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Working Capital Management

Stock Warrants/Paid-In Capital

2) On March 1, 2010, Ruiz Corporation issued $800,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2030. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the wa

Venture Capital and Angel Investments

Mr. John Smith has inherited $18,000,000 and would like to start his own business. One of the financial consultants suggested for him to become a venture capitalist while another consultant suggested to him to become an angel financer. He is still confused as to what to do because previous consultants did not answer all his ques

Capitalization Threshold - Capital

The Town's fixed asset capitalization threshold is $5,000. For each item in the following list, please state whether the expense qualifies as "capital" and why: a. A $500,000 new roof being added to an existing $5 million building b. $12,000 for a rebuilt transmission for a bus (A new hybrid bus costs $450,000.) c.

Liquidity management Bauman Company's total current assets

Liquidity management Bauman Company's total current assets, net working capital, and inventory for each of the past four years follow: Item 2005 2006 2007 2008 Total current assets $16,950 $17,450 $18,230 $20,165 Net working capital 7,950 8,760

Working Capital Management Assumptions

Upscale Toddlers, Inc. manufactures children's clothing, including such accessories as socks and belts. The company has been in business since 1955, mainly supplying private label merchandise to large department stores. In 1990, however, the company started producing its own line of children's clothing under the brandname "Yuppi

Net Working Capital

2010 and 2011 Balance Sheets for Nabors, Inc ($ millions) 2010 2011 2010 2011 Cash $310 $405 Accounts Payable $2,720 $2,570 Accounts Rec. 2640 3,055 Notes Payable 100

Accounting KING CORPORATION Compute the following: a. Working capital b. Current ratio c. Acid-test ratio d. Cash ratio e. Days' sales in receivables f. Accounts receivable turnover in days g. Days'

KING CORPORATION Partial Balance Sheet December 31,2009 Assets Current assets: Cash $33,493 Marketable securities $215,147 Trade receivables, less allowance of $6,000 $255,000 Inventories, LIFO $523,000 Prepaid expenses $26,180 Total current assets $1,052,820 Liabilities Current liabilities Trade accounts paya

Best source of equity capital

Christine Hernandez is in the process of launching a restaurant. She has never owned a restaurant before, but she has worked in two of the best restaurants in town. Starting out as a hostess, Hernandez developed a special knack for the business and quickly worked her way up to manager. Her 18 years of experience have given her a

Capital Market Instruments: How They Are Used

Need help with the following questions involving the Essentials of Investments: What are capital market instruments? How are they used? Which is most important? Explain you answer. What is an asset? How are asset classes selected? What factors affect the selection? Assume economic forecasts predict falling gross dome

Capital Markets and Investment Banking Process Paper

See the attached file. Analyze the investment banking process, and address the following: Describe the investment banking process for an IPO. Describe factors that must be considered when selecting among asset classes for an investment portfolio. Describe capital market instruments used in portfolio construction.


Assume that during the first year of a corporation's operation, there were numerous purchases of identical items of merchandise. However, there was no change during the year in the prices paid for this merchandise. Under these special circumstances, how would the financial statements be affected by the choice between the FIFO an

The article I found talks about insider trading and how the Senate passed bill that will ban insider trading for for Capital Hill. Some have argued that Congress does not have to follow traditional insider trading rules and are allowed to trade as they see fit. Others say that nobody should be allowed insider trading and that it doesn't matter if you are directly involved in the company or an investor. It appears to me that the approximately 50 members of Congress who have done insider trading feel they are above the law. The only reason why they knew what they did is because Congress was working on legislation that would affect their investment so these people sold their stocks and bonds and investments before the value decreased. The legislation that the Senate passed is being called the Stock Act (Stop Trading on Congressional Knowledge Act). What has made this bill popular and able to pass was the public outrage that has occurred because of some members of Congress doing insider trading. In the end sometimes its better to pass a bill later than not at all. If this legislation doesn't pass the House of Representatives then Capital may be able to keep doing whatever they want. I think what upsets me the most about this article is that certain members of Congress feel that they can manipulate the rules so that it doesn't apply to them, just us working class people.

Adverse Selection: Senate Passes Insider-Trading Ban The article I found talks about insider trading and how the Senate passed bill that will ban insider trading for for Capital Hill. Some have argued that Congress does not have to follow traditional insider trading rules and are allowed to trade as they see fit. Others say

Current and Noncurrent Assets are Defined and Compared

Prepare a paper comparing and contrasting current and noncurrent assets. In your paper, address the following: - What are current assets? - What are noncurrent assets? - What differs between current and noncurrent assets? - What is the order of liquidity? - How does the order of liquidity apply to the balance sheet?

Financial Policy & Strategy: Working Capital Management Strategy

What is a good working capital-management strategy that would free up enough money to keep a business stable and on their feet if they were having a hard time getting the cash to pay bills for the business. Accounts receivable, inventory, accounts payable are the three accounts, and what strategy would work? What is a pro and a

Financial Management

"What is the after tax cost of debt on a $500,000 loan given a 7% interest rate and 35% tax bracket?" Answer "$22,750 " 2.45% 4.55% "$35,000 You are considering a new investment. The rate on T-bills is 3.3% and the return on the S&P 500 is 10.5%. You have measured the non-diversifiable risk of the investment you are con

Capital structure decisions

Analyze the approaches to capital structure decisions and determine which theory is the most applicable across the widest number of scenarios.

Rate of Return, Working Capital, and Current Ratio

Please review the attachment for the complete problem description. Reynolds Equipment financing policies: rate of return, working capital, current ratio Reynolds Equipment Company is investing the use of various combinations of short-term and long-term debt in financing its assets. Assume that the company has decided to em

Risk Return, and the Oportunity Cost of Capital

See attached. YEAR STOCK MARKET RETURN T-BILL RETURN 2003 31.64 1.02 2004 12.62 1.2 2005 6.38 2.98 2006 15.77 4.8 2007 5.62 4.66 13. Risk Premiums and Discount Rates. Top hedge fund manager Diana Sauros believes that a a stock with the same market risk as the S and P 500 will sell at year-end at a price of $50. Th

Calculate net working capital for Smith Motors

Smith Motors reports the following account balances: inventory of $33,100, equipment of $84,400, accounts payable of $16,900, cash of $5,000, and accounts receivable of $22,600. How much does the firm have in net working capital? $38,800 $43,800 $55,700 $67,500 $72,600

How Customer Relationships Are Sources of Value

How might customer relationships be sources of value? What metrics might be particularly important in assessing an organization's customer capital or the value of its customer relationships? Can you provide examples where one can see a close relationship between market value and the changing assessments of the quality of the cus

Consolidation, redemption, complete liquidation, capital loss

1. Condor Corporation pays $950,000 for 100% of the stock in Dove Corporation. Dove has a basis of $800,000 in its assets and E & P of $220,000. If Condor liquidates Dove and makes no special election, what are the tax consequences to Condor and to Dove? 2. The gross estate of Tanya, decedent, includes stock of Finch Corporat