Share
Explore BrainMass

Personal Finance & Savings

What is the WACC?

Smith and Jones Widget company has total capital, consisting of long-term debt and common equity of $80 million. Thirty-two million of total capital is in the form of long-term debt, which carries a cost of 12 percent. The company's equity carries a cost of 19.50 percent. If the company's tax rate is 38 percent, what is the W

NPV

10.) Mills Mining is considering an expansion project. The proposed project has the following features: ? The project has an initial cost of $500,000 - this is also the amount which can be depreciated using the following depreciation schedule: (see attached chart) ? If the project is undertaken, at t=0 the company will

NPV

5.) Foxglove Corp. is faced with an investment project. The following information is associated with this project: (see chart in attached file) The project involves an initial investment of $100,000 in equipment that falls in the 3-year MACRS class and has an estimated salvage value of $15,000. In addition, the company exp

Calculate breakeven and target profit volumes

JetSet Machinations, Inc; expects to become very successful in the manufacture and sales of its fuel-efficient high speed airplane, the S2S-900. This plane will be sold at about $70 million per plane. JMI executive staff has asked you to provide them a slide presentation in the next staff meeting which gives calculations for

Budgets

Do you agree or disagree with the following statements? A. Continuous budgets are not a good idea for project managers. They never know how much they should be spending and this gives them the freedom to do whatever they want, whenever they want. B. Project managers' budgets should not have as much flexibility in them and

Budget performance

Why is budgeted performance better than past performance as a basis for judging actual results? Explain giving suitable real-world cases.

Housing, simple question

I think I know the answer, but just clarify how HUD relates to the FHA? Is it that HUD is the government oversight which gives funding to the FHA, then the FHA gives it to local PHA's? And the FHA is government-sponsored but a corporation, like local PHA's?

Economics help

In the face of stable (or declining) enrollments and increasing costs, many colleges and universities, both public and private, have found themselves in progressively tighter financial dilemmas. This has led to a basic reexamination of the pricing schemes used by institutions of higher learning. One proposal advocated by the Com

13276 Preference

Yangjie buys smoothies and sushi, The price of a smoothie is 5$ and the price of sushi is 1$ a piece. Each month, Yangjie spends all of her income and buys 10 smoothies and 20 pieces of sushi. Next month the price of a smoothie will fall to 3$ and the price of sushi will rise to 2$ a piece. Assume that Yagjie's preference map is

Creating Cash Budgets

A company had sales of $50k in March and $60k in April. Forecast sales for May, June, and July are $70k, $80k, and $100k, respectively. The firm has a cash balance of $5k in May 1 and wishes to maintain a minimum cash balance of $5k. Given the following data, prepare a cash budget for the months of May, June and July. 1) The

Interest Rate

An Insurance company has just approached you with a proposal that they consider as a good deal, "You are to pay them $150 a year for 8 years and they will pay you $150 a year thereafter in perpetuity." If this is a fair deal, what is the rate of interest?

Federal Reserve System

In the U.S., do all banks have to join the Federal Reserve System? What are the benefits of joining the Fed? What are the benefits of staying as a State Chartered bank? Is there site information available. I am unable to use Wikipedia.com for references.

Financial statements

I am confused as to what is considered an asset, equity, capital, and liability. Please work the practice example and show me how you classifed the categories, found the earnings per share and market value. (See attached file for full problem description)

Balance of payments

8. (Balance of Payments) Explain where in the U.S. balance of payments an entry would be made for each of the following: a. A Hong Kong financier buys some U.S. corporate stock. b. A U.S. tourist in Paris buys some perfume to take home. c. A Japanese company sells machinery to a pineapple company in Hawaii. d. U.S. far

Game Theory

How can I use game theory to set up a game designed to help a consumer decide whether to buy life insurance or not. (Assuming the life insurance being considered is term life, i.e. insurance without an accumulating investment value). The customer is playing against Mother Nature.

Consumer Economics Question

Over the past couple years, medical costs have increased due insurance have not been covering all the procedures. In order of how rising medical costs have affected consumer alternatives.... Let x = represent quantity of medical services Let y = represent the quantity of other goods Also, Let M = measured in hundreds of

Cost of capital (k)

Please tell me how to find K given the parameters in the problem for #9.50. You can see how I'm trying to do it, but I can't figure out what to plug in for Cd and Ce from what's given.

Costs of insurance.

Costs of insurance. If patient X believes he might have health care costs of $20,000 with a probablility of 0.25 or $10,000 with a probablility of 0.75 what is the actuarilly fair premium that covers costs for X? b. Pt X buys an insurance with a $500 deductible and 20% coinsurance rate. If pt X has expenses of $4,000 how muc

Excel spreadsheet - fixed costs

1) Consider the following costs of owning and operating a car. A $15,000 Ford Taurus financed over 5 years at 10 percent interest means a monthy payment of $ 318.17. Insurance costs $100 a month regardless of how much you drive. The car gets 20 miles per gallon and uses unleaded regualr that costs $1.50 per gallon. Finally s

Tax Depreciation

Please double check these two problems. The only concern I have is the 5 versus 8 years on the first problem. However, I think I did the calculations correctly. In the 2nd problem, only the building is depreciable and not the land. So, I subtracted the cost of the land out of the initial and salvage - and used that for

Short run/long run operations

Please help with the following problem. A firm has fixed costs of $100,000. The selling price is $25 per unit of output. Average variable costs are lowest (equal to $20 per unit) at 1000 units of output. What advice would you give to this firm in the short run (without being able to change the costs or output level) rel

Microeconomics problem

1) a. Lee has an income of $15,000 (after taxes). When the price of gasoline is $1.25 per gallon, Leebuys 4,000 gallons. Putting gasoline on the horizontal axis and "other goods" on the vertical axis,and assuming a unit of "other goods" costs $1, draw Lee's budget constraint and show the equilibrium. a. The price of gaso

Accounting Questions

Due to an oversight, a company made no adjusting entry for accrued and unpaid employee wages of $24,000 on December 31.This oversight would: a. Understate net income by $24,000. b. Overstate net income by $24,000. c. Have no effect on net income. d. Overstate assets by $24,000. e