• Q : Price of ibm stock....
    Finance Basics :

    What would be your dollar return if the price of IBM stock increases to $120 per share? Is there a limit to your gains? Is there a limit to your losses? Explain

  • Q : Lowest interest rate on a loan....
    Finance Basics :

    Which lender below most likely would offer the lowest interest rate on a loan indicated

  • Q : Difference between the current ratio and the quick ratio....
    Finance Basics :

    What is the difference between the current ratio and the quick ratio, and why do these differences matter in terms of financial analysis?

  • Q : Compute the amount of profit the company....
    Finance Basics :

    A company sells lawnmowers for $895 each. The variable cost per lawnmower is $520. The company's monthly fixed costs are $84,500. Using the C-V-P equation, compute the amount of profit the company w

  • Q : Compute the incremental net income of the investment....
    Finance Basics :

    1) Compute the incremental net income of the investment for each year. 2) Compute the incremental cash flows of the investment for each year.

  • Q : Preparing an explanation of the business event....
    Finance Basics :

    For each of the journal entries, prepare an explanation of the business event that is being represented.

  • Q : Required rate of return for adm stock....
    Finance Basics :

    The current price of ADM's stock, Po, is $20 and the company is expected to pay a $2.20 dividend next year. If the appropriate required rate of return for ADM's stock is 15 percent, what should be t

  • Q : Acceptable inventory cost method....
    Finance Basics :

    Problem 1) Which of the following is not considered an acceptable inventory cost method according to GAAP?

  • Q : Examples of fixed and variable costs....
    Finance Basics :

    What are some examples of fixed and variable costs from your workplace? Which costs may have both variable and fixed components? How can this be resolved for analysis purposes?

  • Q : Units-of production method....
    Finance Basics :

    Q1. What will be each year's depreciation charge if Pemberton uses the units-of production method? Q2. Will this give significantly different depreciation charges in each year than the sum-of-the-year

  • Q : Depreciation for the first three years of operation....
    Finance Basics :

    In the first year of operations, Cleanburn mined 30,000 tons of coal: in the second year, 70,000 tons : and in the third year, 75,000 tons. How do I prepare a schedule showing - unit and total deple

  • Q : Depreciation by the straight-line method....
    Finance Basics :

    They will be depreciated by the straight-line method. The firm's tax rate is 34 percent, and its required rate of return on such investments is 12 percent.

  • Q : What is the present value break-even point for the project....
    Finance Basics :

    The variable cost per toy is $5, and the firm incurs fixed costs of $350,000 each year. The corporate tax rate for the company is 25 percent. The appropriate discount rate is 12 percent. What is the

  • Q : Determine the firms ending cash balance....
    Finance Basics :

    Create a cash budget for January to June 2005 and determine the firm's ending cash balance in each month assuming that the partners wish to maintain a minimum cash balance of $8,000.

  • Q : Management team for a healthcare facility....
    Finance Basics :

    I am looking at this from the perspective of a member of the management team for a healthcare facility.

  • Q : Cost of capital for the project....
    Finance Basics :

    What is the project IRR? What is the cost of capital for the project? Does the accept-reject decision using IRR agree with the decision using NPV?

  • Q : What is the basic c-v-p equation....
    Finance Basics :

    Problem 1: What is the basic C-V-P equation? What is a more detailed version of this equation? Problem 2: What is the contribution margin, and why is it important for managers to know the contributi

  • Q : Machine fine-tuning adjustment cost....
    Finance Basics :

    For the following list of costs, indicate by the appropriate letter which category of activities each cost applies to: unit level (U), batch level (B), product line (P), or facility support (F): 1.

  • Q : Effective return from investment....
    Finance Basics :

    You have an opportunity to invest in Australia at an interest rate of 8%. Moreover, you expect the Australian dollar (A$) to appreciate by 2%. Your effective return from this investment is:

  • Q : What is the marginal tax rate....
    Finance Basics :

    Also If the municipal bond rate is 4.25% and the corporate bond rate is 6.25%, what is the marginal tax rate, assuming investors are indifferent between the two bonds?

  • Q : Change in prevailing interest rates....
    Finance Basics :

    Problem: For a given change in prevailing interest rates, which security will change more in value, a T-bill or a 30 year government bond? Why?

  • Q : Firms operating results....
    Finance Basics :

    Problem 1. The ____________ provides a financial summary of the firm's operating results during a specified period.

  • Q : Current price of the common stock....
    Finance Basics :

    The Hart Mountain Company has recently discovered a new type of kitty litter which is extremely absorbent. The company expects to enjoy an unusually high growth rate (25 percent) for two years while

  • Q : Investors return if a stock rise....
    Finance Basics :

    Problem: What will be the investor's return if a stock rises by 7% if purchased on 50% margin?

  • Q : Expected return on the stock....
    Finance Basics :

    What is the expected return on a stock given the following?

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