Please help with the following problem. You own stock in the Gentry Company, and you read in the financial press that a recent bond offering has raised the firm's debt/equity ratio from 35 percent to 55 percent. Discuss the effect of this change on the variability of the firm's net income stream, other factors being constant
You are a data analyst with TeckWorld, a multinational company dealing in hardware and software products. The VP of the company has asked you to obtain forecasts of next year's inflation rate from 30 economists. Based on their forecasts you have calculated a confidence interval of 1.8 percent to 4.5 percent. The VP wants to know
How ERISA affects employees who frequently change employers.
The gasoline service stations in Rochester, New York convinced the City Council to ban signs displaying gasoline prices. Why would they want to do this? What effect do you think this law had on gasoline prices? Why?
I need help on how to approach this assignment. i have to write a memo after completing the simulation. Risk and Return Tradeoff Memo a. Complete the Constructing and Managing a Portfolio simulation b. Describe the risk-return tradeoff and the relationship between investment strategy and investment performance. c
My portfolio is invested equally in five stocks (that is, each stock in the portfolio has a weight of 0.20) and has a required return of 9.4%. The risk-free rate is 5% and the market risk premium is 4%. What is the portfolio beta? Assume the my portfolio is on the SML. Choose 1 of the following: A. 0.950 B. 1.400 C. 0.800
I have to analyze two securities, a stock and a bond: General Electric (GE) and the selected bond is Santa Rosa, California Wastewater Series A. For each security, I need to answer the following questions and support it with mathematical calculations. (at least 600 words). Investment Portfolio Project: Risk/Return analysis
A job at S&S Air You recently graduated from college, and your job search led you to S&S Air. Because you felt the company's business was taking off, you accepted a job offer. The first day on the job, while you were finishing your employment paperwork, Chris Guthrie, who works in finance, stops by to inform you about the
1. I am considering going to graduate school in 3 years. Current estimated cost is $32,000 per year. Those costs are expected to grow each year at the rate of inflation (3.2% per year). I intend to enter a two-year program. My first year tuition bill is due at the end of three years (for the first year of school) and my second t
I have attached 12 questions with answers. I would like to know how to solve each problem step-by-step. Please put solutions in the simplest form. Thank you! (note: a work document is also attached with these problems). 1. Last national bank offers a CD paying 7% interest (compounded annually). If you invest $1,000 how m
Based on your readings,discussions, analyze and discuss the key points of this class and how you plan to incorporate these key points into your personal and professional life. 1. constructing an investment portfolio 2. Financial ratios/ risk factor (alpha or beta) 3. portofio Diversification 4. Risk and return trad
Suppose in six months' time the cost of a gallon of heating oil will either be $0.90 or $1.10. The current price is $1.00 per gallon. Questions: a) What are the risks faced by a reseller of heating oil that has a large inventory on hand? what are the risks faced by a large user of heating oil with a very small inventory?
General Electric : Relative performance analysis 1. the five-year average return. 2. Determine the average five-year average return in your industry 3. Identify three additional stocks in each industry and determine their five year average return. 4. Compare your selected security performance to those in the
Suppose that you wish to save for your child's college education by opening up an educational IRA. You plan to deposit $100 per month into the IRA for the next 18 years. Assume that you will be able to earn 10%, compounded monthly, on your investment. How much will you have accumulated at the end of 18 years? a. $21,600 b. $54
Siebling Manufacturing Company's common stock has a beta of .8. If the expected risk-free return is 7% and the market offers a premium of 8% over the risk-free rate, what is the expected return on Siebling's common stock? a. 7.8% b. 13.4% c. 14.4% d. 8.7%
Which of the following statements is true? a. A bond that has a rating of AA is considered to be a junk bond. b. A bond will sell at a premium if the prevailing required rate of return is less than the bond's coupon rate. c. A zero coupon is a bond that is secured by a lien on real property. d. The legal document that desc
Senbet Ventures is considering starting a new company to produce stereos. The sales price would be set at 1.5 times the variable cost per unit; the VC/unit is estimated to be $2.50; and fixed costs are estimated at $120,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo
2. What is the benefit of a short-term performance forecast? How might a manager combine the benefits of both short-term and long-term performance forecasts to develop a more accurate value forecast? 6. Identify the strengths and weaknesses of the Enterprise DCF, Economic Profit, and Multiples approaches to estimating conti
1) This company pays a perpetual annual dividend of 2.5% of its par value. Par value is $100 per share. If investors require rate of return on this stock is 15%, what is the value of per share? 2) your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected
Real estate, Inc., has purchased a building for $1 million. the economic life of the building is 30 years and it will be fully depreciated over the 30 years using the straight-line depreciation method. the discount rate is 14% and the coporate tax rate is 35%. assume there is no inflation. what is the minimum lease payment the c
8-1: Does a balance sheet that is dated year-end 2004 reflect only transactions for that year? 8-7: In computing return on assets, how does the age of the assets influence the interpretation of the values? 21-5: What does the correlation coefficient measure? What are the two most extreme values it can take, and what d
1)Nick has a revolving department store credit card account with an annual percentage rate of 15%. Last month's balance on the account was 423.78. During the current month, he made purchases totaling 123.42 and made a payment of 100. The store uses the unpaid balance method. According to this information, what must be the amou
A firm has the following investment alternatives: Cash Inflows Year A B C 1 $500 $0 $0 2 $500 $400 $0 3 $500 $800 $0 4 $600 $900 $1900 Which investment should be considered? Use a 9.5% discount rate.
200,000 in assets to get into operation with only 2 financing alternatives 1. (all equity-all common stock) 2.50% equity and 50percent debt. You will put the entire 200,000 needed to purchase the assets if 50 percent debt financing is used you will contribute only 100,000 of your own funds and the remaining 100,000 will be obtai
How does the security market line react to changes in the rate of interest, changes in the rate of inflation, and changing investor expectations?
What are the different categories of ratios? Which category of ratios is of the most importance to a bondholder? Why? Which category of ratios is of the most important to a stockholder? Why? In your personal investments, which ratio is the most important to you? Why?
Please see attached. Please work the formula in steps.Last year's sales = So $400,000 Last year's accounts payable $40,000 Sales growth rate = g 30% Last year's notes payable $20,000 Last year's total assests = Ao $140,000 Last year's accruals $30,000 Last year's profit margin = M 15.0% Target payout ratio 30.0% a.
I have completed this assignment, but I wish to make sure I did everything correctly. The grade I will receive for this assignment is very important, because it will make me either pass this class with a good grade, or it will make me fail the class. Please help. Key Financial Data Dreamscape, Inc. Industry Average Ratio F
1. Debt securities that are accounted for at amortized cost, not fair value, are held-to-maturity debt securities. trading debt securities. available-for-sale debt securities. never-sell debt securities. 2. Bista Corporation declares and distributes a cash dividend that is a result o
Select for analysis one article from recent periodical or professional and academic journal. Give critical comments for this article support by overall financial techniques. Sum this article up in 500 words: http://www.nytimes.com/2009/06/14/business/14gret.html?_r=1&ref=business