to contribute more to the reduction of your unpaid balance at the end of each month in the early years of your payments or toward the end of the life of the mortgage? Explain why or why not. You can justify your answer with an example.

Cost accounting

A Steven's Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $5,000. It has variable costs totaling $2,800 and fixed costs of $1,000 per unit, based on an average production run of 5,000 units. It normally has four production runs a year, with $600,000 in setup costs each time. Plant