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    Financial Ratios

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    Risk preferences; risk analysis; portfolio analysis; basic sensitivity analysis

    See the attached practice problems. 1. P5-3 Risk preferences Sharon Smith, the financial manager for Barnett Corporation, wishes to evaluate three prospective investments: X, Y, and Z. Currently, the firm earns 12% on its investments, which have a risk index of 6%. The expected return and expected risk of the investmen

    Contribution margin, fixed costs, break even, ratios

    BE18- 1 Monthly production costs in Ogden Company for two levels of production are as follows. Cost 2,000 units 4,000 units Indirect labor $ 10,000 $ 20,000 Supervisory salaries 5,000 5,000 Maintenance 2,500 4,000 Indicate which costs are variable, fixed, and mixed, and give the reason for ea

    Ratio Analysis of Company

    In order to determine how risky Company A is that you are auditing, you prepare these five ratios along with the same ratios of this company's peers. Company A Peers Day's Sales in Receivable Index 1.51 1.05 Gross Margin Index 1.98 1.11 Asset Quality Index 1.21 1.01 Sales G

    Cotter Company & Ratio Analysis

    See the attached file. Compute the ratios below for the financial statements: Debt / equity Debt ratio Current ratio Quick ratio Times interest earned Accounts receivable turnover (Assume all sales are credit sales and receivables are constant from year to year.) Total asset turnover.

    Interest Coverage Ratio & Examples

    Mi Furst, Inc., has $100 million of earnings before interest and taxes, and $40 million of interest expense. Compute the following: a.Calculate Mi Furst's interest coverage ratio. b.Calculate the pro forma interest coverage ratio assuming the issuance of $100 million of 10% debt with the issue proceeds to be invested fu

    Assets Portfolio - Expected Return

    Assuming that you are considering a portfolio containing tow assets, L and M. Asset L will represent 40% of the dollar value of the portfolio, and M will account for the 60%. The expected returns over the next 6 years, 2009-2014, for each of these assets are summarized in the following table. Expected Return (%) Year Asset L

    Pro forma balance sheet, income statement, and selected ratios

    I need assistance formulating pro forma financial documents and calculating NPV IRR and payback periods please provide instruction using Microsoft Excel. 1)Given the information below, utilize the percent of sales method to prepare a pro forma balance sheet, income statement, and selected ratios. 1.Sales will increase by 2

    Cost Accounting

    28.Mountain Mist Inc's cost a capital is 11 percent.in 2008,one of the firm's divisions generated an EVA of $1,130,000.The fair market value of the capital investment in that division was $26,500,000.How much after tax income was generated by the division in 2008? 39. Spruce Enterprise operates a chain of lumber stores.In 200

    Meuller Company: Determine Weighted Averages and Break Even

    Mueller Company manufactures and sells three products: A, B, and C. Annual fixed costs are $3,630,000, and data about the three products follow. Perform the following showing your work for each question: A. Determine the weighted-average unit contribution margin. B. Determine the break-even volume in units for each

    Coca Cola Operating Performance Measurements

    See attached files for full problem. Evaluate the company that you are studying by obtaining three years of financial statements; evaluate the company by three years of performance measurements listed in Appendix B. I ONLY need the operating performance measurements (pick at least 5 measurement). I already finished the As

    Ratio analysis for US Steel, Microsoft, Disney and Home Depot

    1) Find the most recent three year financial data on US Steel, Microsoft, Disney, and Home Depot. Provide three years of ratios for each: Retention ratio US Steel Microsoft Disney Home Depot Year 1 (most current) Year 2 Year 3 Net profit margin US Steel Microsoft Disney Home Depot Year 1 (most

    Return on Equity / Growth Rate

    Three companies have the following results during the recent period K L M Net profit margin 0.04 0.06 0.1 Total assets turnover 2.2 2 1.4 Total assets / equity 2.4 2.2 1.5 a. Derive for each its return on equity based on the three DuPont components. B.Given the

    Analyzing the Financial Performance of a Division

    Details: You have been given the financial statements and asked to analyze the financial performance of your division. Other managers have suggested you use financial ratios in your analysis. What are financial ratios? Which ratios might you use in your analysis? List them and explain what information they provide. How would you

    Degree of operating leverage

    Grey Products has fixed operating costs of $380,000, variable operating costs of $16 per unit, and a selling price of $63.50 per unit. a. Calculate the operating break even point in units. b. Calculate the firm's EBIT at 9,000, 10,000, and 11,000 units, respectively. c. With 10,000 units as a base, what are the percentage ch

    Financial Ratio Calculation and Trend Analysis

    Evaluate Barnes & Noble's financial performance for 2007 and 2008 using financial ratios. Calculate the following ratios for each year: a) Current b) Debt c) ROE (Return on Equity) d) Days receivable Be sure to discuss the trend for each of the above ratios. See link for report: http://www.barnesandnobleinc.co

    Margin of Safety Calculations

    The following is Arkadia Corporation's contribution format income statement for last month: Sales $1,200,000 Variable expenses 800,000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $ 100,000 The company has no beginning or ending inventories and produced and sold 20,000

    Assume the likelihood that any flight on Northwest Airlines

    Assume the likelihood that any flight on Northwest Airlines arrives within 15 minutes of the scheduled time is .90. We select four flights from yesterday for study. a. What is the likelihood all four of the selected flights arrived within 15 minutes of the scheduled time? b. What is the likelihood that none of the selected fli

    Contribution margin ratio and break-even point

    The following information describes a product expected to be produced and sold by Hadley Company: Selling price $80 per unit Variable costs $32 per unit Total fixed costs $630,000 Required: (a) Calculate the contribution margin ratio. (b) Calculate the break-even point in dollar sales. (c) What dollar amount o

    Ratios and analysis of performance (Hershey & Tootsie)

    Compare two companies in the candy industries, and help with the following: (Any) ? Current ratio ? Acid-test (quick) ratio ? Inventory turnover ? Accounts receivable turnover ? Debt ratio ? Return on net sales ? Return on total assets ? Return on common stockholder's equity ? Earnings per share And 2 pages of

    Ratio Calculations - Income Statement

    Question 2 (4%) The following items have been pulled from the Income Statement and the Balance Sheet. Use the data to calculate the ratios below and compare them to the industry. The ratio is "better" or "worse" is insufficient, tell me why. Balance Sheet Items Income Statement Items

    Financial Statement Analysis - Profitability

    I need your help with answering the lettered questions for each problem in the following problem sets: ? 4.11 Analyzing Operating Profitability ? 4.14 Calculating and Interpreting Accounts Receivable and Inventory Turnover Ratios ? 4.15 Calculating and Interpreting Fixed Asset Turnover Ratios ? 4.18 Calculating and Interp