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    Problems about Special Order and Maximizing Profits

    1. Gamboa's Company has a capacity of 50,000 units per year and is currently selling all 50,000 for $500 each. Keller Company has approached Gamboa about buying 5,000 units for only $450 each. Gamboa has a normal variable cost of $380 per unit, including $50 per unit in direct labor. Gamboa could produce the special order on an

    Loan Interest Rates Terms

    See attached file for tables. Section I: Computational Problems 1. Big Sky Montana Corporation must install $1.875 million of new machinery in its bottling operation. It can obtain a bank loan for 100% of the purchase price or it can lease the machinery. [ Assume the following apply: 1. The machinery falls into the MA

    The Tracking Signal of the St. Louis Forecast

    St. Louis has the following data for the students enrollment from year 2005 to 2009 please determine the tracking signal of the St Louis forecasts. Is it over forecasted or under forecasted? Year Actual Enrollment Forecast Enrollment 2005 2533 2550 2006 2612

    Adjustable and Fixed Rate Mortgages

    Consider the following scenario: John buys a house for $150,000 and takes out a five year adjustable rate mortgage with a beginning rate of 6%. He makes annual payments rather than monthly payments. Unfortunately for John, interest rates go up by 1% for each of the five years of his loan (Year 1 is 6%, Year 2 is 7%, Year

    Computing current price of the stock (P )

    State Street Corp. will pay a dividend on common stock of $4.00 per share at the end of the year. The required return on common stock (K ) is 11%. The firm has a constant growth rate of 6%. Compute the current price of the stock (P )

    Calculation of equivalent units

    McMillian Tire Company produces tires used on small trailers.The month of June ended with 500 tires in process, 90 percent complete as to direct materials,and 50 percent complete as to conversion costs;2,000 tires were transferred to finished goods during the month,and 2,400 were started during the month.The beginning Work in Pr

    Financial Reporting and Theory

    Please identify what accounting standard is the UK and US using at the moment. Detail describe what is the difference between principle based accounting standard and rules based accounting standard. What is the US current status/objectives on current convergence project between the FASB and the IASB. Critically assess how t

    PROBLEM 3-8. Production Cost Report,Missing Information

    Marion Chemicals produces a chemical used as a base in paints.In the manufacturing process, all materials are added at the start of the process,whereas labor and overhead are added evenly throughout production. Required Fill in the missing information in Marion's Production Cost Report for the month of December Marion C

    Production Cost Report for Aussie Yarn Co.

    Aussie Yarn Co. is a U.S. producer of woolen yarn made from wool imported from Australia. Raw wool is processed, spun, and finished before being shipped out to knitting and weaving companies. Material is added in the beginning of processing, and conversion costs are added evenly throughout processing. Aussie began the month

    Calculate the expected portfolio

    5.13 in Ch. 5 Expected return Year Stock L Stock M 2010 14% 20% 2011 14 18 2012 16 16 2013 17 14 2014 17 12 2015 19 10 P5â?"13 Portfolio return and standard deviation Jamie Wong is considering building an investment portfolio containing two stocks, L and

    Average return, variance, standard deviation

    A recession is an example of systematic risk because it affects the pattern of a number of aspects (stock), what are some other examples of systematic risks? Assume Company X has the following returns for years 1 to 5: -25, 36, 9, 11 and 17%. What would be: a. the average return b. the variance of the returns over the per

    Diversification in Stock Portfolios

    Could you please provide a report well supported, in APA format, illustrated with examples about your conclusions in this case study: Diversification in Stock Portfolios Consider the following two, completely separate, economies. The expected return and volatility of all stocks in both economies is the same. In the first e

    Spreadsheet using IF / AND functions for employee bonus pay

    See attached file. In the attachment, I need help with how to use the "AND" and "IF" formula. The IF formula is needed to enter the bonus amounts if a person is eligible. An employee with a performance rating of seven or higher and who meets the sales quota receives a bonus of one percent of the sales. If the ratin

    Expected Return & Ceta of Stock

    Assume a project that has the following returns for years 1 to 5: 15%, 4%, -13%, 34%, and 17%. What is the approximate expected return of this investment? 11% 17% 16.60% 10% Assume you are considering investing in two stocks, A & B. Stock A has an expected return of 16% and Stock B

    Adjustments that Should Be Made for the Special Sale

    See attached file. On the last day of the trading year the CFO arranged for a special $8.0m sale of video games to a long-time customer. This sale has been recorded in the normal way and is included in Sales Video Games and Accounts Receivable. The inventory has not been delivered and the 4m cost is included in Video Games in

    Finance

    Why is diversification so important when considering risk? What does it mean to diversify a portfolio? How can you explain what beta means and how can you use it? 247 words

    Short Term Financing

    Imagine you are the owner of a growing technology or service company with a healthy cash flow but little in the way of property and equipment. Develop a strategy for meeting your short-term financing needs to acquire needed property and equipment.

    Maximize Financial Value

    Is it possible for companies both to maximize financial value for shareholders and to act irresponsibly in the communities in which they operate, to treat their employees, customers, and suppliers well, and to engage in activities that are good for the environment? In your response, please cite examples of companies that are doi

    Excel Solver Product Mix Maximizes Revenues

    Stanley Furniture produces two types of china cabinets, First Provincial (FP) and Deluxe Modern (DM). Each cabinet goes through 3 departments: carpentry, painting and finishing. The following table contains relevant information on production times per cabinet produced, daily production capacities for each department and net reve

    Calculation of new funds

    See below the 2006 balance sheet for Marbell Inc. Assets Liabilities & Stockholders' Equity Cash $15,000 Accts Payable $90,000 Accts. Rec. 90,000 Notes Payable 30,000 Inventory 60,000

    Conservative and Aggressive Financing Plans

    Christensen & Associates is development an asset financing plan. Christensen has $500,000 in current assets of which 15% are permanent, and $700,000 in fixed assets. The current long-term rate is 11%, and the current short-term rate is 8.5%. Christensen's tax rate is 40%. Show a financing plan, conservative, with 80% of asset

    Calculating how to handle banking for businesses

    Please help with the following finance problem. Major Manufacturing currently has one bank account located in New York to handle all of its collections. The firm keeps a compensating balance of $300,000 to pay for these services (see Section 19.7). It is considering opening a bank account with West Coast National Bank to spe

    Multiple Choice Questions - finance practice quiz

    ** See ATTACHED file(s) for complete details ** Question 1 The Underhill plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Maintenance $180,000 Inspection 380,000 The plant currently applies overhead using direct labor hour

    Finance: Mutual Funds

    Capital Allocation Consider the following capital market: a risk-free asset yielding 3.00% per year and a mutual fund consisting of 65% stocks and 35% bonds. The expected return on stocks is 12.00% per year and the expected return on bonds is 5.50% per year. The standard deviation of stock returns is 30.00% and the standard d

    Global Financial Markets - Risks and Challenges

    During the past two decades, financial markets around the world have become increasingly interrelated. Although globalization has brought considerable benefits to national economies and investors, what new risks and challenges has this created for market participants and policymakers?

    Advantage and disadvantages of using student loans

    I am conducting a detail study on the advantage and disadvantages of university students using student loans. Please tell me the backgrounds/objectives of student loans? Such as since when student loans become commonly used? What was the purpose of student loans? (Preferably based in the UK) Is student loan really a convenien

    Expansion and leverage - DeSoto Tools, Inc.

    Can you help get me started on this?? ********************** DeSoto Tools, Inc. is planning to expand production. The expansion will cost $300,000, which can be financed either by bonds at an interest rate of 14 percent or by selling 10,000 shares of common stock at $30 per share. The current income statement before expansi