• Q : Forecasting payments....
    Finance Basics :

    Problem: If a firm pays its bills with a 30 day delay, what fraction of its purchases will be paid for in the current quarter? in the following quarter? what if its payment delay is 60 days?

  • Q : What role do financial institutions play....
    Finance Basics :

    What role(s) do financial institutions play in financial intermediation, why are these roles necessary, and how does the company need to respond to the increased intermediation scrutiny due to the c

  • Q : Calculate company cash balance....
    Finance Basics :

    Question 1: Calculate each company's cash balance at the end of the year. Question 2: Explain what might cause company C's net cash from financing activities to be negative.

  • Q : Adopting a strategy that includes preserving current assets....
    Finance Basics :

    Problem: Adopting a strategy that includes preserving current assets including developing future growth. Looking at:

  • Q : Excel to draw a yield curve based on the information....
    Finance Basics :

    Assuming a real risk-free rate of 2% and a MRP +0.1x(t)%, t is the # of years to maturity, estimate the interest rate in Jan 1981 on bonds that mature in 1,2,5 and 20 years, and use Excel to draw a

  • Q : Current balance sheet based on the projected figures....
    Finance Basics :

    Q1. Based on Ms. Colby's forecast, how much external fund does Charming Florist need? Q2. Reconstruct the current balance sheet based on the projected figures.

  • Q : Cash flows associated with calculating the present value....
    Finance Basics :

    Problem: What are the cash flows associated with calculating the present value of preferred stock? What are the cash flows associated with calculating the present value of common stock?

  • Q : Investment objectives and constraints....
    Finance Basics :

    Identify and describe an appropriate set of investment objectives and constraints for the Smith's, and recommend a stock/bond mix that is based on these objectives and constraints.

  • Q : Maximum allowable margin....
    Finance Basics :

    How many shares can Lauren purchase using the maximum allowable Margin? What are Lauren's profit (loss) and the return on investment if the price of Gentry's stock rises to $45 per share and at $20.

  • Q : What is the investment in baskett balance....
    Finance Basics :

    During the year, Baskett reports net income of $90,000 while paying dividends of $30,000. What is the Investment in Baskett balance in Ace's financial records as of December 31?

  • Q : Determine the net present value of the project....
    Finance Basics :

    What is the Net Present Value of the project to the nearest dollar if the discount rate is 10%?

  • Q : Effect of depreciation on the projects....
    Finance Basics :

    What effect would depreciation have on the projects selection criteria:

  • Q : Degree of operating leverage-degree of financial leverage....
    Finance Basics :

    Question: The Degree of Operating Leverage (DOL) is A) 1.58x B) 1.95x C) 3.50x D) 1.40x

  • Q : Will the break-even point go up or down....
    Finance Basics :

    As a result of Bic's suggestion, will the break-even point go up or down? Compute the necessary numbers.

  • Q : Operating leverage-financial leverage....
    Finance Basics :

    1) Degree of operating leverage. 2) Degree of financial leverage. 3) Degree of combined leverage. 4) Break-even point in units.

  • Q : Probability analysis in estimating returns....
    Finance Basics :

    Consider the use of probability analysis in estimating returns and determining the standard deviation. You may use a hypothetical situation and do the calculations or just describe the steps in the

  • Q : Federal reserve influences financial markets....
    Finance Basics :

    Problem. Describe two ways that the Federal Reserve influences financial markets. Problem. Describe how the goals of banking regulation differ in the U.S. compared to Jamaica.

  • Q : Public corporate information....
    Finance Basics :

    Where would I find a comprehensive list of the following public corporate information: 1. Recently announced stock splits that will be paid to shareholders on a future date

  • Q : Calculating the maturity risk premium....
    Finance Basics :

    Problem: The real risk free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.2%. How would I go about calculating the maturity risk premium fo

  • Q : How many burritos must bob sell a month to breakeven....
    Finance Basics :

    Bob's Burritos sells all of their burritos for $4.50 while the cost is only $3.00. If the monthly fixed expense is $1,500, how many burritos must Bob sell a month to breakeven?

  • Q : Average underpricing of this sample of ipos....
    Finance Basics :

    Enter formulas to calculate the requirements of this problem. Problem 1: What is the average underpricing of this sample of IPOs?

  • Q : Issue to raise the same amount of money....
    Finance Basics :

    1) How many shares would the company have needed to issue to raise the same amount of money?

  • Q : Public company of choice for investment....
    Finance Basics :

    First examine your public company of choice for investment from the previous exercise. Then present a brief and powerful financial case for investment in your company to the others in the class.

  • Q : Considering refinancing my mortgage....
    Finance Basics :

    If I am considering refinancing my mortgage, my current rate is 7% with 14 years left and was negotiated one year ago with $2,000 closing costs.

  • Q : Plug number on a pro-forma balance sheet....
    Finance Basics :

    Problem: Is it possible for an EFN estimate (or a 'plug number' on a pro-forma balance sheet) to be negative? If you obtain this result, do you interpret it as an indication that you've made a calcu

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