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# Working Capital Management

### City Budgets for Capital Improvements

Need help with the: Size of budget and its interrelationship with the CAFR Link: We will be using Monica's CAFR (2009 Moreno Valley, CA) which can be found at http://www.moreno-valley.ca.us/city_hall/departments/admin/financial-ops.shtml.

### Compute the Cost of Capital

See attached file. With the information given, please calculate the cost of capital. Please show the steps to answer. Assets \$100 Debt \$10 Equity \$90 Debt/Assets After tax Cost of debt Cost of Equity Cost of capital 0% 8% 12% ? 10

### 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

### Calculate the stocks alpha to determine which stocks to buy

Calculate the stocks alpha so that I can determine which stocks to buy in the problem ( my book is no help) 2. Assume that the CAPM is a good description of stock price returns. The market expected Return is 7% with 10% volatility and the risk-free rate is 3%. New news arrives that does not change any of these numbers

### Google's Intellectual Capital Paper

Write a paper in which you describe Tangible Capital: Culture, Organizational Structure, investments, Working Capital, Customer Satisfaction, and Shareholder Value as it relates to Google's innovation. Resource: Google articles Format your paper according to APA standards.

### Current Ratio / Working Capital

BE7-9 The data are taken from the balance sheet of Ortiz., Inc The data are arranged in alphabetical order (in millions). Accounts payable \$ 584,600 Accounts receivable 1,674,400 Cash 110,600 Income taxes payable 25,900 Other current liabilities 608,500 Retained earnings

### Cost of Capital for Firm Maximization

The value of the firm is maximized by taking on as much debt as possible. Show graphically how adding debt can increase value through the overall cost of capital. Explain under what conditions how this impacts the cost of capital and translates into firm value.

### 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

### Risks Involved with Capital Research and Valuation

Please help synthesize the risks involved with capital research and valuation. APA formatting required.

### The Importance of Working Capital

Why is working capital important to a business? What are the consequences of too little working capital? Can a business have too much? If so, what are the consequences of too much working capital?

### 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

### Credit terms: short-hand expression, number of days until full payment is due and more. For each of the sets of credit terms in part A, calculate the number of days until full payment is due for invoices dated March 12 45 days ? days 28 days ? days C) If the firm's cost of short-term financing is 8%, what would you recommend in regard to taking the discount or giving it up in each case? For the first three purchases the firm would be ??? to ??? the funds and take the ??. The annual cost of not taking the discount is ?? than the firm's 8% cost of capital in the last case.

Credit terms: need the short hand expression, the number of days until full payment is due, and explanation needed. Half of each answer has been completed. Please see attached. Thanks! ** See below for complete details ** -------------- Credit terms Purchases made on credit are due in full by the end of the billing pe

### 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

### Issuing New Capital at \$40 which sells in the market at \$50 benefits

"If the market values the shares of a company at 50 dollars, then the shares are worth 50. If the company receives \$40 from the underwriter, then they are not are not receiving full value for their equity. So consistent with efficient market theory, the cost to them is \$10". Question If the firm floats an issue at \$40 pe

### PE 2-4, 2-6, 3-16, 3-20: accounting equation, current assets, journal entries, ratios

See the attached file for clarity. PE 2-4 LO1 The Accounting Equation For the following four cases, use the accounting equation to compute the missing quantity. Assets Liabilities Owners' Equity Case A \$10,000 \$ 4,000

### Cash and Working Capital: Tennis School Example

Formula: Working Capital=Current Assets - Current Liabilities. Here is the question: Our tennis school business receives \$2000 from a student who did not pay his fees in January. What would this do to your cash? increase/decrease/remains the same? Would this increase/decrease/(remains the same) your working capital?

### 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

### Lawrence Sports: Describe working capital policies and recommend one.

See attached files. Create 3 alternate working capital policies and recommend one: 1) Conservative approach: 2) Agressive approach: 3) Maturity-matching approach Need to describe each one and recommend the best one for Lawrence Sports.

### 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.

### Net operating working capital

For project Z, Year 5 inventories increase by \$7,000, accounts receivables increase by \$5,000 and accounts payables increase by \$4000. Calculate the resulting increase or decrease in net operating working capital for Year 5: a) increase by \$12,000 b) decrease by \$4,000 c) increase by \$8,000 d) increase by \$5,000 e) decrea

### 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

### Allocation of capital

The financial markets allocate capital to corporations by: a) reflecting expectations of the market participants in the prices of the corporation's securities? b) requiring highter returns from companies with lower risk than their competitors? c) rewarding companies with expected high returns with lower relative stock price

### 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? http://www.ensino.uevora.pt/tf/papers/BrunerEadesHarrisHiggins.pdf

### Cost of Capital for Investment Decisions

Why would a financial manager use the overall cost of capital for investment decisions when the specific decision under consideration may be funded by only one source of capital, (e.g., debt or equity)?

### Factors of deciding a proposed capital investment

Please answer both questions with a detailed answer and explanation, Thank you. What are the main factors considered in deciding if a proposed capital investment is attractive to the company?