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# Finance

### Times-interest-earned ratio/fixed-charge-coverage ratio

Please see the attached file. Page 77, 20. The Lancaster Corp's income statement is given on page 78. a) What is the times-interest-earned ratio? b) What would be the fixed-charge-coverage ratio? Sales 200,000 Cost of goods sold 116,000 Gross profit 84,000 Fixed charges (other than interest) 24,000 Income befo

### Book value/market value

Amigo Software, Inc has total assets of \$800,000 current liabilities of \$150,000, and long-term liabilities of \$120,000. There is \$65,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued. a) Compare book value (net worth) per share b) If there is \$48,000 in earnings available to co

### Explain the difference between financial risk and business risk

The difference between financial risk and business risk is implied.

### Flint Fruits Cash flows

Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows: Year Project A Project B 0 -\$100,000 -\$100,000 1 40,000 30,000 2 25,000 15,000 3 70,000 80,000 4 40,000 55,00

### Margin Call

You purchased 100 shares of KLM at \$40 a share by depositing the minimum amount of margin. If the initial margin requirement was 50% and the maintenance margin requirement is 30% you will get a margin call if KLM's price falls to: \$12 \$20 \$29 \$32

### Bond price

Moerdyk Corporation's bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of \$1,000. The going interest rate (rd) is 4.75%, based on semiannual compounding. What is the bond's price?

### Options: A call option on Bedrock Boulders stock has a market price of \$7. The stock sells for \$30 a share, and the option has an exercise price of \$25 a share. a. What is the exercise value of the call option? b. What is the premium on the option?

A call option on Bedrock Boulders stock has a market price of \$7. The stock sells for \$30 a share, and the option has an exercise price of \$25 a share. a. What is the exercise value of the call option? b. What is the premium on the option?

### Present value

Rita Gonzales won the \$60 million lottery. She is to receive \$1 million a year for the next 50 years plus an additional lump sum payment of \$10 million after 50 years. The discount rate is 10%.What is the current value of her winnings?

### Macroeconomic metrics and micreconomic basics for corporate expansion

While at lunch, you and the company's chief financial officer (CFO) begin to discuss opportunities to expand in the U.S. Discuss the opportunities to expand in the U.S., what it would take, and the potential hurdles the firm would have to overcome. Be sure to identify specific retail companies that could potentially sell CPI's p

### Earnings per share of common stock

Farah Snack Co. has earnings after taxes of \$128,750. Interest expense for the year was \$20,000; preferred dividends paid were \$18,750; and common dividends paid were \$30,000. Taxes were \$15,000. The firm has 100,000 shares of common stock outstanding. What are the earnings per share on the common stock?

### Pickard and Associates

Please provide answers to the following: The following selected information is taken from the records of Pickard and Associates: Accounts payable = \$143,000 Accounts receivable = 95,000 Advertising expense = 14,500 Cash = 63,000 Supplies expense = 31,500 Rent expense = 12,000 Utilities expense = 2,500 Income taxes (

### Call options

The book we are using does not explain short and long positions at all. Could someone explain what these mean and how to answer this question? Which one of the following statements about the value of a call option at expiration is false? a. A short position in a call option will result in a loss if the stock price exceeds t

### Risk assets

Suppose there are 2 risky assets. One offers a higher return than the other, but it also has a higher standard deviation. Will one of these assets always lie on the efficient frontier? Will one of them always be inefficient if held alone?

### Net Profits Computed

Compute the net profit for a company with the following data: a. Beginning inventory \$ 150,000 b. Purchases at billed cost \$ 330,000 c. Sales returns and allowances \$ 250,000 d. Rent \$ 60,000 e. Salaries \$ 400,

### Present Value Analysis

You are offered a choice of one of the three following alternatives: \$10,000 now; \$2,000 a year for 8 years; or \$24,000 at the end of 8 years. Assuming you could earn 11 percent annually, which alternative should you choose? Note: Show the computations and then select the best alternative.

### standard deviation formula

Returns for the Shields Company over the last 3 years are shown below. What's the standard deviation of Shields' returns? (Hint: This is a sample, not a complete population, so the sample standard deviation formula should be used.) Year Return 2006 2

### Suppose you borrowed \$12,000 at a rate of 9% and must repay it in 4 equal installments at the end of each of the next 4 years. By how much would you reduce the amount you owe in the first year?

Suppose you borrowed \$12,000 at a rate of 9% and must repay it in 4 equal installments at the end of each of the next 4 years. By how much would you reduce the amount you owe in the first year?

### Annual financing cost of this commercial paper financing

Walters Manufacturing Company has been approached by a commercial paper dealer offering to sell an issue of commercial paper for the firm. The dealer indicates that Walters could sell a \$5 million issue maturing in 182 days at an interest rate of 6 percent per annum (deducted in advance). The fee to the dealer for selling the is

### Cash Collections Calculations

The L. Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales: \$800 \$760 \$940 \$870 A. Accounts receivable at the beginning of the year are \$300. L. Company has a 45-day collection period. Calculate cash collection

### Size of Account Receivable

Vitale, Baby!, Inc., has weekly credit sales of \$18,000, and the average collection period is 29 days. The cost of production is 80% of the selling price. What is Vitale's average accounts receivable figure?

### Bankruptcy

A. What is the ratio of Chapter 7 to Chapter 11 filings for businesses? b. What is the typical time span for filing for chapter 11, confirmation, and successful completion of the reorganization plan? c. What are the most common reasons that force an individual to file for bankruptcy? d. What kind of individual debts may

### Net Operating and General Financial Accounting 1. Which of the following is true regarding the contribution margin ratio of a single product company? As fixed expenses decrease, the contribution margin ratio increases. The contribution margin ratio multiplied by the selling price per unit equals the contribution margin per unit. The contribution margin ratio will decline as unit sales decline. The contribution margin ratio equals the selling price per unit less the variable expense ratio. Continued.....

1. Which of the following is true regarding the contribution margin ratio of a single product company? As fixed expenses decrease, the contribution margin ratio increases. The contribution margin ratio multiplied by the selling price per unit equals the contribution margin per unit. The contribution

### Number of shares to be sold

The St. Anger Corporation needs to raise \$25 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. a. If the offer price is \$35 per share and he company's underwriters charge an 8% spread, how many shares need to be sold? b. If the

### Payback, Net present value, and depreciation tax shield

1)Calculate the payback for a project that costs \$1,000 and is expected to provide cash inflows of \$400 per year for the next three years. If the required payback is 3 years, should the firm accept the project? 2)Calculate the net present value for a project that costs \$1,000 and is expected to provide cash inflows of \$400 p

### Landlord-tenant relationships

See file attached.

### Expected Value of Game

Suppose that a particular game involves throwing a six-sided dice. When the player throws a 1, she wins \$90. Otherwise, for any other outcome (2-6) she loses \$12. What is the expected value of this game? 1 \$90 2 \$-12 3 \$-12 4 \$-12 5 \$-12 6 \$-12.

### Economice - Finance - Monopolist Faces

A monopolist faces the following demand and cost curves: Qd = 200 - 10P TC = 10 + 5Q How many units will the monopolist produce if it's goal is to maximize profit? What is the monopolist's total profit, given the units produced in the answer above?

### Examining Conservatism

Full description of problem can be found in the attached file. It's a book question from 2nd edition of Financial Accenting by John Friedlan.

### Debtor-Creditor Relationships

Debtor-Creditor Relationships. Using the Internet, locate an article specifically related to debtor-creditor relationships. Prepare 400-650-Word review of the article. Be sure to properly cite and reference the article in your review. Be sure to properly cite and reference the article in your review. Be prepared to discus