1) Stock A has the following probability distribution of expected returns. What is Stock A's expected rate of return and standard deviation? . Probability________Rate of Return 0.1.............................-15% 0.2.................................0 0.4................................5 0.2............................10
Hello, I do not seem to find my notes on the years-of-service method in calculating and my book is not explaining it well enough. Can someone show me how to do this? On January 1, 2003, Sunny Incorporated amended its pension plan which caused an increase of $4,800,000 in its projected benefit obligation. The company has 40
I need assistance on completing this example. (Cash budget) The Sharpe Corporation's projected sales for the first eight months of 2004 are as follows: January $ 90,000 May $300,000 February 120,000 June 270,000 March 135,000 July 225,000 April 240,000 August 150,000 Of Sharpe's sales, 10 percent is for cash, another 60
Describe the benefits and drawbacks of both traditional and Roth IRAs. Which is the better choice IRA for you? Why?
1. The U.S. Treasury issues bills, notes, and bonds. How do these three securities differ? 2. A call provision on a bond allows the issuer to redeem the bond at will. Investors do not like call provisions and so require higher interest on callable bonds. Why do issuers continue to issue callable bonds anyway? EBay went pub
Explore the Thrift Savings Plan (TSP) web site at http://www.tsp.gov . Let's say you'd like to enroll in the TSP-explain why and what funds will you choose?(8-11 sentences).
The following are monthly percentage price changes for four market indexes MONTH DJIA S&P500 RUSSELL2000 NIKKEI 1 0.03 0.02 0.04 0.04 2 0.07 0.06 0.1 -0.02 3 -0.02 -0.01 -0.04 0.07 4 0.01 0.03 0.03 0.02 5 0.05 0.04 0.11 0.02 6 -0.06 -0.04 -0.08 0.0
1.Nico bought 100 shares of Cisco Systems stock for $24.00 per share on January 1, 2002. He received a dividend of $2.00 per share at the end of 2002 and $3.00 per share at the end of 2003. At the end of 2004, Nico collected a dividend of $4.00 per share and sold his stock for $18.00 per share. What was Nico's realized return du
1.The financial leverage multiplier is an indicator of a corporation utilizing 1.long-term debt. 2.total debt. 3.total assets. 4.operating leverage. 2.The analyst should be careful when conducting ratio analysis to ensure that 1.the same accounting procedures were used. 2.all of these 3.the d
I do a lot of work with smaller companies that are in severe financial difficulty. I constantly hear comments, from others, that bankruptcy is a "dodge" and it allows less than honest business owners to scam their creditors and emerge "clean". Do you think that the bankruptcy laws are necessary, are fair and are good for the
Business Finance: A firm is considering the replacement of an existing machine with a newer model...
A firm is considering the replacement of an existing machine with a newer model. The old machine was purchased 5 years ago. At that time, its cost was $7,500 and it was expected to have a useful life of 15 years. Its current book value is $5,000 while its current market value is only $1,000 The new machine will have a ful
1.Managing the firm's liabilities includes all of the following EXCEPT 1. cash. 2. accounts payable. 3. notes payable. 4. accruals. 2.The wealth of the owners of a corporation is represented by 1.earnings per share. 2.cash flow. 3.share price. 4.profits. 3.The financial manager may be
1. The controller is commonly responsible for 1. managing cash. 2. financial accounting. 3. financial planning. 4. managing credit activities. 2. Included in the primary activities of the financial manager are 1. making financing decisions. 2. financial analysis and planning. 3. all of these.
1. Wealth maximization as the goal of the firm implies enhancing the wealth of 1. the Board of Directors. 2. the federal government. 3. the firm's employees. 4. the firm's stockholders. 2. The difference between the cost of funds used to finance an investment and its after-tax operating profits is calle
1.The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called 1. 1. present value interest factor. 2. 2. future value. 3. 3. present value. 4. 4. future value interest factor. 2.As the interest rate increases for any gi
1. Janice would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $15,000 and she has 5 years to accumulate this money. How much must Janice deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise? 1. $2,234
1.________ is an expense that is a legal obligation of the firm. 1. Labor expense 2. Interest expense 3. Salaries expense 4. Rent expense 2. Under MACRS, an asset which originally cost $10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3? 1. $1,200 2. $1,
1) No load mutual funds are normally promoted by ______. Load funds are promoted by ______. a registered representatives of a brokerage firm; registered representatives of a brokerage firm b registered representatives of a brokerage firm; the mutual fund of concern c the mutual fund of concern; registered representatives
Please see attached questions and provide spreadsheet to support. For the following question: "you would expect Swinton Mining dividend yield to Options: A Decrease B Stay the same C Increase Can you provide an explanation to that question
Analyze the corporate financial decision-making process at Lockheed Martin. Conduct a capital structure analysis in which you examine the various debt/equity instruments used by Lockheed Martin, as well as the impact on EPS, PE Ratios, and price per share.
Mr. Jones is 45 years old and is in good health. He is married, and has two children aged 17 and 18. He and his wife own all shares in a Limited Liability Company that owns a tavern and adjacent restaurant presently valued, based on future cash flow projections, at $5.9 million. The property around the tavern and restaurant
Check out a couple of mutual fund companies (e.g. vanguard.com, tiaa-cref.com) and analyze what types of funds and services they offer. What is the best mutual fund and which is the best mutual fund company? Explain (8-10 sentences).
Given the following cost elements, determine the total percentage in each of the four major quality cost categories. Please show each cost element's cost classification. Cost Element Amount ($) Incoming test and inspection 7,500 Scrap 35,000 Quality Training 0 Inspection 25,000 Test
During the past five years you owned two stocks that had the following annual rates of return: Year Stock A Stock B 1 0.18 0.09 2 0.6 0.04 3 -0.15 -0.11 4 -0.01 0.04 5 0.11 0.05 a) compute the arithmetic annual rate of return for each stock. Which stock is most desirable by this measure? b) Compute th
Darlene wishes to accumulate $50,000 by the end of 10 years by making Equal annual end-of-the year deposits over the next 10 years. If Darlene Can earn 5 percent on her investments, how much must she deposit at the end of each year? a. $3,975 b. $6,475 c. $5,000 d. $4,513 A corporation is considering expanding operat
Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation: Monthly gross income $2,950 Down payment to be made- 15% of purchase price Other debt(monthly payment) $160 Monthly estimate for property taxes and insurance $210 30 year loan
Tammy is considering the purchase of a home entertainment center. The product attributes she plans to consider and the weights she gives to them are as follows: Portability .1 Sound projection .6 Warranty .3 Tammy related the brands as follows: Portability Sound Projection Warranty Brand A 6
I have to answer these questions below in 350 words. I have been reading the chapter and don't fully understand these questions: Discuss the four types of ratios used in balance sheet analysis and the importance of each? Discuss different ways a financial manager can determine his/her future financing needs. Include ways
In Problem 3-28, you helped the medical professionals analyze their decision using expected monetary value as the decision criterion. This group has also assessed their utility for money: U(-$45,000) = 0, U(-$40,000) = 0.1, U(-$5,000) = 0.7, U($0) = 0.9, U($95,000) = 0.99, and U($100,000) = 1. Use expected utility as the decisio
Reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The firm had no amortization charges, it had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. 2006 data are expected to remain unchanged except for one item, depreciati