• 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

  • Q : Total leverage for van auken lumber....
    Finance Basics :

    Compute the degree of operating leverage, degree of financial leverage, and degree of total leverage for Van Auken Lumber.

  • Q : What were baileys annual sales....
    Finance Basics :

    If the cost of goods sold equaled 86 percent of sales, what were Baileys annual sales and its DSO (days sales outstanding).

  • Q : What is the impact on stock price....
    Finance Basics :

    What is the impact on stock price if the growth rate is 4% or 6%? If rate of return is 9% od 11%?

  • Q : Sense of the value of the dot.com stock....
    Finance Basics :

    Problem: Prior to the NASDAQ crash, which ratio(s) should investors have used to give them a sense of the value of the dot.com stock? What do you think the ratios would have:

  • Q : Expense as an itemized deduction....
    Finance Basics :

    If Sophie itemizes her deductions for 2004, the amount deductible for interest expense as an itemized deduction is:

  • Q : Information from financial records....
    Finance Basics :

    Amber, who is single and age 30, provides you with the following information from her financial records for 2004.

  • Q : What is the required rate of return on a stock....
    Finance Basics :

    Assume that the risk-free rate is 6% and the expected rate of return on the market is 13%. What is the required rate of return on a stock that has a beta of 0.7?

  • Q : Find the recognized gain or loss....
    Finance Basics :

    Problem 1: Manuel exchanges a rental house at the beach with an adjusted basis of $150,000 and a fair market value of $125,000 for a rental house at the mountains with a fair market value of $100,00

  • Q : Preparing a cash flow table....
    Finance Basics :

    In addition to the $2,500, she must pay 15% interest on the unpaid balance of the loan each year. Prepare a cash flow table to represent the situation.

  • Q : Period return for the market weighted index....
    Finance Basics :

    Calculate the holding period return for the market weighted index over the entire sample period.

  • Q : Current value of a share of seneca common stock....
    Finance Basics :

    What is the current value of a share of Seneca common stock to an investor who requires a 14% rate of return? Should I use PV in Rate of return?

  • Q : What is a share worth today....
    Finance Basics :

    Interest rates are 5% a year, and one share in a gas company called warmth pays a dividend of $2 today. The market believes that warmth will grow profits & dividends by 3% a year from next year

  • Q : What is the payment for the first year....
    Finance Basics :

    A. What is the payment for the first year? B. What is the loan balance at the end of the first year?

  • Q : What is the breakpoint on the mcc....
    Finance Basics :

    Problem: Your company is expected to earn $4.0 million in net income next year of which it will pay out 40% in dividends. If equity represents 50% of your capital, what is the breakpoint on the MCC

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