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
Andy wants Europe to visit relatives when you graduate from college three years from now. cost of the trip is $10,000. Andy has deposited $5,000 for in a CD paying 6% interest annually, maturing three years from now. Aunt Hilda has agreed to finance the balance. If you are going to put Aunt Hilda's gift in an investment earning
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
Terminator Bug Company bonds have a 14% coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 10 years from now. Compute the value of Terminator bonds if investors' required rate of return is 12%. a. $1,114.70 b. $1,149.39 c. $894.06 d. $1,000.00
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 cont
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 u will contribute only 100,000 of your own funds and the remaining 100,000 will be obtain
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
Meals; high-low = 4,900-3,500=1400 Cost; high-low=$26,000-$20,500 =$5,500 The variable cost per meal: $5,500divided by 1,400 =$3.93 The variable cost for the low month; $13,755 Fixed cost; $20,500-[3,500 * $3.93] =$6,745 Px =a + bx 5.77 X =6,745 +3.93X 5.77-3.93=6,745+[3.93-3.93] 1.84X=6,745 1.84X DIVIDED BY 1.84X=6,745
1. Explain how you would go about evaluating the overall performance of a firm. Suppose you have $100,000 and want to invest the money. How would you proceed to find a good company to put your money in? What is it you are looking for (it has to be in finance terminology)? 2. Discuss the importance of quality in a firm's
If you are working at Johnson & Johnson and one of your responsibilities is to set prices for new drugs. The firm has invented a cure for Aids and is protected by patent. The cost for the one time injection that cures the disease is $100 and includes amortization of the development cost (The $1 billion cost to develop the pro
1. You will require $700 in 5 years. If you earn 5 percent interest on your funds, how much will you need to invest today to reach your goal? a. $575.34 b. $548.47 c. $545.44 d. $573.35 2. You deposit $1,000 in your bank account. If the bank pays 4 percent compounded interest, how much will you accumulate in your acc
You are considering investing in a company. Which financial ratios would you find most useful? Why? (150 words)
Using the following references: AT&T - Use 2008 Annual Report: http://www.att.com/gen/investor-relations?pid=9186 Verizon - Use the RED tabs at the top of the page to locate financial information http://investor.verizon.com/financial/annual/2007/guide.html Compare AT&T and Verizon's two most recent fiscal years based up
(Unrecognized Gains and Losses, Corridor Amortization) Rachel Avery, accounting clerk in the personnel office of Clarence G. Avery Corp., has begun to compute pension expense for 2004 but is not sure whether or not she should include the amortization of unrecognized gains/losses. She is currently working with the following begin