• Q : Roles of financial institutions in the global economy....
    Finance Basics :

    Question 1: Explain the roles of financial institutions in the global economy. Question 2: Discuss how the financial services industry is likely to change over the next decade.

  • Q : Value of a seat on the nyse has skyrocketed....
    Finance Basics :

    Problem: Can someone tell me why the value of a seat on the NYSE has skyrocketed lately?

  • Q : Books to record the sale of merchandise....
    Finance Basics :

    Firstar Bank charges a 4% service charge for credit card sales. Prepare the entry on Worthy Company's books to record the sale of merchandise.

  • Q : Book value-market value and levered value....
    Finance Basics :

    Identify Citigroup's book value, market value, and levered value according to the M&M model.

  • Q : Summary data on financial institutions....
    Finance Basics :

    Q1. Have banks' return on assets been increasing or decreasing over the last few years? Q2. Has the core capital been increasing, and how does it compare to the capital ratio reported in Table 1 in th

  • Q : Banks position as a mortgage lender....
    Finance Basics :

    On a very general and high level view what are some of the strengths and weaknesses that a bank's mortgage loan area can have? What are some of the changes that can be made to improve a bank's positio

  • Q : Different capital projects....
    Finance Basics :

    A company is considering three different capital projects. Each project will require the same amount of capital outflow. As the CFO you instruct your financial analyst to discount project A's cash s

  • Q : What is the current value of the abc bond....
    Finance Basics :

    You could also buy a newly issued 10-year bond from Widget Company of America that has a 12 percent coupon. What is the current value of the ABC bond?

  • Q : What is the return on assets....
    Finance Basics :

    1) What is its return on assets? 2) If its debt/equity ratio is 0.5, what is the return on equity?

  • Q : Value of a perpetual stream of payments....
    Finance Basics :

    Given an interest rate of 10% per year, what is the value at the end of 5 years of a perpetual stream of 120$ annual payments starting at the end of year 9?

  • Q : Cash disbursement on the company records....
    Finance Basics :

    The bookkeeper wrote a check for $369 but erroneously wrote down $396 as the cash disbursement on the Company's records.

  • Q : Journal entries to record the above transactions....
    Finance Basics :

    Sep. 1 Issued 10,000 shares of common stock for cash at $9 per share. Nov. Issued 1,000 shares of preferred stock for cash at $112 per share. Prepare the journal entries to record the above transactio

  • Q : Annual sinking fund....
    Finance Basics :

    Problem: Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual in

  • Q : Component of a linear programming problem....
    Finance Basics :

    Which of the list of items below is not a component of a linear programming problem?

  • Q : High degree of operating leverage....
    Finance Basics :

    Firms with a high degree of operating leverage are: a)easily capable of surviving large changes in sales volume, b)usually trading off lower levels of risk for higher profits, c)significantly affect

  • Q : Company total expenses....
    Finance Basics :

    1) How much were the company's total expenses? Show your work. 2) Identify all the items that Sara Lee pay for expenses in 20x1? 3) How much cash did Sara Lee pay for expenses in 20x1?

  • Q : Riskiness and relative uncertainty of flows....
    Finance Basics :

    If the Alaska mine justifies an extra 5 percent premium over the normal cost of capital because of its riskiness and relative uncertainty of flows, does the investment decision change?

  • Q : Example of an indirect agency cost....
    Finance Basics :

    Question: When the Board of Directors carefully selects and then appoints the management team, this is an example of an indirect agency cost.

  • Q : Effect of reducing taxes and increasing cash flows....
    Finance Basics :

    Problem: Other factors held constant, higher CCA rates have the effect of reducing taxes and increasing cash flows.

  • Q : Direct reduction of cash....
    Finance Basics :

    Problem: Once opportunity costs are recognized they typically do not result in a direct reduction of cash but must be allocated as a cash outflow.

  • Q : Determining the price of the stock....
    Finance Basics :

    EZee Enterprises' common stock dividend is expected to grow at 5% for the next 2 years and then at 0% indefinitely. If the current dividend is $4 and the required return is 14%, what is the price of

  • Q : Account the risk of bankruptcy....
    Finance Basics :

    If your company is more risky than your competitors, then the discount rate should be higher. Take into account the risk of bankruptcy, default on bond payments, and other matters into your analysis

  • Q : Present value of all the cash flow....
    Finance Basics :

    Problem: You have determined the profitability of a planned project by finding the present value of all the cash flow from that project. Which of the following would cause the project to look less a

  • Q : Present value of infows approach....
    Finance Basics :

    As the discount rate becomes higher and higher, the present value of infows approaches:

  • Q : Calculate the firms liquidity ratios for each year....
    Finance Basics :

    Calculate the firm’s liquidity ratios for each year. Compare the resulting time series of each measure of liquidity (i.e. net working capital, current ratio, and quick ratio).

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