• Q : Company plans to double each annual dividend payment....
    Finance Basics :

    The company plans to double each annual dividend payment for the next 3 years. After that time, they are planning on paying a constant $1.50 per share indefinitely. What is one share of this stock w

  • Q : Low-risk projects and average-risk projects....
    Finance Basics :

    Problem: A company has an equal number of low-risk projects, average-risk projects, and high-risk projects. The company estimates that the overall company's WACC is 12%.

  • Q : Analyzing investment information....
    Finance Basics :

    Given the importance of analysis, you decide to focus Dr. Washington's training in investment analysis about how to gather and analyze investment information, appreciate his own risk profile, and m

  • Q : Firm in terms of sprockets and cogs sold....
    Finance Basics :

    What is the break-even production of the firm in terms of sprockets and cogs sold? Using BE=fixed costs/price-Variable cost per unit I assume with two products you add both prices to make the price

  • Q : Potential costs and benefits to henley manufacturing....
    Finance Basics :

    Question 1: What are the potential costs and benefits to Henley Manufacturing of announcing its sales and earnings goals at the shareholders' meeting?

  • Q : Inventory management and average cash balance....
    Finance Basics :

    Problem: Throughout the course of the year, my various projects will require a total amount of cash of $4,000,000. The interest cost for this requirement is 9.75%, while each transaction costs $100

  • Q : What is the dividend pay-out ratio....
    Finance Basics :

    Problem 1. Net income is $55,000, dividends paid are $8,000; what is the dividend pay-out ratio? Problem 2. You own 200 shares of Easy stock that has a current market price of $25/share. What is the

  • Q : Dow jones industrial average and the nasdaq....
    Finance Basics :

    I saw on the news that the Dow Jones Industrial Average was down 100 points and that the NASDAQ was up 10 points." What exactly are the Dow Jones Industrial Average and the NASDAQ, and how can one be

  • Q : What is the debt to equity ratio after each restructuring....
    Finance Basics :

    a What is the debt to equity ratio after each restructuring? b. If EBIT is either $90,000 or $130,00 what is the earning per share for each financing mix for both possible value of EBIT?

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

    The dividend per share in one year is $2. In year two it is $4 a share. Then the dividend will grow at 5% per year after that. The expected rate of return is 12%. Q1. What is the current stock price

  • Q : Business problems based on research and evaluation....
    Finance Basics :

    I specialize in solving business problems based on research and evaluation. I have just been hired by the new president of Playword Greeting Cards, an established company that sells greeting cards a

  • Q : Discussing changes in the financial services sector....
    Finance Basics :

    Problem: Discussing changes in the financial services sector. Put particular focus on major changes in banking laws, how the Internet is impacting the industry, industry consolidation, and internati

  • Q : Private placement problem....
    Finance Basics :

    Problem: Which of the following statements is most correct? a. In a private placement, securities are sold to private (individual) investors rather than to institutions. b. Private placements occur mo

  • Q : Concept of the contribution margin....
    Finance Basics :

    When considering a large bulk order, how should one use the concept of contribution margin to decide which cookie's production to reduce in order to free up enough capacity to accept the bulk order?

  • Q : Risk differences among various investments....
    Finance Basics :

    You believe Dr. Washington is now ready to begin risk analysis and is ready to understand the risk differences among various investments

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

    Assuming that Pigeon can continue to plow back this proportion of earnings and earn a 20 percent return on the investment, how rapidly will earnings and dividends grow? What is the expected return o

  • Q : Analyzing the use of databases in a large bank....
    Finance Basics :

    Problem: I need help analyzing the use of databases in a large bank/collection call center. I need examples and descriptions of known database applications that are used (Microsoft Access, DB2, Orac

  • Q : Short-term investment in stock securities....
    Finance Basics :

    Cole Company entered into the transactions listed below during 2003. Prepare the appropriate journal entries for Cole Company. You may omit journal entry explanations but you should show computation

  • Q : Expectations and efficient markets....
    Finance Basics :

    Expectations and Efficient Markets - Geothermal Corp. just announced good news: Its earnings have increased by 20 percent. Most investors had anticipated an increase of 25 percent.

  • Q : How a given investor chooses an optimal portfolio....
    Finance Basics :

    Problem: Explain how a given investor chooses an optimal portfolio. Will this choice always be a diversified portfolio, or could it be a single asset?

  • Q : Communicating negative variances to management....
    Finance Basics :

    Problem 1: What methods are most effective in communicating negative variances to management? Problem 2: Is corrective action always necessary after identifying variances? Why or why not?

  • Q : Determining the expected return on stock....
    Finance Basics :

    Q1. What is expected return on stock? Q2. What is the standard deviation of returns on the stock?

  • Q : Balance sheet-statement of cash flow....
    Finance Basics :

    Select a publicly held company. Look at the most recent Income Statement, Balance Sheet, and Statement of Cash Flows and decide if you will give this company a loan equal to 10% of their retained ea

  • Q : Business risk-financial risk-portfolio risk....
    Finance Basics :

    After having read some information about the various risks that firms encounter, the Hammons have asked you to investigate and analyze specific risks they may encounter as owners of a private duty n

  • Q : Estimating the affordable mortgage....
    Finance Basics :

    Before making a purchase offer and applying for this loan, they would like to have some idea whether they might qualify. Estimate the affordable mortgage and the affordable purchase price for the Berg

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