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Working Capital Management

Finance: Restricted / Relaxed Working Capital Investment

SkyHigh Airlines is deciding whether to pursue a restricted or relaxed working capital investment policy. SkyHigh's annual sales are expected to total $3.6 million, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50 percent of total assets. EBIT is $150,000, the interest rate on the firm's d

PepsiCo cost of equity capital; Expected alpha in Davita's fund

1) Suppose Pepsico stock has a beta 0.57. If the risk free rate is 3% and the expected return of the market portfolio is 8%, what is Pepsico equity cost of capital? 2) Assume that all investors have the same information and care only about expected return and volatility. If new information arrives about one stock, can this i

Intellectual Capital in SPPS Paper

Select an organization with which you are familiar. Write a paper in which you describe and discuss an example of intellectual capital (branding, good-will, employee experience, patents, trademarks, etc.) in each of the following areas: - Strategy - Process - Product - Service - Discuss whether each example of Intellectu

Capital Projects New Acquisition

Find one new acquisition that ExxonMobil needs as a new possible investment item, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded? Issues might be: ? Risk ? Cost ? Politics (getting it through committees) ? Public Relations

Quick ratio, working capital, current ratio, transactions

Below are the problems in which I need help with. Thanks!! ----------------- 1. compute a) the working capital b) the current ratio and c) the quick ratio. Round to one decimal place. 2. List the following captions on a sheet of paper: Transactions________Working Capital_________Current Ration______Qui

Keafer Manufacturing Working Capital Management

I am stumped on question number 4. I've put in several different growth rates, but they all show short term financing is needed. Please let me how to come up with the correct growth rate that will result in zero need for short term financing. I've attached an Excel file of everything you'll need to work through the proble

Software Development Division of XYZ Company

XYZ's Software Development Division (SDD) has developed several architectural design software packages. One software package that they have developed is being sold to an English Company for $310,000 or 385,000 pounds. The cost of developing the software was $255,000. As payment, XYZ has accepted a note receivable that is due in

Expansion requirements: fixed capital, working capital and growth capital

To compute the cost of expanding his existing business, Bob makes the following estimates: Adjacent lot $40,000 Metal prefab building 25,000 Hydraulic lifts 15,000 Tools and equipment 9,000 Parts and inventory 5,000 Additional operating expenses 55,000 TOTAL $149,000 Questions 1. Classify Bob's expansion e

Financial reporting questions: current assets, Pending litigation, and more...

21. Which of the following would not be classified as a current asset on a classified balance sheet? a. Investment securities (trading) b. Short-term investments c. Prepaid expenses d. Intangible assets 22. The correct order to present current assets is a. cash, inventories, prepaid items, accounts receivable. b.

Cost of Capital on the Investments

Please provide some assistance with the following questions. Any clarifications you can provide are greatly appreciated. See the attached file.

Cost of Capital

Kocher Steel typically achieves one of three production levels in any given year: 8 million pounds of steel, 10 million pounds of steel, or 16 million pounds of steel. In tracking some of its costs, Kocher Steel's controller discovered one cost that was $10 per pound at a production level of 8 million pounds, $8 per pound at a p

Tootsie Roll Working Capital Strategies

Please help with intro and conclusion with Tootsie Roll working capital strategies. I need help addressing these questions: Assume next year's forecasted revenues increase by 20%. Provide a detailed working capital recommendation to senior management based on next year's increase in revenue along with assumptions you make re

Financial Management - Internal Capital Market

The internal capital market deals with the allocation of internally generated cash between ______ (a) stockholders, creditors and corporate capital projects (b) stockholders and managers (c) corporate capital projects of differing business segments with in the corporation (d) capital gains and capital losses (e) capital s

Analyst Approaches to Cost of Capital

In your own words and at least 7 sentences, based on the article link below, why do you think analysts differ in their approaches to determining the cost of capital?


1. A company has income of $62,000 from operations and a net long-term capital loss of $5,000. What is the corporation's taxable income for the year? 2. What are the differences in the treatment of capital losses of corporations and of individuals?

Working Capital

With the idea of alternatives to working capital policies that reduce future difficulties. Make a recommendation on which policy Lawrence should use. With the idea of alternatives to working capital policies that reduce future difficulties. First alternative: Lawrence Sports should negotiate a more favorable credit

Effects of transactions on working capital and current ratio.

3.10) Evans, Inc had current liabilities at november 30 of $137,400. The firms current ratio at that date was 1.8. A) calculate the firms current assets and working capital at November 30. B) assume that managment paid $30,600 of accounts payable on November 29. Calculate the current ratio and working capital at November 3

Working Capital and Return on Investment

III- Working Capital Management A- Applegate Bicycle Company is trying to devise an aprópiate working capital policy. Their most recent balance sheet is as follows: Balance Sheet, December 31, 20X5 (in thousands) Assets Liabilities and Owner's Equity Cash $ 30 Accounts payable $35 Accounts Receivable

Paid in Capital from Treasury Stock for Davidson Co

Please help with the following problem. Davidson Co. was organized on January 2, 2007, with 500,000 authorized shares of $10 par value common stock. During 2007, Davidson had the following capital transactions: January 5 - issued 375,000 shares at $14 per share. July 27 - purchased 25,000 shares at $11 pr share

Working capital policies (good and poor)

Provide at least two examples of organizations that have good working capital management policies, and two examples of organizations with poor working capital management policies. Please explain why the policies of your selected organizations are effective or ineffective. I chose these four companies, Microsoft, Apple, Hewlett-P

Capital Projects Fund in Salt Lake City

The voters of Salt Lake City authorized the construction of a new north-south expressway for a total cost of no more that $75 million. The voters also approved the issuance of $50 million of 5% general obligation bonds. The balance of the necessary funds will come from the following sources: $15 million from a federal grant a

Holden Bicycles: Capital surplus

14. Holden Bicycles has 1,000 shares outstanding each with a par value of $0.10 each. If they are sold to shareholders at $10 each, what would the capital surplus be? A. $100 B. $900 C. $9,900 D. $10,000 E. $11,000

Calculations Relating to Discount Loan

On March 15, 2008, the energy company obtained a 9 month working capital loan from the bank. The face amount of the note signed by the treasurer was $300,000. The interest rate charged by the bank was 10%. The bank made the loan on a discount basis. (1.) What's the amount of loan proceeds made available to the energy company?