An investor deposits $180,000 into a fixed, 5-year CD with annual compounding. At the maturity date, the CD is worth $211,000. What average annual rate was earned on this investment? a. 3.04% b. 3.23% c. 14.69% d. 17.22%
20. Dividend Policy. Here are several assertions about typical corporate dividend policies. Which of them are true? Write out a corrected version of any false statements. 1. Most companies set a target dividend payout ratio. 2. They set each year's dividend equal to the target payout ratio times that year's earnings. 3. Man
How do the objectives of evaluating financial conditions differ between internal managers and credit analysts? How are their objectives similar? Note: Cite the sources
Explain the importance of evaluating governmental financial performance. Note: Cite the sources
"Interim financial reports are not needed for state and government units since external users of financial reports have no need to assess monthly or quarterly performance of the government." Do you agree? Why or why not? Note: Cite the sources
Explain the difference between an internal cash and investments pool and an external cash and investment pool and describe some of the differences in accounting treatment between the two. Note: Cite the sources
1. Published financial statements are historical. If so, how can they be used to forecast the future? 2. Discuss the interlocking connections among the three primary financial statements and explain why conventional reporting of financial information does not provide complete information upon which financial decisions can b
Your father has a mortgage loan on the family home that was made several years ago when interest rates were lower. The loan has a current balance of $40,000 & will be paid off in 20 years by paying $330 per month. He discussed paying off the loan ahead of schedule w/ an officer of the bank holding the mortgage. The bank is willi
I need to identify four financial ratios and state what they tell me about a firm and why it's important to understand what they mean to a bank or an investor. I need to include reasoning. I am not discussing overall categories such as Liquidity, Activity, Debt, Profitability and Market Ratios. I need to discuss specifics w
What is the likely impact on the share price of a company (assuming all other variables remain unchanged) arising from the following independent events: 1. the company's beta increases 2. the company's required rate of return decreases 3. the expected dividend to be paid next year from the company decreases 4. the rate of gr
How do you conduct a break even analysis and can one be done with the following information, using the numerical calculations break-even analysis? A County Sheriff's Department sells its products (officers) to contract cities at a cost of $197,000 per officer. Each officer works 40 hours per week. The contract city purchase
Introduction to Corporate Finance - (Cash Conversion, Inventory, and Receivables Management) 4. What aspects must managers consider when deciding on a trade credit policy for the firm? 6. What factors should managers consider when determining the company's collection policy?
1) What are the debt/equity ratio and the debt ratio for a firm with total debt of $700,000 and equity of $300,000? 2) A firm with sales of $500,00 has average inventory of $200,000. The industry average for inventory turnover is four times a year. What would be the reduction in inventory if this firm were to achieve a turnov
1. Total Cost: An oil company arranged a $10,000,000 revolving credit agreement with a group of small banks. The firm paid an annual commitment fee of one-half of one percent of the unused balance of the loan commitment. On the used portion of the loan, it paid 1.5 percent above prime for the funds actually borrowed on an annual
A. Using the included attachment, JC Penney 3 year trend table of all financial ratios included under the following four categories of ratios (Liquidity, Efficiency, Leverage, and Profitability). Include a brief rationale for each ratio you have calculated. Also present in the table the industry average for each ratio. b. Co
You are a project manager in the marketing department for a county funded hospital. The hospital is launching an extensive public service program for cardiac health. The program will involve print ads in local newspapers, television spots, posters at local eateries and health clubs, and sponsorship of events at the county fair.
9. The Bohne Company produces chocolate candies. The chocolates sell for $12 per box. Annually, the company produces 10,000 boxes of chocolates and sells 9,000 boxes of the candies. The company's cost information includes the following: Direct materials $2.00 per unit Direct labor $3.00 per unit Fixed manufacturing ov
1. What are the types of risk factors that a company faces? 2. If risk aversion cannot explain why firms choose to hedge, then what are their motivations?
A Company has used a two-stage cost allocation system for many years. In the first stage, plant overhead costs are allocated to two production departments, P1 and P2 based on machine hours. In the second stage, the company uses direct labor hours to assign overhead costs from the production departments to individual products A
Before entering a formal agreement, investment bankers carefully investigate the companies whose securities they underwrite; this is especially true of the issues of firms going public for the first time. Since the bankers do not themselves plan to hold the securities but intend to sell them to others as soon as possible, why a
1. It is frequently stated that the primary purpose of the preemptive right is to allow individuals to maintain their proportionate share of the ownership and control of a corporation. a. How important do you suppose this consideration is for the average stockholder of a firm whose shares are traded on the New York or American
After applying the corporate valuation model, the value of a firm's operations is found to be $400 million. The balance sheet shows $20 million in short-term investments that are not related to operations. The balance sheet also shows $50 million in accounts payable, $90 million in notes payable, $30 million in long-term debt,
18. Bond Prices and Yields. a. Several years ago, Castles in the Sand, Inc., issued bonds at face value at a yield to maturity of 7 percent. Now, with 8 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has increased to 15 percent. What has happened to the
4. Bond Pricing. A 6-year Circular File bond pays interest of $80 annually and sells for $950. What is its coupon rate, current yield, and yield to maturity? 5. Bond Pricing. If Circular File (see question 4) wants to issue a new 6-year bond at face value, what coupon rate must the bond offer? 6. Bond Yields. An AT&T
21. Loan Payments. If you take out an $8,000 car loan that calls for 48 monthly payments at an APR of 10 percent, what is your monthly payment? What is the effective annual interest rate on the loan? (Using the excel PMT function) 36. Amortizing Loan. You take out a 30-year $100,000 mortgage loan with an APR of 6 percent and
How can I make a chart in excel that shows the 10 day & 3 day moving average for an ETF - symbol: DGT.
Part A: Describe the concept of incremental cash flow. Why is this important to distinguish from other cash flows? Part B: How can TVM be used when deciding to lease an asset instead vs.buying? Explain.
1. The budget committee has received the following projects. They are mutually exclusive. The Company uses 10% as the rate of return. Year Project A Project B 0 - 30,000 - 60,000 1 10,000 20,000 2 10,000 20,000 3 10,000 20,000 4 10,000 20,000 5 10,0
Friedman Steel Company will pay a dividend of $1.50 per share in the next 12 months (D1). The required rate of return (Ke) is 10 percent and the constant growth rate is 5 percent. a. Compute Po (For all parts b, c and d in this problem all variables remain the same except the one specifically changed. each question is its ow
On the first day of the fiscal year, a company issues a $1,000,000, 8% 5 year bond that pays semi-annual interest of $40,000 ($1,000,000 x 8% x 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount. Round answer to the nearest dollar.