Suppose you are bullish on Stock X and instruct your broker to buy 1,000 shares on margin, with a margin of 60%. The current price of a share of Stock X is $30, the interest on loans is 5%, and the maintenance margin is 40%. a) How much do you borrow from your broker? b) How far can the stock price fall before a margin cal
The initial proceeds per bond, the size of the issue, the initial maturity of the bond, and the years remaining to maturity are shown in the following table for a number of bonds. In each case, the firm is in the 40 percent tax bracket, and the bond has a $ 1,000 par value. Proceeds per Size of Initial Maturity Years Remainin
How to understand public finances I need several examples of each answer. a. Identify opportunities to develop the state or local economy. b. Identify strategies to improve the government's bond rating. c. Explain how unplanned events affect intergovernmental fund transfers. d. Recommend long-term fina
You must estimate the intrinsic value of Tsetseko Technologies' stock. Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million, and it is expected to grow at a constant rate of 7.00% a year thereafter. The company's WACC is 10.00%. Tsetseko has $125.00 million of long-term debt plus preferred stock, and the
A friend tells you that he has a job that pays US $1,500 per month (after tax); however, he is spending US $1,900 per month and taking on more credit card debt to meet his monthly bills. In conversation he says, "I love to fix up my car, and I love purchasing new clothes. I need money for the things I want to do." He ends the co
An 8 year old storage tank has to be replaced or repaired because of severe corrosion. You have been asked to investigate three alternatives Replace tank to original specifications. -Repair tank with stainless steel lining. -Replace tank with stainless steel tank. You have obtained the following information: Shut dow
1. A firm generated free cash flow of 2348 million and paid net interest of 23 million after tax. It paid a dividend of 14$ million and issued shares for 54 million. There were no share repurchases. What did the treasurer do with the remaining cash flow and for how much? 2. A firm generated a negative free cash flow of 1857 m
See attached Excel file. The income statement, similar to a video, measures the firm's profitability over a period of time: one month, one quarter, or one year. The statement focuses on the operations of the firm and explains what was produced and sold. In essence, it summarizes revenues generated and the results. Mark un
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 $10,000 will be requi
Which of the following statements is CORRECT? A The best way to judge the effectiveness of a firm's cash management procedures is to look at the ratio of its cash balances to its sales. The higher this ratio, the more effective the firm's cash management procedures are. B A good lock box system will reduce the
CHECK FIGURE (2) First quarter disbursements: $111,000 (3) First quarter ending cash balance: $31,400 Colormania is a wholesale distributor of dyes and pigments. When the treasurer of Colormania approached the company's bank late in the current year seeking short-term financing, he was told that money was very tight and tha
Refer to the attached file as some of the tables did not copy across. (Appendix 5A) Gaumer Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours. Using the least-squares regression method, the estimate of the fixed component of utility c
"Contingency funding never survives the review process. Once upper management realizes you have built in some funds to cover risks, they will cut it out and lower the bid." What is the real message behind the quote.
Apex, Inc is a biotechnology firm that is about to announce the results of its clinical trials of a potential new cancer drug, If the trials were successful, Apex stock will be worth $70 per share. If the trials were unsuccessful, Apex stock will be worth $18 per share. Suppose that the morning before the announcement is sche
Which stock would you prefer to own and why? Keep in mind the pros and cons of each stock and how they are valued.
>> Owning Stock << Introduction: This discussion requires you to explore the differences between the types of stock from a personal perspective. If you do not already own stock, it will give you a chance to think about it. Tasks: Which stock would you prefer to own and why? Keep in mind the pros and cons of each stock an
Can you help me get started with this assignment? A company has the following outstanding stock at the end of both 20X7 and 20X8 - Preferred stock (6%, $100 par value, 1000 shares issued and outstanding) - Common stock ($1 par value, 200,000 shares issued and outstanding) No dividends were declared or paid 20X7
Can you help me get started with this assignment? 32. Tom Skinner has $45,000 invested in a stock with a beta of 0.8 and another $55,000 invested in a stock with a beta of 1.4. These are the only two investments in his portfolio. What is his portfolio's beta? 0.93 0.98 1.03 1.08
Can you help me get started with this assignment? Your parents have been left a substantial amount of money and want to invest it in a company. They want your recommendation but also want to see the reasoning behind your choice. Prepare a trend analysis document for your parent to consider. Prepare a trend analysis of operati
Can you help me get started with this assignment? Your parents have been left a substantial amount of money and want to invest in a company. Your father trusts you to make a recommendation but also wants to see the reasoning behind your choice. Prepare three set of document for your parents to consider (business analysis, com
In its 2006 annual report, The Coca- Cola Company reported sales of $ 24.09 billion for fiscal year 2006 and $ 23.10 billion for fiscal year 2005. The company also reported operating income (roughly equivalent to EBIT) of $ 6.31 billion, and $ 6.09 billion in 2005 and 2006, respectively. Meanwhile, arch- rival PepsiCo, Inc. repo
Intel Corp. ( INTC) has a capital structure consisting almost entirely of equity. a. If the beta of INTC stock equals 1.6, the risk- free rate equals 6 percent, and the expected return on the market portfolio equals 11 percent, what is INTCs cost of equity?
Please see attached document. Financial Analysis with Microsoft Excel 1) Suppose that at the beginning of January 2000, you purchased shares in Advanced Micro Devices, Inc. (NYSE: AMD). It is now five years later, and you decide to evaluate your holdings to see if you have done well with this investment. The table below sh
Invester banker 5 enters into a best efforts arrangement to try and sell 10 million shares of stock at $15.00 per share for Rogers Company. The investment banker 5 incurs expenses of $300,000 in floating the issue and the company incurs expenses of $100,000. The investment banker 5 will receive 10% of the proceeds of the offerin
I need to verify solutions for the following problems. Please help. Thank you very much! 1. United Industries is about to pay a dividend of $1.35 per share. It's a mature company but future EPS and dividends are expected to grow with inflation, which is forecasted at 2.75% per year. A. What is United Industries' current
Sporty Inc, a sport equipment manufacturer, is considering a new project that will take advantage of excess capacity in an existing plant. The plant has a capacity to produce 50,000 tennis rackets, but only 25,000 are currently being produced. The sales of the tennis rackets, however, are expected to increase 10% a year. The fir
Suppose the risk-free interest rate is 4%. a. Having $200 today is equivalent to having what amount in one year? b. Having $200 in one year is equivalent to having what amount today? c. Which would you prefer, $200 today or $200 in one year? Does your answer depend on when you need the money? Why or why not?
What are the advantages and disadvantages to issuing debt vs equity?
Using the financial statements of Landry's Restaurants located in Appendix A of the text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby, and Libby, compute the following ratios for 2002 and 2003: a. Net profit Margin b. Gross profit margin c. Fixed asset turnover d. Return on equity (ROE) e. Earnings per
15-12A. (Break-even point) You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product. You have developed the following cost structure information for this company. All of it pertains to an output level of 10 million units. Using this information, find the break-
A 5-year treasury bond has a 5% yield. a 10-year treasury bond has a 6% yield. a 10-year corporate bond has an 8% yield. the market expects that inflation will average 2.5% over the next 10 years (IP10=2.5%). Assume that there is no maturity risk premium (MRP=0), and that the annual real risk-free rate of interest, r*, will rema