Explore BrainMass


Financial Ratios Calculations

P13-2A The Comparative statements of Jack Frost Company are presented here. Jack Frost Company Income Statement For the year ended December 31 2007 2008 Net Sales $1,890,540

Important Information about Sole Proprietorship

Your friend, Don Jones, has begun his new small business as a sole proprietorship. Comment on his choice. Is a sole proprietorship the best choice for this business? Why/Why not? What are the alternatives for Don? How does the business ownership type affect the accounting for the business? Explain the steps in the accounting

Finance Problems

Solve the Financial Problem in the attachment for Scott Equipment Organization and Lewis Enterprises. Based on the following scenario, complete the calculations below: Scott Equipment Organization is . Assume that the organization has decided to employ $30 million in current assets, along with $35 million in fixed assets, i

Cost Perspective

The CEO has been considering the option of licensing a regional manufacturer. However, since he invented the technology, he is very concerned about how to structure such an agreement in order to fully protect the intellectual property. In addition, he does not fully trust European firms, mainly because of the recent developments

Increasing Leverage and EBIT

Please help with the following problem. Provide step by step calculations. 1. Dominion expects to have net income next year of $24 million and Free Cash Flow of $27 million. Dominion's marginal corporate tax rate is 40%. What Dominion's EBIT? [Hint: EBIT = NI + Taxes + Interest expense] 2. Dominion expects to have net

Non-Cash Assets and Repurchasing Shares

Please help with the following problems. Provide step by step calculations for each. 1. John is a successful logistical services firm that currently has $5 billion in cash. John has decided to use this cash to repurchase shares from its investors, and has already announced the stock repurchase plan. Currently John is an all

Free Cash Flows and Unlevered Equity

1. Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%. What is the NPV? 2. Consider a pr

Internal Management Tools, RNOA, NOPAT Sales, and Stress Tests

1. What is an example of return on invested capital being used as an internal management tool? 2. What is an example of interest expense being ignored when computing return on net operating assets (RNOA)? 3. What is the relation between return on net operating assets and sales? Consider both NOPAT sales and sales to net operat

Accounting Practice Questions

Choose the best answer for each of the following questions and enter the identifying letter in the space provided. Neber Co., which began operations on January 1, 2007, appropriately uses the installment-sales method of accounting. The following information pertains to Neber's operations for the year 2007: Installment sales

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 =