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Financial Analysis

Your company is considering three mutually exclusive projects. Project A will expand the existing business operations in the current location. Project B will expand the existing business operations to the adjacent county. Project C will expand into a new business operation that is not related to current business operations. Surp

Question about loan amortization

Loan Amortization When Evelyn and Paul Peters were "house hunting" five years ago, the mortgage rates were pretty high. The fixed rate on a 30-year mortgage was 8.75% while the 15-year fixed rate was at 8%. After walking through many homes, they finally reached a consensus and decided to buy a $200,000 twostory house in an up a

Falling GDP coupled with high inflation

Let us assume that economic forecasts are predicting falling GDP (Gross Domestic Product) coupled with high inflation over the next couple of years. Based on this information, if you were a portfolio manager what would your recommendations be for investing in the construction industry? Why? What about in the health care industry

Western Wood Products cost drivers: single or two part rate method

Western Wood Product has two production departments: cutting and assembly. The company has been using a single predetermined cost driver rate based on plantwide direct labor hours. That is, the plantwide dividing plantwide cost driver rate is computed by dividing plantwide support costs by total plantwide direct labor hours. The

Price Elasticity of Demand for TV sets

Suppose that during a given year: (a) The price of TV sets increases by 4 percent in Japan, (2) the dollar depreciates by 5 percent with respect to the yen, (3) consumer incomes in the U.S. increase by 3 percent, (4) the price elasticity of demanrd for imported TV sets in the U.S. is 1.5, and (5) consumers income elasticity of

Financial Crisis at Your Company: SEC Required Press Release and Internal Memo

The company with which you are currently employed is experiencing a financial crisis. The Chief Financial Officer (CFO) has suddenly resigned and no one is discussing the reasons why. The U.S. Securities and Exchange Commission (SEC) is investigating your company's accounting practices and from the documents they have requested,

Money, Banking and International Finance

1. I would like to understand what this truly means and what globalization has to do with financial markets and how they impact the Healthcare. When I read this article it seems to be boring. I guess I need examples to understanding what it truly means and maybe it won't seem boring.

Omni Technology's 3 affiliates: calculate ratios for each affiliate.

5. Omni Technology Holding Company has the following three affiliates: Personal International Software Computers Operations Sales $40,000,000 $60,000,000 $100,000,000 Net Income (after tax) 2,000,000 2,000,000 8,000,000 Assets 5,000,000 25,000,000 60,000,000 Stockholder equit

Decision Making: The Martha Stewart, ImClone Stock Scandel and Trial

Part I What reasons could Martha Stewart have had to: 1. Act upon the stock tip she receive by selling all her stock 2. Then lying to Federal Agents about it Part II What were the negative consequences of her actions? 1. How did it affect her business empire? 2. How did it affect her personal life? 3. In what oth

Springfield Bank is evaluating a loan request from Creek Enterprises

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

Calculating P/E ratios and Profit Margin for Dell and Apple. Which is stronger?

Please see file attached. Using the financial information of 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

Benefits of Breakeven Analysis and Operating Leverage: formulas

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

Cost analysis of robots replacing workers manufacturing kitchen appliances

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.

Retained Earnings, Treasury Stock, and Transaction Analysis

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

Calculating degree of various Leverages

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

Horizon or Continuing Value

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

Scotto Manufacturing: Common stock valuation with zero growth.

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

Long term bonds, bond amortization, present value tables, adjusting entries

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

Evaluating Investment Decisions

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.

Excel accounting formulas

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

Treasury STRIPS: price, yield to maturity calculations

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

Cost Overruns at Alpha

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