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Banking

Working Capital Management

(Please utilize & respond with an answer on the attached excel file) Drugs 'R Us operates a mail order pharmaceutical business on the West Coast. The firm receives an average of $325,000 in payments per day. On average, it takes four days for the firm to receive payment, from the time customers mail their checks to the time t

Financial Condition Analysis

Southwest Physicians, a medical group practice, is just being formed. It will need $2 million of total assets to generate $3 million in revenues. Furthermore, the group expects to have a profit margin of 5 percent. The group is considering two financing alternatives. First, it can use all-equity financing by requiring each

Calculating Accounting and Economic Profits - Sound Devices Inc.

At the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year in order to start his own business, Sounds Devices, Inc. The new company builds, installs, and maintains custom audio equipment for businesses that require high-quality audio systems. A partial income statement for Sound Device

Notes are given on the required reserve ratio.

Assume the public in Nealland does not hold any cash. All commercial banks, however, hold 5% of their checking deposits as excess reserves, regardless of the interest rate. Consider the balance sheet of one of several identical banks: ASSETS LIABILITIES & NET WORTH Reserves $

International issues and ethics

I understand the concept of the 4ps of marketing but our assignment is asking for a solution specific to Walmart. Explain in detail the implementation of the 4ps marketing mix concept by this company including, competition, target market, product strategy, distribution strategy, communication strategy, pricing strategy, also de

Present value

What is your personal discount rate or rate of preferences? I.e. how much would you pay for a promise of $1000 to be received one year from now? Would you discount it by 10%, 5%, etc?

Lockbox/Concentration Banking

A business has four lockbox collection centers that average $235,00 in payments each day. Payments are invested daily in short-term securities at the collection center banks. Accounts are swept every two weeks and proceeds wire transferred to company HQ. The investment accounts each pay .068% per day, and the wire transfers c

Revenue Forecasting

Kate Austen must generate a sales forecast to convince the loan officer at a local bank of the viability of Marina Del Rey, a trendy west-coast restaurant. Austen assumes that next-period sales are a function of current income, advertising, and advertising by a competing restaurant. A. Write an equation for predicting sales i

Operations management inquiries

1. You need $50,000 cash throughout the year. Your time is worth $100 per hour and it takes you a half-hour to get cash from your ATM. Your bank is paying 5 percent per annum passbook savings. a. What is the EOQ? b. What is the total cost at the EOQ? c. How many times per year will you visit your ATM? 2. Consid

Federal Reserve

The Federal Reserve under Chairman Bernanke was very aggressive in trying to cope with or manage the financial crisis that hit the U.S. in 2007 and 2008. Why do you think the Federal Reserve acted so aggressively? What â??traditionalâ? monetary policies (three standard Fed policies) were enacted by the Fed an

Income Statement

Audio engineer quit job & gave up salary of $175,000 per year to start own business. Partial income statement below: Revenues: 2010 Rev from sales of products / services $970,000 Operating costs & expenses: Cost of products / services sold $355,

Forecasting and Lending

I am having a hard time with these concepts. Please see attached for the items I need help with. Please show your work so I can grasp these concepts and methodology better. A Company has forecast its total funds requirements for the coming year as shown in the following table: Month Amount Month Amount January $2,0

Micro and Macroeconomics Examples

1. Suppose you were having lunch with your best friend who just enrolled in an economics class. He was complaining about how irrelevant the class was, commenting that he saw no useful purpose for economics. According to your friend, â??Iâ??m a nursing major. I will never use this stuff in the real world." Having just completed

Money & Banking

Consider a new deposit to the US banking system of $1000. Suppose that all commercial banks have a target reserve ratio of 10% and there is no cash drain. The attached table shows how deposits, reserves, and loans change as the new deposit permits the banks to "create" money. a) The first round has been completed in the ta

Federal Reserve tools

What measures and tools does the Federal Reserve have at its disposal to address the economy. What has the Fed employed in the past 2 years to help the economy? Would you consider the measures you identified as effective or unsuccessful? What measures would you recommend at present?

Discounted Cash Flow

Case-74 Solution GIVEN IN CASE Electro Technology Corporation Entrepreneurship Financing and Valuation This case illustrates a relatively simple discounted cash flow valuation of an entrepreneurial business. The model uses five years of forecasted equit

Federal Reserve System

Write a brief history of the FEDERAL RESERVE system and discuss the organizational structure of this agency as well as the role the Fed has in drafting and implementing U.S. Monetary policy. Make sure you identify the THREE tools the FED has available to influence the Money Supply and interest rates in the US Economy in your res

Financial Analysis of Long Term development Project

The government of the Philippines applied for $3.0 million. Loan from the Asian Development Bank. $2.5 million will be used for repairs and extension of the existing irrigation system and $.5 million will be used to purchase fertilizer to increase rice production. The production response of rice to different levels of fertilize

Economics

Is there anyone somebody that can assist/help me understand this problem? 1.Describe three ways in which the Federal Reserve can change the money supply. 2.If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make? 3.If the Federal Reserve i

Creating an effective email

I need help with the following: Please imagine you are VP Employee Communications at a large service firm, such as a bank, advertising or consulting firm. Create an email (about 450 words) to all your employees to announce an email policy you have just created. You are not persuading: you are announcing. However, you must

5-4B. (Present value) What is the present value of the following future amounts?

5-4B. (Present value) What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the present at 10 percent b. $400 to be received 6 years from now discounted back to the present at 6 percent c. $1,000 to be received 8 years from now discounted back to the present at

True and false

1. The B Bank loans Joe Smith some money. Joe signs a promissory note obligating him to pay the money back at 8% interest. The note is a standard form prepared by the bank. For this reason, the bank is the maker of this note. True False 2. A check payable to the order of cash is an example of bearer paper. True

Sound Device Inc

At the beginning of the year, an audio engineer quit his job and gave up a salary of 175,000 per year in order to start his own business, Sound devices, inc. The new company builds, installs and maintain custom audio equiptment for businesses that require high-quality audio systems. A partial income statement for Sound devices,

Comparing the NPV of the Financial Costs and Benefits

Brian and Allen are 30 years old with identical academic records and job history. Both currently have jobs paying $40,000 per year. The only difference between Brian and Allen is their credit score. Allen's credit score is high and he can borrow money at 5%. Unfortunately, Brian's credit score is not very good and banks are onl