• Q : Comparing two different capital structures....
    Finance Basics :

    Problem: Break-Even EBIT and Leverage IBM Corp. is comparing two different capital structures. Plan I would result in 1,100 shares of stock and $16,500 in debt. Plan II would result in 900 shares of

  • Q : Accounts receivable and accounts payable....
    Finance Basics :

    What amount of purchases of inventory (at cost) will be required in February? What will total collections be in February? What will Accounts Receivable and Accounts Payable be at the end of February?

  • Q : Residual operating income on net operating assets....
    Finance Basics :

    Bon Corp. has net operating assets measured at fair market value in the balance sheet of $1,000,000 on 12/31/2010 and an after tax income reported from those assets in the income statement for 2011

  • Q : Which investment is more advantageous and why....
    Finance Basics :

    Problem: Which investment is more advantageous and why? Are there times when mutual funds are a better choice than an ETF? Are there times when an ETF is a better choice than a mutual fund? Explain

  • Q : Find the industry ratios for comparison....
    Finance Basics :

    Who would be interested in each of the ratios listed above? Why? How well is this company doing? If possible, find the industry ratios for comparison.

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

    I need to estimate the affordable mortgage and the affordable purchase price for the Bergholts. Please show all work and give an explanantion of how you got it. Here is their information:

  • Q : What annual interest rate did the man pay....
    Finance Basics :

    Q1. What annual interest rate did the man pay? Q2. How much would the man need to repay at the end of two months if he borrowed $5000 with the same rules and same annual interest rate?

  • Q : Calculate your stocks intrinsic value....
    Finance Basics :

    How did you calculate your stock's intrinsic value? How did you arrive at a terminal value? What was your terminal value? What were your results?

  • Q : Determining accepting risk is acceptable or unacceptable....
    Finance Basics :

    Compare and contrast the cost of compliance against the degree of risk of noncompliance. What considerations may a company take into account when determining whether accepting risk is acceptable or

  • Q : Common source of prices for a price analysis....
    Finance Basics :

    Problem 1: Which of the following is not a common source of prices for a price analysis?

  • Q : Current business and launching a global business effort....
    Finance Basics :

    As a veteran entrepreneur, you have been asked from Zach Johnson, a recently new entrepreneur, the following questions: 1) What advice would you offer to Zach who is interested in expanding his curr

  • Q : Exploit an overpriced share price of the corporation....
    Finance Basics :

    Problem 1: For a typical business, what are some external variables that influence the reversion rate? Problem 2: What action can management take to exploit an overpriced share price of the corporatio

  • Q : Value of the firms current liabilities....
    Finance Basics :

    A firm's balance sheet shows current assets of $95, net fixed assets of $250, long-term debt of $40, and owners equity of $200. What is the value of the firm's current liabilities if that is the onl

  • Q : Greatest potential volatility....
    Finance Basics :

    A bond manager who wishes to hold the bond with the greatest potential volatility would be wise to hold

  • Q : Change in policy in the volatile garment business....
    Finance Basics :

    The Kranberry kids Kompany is in the volatile garment business. The firm has annual revenues of $250 million and operates with a 30% gross margin on sales.

  • Q : Assuring adequate cash availability....
    Finance Basics :

    What actions can you take to minimize the cash flow problems that were identified in the simulation? Look at the problem from both the inflow and outflow of cash to determine what actions you can co

  • Q : Major types of financial intermediaries....
    Finance Basics :

    What are major types of financial intermediaries? How are they similar and different?

  • Q : Firms investment bankers....
    Finance Basics :

    However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm's investment bankers have recommended.

  • Q : Efficient market hypothesis for investors....
    Finance Basics :

    What are the implications of the efficient market hypothesis for investors who buy and sell stocks in an attempt to "beat the market"?

  • Q : Calculate the effective annual rate of interest....
    Finance Basics :

    a) Calculate the effective annual rate of interest on each loan. b) What could Weathers do that would reduce the effective annual rate on the State Bank loan?

  • Q : What is the financial breakeven point for each plan....
    Finance Basics :

    What is the financial breakeven point for each plan? Is it possible to use the following formula to answer this question?  If so how?

  • Q : Ricardian model of comparative advantage....
    Finance Basics :

    Discuss this assertion in the context of the Ricardian model of comparative advantage.

  • Q : Different ways of addressing the gain and loss....
    Finance Basics :

    One of the shortcomings of FASB114 is that it addresses mainly the creditor and not the debtor, thus leaving us with two different ways of addressing the gain (for the debtor) and loss (for the cred

  • Q : What is the present value of the award cash flows....
    Finance Basics :

    As a lottery winner you are going to receive $10,000 every year forever, starting one year from today. If the appropriate discount rate is 10%, what is the present value of the award cash flows?

  • Q : What is the capital gains yield of the small firm stocks....
    Finance Basics :

    Suppose an index of small firm stocks started in 1946 at 10, and the index level was 1890.59 in 2001. What is the capital gains yield of the small firm stocks for the period?

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