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Personal Finance & Savings

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1. Many executives will save an organizations money by not having auto insurance on the fleet of company vehicles, whereas, in their personal finances, they will carry insurance on their family car. Take something from your experience that illustrates the difference in attitude from the point of view for an individual to an orga

Moral Hazard in insurance claims

In Moline, Il, a man busted his windshield when a one pound piece of hail smashed into his car windshield. He had his car repaired by Safe Auto Glass, which advertised that it provided a free box of AB steaks with every windshield repair. The value of the AB steaks was $60. Safe Auto Glass charged the man's car insurance comp

Accounting Profit and Economic Profit

Suppose you and a friend are thinking about opening a fast-food vending business at a nearby resort during your summer break. This will entail serving pizzas out of a vendor's truck. This is an alternative to working a factory job where you can each earn $7,000 over the summer break. A fully equipped truck could be lea

Cost -- Economics

Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer: 1. New union agreement increases hourly pay. 2. Local government imposes an annual lump-sum tax per plant. 3. Federal government imposes a "s

Amount of net working capital

An insurance company has shareholders' equity of $136,900. The firm owes a total of $71,400 of which 30% is payable within the next year. The firm has net fixed assets of $152,800. What is the amount of net working capital? a) $21,420 b) $25,300 c) $34,080 d) $46,720 e) $55,500

social welfare function

4. Congress is allocating $1 million of research funding. It can fund research in surfboard safety, B, or in snowmobile safety, S. Since research is measured in dollars, the price of each good is $1. The utility of each Californian is The utility of all other Americans is a. To make this decision, Congress uses the soci

Capital Budgeting

The task is to calculate a capital budgeting for a new hotel (eco-hotel) in Ontario. Attached, you will find 4 excel files providing different statements (such as initial cost, depreciation, income statement, cash flow etc.), and there is few questions paste inside the attachment. And I will appreciate if you can solve the follo

Capital Budgeting Projects

You are asked to analyse the following project: Initial investment: Equipment: $3,500,000 Initial net Working capital 10% of first year sales Operating results Year 1 Year 2 Year 3 Year 4 Year 5 $4,000,000 $5,000,000 $5,000,000 $5,500,000 $5,000,000 Variable costs: 60% of sales F

Dividend Fundamentals

What are alternative ways in which investors can receive a cash return from their investment in the equity of a company? From a tax standpoint, which of these would be preferred, assuming that investors pay a 35 percent tax rate on dividends and a 15 percent tax rate on capital gains? What if investors faced the same 15 percent

Help with accounting homework

Whitegloves Janitorial Service was started 2 years ago by Nancy Kohl. Because business has been exceptionally good, Nancy decided on July 1, 2008, to expand operations by acquiring an additional truck and hiring two more assistants. To finance the expansion, Nancy obtained on July 1, 2008, a $25,000, 10% bank loan, payable $10,

Production Costs

Please refer attached file for better clarity of tables. Some of the expressions typed here may not be exactly same as in attached file. (1)Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and materials cost $20,000 per year. Gomez has $40,000 of his own fund

Project Net Present Value (NPV) Calculation

Lugar Industries is considering an investment in a proposed project which requires an initial expenditure of $100,000 at t = 0. This expenditure can be depreciated at the following annual rates: Year Depreciation Rate 1 20% 2 32 3 19 4 12 5 11 6 6 The project has an economic life of six years. T

New Project Cash Flow

Scott Corporation's new project calls for an investment of $10,000. It has an estimated life of 10 years. The IRR has been calculated to be 15 percent. If cash flows are evenly distributed and the tax rate is 40 percent, what is the annual before-tax cash flow each year? (Assume depreciation is a negligible amount.) a. $1

fixed cost or variable cost

From our discussion of cost of production and your previous commentary on the type of business you would like to operate; consider the cost of production - for example, the fixed cost and variable cost - "Do you think your firm will have more fixed cost of variable cost? Why? What are they? What are some potential dangers? Fo

Project's NPV and IRR

See the attached file. 9-5 Economic Profit and NPV Steele Electronics is considering an investment in a new component that requires $100,000 investment in new capital equipment, as well as additional net working capital. The investment is expected to provide cash flows over the next five years. The anticipated earnings and

Cost of Equity & Capital

A firm has a total market value of $10 millions and debt has a market value of $4 millions. What is the after-tax weighted average cost of capital if the before - tax cost of debt is 10%, the cost of equity is 15% and the tax rate is 35%? A. 13% B. 11.6% C. 8.75% D. None of the given answers Given the following

Effect & Benefit of Debt- Easy but confusing mult choice question!

Confusing Multiple Choice Questions! #11- The positive value to the firm by adding debt to the capital structure in the presence of corporate taxes is: I) Due to the extra cash flow going to the investors of the firm rather than the tax authorities II) Due to the earnings before interest and taxes being fully taxed at the

Accounting - Multiple Choice

Multiple Choice 1. Costs which can be eliminated in whole or in part if a particular business segment is discontinued are called: a. irrelevant costs. b. sunk costs. c. opportunity costs. d. avoidable costs. 2. Which of the following cash flows is relevant in a decision about accepting Alternative X or Alternat

Analyzing a project with front-loaded earnings

Please use the attached spreadsheet!!! Thank you!!! Wind Power Inc. builds and operates wind frames that generate electrical power using windmills. The firm has wind farms throughout the Southwest, including Texas, New Mexico, and Oklahoma. In the spring of 2007 the firm was considering an investment in a new monitoring syste

Calculating Earnings for Common Shareholders

Michael Corp expect earning before interest and taxes to $40,000. assuming a ordinary tax rate of 40%. Compute the firm's earnings after taxes and earnings available for common stockholders ( eanrings after taxes and preferrd stock holder, if any) under the following condictions... a. firm pays 10,000 in interest.. b. firm pay

Dropping or retaining a segment

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, meals on wheels, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to

Direct Materials Budget

Micro Products, Inc., has developed a very powerful electronic calculator. Each calculator requires four small "chips" that cost $2 each and are purchased from an overseas supplier. Micro Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shown below: Y

Expected Cash Collections

Peak sales for Midwest Products, a wholesale distributor of leaf rakes, occur in August. The company's sales budget for the third quarter showing these peak sales is given below: July August September Total Budgeted sales (all on account) $567,000 $789,000 $461,000 $1,817,000 From past experience, the company has learned

25 multiple questions on basic accounting.

25 multiplequestions on accounting such as: Which of the following is increased with a debit? A) Consulting Revenue B) Depreciation Expense C) Notes Payable D) Common Stock

Market Structures and the Behavior of the firm - Discussion Board 2-3 paragraphs

The organization you work for is under investigation for price fixing. You have been asked by your manager to gather some information on recent price fixing cases to help your company defend itself. Visit the website for the U.S. Federal Trade Commission to get the facts on the most recent price fixing cases. Click on the Sea

Flexible Budget

"The flex in the flexible budget relates solely to variable costs." Do you agree? Explain.

I need help for those exercises, # 1 #2 #3 and # 4

I need help for those exercises, # 1 #2 #3 and # 4 ; I am using Economics for managers BOOK on page 151 and 152: ECO 550 STRAYER UNIVERSITY 2008 CUSTOM EDITION; ECONOMICS for MANAGERS: ISBN- 13: 978-0-558-03749-9

Dividend Valuation Model

I have attached the problem below. 10. The MacBurger Company expects to earn $200 million after taxes for the current year. The company has a policy of paying out half of its net after-tax income to the holders of the company's 100 million shares of common stock. A share of the common stock of the company currently sells fo