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Personal Finance & Savings

Cost of Capital Problem

Current Balance Sheet Assets $100 Debt $10 Equity $90 Debt/Assets After-Tax Cost of Debt Cost of Equity Cost of Capital 0% 8% 12% ? 10% 8% 12% ? 20% 8% 12% ? 30% 8% 13% ? 40% 9% 14% ? 50% 10% 15% ? 60% 12% 16% ? What is the firm's weighted-average cost of capital at various combinations of debt and equ

Health Care Reform Project

Health Care Reform Project I chose flexible spending for prescription drugs. I have only found 1 website. Please help. Part I - Students will select a current health care economic issue such as managed care, health care spending, prescription drugs, impact of current legislation on health care, medical care for aging popul

Question Set

11. The relevant range of activity refers to the a. geographical areas where the company plans to operate. b. activity level where all costs are curvilinear. c. levels of activity over which the company expects to operate. d. level of activity where all costs are constant. 12. The financial budgets include

Manufacturing costs and budgeting

(See attached file for full problem description) --- 1. Define the three classes of manufacturing costs. 2. Distinguish between product and period costs. 3. List the five components of cost-volume-profit analysis. 4. Budgeting can be an important management tool if implemented properly. Ident

Bar T Ranches, Inc.

I cannot find any help in the textbook for this problem. As I'm taking an online course, finding alternative forms of help proves difficult. Here's the problem: Bar T Ranches, Inc. is considering buying a new helicopter for $350,000. The company's old helicopter has a book value of $85,000, but will only bring $60,000 if it

Ski Lodge operations- Capital Budgeting (before tax and after tax NPV)

I have a friend who owns a ski lodge and wants to add 5 new chairlifts at the cost of 2 million per lift. One new lift will allow 300 additional skiers, and there are only 40 days days of ticket sales, and each customer 55 dollars a day. Running the new lift will cost him 500 dollars a day for the 200 days his lodge is open.

Break even EBIT and Leverage

Break-Even EBIT. Duval Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Duval would have 600,000 shares of stock outstanding. Under Plan II, there would be 300,000 shares of stock outstanding and $10 million in debt outstanding. The interest ra

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


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


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


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 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