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Finance

Corporate finance

Every company has capital projects. IBM must need something! Be it a new wing to the building, a new product line to be funded, a new piece of equipment, find one new acquisition your company needs. Identify a capital project for IBM and Once you have identified the new budgeted item, what problems are you going to have getti

Begining Finance - Financial Statements

See attached file for full problem description. Study Guide- ch 2 Practice 2-7 Income Statement Preparation Precision Corporation has been a leading supplier of magnetic storage disks for three years. Followingare the results of Precision's operations for 2006. Sales revenue . . . . . . . . . . . . $68,000 Advertising

Risk Averse Investment for a Banking System

Consider two individuals living in the country of Depressia. Depressian banking system is very unstable. On average, 5% of all banks collapse every year. Each of these individuals is considering depositing all their life savings - $10,000 - in a bank for one year. Banks pay fixed interest, so that by the end of the year all woul

Crime: Felony or Misdemeanor?

When one thinks of crime, it's usually with individuals in mind. However, companies commit crimes too. Review the articles below and respond to this question, citing the articles you reviewed: 1. Do the company's actions fit the definition of a crime? If so, what kind, a felony or a misdemeanor? Why or why not? Article

Government Revenues from Sales Taxes

9. Assuming that a government will collect its sales taxes in sufficient time to satisfy the available criterion, it would ordinarily recognize revenue from sales taxes in its governmental fund statements a. when the underlying sales transaction takes place b. on the date the merchant must remit the taxes to the gover

Grant Revenue

7. Central City was awarded two state grants during its fiscal year ending September 30, 2003: a $2 million block grant that can be used to cover any operating expenses incurred during fiscal 2004 and a $1 million grant that can be used any time to acquire equipment for its police department. For the year ending September 30, 20

Basic Finance Problems: Seth Cohen, General Materials and Standards Fixtures

9.2. One year ago, Mr. Seth Cohen invested $10,400 in 200 shares of First Industries, Inc. stock and just received a dividend of $600.00. Today, he sold the 200 shares as $54.25 per share. a. What was his capital gain? b. What was your total return? c. What was your total dollar return? d. What was the stock's dividend yi

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