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Financial analysis of Shadracks or Brighams

You and your best friend have decided to quit your jobs, turn in your retirement, and purchase your own restaurant. In your market area there are a lot of restaurants, and you've looked at several that were available for sale. You'll narrowed your choices to either Shadracks or Brighams. From you and your friend's experience, bo

What are some examples of risks that a CFO may help address?

1-RISK MANAGEMENT - What are some examples of risks that a CFO may help address? And how can any such risk be managed? Please feel free to either: (1) list a number of the risks, or (2) choose one and go into a bit of detail. Note that the discussion in Chapter 1 of risks goes from the bottom of page 4 to about the middle of

Financial Initiative at Microsoft

What Microsoft can acquire in terms of investing in other companies to build their organizations portfolio, such as acquiring another company like aQuanitive Using the most recent annual report and other financial statements submitted to the SEC, select a financial initiative from the "management's message" to the shareholde

International Finance: Interest Rates

1) Assume the risk free interest rate in the U.S. is the same as that in Country M. Assume that the government of Country M is more likely to rescue local firms that experience financial problems. Other things being equal, Country M's firms are likely to use a _______ degree of financial leverage than U.S. firms. If a firm b

Direct Material Cost for Company A: leather and nylon collars

In April 2005 Company A made (and sold) 1,200 leather collars and 2,400 nylon collars. Costs incurred in April 2005 are listed below: Raw leather $1,800 Raw nylon 6,000 Buckles (one per collar) 2,700 Assembly line wages 10,800 All assembly line workers earn $15 / hour, but a leather collar takes twice as long to ma

Target Cost

The question: Market research sets the price of a clay pot for at $5.20 each. Management determines a margin of 30% is required for long-term profitability. The company produced 14,000 pots in June. What is the total target cost June? I got the follwoing: Selling price - Required profit margin = Target cost Selling p

Asian financial crisis & Malaysian PM's remarks

In the midst of the Asian financial crisis, Malaysia's Prime Minister Mahathir Mohamad accused an international cabal of Jewish financiers of deliberately provoking the crisis to wreck Malaysia's economy. "Jews are not happy to see Muslims prosper," he said. Following his remarks, Malaysia's financial markets and its currency, t

Effective borrowing rate, lockbox

Question 22 What is the effective borrowing rate for a 1-year line of credit, if the total credit line = $3,000,000, average loan outstanding = $1,400,000, commitment fee = 0.5% on the unused portion, and interest rate = LIBOR + 1.5% (LIBOR is currently 6.25%)? There are no compensating balances, and the year basis is 365 days

Barneycle's Boat Shop, Neat-O-Widgets: optimum order quantity and AR disount

Barneycle's Boat Shop sells 3000 of its glow-in-the-dark boats each year and has fixed order costs of $120 per order. Carrying cost per boat is $150 per year. What is the optimal order quantity for these boats? a. 69 b. 87 c. 98 d. 133 e. 1200 Neat-O-Widgets (NOW) must decide whether changing its credit

Political and Socioeconomic Risk Analysis

Considering whether a manufacturing organization in the U.S. should expand to India or Brazil: a. Conduct a political risk analysis for both India and Brazil in paragraph form. (250 words or more) b. Conduct a socio-economic risk analysis for both India and Brazil in paragraph form. (250 words or more) Please cite and l

Finance Question

East Publishing Company is doing an analysis of a proposed new finance textbook. Using the following data, answer (a) through (d). Fixed Cost per Edition: Development (reviews, class testing , and so on) $18,000 Copyediting $5,000 Selling and promotion

Finance question: For Morton Industries, calculate EBIT-EPS indifference point

Morton Industries is considering opening a new subsidiary in Boston, to be operated as a separate company. The company's financial analysts expect the new facility's average EBIT level to be $6 million per year. At this time, the company is considering the following two financing plans (use a 40 percent marginal tax rate in your

Finance question: Calculate the EBIT-EPS indifference point for Emco Products

Emco Products has a present capital structure consisting only of common stock (10 million shares). The company is planning a major expansion. At this time, the company is undecided between the following two financial plans (assume a 40 percent marginal tax rate): Plan 1 (Equity financing). Under this plan, an additional 5 milli

Breakeven Analysis: Rodney Rogers

Rodney Rogers, a recent business school graduate, plans to open a wholesale dairy products firm. The business will be completely financed with equity. Rogers expects first year sales to total $5,500,000. He desires to earn a target pretax profit of $1,000,000 during his first year of operation. Variable costs are 40 percent of s

Finance: cash flows from the sale of an asset at completion of a project

Which of the following statements is correct? a. An asset that is sold for less than book value at the end of a project's life will generate a loss for the firm and will cause an actual cash outflow attributable to the project. b. Only incremental cash flows are relevant in project analysis and the proper incremental cash fl

Various Financial Case Studies: Interest, Net Cash Flow, Tax Rates

Assistance with the following problems in excel with explanations of how the answer was derived please. 1. Little Books Inc. recently reported $3 million dollars of net income. Its EBIT was $6 million dollars, and its tax rate was %40. What was its interest expense? [Hint: write out the heading from the income statement and t

Enron Corp and Anderson

I will attach the case study, we have to answer the questions at the end of the case study. There are 9 of them, can you help?

Dell's initiative

Dell a leading computer technology organization has established a high ethical standard of doing business with customers, vendors, stakeholders, suppliers and shareholders. As a result of the changing technology world Dell have dealt with rapid environmental changes in their market in order to be competitive. The management tool

American Eagle

The following data were taken from the 2004 and 2003 financial statements of American Eagle Outfitters. (All dollars are in thousands.) 2004 2003 Current assets $525,623 $427,878 Total assets 865,071 741,339 Current liabilities 189,035 141,586 Total liabilities 221,401 163,857 Total stockholders' equity 643,670 577,482 C

Bonds- Market Value, Issuance price

A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis. a) $1,000.00 b) $1127.50 c) $1297.85 d) $2549.85 A 30-year zero-coupon bond that yields 12% percent is issued with a $1000 par

Valuation

How would valuation be described to a stockholder? and What are the factors which makes it more or less predictable?

Minimum Wage or Living Wage

Minimum Wage or Living Wage To what extent is a company obligated to pay a wage that guarantees the right to the pursuit of happiness for the individual and his or her family? Is a living wage a better measure of minimum wage?