P2-12 Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek's recent financial statements (on the facing page), evaluate and recomm
Please see file attached. Using the financial information of http://www.sec.gov/edgar.shtml as of December 31 of each year, calculate the P/E ratios each year for the last four quarters for Dell and Apple. Which company has made the strongest recovery in terms of profit margin and which has had the strongest growth in P/E rat
Discuss and give examples of the following formulas that are used in breakeven analysis: Contribution Margin Method - Breakeven in Units and Breakeven in Sales Dollars. Targeted Profit Analysis - Targeted Profit in Units and Targeted Profit in Sales Dollars. Margin of Safety - Margin of Safety in dollars and Margin of S
I am a senior vice president of a company that manufactures kitchen appliances. I am considering using robots to replace up to ten of my skilled workers on the factory floor. Using a spreadsheet, I need to analyze the costs of acquiring several robots to paint and assemble some of my products versus the cost savings in labor.
1) Calculate retained earnings from the following data; calculate the retained earnings balance as of December 31, 2008 Retained earnings, December 31, 2009 $490,400 Net decrease in total assets during 2009 74,800 Net increase in accounts receivable in 2009 17,200 Dividends declared and paid in 2009 67,200
Problem 1 You are supplied with the follwing analytical income statement for the your firm. It reflects last year's operations. Sales $16,000,000 Variable Costs $8,000,000 Revenue before fixed costs $8,000,000 Fixed Costs $4,000,000
Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2007. The weighted average cost of capital is 11%. What is the horizon or continuing value of 2007? FCF ( in millions of Dollars) Projected Actual 2005 2006 2007 2008 $606.82 $66
Please see attached file. 1. A business created as a distinct legal entity composed of one or more individuals or entities is called an A corporation B sole proprietorship C partnership D Closed receivership E Open Structure 2. Agency costs are: A the total dividends paid to shareholders over the lifetime of the fir
Scotto Manufacturing is a mature firm in the machine tool component industry. The firm's most recent common stock dividend was $2.40 per share. Because of its maturity as well as its stable sales and earnings, the firm's management feels that dividends will remain at the current level for the foreseeable future. a. If the req
Hard Rock Corporation manufactures disposable thermometers that are sold to hospitals through a network of independent sales agents located in the United States and Canada.
Can you please help me with this problem. Thanks. Hard Rock Corporation manufactures disposable thermometers that are sold to hospitals through a network of independent sales agents located in the United States and Canada. These sales agents sells a variety of products to hospitals in addition to Hark Rock's disposable therm
June 1, 2004 Janson Co sold $1,000,000 in long term bonds for $877,600 maturing in 10 years with a stated interest rate of 8% and yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective interest method. a) Construct a bond amortization table for this p
Who are the various stakeholders in a publicly traded corporation, and why is communication of financial reports important to them? What is the impact on various stakeholders if financial reports are not communicated on a timely basis? The solution has only Book reference.
Question 1 Design Manufacturing produces and sells a single product. Original data concerning this product appear below: Per Unit Percent of Sales Selling price R150 100% Variable expenses 45 30% Contribution margin R105 70% Fixed expenses are R500 000 per month. Answer the following questions 1.1.
15. Returns for the Shields Company over the last 3 years are shown below. What's the standard deviation of Shields' returns? (Hint: This is a sample, not a complete population, so the sample standard deviation formula should be used.) Year Return 2006 21.50% 2005 -12.50%
See attached (exercises 6-1 through 6-8)
I need to build an Excel spreadsheet for the calculations in the chart. The spreadsheet must include Excel formulas used (I have listed the Excel formulas- I am having a hard time plugging them in to the spreadsheet). I would also like the detailed formulas written out so that I can plug them in for later practice and understa
I need some help with these problems using EXCEL 1. A Treasury STRIPS matures in 7.5 years and has a yield to maturity of 6.9 percent. If the par value is $100,000, what is the price of the STRIPS? What is the price quoted? 2. What is the yield to maturity on Treasury STRIPS with 10 years to maturity and a quoted price of
Alpha Company has implemented a plan whereby functional managers will be held totally responsible for all cost overruns against their (the functional managers') original estimates. Furthermore, all cost overruns must come out of the functional managers' budgets, whether they be overhead or otherwise, not the project budget. What
Discuss the following two scenarios. Scenario 1: Is the following statement true or false? Explain. When the 56-year-old founder of Gulf & Western, Inc. died of a heart attack, the stock price immediately jumped from $18.00 a share to $20.25, a 12.5% increase. This is evidence of market inefficiency because an effici
What is the theory behind why charter schools and/or vouchers may be a viable alternative to simply increasing funding for traditional schools?
Need help answering these questions.. 1. What is the theory behind why charter schools and/or vouchers may be a viable alternative to simply increasing funding for traditional schools? What are the pros and cons? 2. Discuss the three premises of the political approach to public organization.
2. If you require a 9 percent return on your investments, which would you prefer? a. $5,000 today b. $15,000 five years from today c. $1,000 per year for 15 years 4. The Mutual Assurance and Life Company is offering an insurance policy under either of the following two terms: a. Make a series of 12 payments of $1,200 at
Show each formula and all work. #37: Find the amount of each payment that must be made into a sinking fund to accumulate each amount. (Recall, in a sinking fund, payments are made at the end of every interest period.) 233,188; money earns 9.7% compounded quarterly for 7 3/4 years ______________________________________
Please see attached file. The market and Stock J have tire following probability distributions: Expected Returns Probability rM, rl 0.3 15% 20% 0.4 9 5 0.3 18 12 a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for t
Please see attached. 1-1 A stock's return has the following distribution Demand of the company Product Probability of this demand occurring Rate of Return if this demand occurs Weak 0.1 (50%) Below Average 0.2 (5) Average 0.4 16 Above Average 0.2 25 Strong 0.1 60 1 Calculat
Please see the attached problem. EFN: The most recent financial statements for Martin, Inc., are shown here: INCOME STATEMENT BALANCE SHEET Sales $19,200 Assets $93,000 Debt $20,400 Costs $15550 Equity $72,600 Taxable income $ 3,650 Total $93,000 Total $93,000 Taxes (34%) 1,241 Ne
Please see the attached file. The Candy Company sales are forecasted to increase from $1000 in 2005 to $2000 in 2006. Here is the December 31, 2005, balance sheet: Cash $100 Accounts payable $50 Accounts receivable $200 Notes payable $150 Inventories $200 Accruals $50 Current assets $500 Current liabilit
1. Electronics Unlimited has the following capital structure: 60% stock, 10 % preferred stock, and 30% in debt. The after-tax cost of debt is 8%, the cost of preferred stock is 10%, and the cost of common stock is 12%. What is the Weighted Cost of Capital (WACC). 2. Your company's fixed costs are $2 million and variable co
Also is the law really capable of protecting the public from companies that hide financial illness behind polished annual reports?
Identify a community foundation in your area. Then write a 700 word paper describing the organization and the projects it supports.