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Profitability Index (PI)

Price index

Can you help me get started with this assignment? ** Please see the attached problems on calculating the price index. ** Please answer in Excel. Problem 1 Below is information on food items for the years 2000 and 2004. 2000 2004 Item Price Quantity Price Quantity Margarine (pound) $0.81 18 $0.89 27

Change in liquidity and profitability by using ratios

Can you help me get started with this assignment? Please see ** ATTACHED ** file(s) for complete details!! (a) Indicate, by using ratios, the change in liquidity and profitability of Inca Company from 2006 to 2007. (Note: Not all profitability ratios can be computed nor can cash basis ratios be computed.) (b) Given bel

Calculating HHI Index.

In the market for bottled water, Fresh Springs has a 40 percent share of the market, Swiss Springs has a 27 percent share, L'eau de France has a 8 percent share, and Rocky Mountain Water has a 5 percent share. The rest of the market consists of 20 firms with a 1 percent share of the market each. What is the value of the Herfinda

Calculate profitability ratio in two scenarios

Using Yahoo Financials, look at Ambassadors International (AMIE): http://finance.yahoo.com/q/bc?s=AMIE * Calculate a profitability ratio. * Using the same company calculate a profitability ratio given a 2% increase in revenue and a 3% overall cost savings.

Application Software Exercise: Spreadsheet Exercise

Please convert this CAD.doc file into excel with all the formulas. I need this today within three hours (need to see the excel formula involved). By the way, Kevin forgot to answer this question: Is this investment worthwhile? Why or why not? Business, Finance - Year 1 Application Software Exercise: Spreadsheet Exerc

Improving expected rate of return without portfolio risk

Percival Hygiene has $10 million invested in long-term corporate bonds. This bond portfolio's expected annual rate of return is 9 percent, and the annual standard deviation is 10 percent. Amanda Reckonwith, Percival's financial adviser, recommends that Percival consider investing in an index fund which closely tracks the Standar

Q1: What position should the fund manager take to hedge exposure to the market over the next two months? Q2: Calculate the effect of your strategy on the fund manager's returns if the index in two months is 700, 800, 900, 1,000 and 1,100. Adapted from Fundamentals of Futures and Options Markets, 6th ed., John C. Hull.

Chapter 3: AD 3: A fund manager has a portfolio worth $100 million with a beta of 1.15. The manager is concerned about the performance of the market over the next two months and plans to use three-month futures contracts on the S&P 500 to hedge the risk. The current index level is 950 and one futures contract is on 250 times the

Value of the Consumer Price Index

A market basket of goods and service cost $1500 to purchase in the year 2000. The same market basket of goods and service cost the following in the next several years: 2001-$1560 2002-1606.80 2004-1687.14 2005-1737.75 From this data it is possible to create a consumer price index with the purchase price of their goods

Advance Corporation

Table 6 Advance Corporation Comparative Balance Sheet For the Years Ending March 31, 1996 and 1997 (Millions of Dollars) Assets 1996 1997 Current assets: Cash $ 2 $ 10 Accounts recei

Liquidity and profitability ratios

The December 31, 1995 balance sheet for Spitco, Inc. is presented below. Spitco, Inc. Balance Sheet December 31, 1995 Current assets $40,000 Net fixed assets 20,000 Total $60,000 Account

Analysis of Liquidity and Profitability Measures of Gateway, Inc.

Answer question. 1. Analysis of liquidity and profitability measures of Gateway, Inc. (Check our website for future updates.) The following summarized data (amounts in thousands) are taken from the December 31, 1999, and 1998, comparative financial statements of Gateway, Inc., a direct marketer and distributor of personal com

KiteSurfRUs profitability

Please review the attachment, read carefully and answer the following five questions. When answering the five questions, please be sure to explain how you got the answer. 1. Calculate the manufacturing overhead rate based on labor hours and machine hours. 2. Determine the cost to manufacturing one unit of each model using

Help with Profitability Index

I need to compute the profitability Index for both projects. Also, which project should I accept based on the profitability index rule? Year Project A Project B 0 -500 -2000 1 300 300 2 700 1800 3 600 1700

Profitability Ratios Report

Use the information contained in the balance sheet and income statement to calculate the following ratios: 2) Profitability ratios a) Asset turnover b) Profit margin c) Return on assets d) Return on common stockholders' equity Prepare a memo to the CEO of your selected organization in which you discuss

calculate cost of the project

Firm X has expected cash inflows, starting with year 1, of $1,500, $3,100, $5,000 and finally in year four, $7,900. The profitability index is 1.35 and the discount rate is 10 percent. What is the initial cost of the project? 1. $9,687.41 2. $12,269.46 3. $14,385.80 4. $17,655.30 5. $20,154.53

Portfolio Return and Standard Deviation, SML and Required Rate of Return, Futures Contracts, Future Margin, S&P 500 index futures contracts, Futures Speculation,Futures Hedging, Call Options, Put Options, Portfolio Performance Measures (Sharpe Measure, Jensen Measure, Treynor Measure)

Please see the attached file. Portfolio Return and Standard Deviation: 1. You are trading in a market that has only two securities available. Security A has an expected return of 8 percent and a standard deviation of 40 percent. Security B has an expected return of 20 percent and a standard deviation of 120 percent

Profitability Index

How do you calculate the Profitability Index using the following information, and what does the Profitability end up being using the following given? Please see the attached for the question and information. Outlined below is the following project information: Year Cash Flow 0 ???

Futures and Call Options

Please show calculations for the problems listed below. Thanks 1. You just bought two April S&P 500 index futures contracts at a futures price of $400. If the April futures price is $380 one month later, you will have realized a _______ if you close your position. $380 profit $380 loss

Performance Measure: Profitability

A+ Consulting rewards its managers based on performance. A measure of performance is profitability. Another measure may be growth in stock value. Profit has decreased by 50% from the prior year amount of $80,000. Stock value has increased by 20% from its prior year level of $200,000. If a manager's compensation is based on 75% o

XM and Sirius : Profitability Ratios

The two companies are XM and Sirius. Review the following scenario: The CEO of your firm has asked that you to compare the firm you are thinking of acquiring with one of its competitors. Obtain the financial statements for both the firm under investigation and one of its competitors and perform the following tasks. Prep

Cerberus/Chrysler Situation Analysis

I could use some help. As per Bloomberg (May 14, 2007) DaimlerChrysler AG ended its nine-year ownership of money-losing Chrysler, handing the control to private-equity firm Cerberus Capital Management LP and getting out of $19 billion in retirement liabilities. Cerberus will invest $7.4 billion in a new venture called Chrysl

Profitability Index versus NPV.

Profitability Index versus NPV. Consider these two projects: Project C0 C1 C2 C3 A -$36 +$20 +$20 +$20 B - 50 + 25 + 25 + 25 a. Which project has the higher NPV if the discount rate is 10 percent? b. Which has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amoun

Important information about Profitability Index versus NPV.

Consider these two projects Project A: C0= -$36, C1= +$20, C2= +$20, C3= +$20 Project B: C0= -$50, C1= +$25, C2= +$25, C3= +$25 a.Which project has the higher NVP if the discount rate is 10%? b.Which has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of