• Q : Examining financials of volkswagen....
    Finance Basics :

    In 2004, Volkswagen reported their first-quarter profits dropped 87 percent despite a rise in sales. Your job as the analyst is to identify reasons why this might happen, without taking the time to

  • Q : Planning how to finance your childs college education....
    Finance Basics :

    Assume you are planning how to finance your child's college education. The child is 3 years old now so there are 15 years to go before your child enters college at age 18. According to your estimate

  • Q : Importance of maximizing shareholders wealth....
    Finance Basics :

    Describe/explain the importance of maximizing shareholders wealth. Why does finance regard share value maximization as the primary corporate objective?

  • Q : Investment on global information systems....
    Finance Basics :

    Is the investment on global information systems justified? More so, when you need to keep several aspects, such as cultural, political, social, and ethical concepts in mind when developing, implemen

  • Q : Earnings available for common stockholders....
    Finance Basics :

    1) How much is the earnings available for common stockholders? 2) Compute the increased retained earnings for 2005 if the company were to declare a $4.25 common stock dividend. The company has 15,00

  • Q : Planning for college....
    Finance Basics :

    Son will start college in 5 years. Expect college to cost $10,000 per quater, each quaters cost will be payable in advance, and he will attend college all year long. Expect him to complete college i

  • Q : What is the nominal interest rate of the loan....
    Finance Basics :

    After receiving the annual installment, George will reinvest it immediately until the end of the loan. The reinvestment rate is 12%, compounded semi-annually. Please answer the following questions:

  • Q : What is the rate of return on the venture....
    Finance Basics :

    Brinker, Inc. has been investing $136,000 a year for the past 4 years into a business venture. Today, Brinker sold that venture for $685,000. What is its rate of return on this venture?

  • Q : Perpetual dividend growth assumption....
    Finance Basics :

    ssume that Joy's stock now sells for $39.75 per share. If the stock is fairly priced at the present time, what is the implied perpetual dividend growth rate g ?

  • Q : Amount of the risk premium on zelo stock....
    Finance Basics :

    Zelo, Inc. stock has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo stock?

  • Q : Compute the rate of return....
    Finance Basics :

    The price of the stock of Clarkson Corporation went from $50 to $56 last year. The firm also paid $2 in dividend. Compute the rate of return.

  • Q : Digital stock-arbitrage opportunity....
    Finance Basics :

    The current price of Digital stock is $44 a share. You are offered a forward price for Digital stock to be delivered in one year of $42. The forward price is lower than the spot price because the ma

  • Q : Evaluate the compound quarterly growth rate of the dividends....
    Finance Basics :

    Since LLY pays dividends quarterly, calculate the quarterly percentage change in the dividends. Now, evaluate the compound quarterly growth rate of the dividends using the GEOMEAN function.

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

    Problem 1. General Cereal common stock dividends have been growing at an annual rate of 7 percent per year over the past 10 years. Current dividend (D0) is $1.70 per share. What is the current value

  • Q : Describe sensitivity analysis....
    Finance Basics :

    Problem 1: What is a sensitivity analysis? Problem 2: What is a scenario analysis? Problem 3: How would you apply each one to a potential investment opportunity?

  • Q : Portfolio management to assess risk-return of investment....
    Finance Basics :

    Problem 1: How would you use portfolio management to assess the risk and return of an investment? Problem 2: Predict how the results would be different based on different risk preferences.

  • Q : Discuss roles of limited liability partnerships-corporations....
    Finance Basics :

    Problem: Explain the roles of limited liability partnerships and corporations. If you were establishing your own business (Healthcare), under what circumstances would you choose one from the other?

  • Q : What is the value fo the option to wait....
    Finance Basics :

    If you start the project today, you will incur an initial cost of $480 and will receiv cash inflows of $350 a year for three years. If you wait one year to start the project, the initial cost will r

  • Q : Realized gain and taxable gain....
    Finance Basics :

    Samantha sells a passive activity (adjusted basis of $50,000) for $90,000. Suspended losses attributable to this property total $30,000. The realized gain and the taxable gain are:

  • Q : Ways to save for the holiday season....
    Finance Basics :

    Along with good cheer, the holidays bring so many expenses--Christmas parties, travel, decorations and extra grocery costs. And all that is on top of holiday gifts! No wonder many Americans sink fur

  • Q : Has anyone been to vatican city in rome....
    Finance Basics :

    Has anyone been to Vatican City in Rome? Wealth is apparent there. Should entities hoard wealth or should they re-invest in society?

  • Q : Compute the break-even point in units....
    Finance Basics :

    Q1. Compute the break-even point in units. Q2. What will the new break-even point be if fixed costs increase by 10 percent?

  • Q : Assessing and measuring the risk of a single asset....
    Finance Basics :

    Problem : What are the procedures for assessing and measuring the risk of a single asset? When would you do this? Problem : How do you measure the return and standard deviation for a portfolio? Would

  • Q : Cost of capital and the cost of equity capital of the firm....
    Finance Basics :

    What is the current weighted average cost of capital of the firm? What effect would a change in the debt to equity ratio have on the weighted average cost of capital and the cost of equity capital o

  • Q : Journal entry to record the issuance of the bonds....
    Finance Basics :

    (a) Prepare the journal entry to record the issuance of the bonds. (b) Prepare the adjusting entry to record the accrual of interest on December 31, 2006.

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