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Working Capital Management

Case Study- Cost of Capital

I am looking for help in the area of 'financial management.' This 3 question case study deals with the topic: Cost of Capital. (See attached files for full problem description)

Net Working Capital Problem

Mr. Rodney's region reported to headquarters that its NWC was $1547 at the end of 2000, $633 at the end of 2001, and $1294 at the end of 2002. How much was its NWC investment? Please use this NWC formula: NWC=Investment + Accounts Receivable - Accounts Payable change NWC=change Investment + change Accounts Receivable -

Carnival Corp.

Imagine Robert H. Dickinson, President of Carnival Corporation is looking for advice regarding capital investment decisions his company faces in the next five years. Go to the site: and visit the Carnival Corporation Web site for background information ab

Capital Rationing

Evaluating capital rationing -------------------------------------------------------------------------------- Please explain how to evaluate a corporations capital rationing plan. How to determine if it is a good policy? And how to determine what better polcy to use. I'm looking for nuts and bolts, or better the logic and

Capital One Case Study

Prompt: I am doing a case study on Capital One. The CEO saw three types of opportunities on the internet. First the company discovered that many of its customers were already visiting the website,, to see if transactions had cleared, to check balances, and tp pay bill. On average, online users visted the si

Net Working Captital

(See attached file for full problem description) Marble Comics Group Balance Sheets 12/31/1999 and 12/31/2000 ($ in millions) 1999 2000 1999 2000 Cash $75 $135 Accounts Payables $89 $110 Accounts Receivables $230 $214 Short term Notes Payable $227 $442 Invent

Net working capitol

True of false Net working capital has increased and cash flow decreases by $15,000 when a project would increase accounts receivable by $10,000, accounts payable by $35,000, and inventory by $30,000.

Net working capital, change in NWC, and capital expenditures

Need help trying to figure out how certain figures were derived for net working capital, then the change in net working capital, and capital expenditures so I can figure out the free cash flows. (See attached file for full problem description) --- Question: I am suppose to figure out how $7,385 (from the year1999 to 200

Cross listing

The internationalization of capital markets suggests that the world is moving toward an integrated, global capital market (and away from segmented domestic markets). Currently, multinational firms often list their stocks on foreign stock exchanges, an activity referred to as cross listing. For example, Sony cross-lists its Japan

Importance of Working capital

Although working capital is rarely disclosed on the balance sheet, it is a useful tool for financial statement users. Who may be interested in this information and for what reasons? Discuss any requirements in this area that an insurance company may be required to meet, and for what reasons.


XYZ Company is trying to determine the optimal level of assets for the coming year. Sales are expected to increase to $2 million dollars. Fixed assets total $1 million, the firm wishes to maintain 60% debt ratio. Interest cost is currently 8 Percent on short-term & long-term debt. 3 options are available to the firm. (1)

Balance Sheet formation to know working capital requirements

Mars Electronics is a distributor for the Global Electric Company [GEC], a large manufacturer of electrical and electronics products for consumer and institutional markets. Below are the annual financial statements of the company for the last 2 years . Income Statements $ thousands 12 months Ending 6/30/1999 12 Months

Managerial balance sheet converstion

I need this converted I have no clue how to do it see attached file and the questions answered and copied here: 1. Restate the following balance sheet into managerial balance sheet format. What does working capital requirement (WCR) mean? Balance

Working capital

Write a 2-page paper discussion working capital, net working capital and working capital policy. Include in your discussion the advantages and disadvantages of offering your customers credit. Any ideas or suggestions?

Raising Capital Via Stock Issue With Underwriting

I want to check my logic. Based on my calculations the underwriter would loss money. But that makes no sense. (See attached file for full problem description) --- If a corp wants to raise $20 million & its stock price is now $20 per share. The new issue will be priced at $18 per share. The underwriters' compensation w

Cost of capital

Company issued $100 par value preferred stock 12 years ago. The stock provided a 9% yield at the time of the issue. The preffered stock is now selling for $72. What is the current yield or cost of preffered stock? (disregard flotation costs)

Capital Investment Analysis 4

Please show how answer is obtained The present value of $20,000 (rounded to the nearest dollar) to be received two years from today, assuming an earnings rate of 12% is: a. $17,860 b. $15,940 c. $14,240 d. $12,720

Reasons why the Cost of Capital differs for different companies

Need to answer this question to better understand an assignment i have due. Identify specific reasons why the cost of capital may differ with Harley Davidson relative to other companies in this industry. What does this say about Harley Davidson's past financial performances and future prospects?

Venture Capital

Below are questions provided as follow-up to a hypothetical example. I have attached all the background information that I could to assist in the completion of these questions, making it as easy as possible. I found this to be a very interesting simulation; however, I am in need of assistance with regard to answering the questio

Accounting questions

Please help with answers to this study guide 51. The relationship between current liabilities and current assets is a. useful in determining income. b. useful in evaluating a company's liquidity. c. called the matching principle. d. useful in determining the amount of a company's long-term debt. 52. Most companies pay

Management of working capital and common terms of sale.

1) Listed below are some common terms of sale. Could you help me by explaining what each means: a.2/30, net 60 b.2/5, EOM, net 30 c.COD Some of the above items involve a cash discount. Could you help me calculate the rate of interest paid by a customer who pays on the due date instead of taking the cash discount?

Working Capital Problem

Please show work so I can understand how you arrived at your conclusions. Thanks The Latigo Company has the following financial information: Sales $ 200 Cost of goods sold 100 Administrative ex

Capital Market Line (CML) and Security Market Line (SML)

The beta coefficient of an asset can be expressed as a function of the asset's correlation with the market as follows: bi=rho iM si / sM rho iM = correlation between the security's returns and market returns si= standard deviation of security's returns sm= standard deviation of market's returns 1. Substitute this expres

Calculations - measuring your firm's cost of capital.

Please see the attached file for full problem description. --- You are responsible for measuring your firm's cost of capital. You have the following data. Bond A Bond B Coupon 4.00% 5.50% Remaining Term 5 8 Existing Existing New New Market Price $925 $1,025 Fl