• Q : Topic of logistics management-aspect of management....
    Finance Basics :

    In this discussion, do some research on the topic of logistics management or other aspect of management that exemplifies the organizing function of management. See if you can find an interesting cas

  • Q : Determining the process standard deviation....
    Finance Basics :

    A manufacturer embarking on a six sigma program sets the goal of having true six sigma capability for all processes by the end of the month. If their current processes capability index on a key metr

  • Q : Productivity important for a nation....
    Finance Basics :

    Why is high productivity important for a nation? Why do you suppose that service jobs have lower productivity than manufacturing jobs?

  • Q : Accrued interest and yield to maturity of bond....
    Finance Basics :

    On February 26, 2001 an 8.2% Duke Energy Corp. bond maturing January 15, 2007 is priced at 103.790 per face value (this price does not include the accrued interest). The bond was originally issued i

  • Q : Calculation the ebitda coverage ratio....
    Finance Basics :

    Rex Corp's EBITDA last year was $385,000 (= EBIT + depreciation + amortization), its interest charges were $10,000, it had to repay $25,000 of long term debt, and it had to make a payment of $20,000

  • Q : Calculation of market value of the preferred stock....
    Finance Basics :

    Johnston Corporation is growing at a constant rate of 6% per year. The cost of preferred stock (rp) is 8%. The par value of the preferred stock is $120, and the stock has a stated dividend of 10% of

  • Q : Calculate the irr and determine maximum deviation allowance....
    Finance Basics :

    The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 8%. Should you make the investment? Calculate the IRR and use it to determine

  • Q : Calculation of operating cash flow....
    Finance Basics :

    The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200. The tax rate is 31 percent. What is the operating cash flow for this project?

  • Q : Estimating the amount of premium amortization....
    Finance Basics :

    What would be the amount of premium amortization for December 31, 2006? What would be the amount of the interest payment on December 31, 2006?

  • Q : Annual cash flow on the security....
    Finance Basics :

    Ten years from now (t = 10) the security will mature and pay $10,000. The security sells for $24,307.85, and has a yield to maturity of 7.3 percent. What annual cash flow does the security pay for y

  • Q : Calculation of disregard cross-product terms....
    Finance Basics :

    How much higher would the rate of return be on a 10-year A-rated corporate bond than on a 5-year Treasury bond? Here we assume that the pure expectations theory is NOT valid. Disregard cross-product

  • Q : Break-even point in units of output for the firm....
    Finance Basics :

    You are a hard -working analyst in the office of financial operations for a manufacturing firm that produces a single product. You have developed the following costs structure information for this c

  • Q : Computation of weighted average cost of capital....
    Finance Basics :

    1. The market value of your firm's equity is $500 million, which is also the value of your total debt. Your cost of debt (rd) is 6% and your cost of equity is (re) is 10%. What is your weighted aver

  • Q : Calculation on net initial investment....
    Finance Basics :

    What is the net initial investment, the annual cash flows from the project and the terminal value?

  • Q : Debt to capitalization ratio....
    Finance Basics :

    A company changes its capital structure which increases its Debt to Capitalization Ratio, while maintaining the same operating profit margin (operating profit / sales), resulting in a higher ROCE. I

  • Q : Calculation regarding geometric average return....
    Finance Basics :

    Over the last four years, the stock of Wagner's Paints has had an arithmetic average return of 6.5 percent. Three of those four years produced returns of 9 percent, 3 percent, and 1 percent. What is

  • Q : Present value of the future amounts....
    Finance Basics :

    What is the present value of the following future amounts?

  • Q : Determining the present value of the net investment....
    Finance Basics :

    Little Giant is building a manufacturing plant that will require a cash outlay of $300,000 for the initial purchase of a building, $450,000 for remodeling the first year, and $710,00 for new equipme

  • Q : Present value of the expected dividends....
    Finance Basics :

    You plan to hold the stock for three years and then sell it. You estimate that a required rate of return of 17.5% will be adequate compensation for this investment. Calculate the present value of th

  • Q : Problem on project initial investment outlay....
    Finance Basics :

    What is the project's initial investment outlay? The company spent and expensed $50,000 on research related to the project last year. Would this change your answer. Explain.

  • Q : Assure 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 c

  • Q : Calculation of effective annual rate....
    Finance Basics :

    A financial institution made a $10,000, 1-year discount loan at 10% interest, requiring a compensating balance equal to 20% of the face value of the loan. Determine the effective annual rate associa

  • Q : Result of the increase in political risk....
    Finance Basics :

    Valuation of an MNC. Hudson Co., a U.S. firm, has a subsidiary in Mexico, where political risk has recently increased. Hudson's best guess of its future peso cash flows to be received has not change

  • Q : Pros and the cons of the international sales plan....
    Finance Basics :

    What are the pros and the cons of the international sales plan? What additional risks will the company face? What happens to the company's profits if the dollar strengthens? What if the dollar weakens

  • Q : Aggressive financing strategy....
    Finance Basics :

    What is an aggressive financing strategy? What are the components of aggressive finance strategies? What is difference between the aggressive and conservative financing model?

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