Explore BrainMass


Explicit marginal tax rate

See attachment for question Suppose a firm has a tax loss of $5million in the current period. The firm's after-tax discount rate is 10%. Over the preceding 5 years the firm has reported the following taxable income: (see attached) a. If the carryback period I 3 years, what is the firm's marginal explicit tax rate in t

Various Finance Discussions

Discussion 1 - What are some of the criticisms or problems associated with the bankruptcy system? Are these criticisms valid? Why or why not? Are there any responses or solutions to address these criticisms? - What are the advantages of a company's formal reorganization under Chapter 11? - Why do creditors usually accept a

Case Study - Leadership Decisions

Chapter 3 Case Study: "Finance Department (p.94 of the textbook) Read the case study and answer the following questions. 1. Why had Osborne's department been so successful even though he has provided little leadership over the past two years? 2. How would you describe Osborne's current leadership style? Based on the path-goal t

Trading Pairs and Principle Component Analysis

1. Explain the principle of "Trading Pairs" between two equities through cointegration testing between two equity instruments. 2. Explain the concept of Principle Component Analysis for Asset Pricing through an example.

Inside Trading Liability and per se Violation

Could you please help me to answer these two questions: 1. In the context of insider trading liability, discuss the differences between Rule 10b-5 and Section 16. 2. What are per-se violations? Give two examples.

Valuation of Company XYZ

Company XYZ reported net income of $770 million after interest expenses of $320 million in a recent financial year. (The corporate tax rate was 36 percent.) It reported depreciation of $960 million in that year, and capital spending was $1.2 billion. The company also had $4 billion in debt outstanding on the books, was rated AA

Business, Financial, and Economics math questions

Passing along Costs In 2010, the costs of powdered milk, cocoa, coffee, and wheat rose at double-digit rates. Wildfires in Russia has caused wheat and other crop prices to shoot up. Cocoa prices reached a 33-year high in July, helped along by speculative activities, including the London-based commodity trading house Armajaro

Negotiation: Elements, Skills, Bargaining Styles

Discuss the following statements then respond to at least two of your fellow students' posts. a.Discuss the Five Elements of Negotiations and provide at least one example of how each are used in the negotiation process. b.Identify the Five Negotiation Skills needed in order to perform successful negotiations. c.Define Ratio

Light Touch Regulation and its Role in Global Financial Crisis

Greenspan: I made a mistake in presuming that the self-interest of organisations specifically banks and others were such that they were best capable of protecting their own shareholders. I have been dealing with the American economy for sixty years. That premise always worked and I was shocked into disbelief that what unfolded w

Rasing Capital and Risk Management

I need some help with these discussion points: Short Discussion 1: • What process must a company take to raise capital? Are there different methods for different types of companies? What are the risks and benefits of each? • If taking a company public is such a good idea, why don't all companies choose to do so? What are

I-bond advantages and disadvantages and the impact of inflation and deflation

Read "I-Bonds Adjust for Inflation" 1. What effect do you think the inflation-adjusted interest rate has on the price of an I-bond in comparison to similar bonds with no allowance for inflation? 2. What are some of the advantages and disadvantages of purchasing I-bonds over regular bonds? 3. What types of impacts to d

Financial management discussion questions

Discussion 1: 1. Dumping, while illegal, would offer products to consumers at very low prices. As a consumer, what is your opinion of this? Explain your reasoning. 2. Tariffs effectively raise the price of goods imported from different countries. How do you feel about this? 3. In your opinion, have U.S. companies effectivel

The Dividend Discount Model and the CAPM

CAPM and Cost of Equity Estimation 1) What is your opinion to the questions below? The Capital Asset Pricing Model (CAPM) is a linear model that can be used to estimate a company's cost of equity and determine a stock's required rate of return. The required rate of return is one input into the Dividend Discount Model, a mo

Factors leading to the subprime mortgage crisis

First, read "New Century Brings Trouble for Subprime Mortgages" (see attached file). Answer the following questions: 1. As a reaction to problems in the subprime area, lenders tightened lending standards. What effect do you think this had on the housing market? 2. What is an adjustable rate mortgage (ARM)? Do you think this

Importance of Preparing a Trial Balance

A trial balance lists all the accounts and their corresponding balances as on a particular date. It indicates whether an account has a debit or a credit balance. Consider the features of a trial balance and respond to the following: - Discuss the importance of preparing a trial balance while entering transactions using a com

Compute Industry Production Capacity

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the product Deal entirely off the market this year. Assume Digby scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these

Computation of Book Value

Digby's balance sheet has $80,975,000 in equity. Further, the company is expecting net income of 4,000,000 next year, and also expecting to pay $5,000,000 in dividends. If there is no new stock issued what will be Digby's book value? Select: 1 $79,975,000 $44,189,000 $34,189,000 $89,975,000

Compute Separation Pay

Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated? Select: 1 $300,000 $120,000 $1,072,000 $2,680,000

Calculating Total Assets

The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $138,888 Common Stock $55,651 Retained Earnings $43,516 Suppose next year the Baldwin Company generates $36,500 in net profit and pays $15,000 in dividends and total li

New Breakeven Point

Baldwin's product Buzz has material costs that are rising from $6.82 to $7.82. Assume that period costs and other labor costs remain unchanged. If Baldwin decides to absorb the cost and not pass any on to its customers in the form of raised prices how many units of product Buzz would need to be sold next round to break even on t

Calculating Profit from Selling Capacity

The Chester company will sell 100 units (x1000) of capacity from their Cake product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Chester company will sell the capacity for 35% off. How much do they receive when the capacity is sold? Select: $3,400,000 $2,210,000 $1,870,000 $1,190,000 Se

Strategy of the company

Which description best fits Andrews? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader competes on price by reducing costs and passing the savings to customers. - A broad player competes in all parts of the market. - A niche player competes in selected pa

HR Report Section of the Inquirer

Refer to the HR Report section of the Inquirer. Digby spends $467,972 on various HR initiatives. What percentage of this expenditure is dedicated to training its employees? Select: 57.6% 73.7% 26.3% 66.3% See attached file for more information.

Repurchasing outstanding shares

How much would it cost for Chester Corporation to repurchase all its outstanding shares if the price fell by 10%? Assume no brokerage fees. Select: $187.7 million $97.4 million $87.7 million $208.6 million See attached file for additional information.

Cash required to retire bonds

Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 12.4S2021 bond early. Select: $5,583,449 $6,305,845 $5,825,802 See attached file for additional information.

Income Statements and Variable Costs

On the income statement, which of the following would be classified as a variable cost? (select 1) - Promotion Expense - R&D Expense - Depreciation Expense - Direct Material Expense