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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

Financial Management

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

Finance: Liquidity concepts

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

Gardner Denver, Inc ~ Determine the importance of control programs and effective internal control techniques to the selected organization.

Financial Position of a Publicly Traded 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

Finance/Shareholder Wealth

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

Shareholder Wealth

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

Tariff's and quota's for U.S. steel

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

Market Structures Described

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

Price versus Marginal Cost

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.

Calculate the expected returns and standard deviation

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

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

Corporate Finance - stock price and ex-dividend date

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

Home Loan Repayment

Assume a thirty year loan of B=$100,000, constant borrowing rate r = 9% , inflation rate f = 3% and monthly repayments (i.e. m=12). Compute monthly repayments.

Expected Returns and Standard Deviation

Share A has an expected return of 15% and standard deviation of 14%. Share B has an expected return of 23% and a standard deviation of 18%. Correlation between Share A & B is 0.3 Share A has 30% invested and Share B has 70%. (a) What is the expected return and the standard deviation of return on the portfolio? (b) Rec

Finance: calculating expected returns and variances

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: Risk Mitigation Techniques

I need to research risk mitigation techniques for 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?

Value of Stock

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)