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Finance

Indifference Curve

A web-based company stocks and ships after-market auto parts. The company employs several workers to put together packages for shipment based on customers' online orders, and each worker assembles on average 4 packages per hour. Workers are unsupervised and earn $4.00 for each order they assemble. An inspector checks each ord

Microeconomics

1. For each of the following events, consider how you might react. What things might you consume more or less of? Would you work more or less? Would you increase or decrease your saving? Are your responses consistent with the discussion of household behavior in this chapter? a. The price of unleaded gasoline rises to over $4.00

Compound interest rate help

At a compound interest rate of 10% per year, $10,000 one year ago is equivalent to how much 1 year from now?

Leverage

(See attached file for full problem description and complete chart) --- Johnson Manufacturing and Aaron Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: Johnson Aaron Capital Structure Debt @ 12%

Tax allocation and more

1. Do you think tax allocation can improve the prediction of future tax payments in the short run? 2. what are the economic consequences of SFAS No. 87? 3. What is the fundamental issue surrounding capitalization versus expensing? 4. which approach do you believe management would prefer? 5. Which approach do you

Banannas Inc. has stock currently selling for $40 per share. The company has 1,200,000 shares outstanding. What would be the effect on the number of shares outstanding and on the stock price of the following: 1. 15% Stock Dividend 2. 4-for-3 Stock Split 3. Reverse 3-for-1 Stock Split

Banannas Inc. has stock currently selling for $40 per share. The company has 1,200,000 shares outstanding. What would be the effect on the number of shares outstanding and on the stock price of the following: 1. 15% Stock Dividend 2. 4-for-3 Stock Split 3. Reverse 3-for-1 Stock Split

Value of a business

What would the present value of a business that earns the following profit be using a 5-yr life span and a 12% risk-adjusted discount rate. yr 1 Expected profit received at end of yr $10,000? yr 2 Expected profit received at end of yr $20,000? yr 3 Expected profit received at end of yr $50,000? yr 4 Expe

Return on equity

Businesses are now providing stocks to managers for increased financial performance using annual return on equity. How would this decrease the agency problem between managers and shareholders as a whole? Why could directors be more efficient than shareholders at increasing managerial performance and changing their incentives?

Standard & Poor's 500 Stock Market Index

What is considered a poor, average, or good index? What kind of scale does Standard & Poor use? Which is better a higher or a lower index? Specifically, what does this score tell us exactly regarding economic growth? Would this information be helpful to a small business that is planning its strategies for the following year?

Acquisition problem

See attached files for complete problem. ----- Sorry to drop this in your lap, but I've got to fly to New York to work on the goReader deal. To recap our conversation today: 1. Superior Printing has hired us to advise them on how to finance their acquisition of Buckeye Printing. Attached is a brief overview of Superior

Calculating Returns on Stocks

I have a set of monthly stock performance figures. I have to calculate the % return for each month. Here is an example of my data: Jul 04 - 19.09 Jun 04 - 19.06 May 04 - 17.95 Apr 04 - 14.22 Mar 04 - 14.14 To determine the % return for Jul 04 would I take (19.09 - 19.06)/19.06 to come up with .62%? Would I then take

Corporate Finance

Question 1: The attached table contains a summary of (daily) data on two stocks and the market. a) Compute the expected returns and standard deviation of a portfolio composed by 80% WMT and 20% MRK. Comment on your results. b) Compute the beta for WMT and MRK. c) Discuss total risk, diversifiable and undiversifiabl

Corporate Finance

Question 1 A company has a capital structure composed by 20% Debt and 80% Equity. The cost of the debt is 5% per year while the cost of equity is 15% per year. The company is considering two different projects. The cash flows of the two projects are reported in the table below. Please see attached. A company has a capita

Corporate Finance: Project Cash Flows; NPV

Question 1 PLI produces unusual gifts targeted at wealthy consumers. The company is analyzing the possibility of introducing a new device designed to attach to the collar of a cat or dog. This device emits sonic waves that neutralize airplane engine noise, so that pets traveling with their owners will enjoy a more peaceful ride

Formula

Can you give me the formula used to solve the following problem? What amount of money today is equivilant to $100 per month compounded quarterly for 10 years at 5%?

Compounding Interest

I am looking for the formula to solve this problem: What interest rate would allow you to accumulate 10,000 in 8 years if you saved $60 per month and earned compound interest monthly.

Call Option

. You are based in Canada. A 1yr call option to buy USD at strike1.3500 CAD/USD has premium of .0595CAD. Spot CAD/USD is 1.3535. a) What is the moneyness of the call? What is its intrinsic value and time value? b) Everything being equal, if the option has a life of 6M, is the call option going to cost more or le

Variance/Covariance Efficient Portfolios

Question 9. You have the following info about company ABC: Variance of market returns = 0.05492 Covariance of the returns on Durnham and the market = 0.0635 Suppose that the market risk premium is 8.4% and the expected return on Treasury bills is 4.9%. a. Write the equation characterizing the set of efficent portfolios in

Stocks..current price..selling price

Avery industries jsut paid a dividend of $2.00 per share (i.e.,D0=$2.00). analysts expect the company's dividend to grow 25% for the next 2 yrs and 15% for the following 3 years. After 5 years the dividend is expected to grow at a constant rate of 5%. the required rate of return on the company's stock is 12%. what should be the

It needs an equation rather than to calculate it manually

One day your economics professor shows you a picture of a BMW automobile. You mess around with different configurations for the available options and accesories and it can be yours for $77,942. You notice a rather sinister glint in your professor's eye as he notes your interest in the car, but tells you nonetheless that you wo

45 - Interest & Consumption

Investing $1 for 35 years at 4 percent per annum yields approximately $2.94 in interest. The cost of consuming$1 today is therefore ______ of consumption in 35 years' time. a) $2.94 b) $102.90 c) $3.94 d) $137.90 e) $1.94

32- Interest Rates

What is the present value of $50 per year in each of the next three years if the interest rate is 10 percent? a) $150 b) $45.45 c) $124.34 d) $165.00 e) $168.00

Annuity Calculations

Please include with your response any necessary formula to solve this problem (on a regular calculator, NOT a financial calculator), along with a detailed explanation of how to solve the problem. You are offered an annuity of $10,000 for 10 years starting four years from now. With interest rates at 5%, how much should you b

Financial Management

Which of the following are concerns about target costing? a. Conflicts may arise within organizations. b. Employees may experience burnout due to the pressures of meeting target costs. c. Development time may increase. d. All of the above.

Financial Management

Which of the following is least likely to be a barrier in ABC implementation? (a) computer hardware and software problems (b) individual resistance to change (c) organizational resistance to change (d) lack of senior management commitment

Number of Periods

Please include a formula for the calculations, along with an explanation of how to work out the problem. How long will it take for $400 to grow to $1,000 at the interest rate specified? a) 4 percent b) 8 percent c) 16 percent