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VC Valuation and Deal Structuring

In 2005 Dub Tarun founded a firm using $200,000 of his own money, $200,000 in senior (bank) debt, and an additional $100,000 in subordinated debt borrowed froma family friend. The senior debt pays 10% interest, while the sub-debt pays 12% interest and is convertible into 10% of the firm's equity ownership at the option of the in

What is the effect of transactions on various financial ratios?

I need to know the effect that each transaction will have on the financial ratio listed opposite it. Please use + for increase, - for decrease, and NE for no effect. Also, please give a short explanation for each answer. Assume that current assets exceed current liabilities in all cases, both before and after the transaction. He

Risk Avoidance and Risk Retention

a. Discuss how risk avoidance might prove advantageous in your company or one with which you are familiar. b. How do the concepts of risk retention and risk transfer apply to your company or one with which you are familiar. c. Congratulations! You have just been promoted to the position of Supervisor of Risk Management fo

Principles of Managerial Finance

Why is short-term financial management one of the most important and time-consuming activities of the financial manager? What is net working capital? Why is it important for a firm to minimize the length of its cash conversion cycle? What factors make managing inventory more difficult for exporters and multinational compan

Finance: Assessing Investments

Growth Enterprises, Inc. (GEI) has $40 million that it can invest in any or all of the four capital investment projects, which have cash flows as shown in Table A below. Type of Project Type of Cash Flow Year 0 Year 1 Year 2 Year 3 A Investment (10,000) Revenue 21,000 Operation Expen

EBIT question

Hyperion, Inc., currently sells its latest high-speed color printer, the Hyper 500, for $350. It plans to lower the price to $300 next year. Its cost of goods sold for the Hyper 500 is $200 per unit, and this year's sales are expected to be 20,000 units. a. Suppose that if Hyperion drops the price to $300 immediately, it


List and define at least two "Activity" and two "Liquidity" ratios. From two S&P 500 companies (must be in the same industry - i.e., GM & Ford), calculate/ compare the ratios chosen. From calculations, what observations can be made regarding the companies operating and/or financial position?

8. easy finance questions based on connected article.

QUESTIONS 1. Calculate a few ratios and compare Reed's results with industry averages. (Some industry averages are shown in Exhibit 4.) What do these ratios indicate? 2. Why does Holmes want Reed's to have an inventory reduction sale, and what does he think will be accomplished by it? 3. Jim Reed had adopted a very loose wo

Ratios can help users assess fiscal condition of companies. This problem calculates and utilizes several primary ratios and financial comparisons to determine how one city compares to another in various spending and revenue trends.

Ratios can help users assess fiscal condition of companies. This problem calculates and utilizes several primary ratios and financial comparisons to determine how one city compares to another in various spending and revenue trends. This case feaures information from a small mid-western town related to revenues, tax collections

Home Builder Supply: Incremental Earnings

Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned war

Step-wise answer to PERSONAL FINANCE

1 to 2 pages long Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $1

Cash flow needed to pay debt holders; Proportion of assets in debt financing

How much will a firm need in cash flow before tax and interest to satisfy debt holders and equity holders if the tax rate is 40 %, there is a $15 million in common stock requiring an 11 % return, and $4.5 million in bonds requiring a 6.5 % return? Question 1 answers a. 1,650,000 b. 1,942,500 c. 3,042,500 d. 4,200,000 W

MC on market risk premium

Which of the following statements is correct? (Assume that the risk-free rate is a constant) a. If the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0. b. The effect of a change in the market risk premium depends on the slope of the yield curve.

Price Elasticity:

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.

Price Elasticity and Cross- price Elasticity

Please help with the following finance problems. Type of Orange Florida Indian Florida Interior California River Florida Indian River -3.07 +1.56 +0.01 Florida Interior +1.16 -3.01

Finance: Plan your retirement income for 20 years from now. Show calculations

You are 40 years old and plan to retire in exactly 20 years. Starting 21 years from now you will need to with draw $5,000 per year from your retirement fund to supplement your social security payment. If you expect to live to age eighty-five, how much should you place in the retirement fund each year for the next 20 years to re

Finance questions of preprogrammed function

P4-2 Future value calculation Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, i, and the number of periods, n, to calculate the future value interest factor in each of the cases shown in the following table. Comp

Finance : Mortgages and Amortization

Here is the problem Delta , LLC, currently net leases its headquarters office building for $70,000 per month, and this lease has two years left to run. (Under a commercial fully net lease, the tenant pays for all maintenance, repairs, insurance and property taxes.) Delta considers the rent to be less than the current market

Prepare an analysis on the financial position of Wendy's

Please help me get the following info with supporting evidence from Wendy's financial statements. I have provided the link. Thanks. Prepare an analysis on the financial position of the company for the last 3 to 5 years. Refer to the financial statements for this information. I. Have they acquired more assets? Has the co

Dividend discount model - value of Gillette stock

Gillette has announced that it will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter through the fifth year. After the fifth year, growth will level off at 2% per year. Applying the dividend discount model, what is the value of a share of Gillette stock if the

Direct Labor Variable Costs

I have 46 study questions that I need assistance with answering. Question 1: Schickel Inc. regularly uses material B39U and currently has in stock 460 liters of the material for which it paid $3,128 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.95 per liter. N

Recording and Amortization of Intangibles

Rolanda Marshall Company, organized in 2006, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2007. 1/2/07 Purchased patent (8-year life) $ 350,000 4/1/07 Purchased goodwill (indefinite life) 360,000

Financial Decisions: Stocks, Standard Deviation, Beta and Others

Write a BRIEF response: 1. If the historical standard deviation of common stocks has been 20.3% and small company stocks 34.6%, explain how the S & P Composite Index could have a standard deviation of 20.3%? 2. Explain why a financial manager of a large company should use the standard deviation as the measure of risk to de


Prepare a 350-700-word case study analysis of Case #16: "Reed's Clothier" located in the Cases in Financial Management text, by Sulock and Dunkelberg. Be sure to address the following in your analysis: a. Briefly summarize the case. b. Formulate answers to questions 1, 2, 3, 4, 5, 6, 7, and 8. For question 1, you sh

Preparation of Pro Forma Financial Statements and Boeing Corp

Please explain your answer to each question. 1. Boeing Corp. buys on 2/10, net 30 days. What is the nominal cost of interest if Boeing does not take advantage of the trade discount offered? Assume a 360-day year. a. 2.0% b. 72.3% c. 48.1% d. 36.7% 2. Which of the following is the initial and most important ste

Corporate Finance Data Presentation

Would you present data in for the form of a descending list of outstanding invoices, or an aged listing with the oldest at the top of the list, or some other way of presenting the firms that should not receive continued support on credit?