• Q : Establish an internal service fund....
    Finance Basics :

    The City of Carefree voted to establish an internal service fund to account for its printing services. The City transferred $500,000 cash from the General Fund to the newly created internal service

  • Q : Principal amount invested in perpetuity....
    Finance Basics :

    The City receives a bequest of $1.5 million. The donor's Will requires that the principal amount is invested in perpetuity and that the earnings on the investment be used to maintain a city park to

  • Q : Describe a common investment fraud scheme....
    Finance Basics :

    Problem: Describe a common investment fraud scheme and explain the controls that may be put in place to prevent the fraud. Please read the following for examples of investment fraud schemes.

  • Q : Compensating-balance requirement....
    Finance Basics :

    If the bank's compensating-balance requirement were to necessitate idle demand deposits equal to 15 percent of the loan, what effect would this have on the cost of the bank loan alternative?

  • Q : Problem on annual interest rate....
    Finance Basics :

    You are considering buying a new, $15,000 car, and you have $2,000 to put toward a down payment. If you can negotiate a nominal annual interest rate of 10% and finance the car over 60 months, what a

  • Q : Negative economic aspects to the gaming industry....
    Finance Basics :

    What are three positive economic aspects to the gaming industry and three negative economic aspects to the gaming industry?

  • Q : Possible risks for the money cares investment corporation....
    Finance Basics :

    Identify possible risks for the Money Cares Investment Corporation. In establishing an investment company, you must answer the following: What could go wrong? What are three possible risks?

  • Q : Inflation or deflation-personal investment decisions....
    Finance Basics :

    Please help! This information will be use as informative guide to further assist and will be useful to develop better understanding with regard to the given topics. Please complete with references.

  • Q : Amortization schedule straight-line....
    Finance Basics :

    Spencer Company sells 10% bonds having a maturity value of $3,000,000 for $2,783,724. The bonds are dated January 1, 2012, and mature January 1, 2017. Interest is payable annually on January 1. S

  • Q : Economic order quantity for critical-expensive inventory....
    Finance Basics :

    Speedy Manufacturers wishes to determine the economic order quantity (EOQ) for a critical and expensive inventory item that is used in large amounts at a relatively constant rate throughout the year

  • Q : The great rebate runaround....
    Finance Basics :

    Question 1. This case describes one reason manufacturers might want to offer rebates rather than decrease wholesale price. Explain why this can be viewed as an example of customized pricing.

  • Q : Theoretical aspects of market efficiency....
    Finance Basics :

    Problem: What are the implications of major trends of R&D expenditures in the U.S.? Problem: What are the theoretical aspects of market efficiency?

  • Q : Inflation and project cash flows....
    Finance Basics :

    If Carlyle expects to sell 5.5, 7.2, and 9.5 million units for the next three years, respectively, what is your estimate of the gross profits to the firm? Based on these estimates, what recommendati

  • Q : Difference between favorable and unfavorable variances....
    Finance Basics :

    What is the difference between favorable and unfavorable variances and how do you calculate them?

  • Q : What is the contribution margin....
    Finance Basics :

    Question 1. What is the Contribution Margin if 11,000 units are sold? Question 2. What is operating income if 15,000 units are sold? Question 3. What is the breakeven point in units?

  • Q : What is the expected return on lenz....
    Finance Basics :

    Problem. The risk-free rate of return is currently 3 percent, whereas the market risk premuium is 6 percent. If the beta of Lenz, Inc., stock is 1.8. then what is the expected return on Lenz?

  • Q : Value of a perpetuity with an annual payment....
    Finance Basics :

    Problem: What is the value of a perpetuity with an annual payment of $100 and a discount rate of 6%?

  • Q : Determining the lowest cost alternative....
    Finance Basics :

    What issues need to be taken into consideration in determining which is the lowest cost alternative?

  • Q : Underperform the average stock....
    Finance Basics :

    In a bull market with rapidly increasing stock prices, will Stock A likely outperform or underperform the average stock? Why? Is the beta of a diversified portfolio less stable or more stable than the

  • Q : Effects of excessive leverage....
    Finance Basics :

    Q1. What does it mean when it is said that a company is excessively leveraged? What could be the effects of excessive leverage?

  • Q : Overemphasis on short-term profits....
    Finance Basics :

    If managers focus on the current stock value, might this lead to an overemphasis on short-term profits at the expense of long-term profits?

  • Q : Cost data for the material handling department....
    Finance Basics :

    Question 1. Draw a scatter diagram of the cost data for the material handling department. Question 2. Fit a cost line to the diagram. Question 3. Estimate variable and fixed components of the dpt cost

  • Q : Goal of the firm from a finance perspective....
    Finance Basics :

    Question 1. Define the goal of the firm from a finance perspective and relate this to the "stakeholder" approach. Question 2. Relate the importance of economics and accounting to finance.

  • Q : Assess the validity of the median voter theorem....
    Finance Basics :

    Find several articles that assess the validity of the median voter theorem. Critique advantages and disadvantages of the median voter theorem in elections, public goods, and majority rule.

  • Q : Calculate the required return based on the capm....
    Finance Basics :

    Based on the following information, calculate the required return based on the CAPM:

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