Share
Explore BrainMass

Finance

Change in operating cashflow

The upgrade will cost the firm a combined total of $23,000,000 up front, but will lower operating expenses by 4,400,000 per year forever. The firm is facing a 38% tax rate. The market value of the equity is $304,500,000. The cost of Equity is 19.54%. 1. What is the CF0? 2. What is the change in operating cashflow in

Overall financial Yield

The ABC Resort is considering hosting a prestigious corporate awards convention next year that will require 55% of the total rooms in the resort for 8 days and 7 nights during the resort's peak season. The convention group, comprised of professionals in their early 30s and 40s, will have all breakfasts, all lunches, and three di

Finance (Merges and Q.)

1,The book value of Nott's Nursery's total assets is $400,000. Suppose Golden Gardens Inc. acquires Nott's Nursery's assets for $1 million and finances the purchase by selling $ 600,000 in new stock, $ 300,000 in new debt, and reducing cash by $ 100,000. Describe how the acquisition affects Golden Gardens Inc., balance sheet.

Business portfolio theory expected return

I am looking for some formulas to calculate with this chart , ones to suit these questions please make them easy to understand and a clear explanation of the formula, so I can do the math myself, especially C and D. maybe make up your own examples so I watch how it's done and learn from an example (Portfolio returns and ri

Secondary Market Price of Each Share

LaJolla Securitites Inc. specializes in the underwriting of small companies. The terms of a recent offering were as follows: Number of shares 2 million Offering Price $25 per share Net proceeds $45 million LaJolla Securities expenses, associated with the offering, were $500,000. Determine L

Sale of New Shares

The Norman Company needs to raise $50 million of new equity capital, Its common stock is currently selling for $50 per share. The investment bankers require an underwriting spread of 3 percent of the offering price. The company's legal, accounting, and printing expenses, associated with the seasoned offering are estimated to be

NOMINAL RATE RETURN

Can you help me with this questions... 1) Explain the calculation of a project's net salvage value. 2) What is the relationship between the nominal rate of return, the real rate of return, and the rate of inflation? 3) Why is it important to recognize and exclude sunk costs from a capital budgeting analysis?

Corporate Finace: Acme Inc.

Acme Inc. is considering shortening its credit terms from the current net 45 days to net 30 days. If this policy is adopted it is believed that the average collection period will move from the current 52 days to 36 days and that bad debts would decrease from 2.5% to 1% of sales. The shortened credit period will however reduce sa

Corporate Finance - Matrix Enterprises

Matrix Enterprises is considering offering both a stock dividend and a cash dividend in the upcoming year. The most recent balance sheet for Matrix (before any stock or cash dividend) is presented below (all amounts are in million $). Cash $114.5 Other Assets 2,835.5 Total Assets 3,250.0 Liabilities $1,750.0 Common shar

Operating, financial and total leverage

Use the following information to answer questions 1 and 2 Venture Inc. manufactures and sells headphones to airline and other passenger transportation companies. Each headphone sells for $5.50, and this year sales are expected to be 1,750,000 units. Variable manufacturing costs for this level of manufacturing and sales (Ventu

BCD Ltd. Case Study: Financial Analysis

You have been asked to find the value of BCD Ltd. and have been provided with thefollowing information: 2010 Sales 4,850,000 Cost of goods sold 3,260,000 Selling, general and admin (SG&A) 1,070,000 Depreciation 200,000 Interest 40,000 Other 30,000 Net income before taxes 250,000 Income taxes (@40%) 100,000 Net income

Financial reporting requirements for Boonville Public Health Center

In preparation for preparing the financial statements for Boonville Public Health Center, you need to review the financial reporting requirements for governmental and nonprofit organizations. Your assignment is to determine: (1) The governing authority for regulating the financial reporting of both governmental and nonprofit

Managerial Accounting and Finance

An artist creates original works on commission. She is likely to use what type of costing? job order process actual normal John Adams is a cash receipts clerk for Boro Company. He receives payments from customers and records the payments to the customers' accounts. John receives a p

Price variance

As a marketer, when do you think it is right to go against the pricing norms of your company? Would you be comfortable making the case to executives, or would you try it their way, then revise your pricing strategy? Additionally, do you think you should price a product differently (multiple price-points) depending upon the buyer

Venture Capital Funding/Valuation

You are an entrepreneur whose business requires $10 million in investment. A venture capital organization undertakes due diligence and offers to provide the funds in exchange for 50% ownership of the company. From discussion, you learn that the venture fund believes your company will be maturing in three years. You also learn th

Information System in Accounting for Managing Change

The area that I am investigating in is Information System in Accounting and Finance. My problems are: Please use Systems Development Life Cycle to explain how would introducing a new payment technologies affect an organisations? How could the System Analysis stage be used to identify the advantages and disadvantages of introd

The Role of Financial Institutions in Financial Markets

? Write a paper, describing at least three major financial institutions. ? Describe possible markets those institutions, such as those in the following list, are involved with and explain interactions among them. Cite at least two sources. o Commercial banks o Insurance organizations o Investment banks o Pension funds o

Subsidiary issues additional stock under different assumptions

Primetime Corporation owns 2/3 (600,000 shares) of the outstanding $1 par common stock of Satellite company on January 1, 2006. In order to raise cash to finance an expansion program, Satellite issues an additional 100,000 shares of its common stock for $5 per share of January 3, 2006. Satellite's stockholder's equity before an

Diversifying a Stock Portfolio

Consider the following two, completely separate, economies. The expected and volatility of all stocks in both economies is the same. In the first economy, all stocks move together-in good times all prices rise together and in bad times they all fall together. In the second economy, stock returns are independent-one stock increa

Leverage: EBIT and EPS

I heard something from Bob the bartender the other day (Joe, the former bartender, left to form a financial consulting company). He said one type of leverage affects both EBIT and EPS. Then he said the other type of leverage affects only EPS. What do you think he meant by each of his statements?

Financial Intermediary

a) Is an investment bank, while facilitating the issue of securities, acting as a financial intermediary? Explain. b) Is an insurance company a financial intermediary? Explain. c) The savings rate domestically has increased, probably due to uncertainty about the future (as a result of the recent economic downturn). All e

Break Even Analysis for Total Fixed Costs

Total Fixed Cost $600,000 Plant Capacity 70,000 units Desired Profit $150,000 Unit Price $50 Variable Cost $30 Tax Rate 25% With this information, calculate the answers to the following questions: 1) Calculate what the total income the company must get its sales to cover the Total Fixed Cost, Total Variable Cost

Finding Break-Even and Profit Points: Byron Example

Byron is planning to finance his college education by selling programs at the football games. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee paid to the University for the right to sell these programs. If Byron was able to sell programs for $5 each, how many wo

Market Price Per Share: Kampfert Industries

You are thinking about buying a share of Kampfert Industries, which has a current market price of $31.60 per share. Kampfert's expects to pay a dividend of $2.37 per share next year. Your required rate of return on these types of investments is 12%. If dividends are expected to grow at a constant rate for the foreseeable future,

Monthly Payment, Inflation Rate, After-Tax Rate

1. If Bank One is offering a 30 year mortgage with and EAR of 5 3/8 %. If you plan to borrow $150,000, what will your monthly payment be? 2. If the rate of inflation of 5%, what nominal interest rate is necessary for you to earn a 3% real interest rate on your investment? 3. Your best taxable investment opportunity has an EAR

Pullman Inc. Risks Involved With Growth Into Other Countries

Pullman, Inc., a U. S. firm, has been highly profitable, but prefers not to pay out higher dividends because its shareholders want the funds to be reinvested. It plans for large growth in several less developed countries. Pullman would like to finance the growth with local debt in the host countries of concern to reduce its expo