W.F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 5 times, total current assets of $810,000, and cash and marketable securities of $120,000 in 2007. If the cost of goods sold equaled 86 percent of sales, what were Baileys annual sales and its DSO (days sales outstanding).
Van Auken Lumber: Income Statement for December 31, 2007 ($ thousand) Sales $36,000 Cost of goods sold (25,200) Gross Profit $10,800 Fixed operating costs (6,480) Earnings before interest and taxes $4,320 Interest (2,880) Earnings before taxes $1,440 Taxes (40%) (576) Net Income $ 864 Dividen
A. Use the information attached to calculate the actual and sustainable growth rate for each year. Chapter 4 Problem 8 -- Eight Ball Sporting Goods a. Use the information below from Eight Ball's annual financial statements to calculate the actual and sustainable growth rate for each year. Ei
Is it possible for an EFN estimate (or a 'plug number' on a pro-forma balance sheet) to be negative? If you obtain this result, do you interpret it as an indication that you've made a calculation error, or is there some other interpretation you should make?
If I am considering refinancing my mortgage, my current rate is 7% with 14 years left and was negotiated one year ago with $2,000 closing costs. The new loan would be 5.5% for 15 years with a closing cost of $1500. Describe how I would decide whether or not to refinance. Include qualitative considerations.
First examine your public company of choice for investment from the previous exercise. Then present a brief and powerful financial case for investment in your company to the others in the class. Use all of your powers of persuasion, marketing, or advertising in your pitch.
The common stock of Leaning Tower of Pita, Inc., a restaurant chain will generate the following payoffs to investors next year: Dividend Stock Price Boom $5.00 $195 Normal economy $2.00 $100 Recession $0.00 $0 The company goes out of business if a recession hits. Calculate the ex
Enter formulas to solve the requirements of this problem The payoffs in year 5 to George Pickwick and First Cookham are as follows: First Cookham buys 2 million shares at $1 Company value in 5 years After stage-2 financing Payoff to: $2,000,000 $12,000,000 G. Pickwick FORM
Enter formulas to solve the requirements of this problem. a. How many shares would the company have needed to issue to raise the same amount of money? Shares issued formula. b. How much more would the existing shareholders have made from the sale? Additional proceeds formula. c. Wha
Enter formulas to calculate the requirements of this problem. a. What is the average underpricing of this sample of IPOs? Average underpricing FORMULA b. What is the average initial return on my "portfolio" of shares purchased from the four IPOs I bid on? Calculate the average initial
Can someone please, at first glance, explain to me what the attached slide is really saying. If you were given this slide without any knowledge of the topic, what would be your analytical assessment of the chart. Is there anything about the slide that sticks out like a sore thumb? Please beak it down with your professional in
22. What is the expected return on the following portfolio? STOCK SHARES PRICE EXPECTED RETURN ART 1,500 $40 22% BAC 2,000 31 19 DUD 500 85 29 Use the following data for questions 23 & 24. Cost of Goods Sold $22mm Inventory $4mm Credit Sales $26mm Accounts
Bob's Burritos sells all of their burritos for $4.50 while the cost is only $3.00. If the monthly fixed expense is $1,500, how many burritos must Bob sell a month to breakeven? Need the exact number of burritos to sell in a month in order to break-even, I must show how to get that number, and I am having a problem with the f
Expected return and standard deviation for security, minimum risk portfolio, efficient frontier of the feasible set.
Security A Security B Pa Ra Pb Rb 0.1 -10% 0.1 -30% 0.2 5% 0.2 0 0.4 15%
The real risk free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.2%. How would I go about calculating the maturity risk premium for this 2-year security?
Where would I find a comprehensive list of the following public corporate information: 1. Recently announced stock splits that will be paid to shareholders on a future date 2. Upcoming corporate earnings reports
1. A household with very bad credit wants a credit card. Describe two possible options that might be available to them. 2a. If a corporation wants to lend to another corporation in the direct money market and wants to assume no default risk, describe an appropriate investment. 2b. If a SSU wants to lend in the direct money
During its first year of operations Klump Corporation had the following transactions pertaining to its common stock. Jan 10 Issued 70,000 shares for cash at $5 per share July 1 Issued 40,000 shares for cash at $8 per share (a) Journalize the transactions assuming that the common stock has a par value of $5 per sh
Consider the use of probability analysis in estimating returns and determining the standard deviation. You may use a hypothetical situation and do the calculations or just describe the steps in the process.
X Inc. has just paid a dividend of $3.00, and is now selling for $50 per share. Similar stocks generally earn a 13% return. Assuming that X Inc. is a constant growth stock, what is its expected rate of growth?
Project A Project B Initial Investment 100,000 100,000 Year 1 40,000 10,000 Year 2 40,000 10,000 Year 3 40,000 75,000 Year 4 40,000 85,000 1. If the discount rate is 7%, which of the following is true: a. The firm should accept only project A b. The firm should accept only project B c. The firm should accept both p
A proposed project can generate savings of $1000 per year for 10 years. The initial cost of the project is $2500 and the project has a salvage value of $500 in the 10th year. What is the Net Present Value of the project to the nearest dollar if the discount rate is 10%? keywords: NPV
#1. Ace purchases 40 percent of Baskett Company on January 1 for $500,000. Although not used, this acquisition gave Ace the ability to apply significant influence to the operating and financing policies of Baskett. Baskett reports assets on that date of $1,400,000 with liabilities of $500,000. One building with a seven-year
How did the campaign reform legislation (McCain/Feingold) along with the recent legislation capping private donations impact the way interests organizations and institutional elites transact influence in Washington? How does campaign finance reform correlate to Madison's cure for his concerns regarding factionalism?
What are Lauren's profit (loss) and the return on investment if the price of Gentry's stock rises to $45 per share and at $20.00 per share?
Lauren has a margin account and deposits of $50,000. Assuming the initial margin requirements is 40%, and The Gentry shoe corporation is selling at $25.00 per share: How many shares can Lauren purchase using the maximum allowable Margin? What are Lauren's profit (loss) and the return on investment if the price of Gentry's st
John Smith, an associate in your firm, has asked you to help him establish a financial plan for his family's future. John is 38 years old and has been with your firm for two years. Anne, his 42 -year-old-wife, is employed as a psychologist for the local school district. They are childless now but plan on adopting a child in two
Please help with the following problem. What are the cash flows associated with calculating the present value of preferred stock? What are the cash flows associated with calculating the present value of common stock? Why is it more difficult to calculate the present value of common stock than it is to calculate the value of
The Optimal Scam Company would like to see its sales grow at 20 percent for the foreseeable future. Its financial statements for the current year are presented below. Income Statement ($ millions) Balance Sheet ($ millions) Sales 32.00 Current assets 16 Costs 28.97 Fixed assets 16 Gross profit 3.03 Total assets 32 Taxes 1
1. Cheryl Colby, the CFO of Charming Florist Ltd., has created the firm's pro forma balance sheet for the next fiscal year. Sales are projected to grow at 10 percent to the level of $330 million. Current assets, fixed assets, short-term debt, and long-term debt are 25 percent, 150 percent, 40 percent, and 45 percent of the tota
1. If a firm pays its bills with a 30 day delay, what fraction of its purchases will be paid for in the current quarter? in the following quarter? what if its payment delay is 60 days? I get the if it was 60 days it would double. What I don't understand is how to figure out the fraction.