What is the current price of a share of stock for a firm with a $5 million in balance-sheet equity, 500,000 shares of stock outstanding , and a price/book value of 4?
1. UVP preferred stock pays $5.00 in annual dividends. If your required rate of return is 13%, how much will you be willing to pay for one share? 2. A project costs $10,000 and is expected to return after-tax cash flows of $3,000 each year for the next 10 years. This project's payment period is ________. 3. ABC servic
1. Explain how rapidly expending sales can drain the cash resources of a firm. 2. Discuss the relative volatility of short-and long-term interest rates. 3. What is the significance to working capital management of matching sales and productions? 4. How is a cash budget used to help manage current assets? 5. "The most appropr
Gardner Denver, Inc ~ Determine the importance of control programs and effective internal control techniques to the selected organization.
Select a publicly traded organization. Locate the financial section of the organization's most recent annual report. Perform a financial analysis on your selected organization to include liquidity, efficiency, and profitability ratios, asset management, debt management, and market returns. Identify the key strengths and wea
The financial manager's goal is to maximize current market value of the firm. Could the following actions be consistent with that goal? If yes, how. If no, why? 1. The firm adds a cost-of-living adjustment to the pensions of its retired employees. 2. The firm reduces its dividend payment so it can reinvest more earnings in
My friend, Jane, would like to retire by December 31, 2008. She is wondering whether she can withdraw $100,000 every year forever. How much her nest egg should be assuming the average return of her retirement account is 10%? Would you help her to figure it out? What present value formula would you use to figure out the answer
How does a tariff imposed by the U.S. government on foreign-made steel impact the domestic price of U.S.-made steel? Who gains and who loses from a tariff? How will a quota imposed by the U.S. government on foreign-made machinery impact the domestic price of the same kind of machinery made by U.S. companies? Who gains
A. Describe the four market structures of pure competition, pure monopoly, monopolistic competition, and oligopoly. B. Under the monopolistic competition model where the vast majority of firms operate, what role is played by product differentiation? C. Why are entrepreneurs the most important people in the successful operati
The wise business manager knows the best price and cost scenario occurs when the price of the company's product equals marginal cost. Explain why this is so.
Please explain how to calculate the expected return and standard deviation of returns when your only given possible outcomes and probability returns. Possible Outcomes Probability Returns (%) Pessimistic 0.25 5 Most l
Realized rates of return Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2001 (18.00%) (14.50%) 2002 33.00 21.80 2003 15.00 30.50
The Mann Company belongs to a risk class for which the appropriate discount rate is 10 percent. Mann currently has 100,000 outstanding shares selling at $100 each. The firm is contemplating the declaration of a $5 dividend at the end of the fiscal year that just began. Answer the following questions based on the Miller and Mo
Explain where the funds will come from to fund the items below... end of life for older technologies, loans, sale of stock if a public firm, etc.?
Honda Motor Company is going to pursue the list of items below. Explain fully how Honda can make the ideas work. Be creative. Explain where the funds will come from to fund the items below... end of life for older technologies, loans, sale of stock if a public firm, etc.? 1. Honda Motor Company should focus on making its ca
Financial analysts believe that there are four equally likely states of the economy: depression, recession, normal, and boom times. The returns on the Supertech Company are expected to follow the economy closely, while the returns on the Slowpoke Company are not. The return predictions are as follows:
I need to research risk mitigation techniques for amazon.com. But I don't know exactly what these techniques are. Can you explain to me what a risk mitigation technique is, so I can fully research it for my paper?
ABC, Inc. has a P/E ratio of 12 and maintains a dividend payout rate of 40%. The stock price of ABC, Inc. on January 1 is $32. What would the value of the stock be if the dividend payout ratio was 60%? (Please use Excel)
3-15: Compute the missing amounts for companies A, B, and C. A B C Cash . . . . . . . . . . . . . . . $45,000 $ 4,500 $18,000 Accounts receivable . . . . . . . . 10,000 10,000 14,000 Land and buildings . . . . . . . 75,000 ? 50,000 Accounts payable . . . . . .
Mower Manufacturing's income statement for January 2006 is given below. Sales (25,000 units × $25) $625,000 Less variable costs 468,750 Contribution margin $156,250 Less fixed costs 125,000 Profit $ 31,250 1. Calculate the company's break-even point in sales dollars and units. 2. The company is contemplating the pu
You are an analyst studying Beranek Technologies, which was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.50 dividend 3 years from today, then to increase it at a r
Gary Wells Inc. plans to issue perpetual preferred stock with an annual dividend of $6.50 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell? A. $90.37 B. $92.69 C. $95.06 D. $97.50 E. $100.00
11. Default risk premium: A company's 5 year bonds are yielding 7.75% per year. Treasury bonds with the same maturity are yielding 5.2% pre year, and the real risk free rate (r*) is 2.3 %. The average inflation premium is 2.5% and the maturity risk premium is estimated to be 0.1 x (t-1)%, where t=number of years to maturity. If
4. Pierre Imports will be liquidated. Its current balance sheet is shown below. Fixed assets are sold for $900,000 and current assets are sold for $700,000. All fixed assets are pledged as collateral for mortgage bonds. Subordinated debentures are subordinate only to notes payable. Trustee costs are $70,000. Sale of cu
1)Contribution margin may be express as: A) A percentage of revenue (B) A total dollar amount for the period (C) A contribution margin per unit (D) All of the above 2) Operating income can be calculated by: A) Fixed cost divided by contribution margin ratio (B) Fixed costs multiplied by contribution margin ratio (C) Margin
1) A process cost system is highly desirable when a company is producing custom made goods. A) True (B) False 2)All of the following are characteristics of the product of process costing except: A) High volume (B) Different amount of direct material (C) Identical amount of direct material (D) Repetitive operation 3) If 8
On January 30, Tensing Company purchased supplies of $2,000. The supplies were all consumed in February. Which of the following statements is true regarding the accounting for these supplies. A) The supplies should be recorded as an asset in January and no adjusting entry is needed until the supplies are used in Febr
1. The MBI Company does not want to grow. The company's financial management believes it has no positive NPV projects. The company's operating financial characteristics are Profit margin = 10% Assets-sales ratio = 150% Debt-equity ratio = 100% Dividend-payout ratio = 50% Calculate the sustainable growth rate for the MBI
Describes a process in broad terms of dynamically matching capacity to demand. But a viable alternative is a constant production rate to maximize production efficiency. What are the trade-offs between the two approaches?
1. Indicate how each of the following international transactions is entered into the U.S. balance of payments with double-entry bookkeeping: (a) A U.S. resident imports $500 worth of merchandise from a U.K. resident and agrees to pay in three months. (b) After the three months, the U.S. resident pays for his imports by drawi
Looking at PepsiC 2006 annual report answer the question using the following initiatives. PepsiCo will position its products as the favorites in the Asian market. To achieve this, the company will: Description of strategic planning initiatives Build 2 production plants in China. Build a network of distribution centers.