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    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

    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

    Weighted Average Cost of Capital (WACC) - Hillard Corp.

    7.) Hillard Corp. wants to calculate its weighted average cost of capital (WACC). The company's CFO has collected the following information: ? The company's long-term bonds currently offer a yield to maturity of 8% ? The company's stock price is $32 per share (Po=$32) ? The company recently paid a dividend of $2 per share (

    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.

    Lower contribution margin

    Two products were sold. Total budgeted sales and actual total sales in number of units were identical to the units budgeted. Actual unit variable cost s and sales prices were the same as budgeted. Actual contribution margin was lower than budgeted. What could be the reason for the lower contribution margin?

    Savings & Loan - very brief explaination

    Can you give me a brief explaination of what happened with the big S&L crash in the 1980's (in the U.S.)? I don't need a comprehensive history, just a couple sentences to give me an idea of why it crashed + the effect.

    Housing for Government Oversight

    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

    Indifference Curves for Consumption and Leisure That Are Concave

    Imagine an individual with indifference curves for consumption and leisure that are concave to the origin, rather than convex to the origin. a) In words, what would this mean about the individual's "value" of leisure as he reduced his hours worked? b) Would such a person spend all of his available time working, some of it,

    Basic NPV Calculations for Sales and Marketing

    HW4 Finance type your name here This sheet is to train you with financial calculations in Excel. Save your document as "Lastname-HW4". You became an assistant manager at Strategic Finance Dept. of a Theme park. A new water-ride is proposed by the Sales & Marketing department, which pr

    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

    the aim of the funds

    The Good Beer Brewing Company currently purchases health insurance for its 10,000 employees. The company is considering a flexible plan where emloyees can have either $2,000 in cash or insurance coverage (the insurance costs $2000). The company figures it will expend the same amount of money either way. However, employees wil

    Economics in Crime Elimination

    Could crime ever be eliminated? If "Yes" what would be the economic cost of doing so? If "No" what is the economic cost of crime?

    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.

    Difference in the Mean Number of Hours Spent Weekly by Industry

    The manager of a computer software company wishes to study the number of hours senior executives spend at their desktop computers by type of industry. The manager selected a sample of five executives from each of three industries. At the .05 significance level, can she conclude there is a difference in the mean number of h

    Meaning of Asset, equity, capital, and liability

    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.