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Finance

Financial reporting of extraordinary items for the Smith Corporation.

The Smith Corporation disclosed $1.2 million as extraordinary loss on its internal income statement this year. The footnotes to the financial statements disclose the following occurrences this year: 1. Accounts receivable of $85,000 were written off 2. A loss of $125,000 was incurred when a storage facility in Louisiana was da

Expected returns

Stocks x and y have the following probabiltiy distributionsof expected future returns: Probability x y 0.1 (10%) (35%) 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45 a. Calcu

Financial analysis and company description for Interface, Inc.

Visit the website of Interface, Inc. at http://www.ifsia.com. Then go to the part of the company's website about its efforts toward sustainable development at http://www.ifsia.com/goals/sustainability_overview.html. What is Interface's product? DESCRIBE THE COMPANY'S EFFORTS TOWARD SUSTAINABLE DEVELOPMENT.

Hybrid Financing: Orient Airlines' Common Stock

Orient Airlines' common stock currently sells for $33, and its 8% convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 25 shares of common stock at any time before 2017. What is the conversion value of the bond? A. $707.33 B. $744.56 C. $783.75 D. $825.00 E. $866.25

Recording preferred stock transactions

The Snow Corporation issues 10,000 shares for $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $600,000 and a credit or credits to a. preferred stock for $600,000 b. preferred stock for $500,000 and Paid -in capital in excess of Par Value-Preferr

Hybrid Financing and Bonds

Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that

Pro Forma Financial Paper

Using the most recent finacial statements for Citigroup and Bank of America's financial complete the following. Companies Pro Forma Financial Paper Using Citigroup and Bank of America's most recent finacials. Based on the financial statement in the annual report for both of the companies you have chosen: a) Develop a se

Bonds and Semiannual Interest

Raeo Corp. bonds trade at 100 today. The bonds pay semiannual interest that is paid on January 1 and July 1. The coupon on the bonds is 10 percent. How much will you pay for a Raeo bond if today is: a) March 1 b) October 1 c) July 1 d) August 15

Foreign Exchange: Blades, Inc

Prepare a case study analysis of Blades, Inc. Case: Assessment of Exchange Rate Exposure, located at the end of Chapter Ten in the International Financial Management text by Jeff Madura. 1. What type(s) of exposure (i.e., transaction, economic, or translation exposure) is Blades subject to? Why? 2. Using a spreadsheet, cond

Common Stock

Problem: Indicate on the blanks below the effect (I = increase, D = decrease, NE = no effect) of a stock split on each of the items listed. _____1. Assets _____5. Total stockholders' equity _____2. Balance of Common Stock account _____6. Par value per share ____

Recession

I'm currently studying recessions and given the fact that the US has not experienced a recession since 2001, Do you think another recession is on the horizon? Please explain your reasons why a recession might occur? If your feeling is that a recession might not occur, please explain. Also, I'm sort of confused on what majo

Risk and Returns

You have estimated the following probability distributions of expected future returns for Stocks X and Y: Stock X Stock Y pj rj rj x pj pj rj rj x pj 0.1 -10% -0.01 0.2 2% 0.004 0.2 10% 0.02 0.2 7% 0.014 0.4 15% 0.06 0.3 12% 0.036 0.2 20% 0.04 0.2 15% 0.03 0.1 40% 0.04 0.1 16% 0.016 15% 10%

International Finance Problem

Egyptian Ingot is the Egyptian subsidiary of TransMediterranean Aluminum, a British multinational that fashions automobile engine blocks from aluminum. TransMediterranean's home currency is the British pound. Egyptian Ingot's December 31 balance sheet follows. At the date of this balance sheet, the exchange rate between Egyptia

Finance Problems

Par value: a. is greater than market value. b. is less than market value. c. changes in proportion to market d. is not related to market value. 2. Which of the following is a disadvantage of a sole proprietorship? a. Double taxation. b. Excessive regulation. c. Entrenched management. d.

Pro forma income statement

Objective: Determine a value for Shang-wa cash flows Create a pro forma income statement for Shang-wa ( 2005,2006, 2007, 2009 FYE) using the assumptions below create an annual cash flow, and determine the present value of those future cash flows by using a 10% discount rate. Projections: 2005, 2006, 2007, 2008, 2009

Calculate the NPV

Assume a firm is considering a purchase of equipment for $20,000. The equipment is expected to generate net cash inflows of $6,250 for the next five years. The firm has a 10% cost of capital (required return) and is in the 34% marginal tax bracket. Calculate the NPV.

Financial Management

Change in assets = change in debt and change in equity. What does it mean? How does it relate to a company's financial planning? (word count > 75)

What is a break-even point?

What is a break-even point? If an organization's fixed costs increase, what happens to the break-even point? How can the break-even point be lowered? Why is the break-even analysis an important tool for management? When evaluating a company, how might this information be used?

Critical Thinking

1) In estimating revenues for a business case companies often require a range of results to be evaluated. What are they usually? How does this help in decision making? Give an example from your experience where this might have been useful. 2) We're in a global economy. What are some of the cultural factors you should consi

Finance - Taxable income, tax liability and tax rates

Joan and Harry Leahy both had income in 2006. Harry made $52500 in wages. Joan has an incorporated small business that paid her a salary of $30000. In addition, the business had profits of $15000, which were paid to the Leahys as dividends. They received $5600 in interest on savings and $350 in interest on a loan made to Harry's

Journal entry, depreciation, equity and cashflows

Please assist me with sections 3 (journal entry), 4 (depreciation), 6 (equity) and 7 (cashflows) in the attached document. SECTION III - JOURNAL ENTRIES Ex. 135 Prepare journal entries to record the following transactions entered into by Elway Company: 2006 June 1 Received a $25,000, 12%, 1-year note from Ann Holt

Finance Problem.

Fred Gowen opened Gowen Retail Sales as a sole proprietorship and recorded the following transactions during his first month in business: (1) Purchased $50000 of fixed assets, putting 10% down and borrowing the remainder. (2) Sold 1000 units of product at an average price of $45 each. Half of the sales were on credit, none o

Internals controls in accounting and finance

1. Would better internal controls have prevented any of the biggest corporate scandals over the past few years? Give examples and explain. 2. Is it ethical to maintain the minimum required internal controls, or does an organization have a responsibility to provide more than the minimum? Why or why not? 3. If internal contr