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Minimize Negative Cash Flow in a Deal

Please help with the following problem. Congratulations! Your small company was just awarded a lucrative contract to provide hundreds of widgets to the US Government. If you perform well, you'll be on "easy street" with all the follow-on business. It will take you 6 months to produce and deliver the units. The US Government

Equity Accounts for Clark Manufacturing

Following are the equity accounts for Clark Manufacturing. Common Stock, $3 Par $ 550,500 Capital Surplus $ 640,000 Retained Earnings $ 3,450,000 Total $ 4,640,500 a. How many shares are outstanding? b. At what average price were the shares sold? c. What is the book value per share of Clark stock?

Economic Value Added to TKK

TKK has $1 billion of capital invested in several projects that are expected to generate a pretax operating profit of $170 million next year. TKK has an estimated tax cost of capital of 15% 1: What is the pretax economic value added expected to generate next year? Calculate economic value added based on pretax operating profi

American Superconductor Decision for Debt Financing vs Equity Financing

Read the article below, available in Proquest: American Superconductor switch; Westboro company plans to raise money through a stock offering Andi Esposito. Telegram & Gazette. Worcester, Mass.: Aug 26, 2003. pg. E.1 Abstract (Article Summary) 'AMSC's management and board of directors believe the decision to forgo a s

Expense Report Claims

1-Retrieve the Expense Report and save it on your computer as Expense Report 1. This partially completed workbook contains the column headings and several expense items. 2-Enter a SUM function in cells C12:N12 which totals the figures in rows 8 through 11. The formula for doing that is "=SUM(C8:C11)" and enter that in C12

Regular cash dividend, periodic share repurchase...

Compare a regular cash dividend with a periodic share repurchase. Which has greater appeal to you? Explain. Explain a stock dividend and further explain if you would prefer it to a cash dividend. What are stock splits and how desirable are they?

Predictions for Opportunites or Issues That Disney May Face

Explain any issues or opportunities that Disney would face based on Disney ratios over the past five years. Please be clear and concise and have the main points up front. Always back up arguments with data/evidence and source information when possible.

Balance Sheet for JCP

****Please answer this question: **Take the company's most recent financial statements and project a 10% increase in sales. Determine whether, and how much, external financing would be needed to support the projected increase in sales Please use for current stock information for JCP which is the company to

Hedging and Expected Tax Saving

Suppose that Ashanti Gold Co. expects to produce a total of 1 million ounces of gold by the end of this year. Total manufacturing and operating cost will be $250 million and interest expenses will be $20 million. Ashanti forecasts the future gold price will be equally $250, $300, or $350. The firm's tax rate is 20 % when taxable

Automotive Bailout and Managerial Finance

Review the current status of the automotive bailout plans involving GM, Chrysler, and the federal government. Prepare a 300 words on your selected organization in which you address the following: a. background/description of what the proposed government bailout plan requires from the car companies, unions, creditors, supplie

Assessing the goal of Sports Products, Inc. and Managerial Finance

Text Case Study Read the case study from the e-text, Principles of Managerial Finance, (11th ed. )by Gitman, Assessing the Goal of Sports Products, Inc. located at the end of Chapter One. Prepare a 700 words in which you respond to the questions at the end of the case. See attachment. APA format/at least 2 references

Achieved Percentage Return

What percentage return is achieved by an investor who purchases a stock for $30, receives a $1.50 dividend, and sells the share one year later for $28.50?

Minimum cash flow and opportunity cost if capital

What is the minimum cash flow that could be received at the end of year three to make the following project "acceptable?" Initial cost = $100,000; cash flows at end of years one and two = $35,000; opportunity cost of capital = 10%.


Two years ago bonds were issued with 10 years until maturity, selling at par, and a 7% coupon. If interest rates for that grade of bond are currently 8.25%, what will be the market price of these bonds?

General Aviation, Inc Finances

Complete the balance sheet for General Aviation, Inc. based on the following financial data. Balance Sheet General Aviation, Inc. December 31, 2005 Assets Cash $ 8,005 Marketable securities ? Accounts receivable ? Inventories ?  Total current assets ? Gross fixed assets ? Less: Accumulated depreciation $50,000


Salte Corporation is issuing new common stock at a market price of $27. Dividends last year were $1.45 and are expected to grow at an annual rate of 6 percent forever. Flotation costs will be 6 percent of market price. What is Salte's cost of equity? kncs D^1/Np0= + g kncs = 1.45(1+0.06)/27(1-0.06)+ 0.06 = .1206 =

Investment portfolio.

I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand this questions Discuss how you plan to construct an investment portfolio. What steps do you plan to undertake to construct your portfolio? How do you plan to weight the portfolio? How do you plan to account for ris

Landon Corporation Stock Shares

Sample problem having trouble with. can someone help me. Need them done in excel. 1) Landon Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash. Instructions (a) Give the entry for the issuance assuming the par value of the common was $5 and the market value


P5-2 Return calculations For each of the investments shown in the following table, calculate the rate of return earned over the unspecified time period. Investment cash flow beginning of end of during period period value period value A -$ 100 $ 800 $1,100

Douglas Keel, a financial analyst for Orange Industries

Douglas Keel, a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. A year earlier, investment X had a market value of $20,000; investment Y had

A Series of Forecasting Problems

An analyst presents you with a following pro forma (in millions of dollars) that gives her forecast of earnings and dividends for 2007 -2011. She asks you to value the $ 1,380 millions shares outstanding at the end of 2006, when common shareholder's equity stood at $4,310 million. Use a required rate of return of 10 percent in

Money Market and institutions

1)If the risk-free rate is 6.25%, the inflation premium is 2% and the liquidity premium is 0.5%, the long-term Treasury bond rate should be: A. 6.75% B. 7.75% C. 8.25% D. 8.75% E. None of the above 2)A 20 year U.S. Government bond with a 10-percent annual coupon rate sells at $1,000 (par value) when prevailing interest ra

Stock value.

A hedge fund manager is seeking a $40 million investment into stocks of three companies (TD, POT and RIM) and in the T-bills. This "average" portfolio should have a beta of 1.3. (a) If she invests $5 million in TD with a Beta of 0.6 and $8 million in POT with a Beta of 0.9 and if RIM has a Beta of 1.7, how much will you invest

Finance Questions

Hello, I already have this done, however I want to be sure that I am correct with my answers and understand this properly. I need this rather quickly and any help would be greatly appreciated. Thanks! 1. The goal of the firm should be the maximization of profit. (True/False) 2. For the risk-averse financial manager, the mo

Standard deviation and Variance on excel.

Use the data below to answer the determine variance and standard deviation. (note: carry your calculator out to 4 decimal places). Year Actual Return Average Return Deviation for the Mean Squared Deviation 1 .12 .103 .017