• Q : Passing sarbanes-oxley act into law....
    Finance Basics :

    If internal controls make so much business sense, why was it necessary to pass Sarbanes-Oxley into law?

  • Q : Estimating revenues for a business case....
    Finance Basics :

    In estimating revenues for a business case companies often require a range of results to be evaluated. What are they usually? How does this help in decision making?

  • Q : Break-even analysis-important tool for management....
    Finance Basics :

    Why is the break-even analysis an important tool for management? When evaluating a company, how might this information be used?

  • Q : Change in debt and change in equity....
    Finance Basics :

    To see this, recall that a Change in assets = change in debt and change in equity. What does it mean? How does it relate to a company's financial planning? (word count > 75)

  • Q : Calculating the npv....
    Finance Basics :

    Assume a firm is considering a purchase of equipment for $20,000. The equipment is expected to generate net cash inflows of $6,250 for the next five years. The firm has a 10% cost of capital (requir

  • Q : Disadvantage of the sole proprietorship....
    Finance Basics :

    Which of the following is a disadvantage of a sole proprietorship? a. Double taxation. b. Excessive regulation. c. Entrenched management. d. Unlimited liability.

  • Q : Planning to refinance the mortgage....
    Finance Basics :

    Problem: You're about to purchase a home and your mortgage broker offers you two options.

  • Q : Biggest impact on the business cycles....
    Finance Basics :

    I'm currently studying recessions and given the fact that the US has not experienced a recession since 2001, Do you think another recession is on the horizon? Please explain your reasons why a reces

  • Q : Case study analysis of blades....
    Finance Basics :

    Prepare a case study analysis of Blades, Inc. Case: Assessment of Exchange Rate Exposure, located at the end of Chapter Ten in the International Financial Management text by Jeff Madura.

  • Q : Bonds trade and semiannual interest....
    Finance Basics :

    Problem: Raeo Corp. bonds trade at 100 today. The bonds pay semiannual interest that is paid on January 1 and July 1. The coupon on the bonds is 10 percent. How much will you pay for a Raeo bond if

  • Q : Companies pro forma financial paper....
    Finance Basics :

    Develop a set of pro forma financials (income statement and balance sheet only) for the next fiscal year-end using the percent-of-sales method. Assume that the company's sales have increased by 15%.

  • Q : Representing an after-tax risk premium....
    Finance Basics :

    The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must

  • Q : Paid-in capital in excess of par value-preferred stock....
    Finance Basics :

    The entry to record the transaction will consist of a debit to Cash for $600,000 and a credit or credits to 1) preferred stock for $600,000. 2) preferred stock for $500,000 and Paid-in capital in exce

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

    Orient Airlines' common stock currently sells for $33, and its 8% convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 25 shares of common stock at a

  • Q : What factors determine the value of stock....
    Finance Basics :

    Problem: What factors determine the value of stock? What do you think is the most important factor and why?

  • Q : Goal of wealth maximization....
    Finance Basics :

    Problem: Describe the 10 basic principles of finance. how does these principles relate to the goal of wealth maximization.

  • Q : What is interfaces product....
    Finance Basics :

    Then go to the part of the company's website about its efforts toward sustainable development at What is Interface's product?

  • Q : Standard devaiation of expected returns....
    Finance Basics :

    1) Calculate the expected rate of return r^y1 for stock Y (r^x = 12%) 2) Calculate the standard devaiation of expected returns ax for stock x (ay = 20.35%)

  • Q : Extraordinary items for external reporting purposes....
    Finance Basics :

    Q1. Are the items above extraordinary items for external reporting purposes? Discuss. aQ2. Show how the extraordinary items section of the income statement should have been reported (the tax rate is 3

  • Q : Banks offer and the investment....
    Finance Basics :

    Question 1: How much ahead will Joe be if he takes the bank's offer and the investment does turn out to yield 18%?

  • Q : Prepare the bank reconciliation....
    Finance Basics :

    During October, he recorded a $290 check for the salary of a part-time employee by debiting Salary Expense and crediting Cash for $29. Nicosia's Cash account shows an October 31 cash balance of $5,1

  • Q : Evaluate wal-marts diversification....
    Finance Basics :

    Problem 1: Construct a comparison of Wal-Mart's and the industry's income statements around 1990 and quantify Wal-Mart's advantages. Problem 2: Evaluate Wal-Mart's diversification into Sam's Clubs an

  • Q : Strategies for testing internal controls....
    Finance Basics :

    A) Briefly describe three strategies for testing internal controls when information technology is used for significant accounting processing.

  • Q : Determine earnings per share on common stock....
    Finance Basics :

    Determine the earnings per share of common stock, assuming income before bond interest and income tax is $400,000. What is the earnings per share on common stock for plan 1 and plan 2

  • Q : Compute the coefficients of the variation....
    Finance Basics :

    Q1. Why should the coefficient of the variation be used to compare the dispersion in the prices? Q2. Compute the coefficients of the variation. What is your conclusion?

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