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What is the net profit margin

What is the net profit margin id earning before interest and taxes is $20,000, net income is $10,000, sales are $50,000, and total assets are $100,000 What would be the future value of a loan of $1,000 for two years if the bank offered a 10% interest rate compounded semianually You receive $50,000 a year beginning one year

A Discussion On Investment Decisions

As manager of short-term projects, you are trying to decide whether or not to invest in a short-term project that pays one cash flow of $1,000 one year from today. The total cost of the project is $950. Your alternative investment is to deposit the money in a one-year bank Certificate of Deposit which will pay 4% compounded annu

Calculating APR

Trying to find the APR or Stated Rate Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) Semiannually 12.2%

Choosing An Order By Unit Price Matching

Stan Fawcett's company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit with a minimum order of 3,000 units. Stan estimates that it will cost $24,000 to set up the process and then $1.82 per unit for labor and materials. Either choice would have the s

Returns on Savings Placements

Please see attachment and answer the following problems. 12. You just received a gift of $500 from your grandmother and you are thinking about saving this money for graduation, which is four years away. You have your choice between Bank A, which is paying 7% for one-year deposits, and Bank B, which is paying 6% on one-year

Financial Risk: Circumstances and Decisions

20/4. Family A and family B both consist of a father, mother, and two children of school age. In family A both spouses have jobs outside the home and earn a combined income of $100,000 per year. In family B, only one spouse works outside the home and earns $100,000 per year. How do the financial circumstances and decisions fac

CDO's - Financial Intermediaries

Please use collateralized debt obligations (CDOs) as an example to answer whether financial intermediaries always help reduce the exposure of investors to risk. If not, what lesson we have learned out of this?

Calculating External Financing Needed

Trying to find the external financing needed to support the 20% growth rate in sales of a company who is operating at full capacity and no debt or equity is issued with the following information: Sales for 2007 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout

Asphalt Paradox

How can a government be tempted to take a benefit it cannot afford? What sounds better, $250,000 of increased services or $187,500 less in expenditures? Let's look at an example where this paradox comes into play. The City is in a tight fiscal squeeze with lots of miles of roads with potholes. Current street repair operating eff

Goran Blomberg investing in a new rooms-only lodging property.

Goran Blomberg is interested in investing in a new rooms-only lodging property. He needs some financial projections for the proposed operations. He provides the following: 1. Room sales Average room rate $50 Average daily occupancy 65% Average rooms per day 50 2. Fixed labor- $12000/month 3. Other fixed expe

A newly issued corporate bond has 20 years to maturity.

Please show work 1. A newly issued corporate bond has 20 years to maturity. The bond has a coupon rate of 8 percent and pays interest semiannually. Also the bond is callable in 6 years at a call price equal to 115 percent of par value. The par value of the bonds is #1,000. The yield to maturity is 7 percent. a. What is the b

Break Even Analysis: Evaluating Andre's Hair Styling

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all

Which of the following is a primary market transaction?

Which of the following is a primary market transaction? A. You sell 200 shares of IBM stock on the NYSE through your broker. B. You buy 200 shares of IBM stock from your brother. The trade is not made through a broker - you just give him cash and he gives you the stock. C. IBM issues 2 million shares of new sto

Analysis - Weyth, Drug Manufacturer

Who is the competition? What is the company's strategy? How do analysists feel about the company? How has the company performed over the past year? earing? sales? How has the stock performed over the past year? Why do u think the company is undervalue or overvalued? What do u think you recognize that market does not?

Rattner Robotics New Income & Cash Flows

Rattner Robotics had 5 million in operating expenses. The company had net depreciation expenses of 1 million and interest expenses of 1 million, its corporate tax rate was 40%. The company has 14 million current assets and 4 million in non interest bearing current liabilities, it has 15 million in net plant and equipment. It est

Fixed Cost/Variable Cost

10.) Easy Tech Software Corp. is evaluating the production of a new software product to compete with the popular word processing software currently available. Annual fixed costs of producing the item are estimated at $150,000 and the variable cost is $10 per unit. The current selling price of the item is $35 per unit, and the a

How can wearable computers improve the efficiency of logistics?

Abstract: Falling prices for core computing components, rapid advancement in speech recognition technology and head-worn display products are fueling a phenomenal growth in the wearable computer market. One impetus for sales is the ability of wearable computers to produce cost savings and improve customer service, triggering

The Evergreen Fertilizer Company produces fertilizer.

4. The Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break-even volume for the company. 10. If the maximum operating capacity of the Evergreen Ferti

Financial Reports - Lennar, Toll Brothers

Review the annual reports of these two companies: 1?Lennar- (home builder company) 2?Toll Brothers- (home builders Co) After reviewing: Identify and define the key industry success factors. Create a competitive ranking metric based on the key industry success factors. Use a weighted average approach.

Emmy Company had beginning raw materials inventory of $7,000.

See attached file. Emmy Company had beginning raw materials inventory of $7,000. During the period, the company purchased $47,000 of raw materials on account. If the ending balance in raw materials was $6,000, the amount of raw materials transferred to work in process inventory is: a. $42,000. b. $45,000. c

Stock Value

How do you calculate the value of a stock if you know the other significant information? For example, what is the stock's value if it paid a $4 dividend last year (D o), expects dividends to grow by 21% in years 1 & 2 and 10% dividend growth in year 3. The growth will be a consistent 8% per year after that. Also similar inves

Evaluating the Rate of Return

Ed Delahanty purchased 500 shares of Niagara Corporation stock on margin at the beginning of the year for $30 per share. The initial margin requirement was 55%. Ed paid 13% interest on the margin loan and never faced a margin call. Niagara paid dividends of $1 per share during the year. - At the end of the year, if Ed sold t