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Setting finanacial goals: a personal achievement plan for financial security

A. Develop a list of two financial goals that you would like to achieve over the next ten years. They might include a major vacation, a car purchase, a home improvement, or a college education for one of your children. Once your goals are written, develop a three-column table showing the goals, the future date for each, and the

Opinion From An Expert in Managerial Finance

Is it true that the "flatter" or more nearly horizontal, the demand curve for a particular firm's stock, and the less important investors regard the signaling effect of the offering, the more important the role of investment bankers when the company sells a new issue of stock?

Financial management of health care organizations

Drive in Surgery is studying the possibility of opening a satellite center in the far west part of the metro area. At a minimum, DISC needs a $190,000 profit at the satellite center to keep to their financing. Based on DISC's experience at its present surgi-center, the new center would require about $115,950 in fixed costs. D

Mutual fund manager incentives

A mutual fund announces that the salaries of its fund managers will depend on the performance of the fund. If the fund loses money, the salaries will be zero. If the fund makes a profit, the salaries will be proportional to the profit. Describe the salary of a fund manager as an option. How is a fund manager motivated to behave

Effect of the Exchange Rate on Weyerhauser's Receivables

Weyerhauser is a U.S based forest products firm. In June Weyerhauser delivers a shipment of raw lumber to Japan. The y55,000,000 receivables is due 180 days. The firm's foreign exchange advisors believe the yen will be at about y115/$ then, Current spot rate is y110/$ Weyerhauser has received 180 day forward quote of y108/$. If

Tracing rules for loan proceeds & land developer gain

Case 1: A lawyer withdraws his entire capital account from his law firm and uses the funds to finance the purchase of a home in which he resides. On the same day, the lawyer borrows an equivalent amount of funds by way of bank loan and deposits the funds to his law firm. Issue: Is the interest expense on the bank loan dedu

Percent of Sales Table

Following this balance sheet for 2006 Assets Cash $15,000 Accounts Receivable 90,000 Inventory 60,000 Current Assets $165,000 Fixed Assets 60,000 Total Assets $225,000 Liabi

Market Value, Cost of Capital, and Total Income Available

The U Co. and the L Co. are identical in all aspects except that U Co. is all-equity financed while L Co. has $1,000 debt in 6% perpetual bonds outstanding (on which $60 of interest is paid each year). Both firms have expected net operating income of $300 (forever). Both firm distribute as dividends all income available to sha

Liquidity Ratios

Using the attached Balance Sheet and Income Statement calculate the following ratios: 1) Liquidity ratios a) Current ratio b) Acid-test (quick) ratio c) Receivables turnover d) Inventory turnover Riordan Manufacturing, Inc. Consolidated Balance

Finance: Calculating the Value of a Stock

Using the following information on Bear Corporation and the dividend discount model, calculate the value of Bear Corporation's stock. Growth: 12% ROE: 15% Earnings Per Share Last Year: $10.00 Beta: 1.50 Risk Free Rate: 5.00% Market Risk Premium: 6.00%

Profit and Contribution

Explain the difference between profit and contribution in an objective function. Why is it important for the decision maker to know which of these the objective function coefficients represent?

Corporate Finance, calculating annual returns

A. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate average returns over the five-year period. (Hint: Remember, returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss, adding the divide

Graham Enterprises Stock Price

Graham Enterprises anticipates that its dividend at the end of the year will be $2.00 a share (D1) The dividend is expected to grow at a constant rate of 7 percent a year. The risk-free rate is 6 percent, the market rate is 5 percent, and the company's beta equals 1.2 What is the expected price of the stock 5 years from now?

Finding the Optimal Market Price

5. The probability distribution for kM for the coming year is as follows: Probability kM 0.05 7% 0.30 8 0.30 9 0.30 10 0.05 12 If kRF = 6.05% and Stock X has a beta of 2.0, an expected constant growth rate of 7 percent, and D0 = $2, what mar

Accounting and Finance Questions

25. Planning for future growth is called: A. Capital Budgeting B. Financial forecasting C. Working Capital Management D. Financial management 26. The percent of sales method of financial forecasting shows us the relationship between ___________ and financing needs. A. changes in the level of assets B. chang

Accounting and Finance Questions

18. Which of the following best describes the a payment for materials purchased A. Cash Receipt B. Cash Disbursement C. Cash Incentive D. None of the Above 19. Hazardous Toys Company produces boomerangs that sell for $8 each and have a variable cost of $7.50. Fixed costs are $15,000. Compute the Break-Even po

Managerial Accounting - Cost Allocation

1- Variable and Full Costing The following information relates to Porter Manufacturing for fiscal 2006, the company's first year of operation.: Selling price per unit $ 120 Direct material per unit $ 60 Direct labor per unit $ 20 Variable manufacturing overhead per unit $ 5 Variable selling cost per dol

Finance and investment questions

Eliminate the wrong answer (or write the answer A, B, C, or D, next to the question). (I don't need extra explanation for the answers) 1. Which of the following best describes real capital? A. Money B. A place where the president lives C. Long-term plant and equipment D. Interest notes 2. __________ refers to

Start Up Company Finance Calculations

3.4) A start-up company selling color-keyed carnauba car wax borrows $40,000 at an interest rate of 10% per year and wishes to repay the loan over a 5-year period with annual payments such that the third through fifth payments are $2000 greater than the first two. Determine the size of the first two payments. 3.11) How much

Suppose someone tells you the only thing that matters is cost when deciding to provide a good or service internally or externally. That is, if you can do it cheaper internally, then that is how it should be done. Or, on the other hand, if an external supplier can do it cheaper, then you should use that supplier. What is your response?

Suppose someone tells you the only thing that matters is cost when deciding to provide a good or service internally or externally. That is, if you can do it cheaper internally, then that is how it should be done. Or, on the other hand, if an external supplier can do it cheaper, then you should use that supplier. What is your res

Corporate finance - construct Cumberland's Year 2 income statement.

See attached file for full problem description. Here are the balance sheets as given in the problem: Cumberland Industries December 31 Balance Sheets (in thousands of dollars) Year 2 Year 1 Assets Cash and cash equivalents $91,450 $74,625 Short-term investments $11,400 $15,100 Account

RealTimeService - % Increase in Profit

RealTimeService offers computer consulting, training and repair services. For the most recent fiscal year, profit was $230,000 as follows" Consulting Training Repair Total ________________________________________________ - Sales: