1. Possible net present values and associated probabilities for a new investment are as follows: NPV -1020 -800 80 450 550 800 Probability .15 .30 .20 .10 .10 .15 What is the expected value______________, median,______________ and mode _________________? 2. You have been given the job of
(Cash for Stock Merger) This problem requires that you integrate the material learned in prior chapters. You have been given the job of evaluating the following merger candidate. You have collected the following cash flow estimates for the acquisition candidate for the proposed merger (in millions): Year 1 2 3
The last four years of returns for a stock are as follows: Year 1: -4.5% Year 2: +27.7% Year 3: +11.9% Year 4: +4.2% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? NOTE: Notice that the average return and standard deviati
1. A company has warrants on the market that allows people who own it to buy 1 share price at cost $25. a. Calculate the value of the security warrants of the organization if the common shares are sold each at the following rates: (1) $ 20, (2) $ 25, (3) $ 30), (4) $ 100. (NOTE: The value of executing a warrant is the differ
Athens Development Corporation is considering a new product that will be sensitive to both economic conditions and competitor response. The product manager has decided to focus on three economic conditions: weak economy, normal economy, and strong economy. Competitors either will or will not respond with a competitive product,
Explain how important transfer pricing issues are for measuring performance and in the business world. Give an example to illustrate the issues.
How is the concept of "cost of goods sold" different from "contribution margin"?
True or False The major role played by earnings announcements in the valuation of a business (or project) is that earnings announcements are used to revise or refine your forecast of future cash flows. True or False The difference between the yield to maturity and the yield to call is that yield to maturity is the presumed
You place a commercial building into service on February 28th, 2012 costing $2,220,000. What is the depreciation expense allowed by the IRS for this building for tax years 2012? And 2013?
You are opening your own business and estimate the following expenses and revenues: Year 1 Year 2 Year 3 Revenues $900,000 $1,300,000 $1,100,000 Cost of goods sold $550,000 $800,000 $700,000 Accounts payable as a
1. How much will you have at the end of 22 years if put $8680 per year at the end of each year into a saving account earning 1.6% annually? 2. How much do you need to invest today to have $89,000 at the end of 19 years if you can earn 6.5% annually?
Able Corporation has Project A with the following cash flows and a 8.7% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows. Year 0 1 2 3 4 5 6 Cash flow $(312,000) $ 95,000 $120,000 $(260,000) $ 230,000 $260,000 $180,000 Please calculate the net present value __
Given the following information: Total assets: $250,000 Debt (12% interest rate): $150,000 Equity: $40,000 Variable cost of production: $150 per unit Fixed cost of production: $50,000 Units sold: 1000 Sales price: $210 per unit
An office prints 200,000 pages per year. The Dell brand printer costs $1100 and will produce a total of 600,000 copies before it wears out (3 year life). The Cannon brand machine costs $1,800 and will produce 1,000,000 copies in its 5 year life. Maintenance and material costs are $.05 a page for the Dell machine and $.03 with Ca
Describe and evaluate the various approaches for setting transfer prices. How can the use of different approaches between the selling and buying divisions be reconciled? You should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make t
For this assignment, you will use your newly acquired knowledge of the Price-earnings Ratio and the DuPont Model to perform an equity analysis for The ABC firm for the years 2012 and 2013. The following financial information is available for your use: - Revenue: $130,500,000 (2012); $202,560,000 (2013). - Net Income: $22,740
Question 1: Future value of annuity problem. You deposit $8,000 into a retirement account at the end of the next 12 years earning 10% interest, what is the future value of your retirement after 12 years? ----------- Question 2: Part 1) Using a 4.4% discount rate, calculate the Net Present Value, Payback, Profitability Ind
Discuss the value and use of financial knowledge to a business manager.
Explore the role and impact of the organization on business entities, the accounting profession and our economy This not an essay, just a discussion. I have no much knowledge on the topic and want to get smart on it prior to discussion.
ALL responses must be at least 250 words in length. All sources used must be referenced; paraprased and quoted material must have accompanying citations. Must be APA format (in-text and reference citations are required for written responses). Show step by step solutions 1. Describe the statement of cash flows and why it is
How does planning theory differ from the practice of planning? What is the major difference between public planning and private planning? List and discuss three theoretical approaches to the process of planning. Which approach do you feel is most effective for urban planners?
1) Given the following data, What is the weight of security 1? Of security 2? 3? What is the expected return on the portfolio? Security 1 ; $5,000 invested; Expected return 7% Security 2; $7,000 invested; Expected return 9% Security 3; $9,000 invested; Expected return 12% 2) The expected possible outcomes for Roxy Stock
The Weighted Average Cost of Capital Method 4. Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $1.5 million per year, growing at a rate of 2.5% per year. Goodyear has an equity cost of capital of 8.5%, a debt cost of capit
List and discuss the reasons why environmental planning can be difficult to pursue? How does federal environmental planning influence state and local environmental planning? Discuss some examples in which the U.S. government has taken steps to address environmental planning. Lastly, what are some economic and political implic
Do you think working with an investment policy may prevent investors from optimizing their returns? Is it beneficial to investors? Why? Thank you,
What are the three main reasons why urbanization was limited between 1949 and 1980 in China? What specific tasks did the Chinese government perform regarding urban planning during this period? Has the urbanization movement in China been balanced regionally? Why or why not? What are some challenges that the Chinese government
List and discuss several motivations available for local government entities to promote economic development programs. What techniques are available to urban planners that wish to encourage economic development within their community? What is sustainable development as it relates to urban planning?
Please supply the formulas for the solution only. 1. Future Value and Annuity Payments Christy and Michael are trying to decide if they will have enough money to retire early in 15 years, at age 60. Their current assets include $250,000 in retirement plans and $100,000 in other investments. Together, they contribute $30,000
Discuss the process that must occur in order for government to proclaim eminent domain to assume control over the private property of citizens. How does eminent domain differ from the concept of government zoning? How does eminent domain differ from police power as it relates to the government assuming control over private pro
1. A company is considering a three-year project that requires an initial fixed asset investment of $1,800,000. The project will be depreciated straight-line to zero over its three year life. The salvage value is negligible. The annual sales and operating expenses are projected to be $1,500,000 and $800,000, respectively. The ma