• Q : Computing the net worth....
    Finance Basics :

    Shelly's assets include money in the checking and savings accounts, investments in stocks and mutual funds, personal property, such as furniture, appliances, an automobile, coin collection and jewel

  • Q : Calculating net asset value....
    Finance Basics :

    Given the information below, calculate the net asset value for the Boston Equity mutual fund.

  • Q : Determining the controlling risk....
    Finance Basics :

    You are discussing your 401K with Dan Ervin, when he mentions that Sarah Brown, a representative from Bledsoe Financial Services, is visiting East Coast Yachts today. You decide that you should meet

  • Q : Estimating after-tax yield to maturity....
    Finance Basics :

    If the investor holds the bond until it matures and collects the $1,000 par value from the Treasury and his marginal tax rate is 28 percent, what will his after-tax yield to maturity be?

  • Q : Bond expected yield-investor anticipated default loss....
    Finance Basics :

    A certain investor looking at this bond estimates there is a 25 percent probability the bond will pay 15 percent at maturity, a 50 percent probability it will pay a 10 percent return, and a 25 perce

  • Q : Accumulated adjustments account....
    Finance Basics :

    What is the purpose of the "Accumulated Adjustments Account (AAA)and what types of items increase it or decrease it?

  • Q : Determining average accounts payable....
    Finance Basics :

    The company purchases the inventory under the credit terms if 2/15, net 40. APP always takes the discount but takes the full 15 days to pay its bills. What is the average accounts payable fir APP?

  • Q : Expected change in the firm stock price....
    Finance Basics :

    A company's beta is -1.5. If the overall stock market decreases by 5%, what is the expected change in the firm's stock price?

  • Q : Price of average company common stock....
    Finance Basics :

    Suppose interest rates on Treasury bonds rose from 5 to 9 % as a result of higher interest rates in Europe. What effect would this have on the price of an average company's common stock and why?

  • Q : Some basic internal financial controls....
    Finance Basics :

    What are some basic internal financial controls that a nonprofit organization can put in place? Have you seen any of these controls implemented at your organization?

  • Q : Calculating average dividend growth rate....
    Finance Basics :

    Highway Express has paid annual dividends of $1.16, $1.19, $1.25, $1.12, and $0.95 over the past five years respectively. What is the average dividend growth rate?

  • Q : Pattern of return on equity....
    Finance Basics :

    What pattern of return on equity is implied by these assumptions? Is this reasonable?

  • Q : Evaluating proposals in for-profit technological environment....
    Finance Basics :

    What non-financial criteria should be used in evaluating proposals in a for-profit technological environment?

  • Q : Operating cash flow on analysis....
    Finance Basics :

    The sales price is estimated at $750 per unit, give or take 2 percent. The tax rate is 32 percent. The company is conducting a sensitivity analysis on the sales price using a sales price estimate of

  • Q : Value of option to delay project....
    Finance Basics :

    The project's cost and expected annual cash flows will be the same whether the project is delayed or not. The project's WACC is 11.0%. What is the value (in thousands) of the option to delay the pro

  • Q : Value of project after considering investment timing option....
    Finance Basics :

    The project's cost and expected annual cash flows will be the same whether the project is delayed or not. The project's WACC is 10.0%. What is the value (in thousands) of the project after consideri

  • Q : Operating cash flow under the best case scenario....
    Finance Basics :

    The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $68,000. The tax rate is 34 percent. The sales price is estimated at

  • Q : Purpose of other adjustments account....
    Finance Basics :

    What is the purpose of the "Other Adjustments Account" (OAA) and what types of items increase it or decrease it?

  • Q : Size of loan which nissan granted to securities dealer....
    Finance Basics :

    An automobile company, NISSAN, has a temporary cash surplus and lends its funds overnight through a repurchase agreement to a government securities dealer, earning $55,600 in interest income when th

  • Q : Horizon value-value of operations....
    Finance Basics :

    What is the horizon value as of 12/31/2011? What is the value of operations as of 12/31/2010? What is the total value of the company as of 12/31/2010? What is the intrinsic price per share for 12/31/2

  • Q : Estimated value of adr per share in one year....
    Finance Basics :

    You own American depository receipts (ADRs) that represent Genevo stock. Each share that you own represents one share of the stock traded on the Swiss stock exchange. What is the estimated value of

  • Q : Bank discount yield to maturity of note....
    Finance Basics :

    A new issue of 90-day commercial paper is available from a dealer at $97.60 on a $100 basis. What is the bank discount yield to maturity of this note?

  • Q : Important element in financial planning process....
    Finance Basics :

    Behavioural finance is a relatively new discipline. What is behavioural finance and why should it be considered to be an important element in the financial planning process? no more than 300 words f

  • Q : Incremental cost of refinancing....
    Finance Basics :

    The investor would like to refinance at an amount equal to 75% of the property value. He has found out that the property can be refinanced at a 75% loan-to-value ratio over 15 years. What can be sai

  • Q : Taxable income and pretax accounting income....
    Finance Basics :

    Differences in taxable income and pretax accounting income that will not be offset by corresponding differences or "turn around" in future periods are called

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