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Finance questions

Total Assets: $12,500,000 Total Liabilities: $8,500,000 Common Shares Outstanding: 200,000 Preferred Shares Outstanding: 50,000 Common Stock Par Value: $1 Preferred Stock Par Value: $50 Common Stock Dividends: $200,000 Preferred Stock Dividends: $150,000 Earnings After Taxes: $500,000 What is the EPS

The spread in the annual prices of stocks selling for under $10

I have the following problem to figure out and I am completely lost: The spread in the annual prices of stocks selling for under $10 and the spread in prices of those selling for over $60 are to be compared. The mean price of the stocks selling for under $10 is $5.25 and the standard deviation $1.52. The mean price of those

Strategies for Testing Internal Controls and Risk

1a. Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing. b. Identify two strategies that might be used to support a low control risk assessment. Discuss the difference between the two strategies. c. Discuss a third audit strategy that mig


1. Construct a comparison of Wal-Mart's and the industry's income statements around 1990 and quantify Wal-Mart's advantages. 2. Evaluate Wal-Mart's diversification into Sam's Clubs and supercenters.

Finance - Louis Nicosia operates four 7-11 stores

Louis Nicosia operates four 7-11 stores. He has just received the monthly bank statement at October 31 from City National Bank, and the statement shows an ending balance of $3,840. Listed on the statement are an EFT rent collection of $400, a service charge of $12, two NSF checks totaling $74, and a $9 charge for printed checks.

The Value of Money

Charlie owes Joe $8000 on a note that is due in five years with accumulated interest at 6%. Joe has an investment opportunity now that he thinks will earn 18%. There's a chance, however, that it will earn as little as 4%. A bank has offered to discount the note at 14% and give Joe cash that he can invest today. Q. a. How

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 Then go to the part of the company's website about its efforts toward sustainable development at 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 ____


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.