• Q : Calculate roi for subsidiaries....
    Finance Basics :

    Q1. Calculate ROI for both subsidiaries. Q2. Calculate EVA for both subsidiaries. Note that since no adjustments for accounting distortions are being made, EVA is equivalent to residual income.

  • Q : Evaluation based on residual income....
    Finance Basics :

    How would the divisions be ranked (from best to worst performance) if the evaluation were based on residual income?

  • Q : Maximizing the fundamental stock price....
    Finance Basics :

    If a firm attempts to maximize its fundamental stock price, is this good or bad for society? I have a text that explains that it can be good for society, but I need a little more information and a c

  • Q : What is the maturity premium....
    Finance Basics :

    What is the maturity premium? Use same data as above. What is the small firm stock risk premium?

  • Q : Target roi as a manufacturing firm....
    Finance Basics :

    Calculate net income, margin, sales required for Manyops,Inc., to achieve its target ROI as a manufacturing firm.

  • Q : What makes up a company capital structure....
    Finance Basics :

    What makes up a company's capital structure? Explain the purpose of determining the weighted average cost of capital for a company.

  • Q : Calculate the statistical measures....
    Finance Basics :

    Compare and contrast your answers and provide explanations for the similarities and differences. Calculate the statistical measures using both annual and monthly returns, but compare and contrast us

  • Q : How many shares of turtle can jackie purchase....
    Finance Basics :

    Problem 1. Jackie has a margin account with a balance of $45,000. If initial margin requirements are 50 percent and Turtle Industries is currently selling at $50 per share: How many shares of Turtle

  • Q : Calculating incremental irr for the cash flows....
    Finance Basics :

    Because you are fully aware of the IRR rule's scale problem, you calculate the incremental IRR for the cash flows. Based on your computation, which project should you choose?

  • Q : How much is the investment worth....
    Finance Basics :

    Suppose you have an investment that pays $75 at the end of the year for each of the next five. If your opportunity cost of money is 12%, how much is the investment worth?

  • Q : Evaluate wal-mart financial performance....
    Finance Basics :

    Problem: Evaluate Wal-Mart's financial performance during the past 2 years, using financial ratios. Calculate the ratios for each year:

  • Q : Beneficiary of a life insurance policy....
    Finance Basics :

    You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds.

  • Q : At what point would you deem business venture successful....
    Finance Basics :

    Question 1: In deciding whether to start a new business, explain fully which factors you would include in your business plan? Question 2: Assuming you open the business, at what point would you deem t

  • Q : Model to predict sales revenues....
    Finance Basics :

    Excalibur corporation has developed a model to predict sales revenues for its line of beach towels and swimwear based on long-range weather forecasts.

  • Q : Develop a minimum-cost schedule for part-time employees....
    Finance Basics :

    Q1. Develop a minimum-cost schedule for part-time employees. Q2. What is the total payroll for the part-time employees?

  • Q : Calculate the current expected price of the stock....
    Finance Basics :

    Due to the introduction of a proprietary product, the dividend growth rate is expected to be 30 percent for the next two years, 15 percent for years 3 and 4, and then return to a constant growth rat

  • Q : Determining the current share price....
    Finance Basics :

    Apocalyptica Corp. pays a constant $9.75 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on

  • Q : What is meant by informational asymmetries....
    Finance Basics :

    Explain what is meant by informational asymmetries. What problem can these asymmetries create for participants in the money and capital markets?

  • Q : Portfolio that mimics the risk-return profile....
    Finance Basics :

    Can you create a portfolio that mimics the risk-return profile of Company A (1 stock of Company A) and consists of the risk free asset and Company B's stock? If yes, describe the portfolio.

  • Q : Preparing a cash budget....
    Finance Basics :

    Prepare a cash budget for December, January, and February. Needs to be in Excel format.

  • Q : Supporting the re-organization....
    Finance Basics :

    If the appropriate discount rate is 11% under either alternative and the firm has 40,000,000 shares outstanding, should you vote to support the re-organization or not?

  • Q : Financing options raised in internal company brainstorming....
    Finance Basics :

    The problem is that once you have firm orders from overseas buyers you will need financing in order to have the money needed to actually produce those units. Among the financing options raised in an

  • Q : Calculate dersons net profit margin....
    Finance Basics :

    Use the data provided to calculate Derson's net profit margin, assets-to-equity ratio, asset turnover ratio, and its dividend payout ratio.

  • Q : Calculate the average return over time period....
    Finance Basics :

    Q1. Calculate the rate of return for each year, 2006 through 2009, for Apple stock. Q2. Assume that each year's return is equally probable and calculate the average return over this time period.

  • Q : Funding for the new venture....
    Finance Basics :

    Problem 1: Discuss the sources of funding for the new venture and the rationale for using each source.

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