NEED HELP WITH THIS PRACTICE PROBLEM. Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, often made little figurines as gifts for friends. Occasionally, she and Caitlin would set up a booth at a craft fair and sell a few of the figurines along with jewel
1. Invest $200,000 in a portfolio consisting of 4 stocks. 2. Conduct an Internet search to find the return of each stock in the previous 52 weeks and its beta. 3. Calculate the return of the portfolio and its beta for the previous year. 4. Write about 300 words report on the formation of the portfolio and the rationale for th
True or False questions. 1. Dividends reinvested are not subject to federal income tax. 2. The value of a stock depends in part on future dividends and on the investors' required return 3. The value of a stock should increase if investors' require rate of return declines. 4. Valuation of stock depends on past dividends. 5.
Assume your $200,000 home appreciates in value at a rate of 5% per year. (use annual compounding) Assume you take out an 80% mortgage (loan to original value) at 6% interest rate for 30 years. Therefore, you provide 20% or $40,000 equity in the home at the outset of the mortgage. What is the amount of equity (the the
1. Assume ABC are all positively correlated. A fourth stock is being considered for addition to the portfolio, either stock D or stock E. Both D and E have expected returns of 12%. If stock D is positively correlated with ABC and E is negatively correlated with ABC, which stock should be added to the portfolio? Why? 2. As
1. I invested $15,000 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years? 2. To what amount would the investment grow in 3 years if the fund earns 8% compounded semiannually? 3. I need $25,000 in 4 years. What amount must be invested today if his investment earns 12% comp
Jia Hua Enterprises wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is priced to yield 7% , how much will Jia Hua receive ( ignoring issuance costs) when the bonds are first sold? A. $18,880 B $12,393 C. $20,000 D. $15,505 E $11,212
Question 10 What's the rate of return you would earn if you paid $950 for a perpetuity that pays $85 per year? 6.52% 7.25% 8.05% 8.95% 9.84% Question 11 What is the future value of $1,500 after 5 years if the appropriate interest rate is 6%, c
A. John inherited $2 million in an IRA, which comprised of the entire estate from his father. He promptly withdrew the funds. The appropriate marginal tax rate was 28 percent. Was there any tax due? YES If so, how much? $2,000,000 *.28=$5,600,000 b. Assume it was $2 million in stocks held in a personal account. Would
1. The three key elements of investment policy are the return, risk, and constraints. Explain why they are important. 2. Would these three (3) elements have different priorities if referring to an individual investor versus a mutual fund? How about a young adult versus an adult who is retired from his/her working years?
Review of Financial Statements-Delta Airlines and Dell Computers You are attending a managerial meeting, within your publicly held company, to hear a proposal for a possible corporate merger with a competitor. After a brief discussion, the Chief Financial Officer (CFO) conducts a slide presentation showing the competitor's f
Since managers are agents of stockholders, it is their professional obligation to make decisions to maximize the wealth of existing stockholders. Therefore, the interest of other stakeholders, such as customers, suppliers, employees, lenders, communities, as well as the society at large should not be a consideration in the decis
Consider the following: assume that the company has as an integral funding strategy to their strategic plan that they will participate in an IPO in approximately twenty four months. Will this add to or detract from the necessity of attending the conference?
Please see attached file. 1) The following are the returns for 1980 to 1986 on 5 types of capital-market instruments: common stocks, small-capitalization stocks, long-term corporate bonds, long-term U.S. government bonds, and U.S. Treasury Bills. You can use a spreadsheet program to make calculations. A. Calculate the ave
1. Describe and comment on the total return concept. 2. Would the concept of Total Return be different between Income Stocks versus Growth Stocks? How about with Common Stocks versus Preferred Stocks versus Corporate Bonds?
I have a question. At my work, I support a particular group of people with the back up assistance of a consultant from a 3rd party supplier. This 3rd party supplier backs me up as well as a colleague of mine who supports an entirely separate group of customers. My colleague's customer base is much smaller than mine but a higher
Write a two to three page paper discussing whether or not you think Apple, INC company will have a successful future. Get to the company's web site, into the "investors relations" section and provide some financial highlights of your company for the past year. Indicate which stock exchange the company is listed on and what was
Problem: Security Market Line You plan to invest in Kish Hedge fund, which has total capital of $500 million invested in 5 stocks: Sock Investment Stock's Beta coefficient A $160 million 0.5 B $120 million 1.2 C $80 mill
Pauline wonders what her monthly "principal and interest" payment would be under these circumstances. Use Excel spreadhseet )and the PMT Function) to help answer these questions: A. What is the interest rate that should be entered into the PMT function? B. What is the number of periods that should be entered into the PMT Fu
Waldman.'s accounting staff prepared the following amortization table related to the note: YR Bal at Beg of Yr Int Exp EOY Pymnt Bal at EOY 1 $2,577.10 $206.17 1,000.00 ? 2 1,783.27 142.
Can you help me get started with this assignment? Your friend Lucy slept through a class in which her professor explained the concepts of depreciation and amortization. Think about cash flow and then write an explanation of the concepts for Lucy. Be sure to cite your sources. AICPA (http://www.aicpa.org) Official website
In the month of June, Paula's Beauty Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 80% of sales. 1. Determine the contibution margin in dollars, per unit and as a ratio. 2. Using the contribution margin technique, compute
You have been given the following projections for Cali Corporation for the coming year. Sales = 10,000 units Sales price per unit = $12 Variable cost per unit = $6 Fixed costs = $10,000 Long-term debt = $15,000 Interest rate on long-term debt = 8% Tax rate = 40% Dividend payout ratio = 60% Expected long-term growth ra
A Plan for Growth Andy Rexford had started his custom embroidery shop in his garage with just one, two-head machine and an old computer. From this humble beginning, Custom Stitches had grown into a full-time family business with sales of more than $750,000 a year and supplied the local college and businesses of all sizes wit
Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. 1. What were Brandyw
1.Cindy has decided to retire in 24 yrs. She has $30,000 available today and wants to invest the money to supplement her pension plan. a. Assume cindy wants to accumulate $150,000 by her retirement date. Will she achieve her goal is she invests $30,000 today and earns 6 percent? Please show calculations supporting your answe
If the retail price is fixed at $1.00, what effect does increasing the retail and wholesale margins have on the manufacturer's selling price? Explain why this is the case.
Time value of money calculations, Contributed capital, Current liabilities appearing on the balance sheet
Please help me with your own thoughts and solutions and not from internet sites. Please provide thorough and understandable answers. Your uncle offers you a choice of $20,000 in 50 years or $45 today. If money is discounted at 13 percent, which offer should you choose? Explain with details and computations. Suppose it is disc
Investment 1: Nominal Rate of 9% compounded daily on 365 day year. Investment 2: CD that offers $9,000 after 27 months. $7,000 required investment. If you go with investment #2 by how much will the effective rate of return increase. ** I am able to figure out the EFF of Investment #1 but am having difficulty find
An administrator at Saint Jude Hospital is considering how to use some space made available when the outpatient clinic moved to a new building. She has narrowed her choices, as follows: a. Use the space to expand laboratory testing. Expected future annual revenue would be $330,000; future costs, $290,000. b. Use the space to