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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

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

Ratios: 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?

Calculation of stock price

The chairman of Heller Industries told a meeting of financial analysts that he expects the firm's earnings and dividends to double over the next 6 years. The firm's current (that is, as of year 0) earnings and dividends per share are $4 and $2, respectively. A. Estimate the compound annual dividend growth rate over the 6-year

Arithmetic & geometric returns

A stock had returns of 10 percent, 16 percent, 17 percent, 9 percent, 12 percent, and -10 percent over the last six years. The arithmetic and geometric returns for the stock are percent and percent, respectively. (Do not include the percent sign (%). Round answers to 2 decimal places, e.g. 32.16.)

About two thirds of all California almonds are exported.

5. About two thirds of all California almonds are exported. The ups and downs of the U.S. dollar, therefore, cause headaches for almond growers. To avoid these problems, a grower decides to concentrate on domestic sales. Does that grower bear exchange risk? Why and how?

International Finance: Financing Choices

9. A U.S. company needs to borrow $100 million for a period of seven years. It can issue dollar debt at 7 percent or yen debt at 3 percent. a. Suppose the company is a multinational firm with sales in the United States and inputs purchased in Japan. How should this affect its financing choice? b. Suppose the company is a

In 1994, the Singapore dollar rose by 9% in real terms against the U.S. dollar.

7. In 1994, the Singapore dollar rose by 9% in real terms against the U.S. dollar. What was the likely impact of the strong Singapore dollar on U.S. electronics manufacturers using Singapore as an export platform? Consider the following facts. On average, materials and components--85% of which are purchased abroad-account for ab