• Q : Risk of loss and the opportunity for profit....
    Finance Basics :

    Evaluate the risk of loss and the opportunity for profit when traders buy or sell puts and calls.

  • Q : Article regarding cost of capital or capital structure....
    Finance Basics :

    Summary article regarding cost of capital or capital structure in the healthcare industry. Include its financial management signnificance. Please include reference, source, date and page number if a

  • Q : Article regarding current insurance problems....
    Finance Basics :

    Summary article regarding current insurance problems in the US. Include its finanical management significance. Please include Reference, sourse, date and page number

  • Q : Debt-to-assets ratio....
    Finance Basics :

    Bartley Barstools has an equity multiplier of 1.6, and its assets are financed with some combination of long-term debt and common equity. What is its debt-to-assets ratio? Round your answer to two d

  • Q : Estimating annual rate of return....
    Finance Basics :

    Your goal is to retire 30 years from now and have investments worth $2.5 million at that time. Today, you have $211 in your investment account and plan on adding an additional $10,000 to that accoun

  • Q : Mergers and shareholder value....
    Finance Basics :

    The Chocolate Ice Cream Company and the Vanilla Ice Cream Company have agreed to merge and form Fudge Swirl Consolidated. Both companies are exactly alike except that they are located in different t

  • Q : Amount of checkable deposits after deposit expansion....
    Finance Basics :

    What would be the maximum amount of checkable deposits after deposit expansion, and what would be the money multiplier? How would your answer in (a) change if the reserve requirement had been 9 percen

  • Q : Forward contract with a delivery price....
    Finance Basics :

    The spot price of an investment asset that provides no income is $20 and the risk-free rate for all maturities (with continuous compounding) is 10%. What is the value to the nearest cent of a three-

  • Q : Account of the cost of hedging....
    Finance Basics :

    A gold producer entered into a December futures contracts on March 1 to hedge the sale of gold on November 1. It closed out its position on November 1. After taking account of the cost of hedging, w

  • Q : Use the debt-equity ratio to calculate the wacc....
    Finance Basics :

    Sixx AM Manufacturing has a target debt-equity ratio of .65. Its cost of equity is 15 percent, and its cost of debt is 9 percent. If the tax rate is 35 percent, what is the company's Weighted Averag

  • Q : Money multiplier and the size of the money supply....
    Finance Basics :

    Determine the size of the M1 money multiplier and the size of the money supply. If the ratio of currency in circulation to checkable deposits were to drop 13 percent while the other ratios remained t

  • Q : Size of the money multiplier....
    Finance Basics :

    Assume the financial system has a monetary base of $25 million. The required reserves ratio is 10 percent, and there are no leakages in the system. What is the size of the money multiplier?

  • Q : Value of the company operations....
    Finance Basics :

    Calculate the company's free cash flow for next year. Calculate the value of the company's operations. Calculate the value of one share of the company's stock. Is the company's stock a good buy? Expla

  • Q : Calculate eps after the split....
    Finance Basics :

    How many shares of stock will be outstanding after the split? Calculate EPS after the split. Calculate price after the split if the PE increases by 2 points (for example, if PE was 10 prior to split,

  • Q : Calculate the cost of purchasing the equipment....
    Finance Basics :

    Calculate the cost of purchasing the equipment. Calculate the cost of leasing the equipment. Calculate the net advantage to leasing. Should the company purchase or lease the equipment?

  • Q : Calculating annuity values....
    Finance Basics :

    Your company will generate $45,000 in cash flow each year for the next nine years from a new information database. The computer system needed to set up the database costs $260,000. If you can borrow

  • Q : Basic corporate structure in a publicly-traded company....
    Finance Basics :

    Discuss the basic corporate structure in a publicly-traded company: common shareholders, board of directors, and top management (CEO).

  • Q : Effect on net income of the company....
    Finance Basics :

    Beta is considering a plan in which it will use available cash to repurchase 20% of its shares in the open market. The repurchase is expected to have no effect on net income of the company's P/E rat

  • Q : Method employed by fundamental analysts....
    Finance Basics :

    Which of the following is not a method employed by fundamental analysts?

  • Q : Percent of markdown....
    Finance Basics :

    A wooden duck with a regular selling price of $125.99 is marked down to $79.99. The percent of markdown is:

  • Q : External equity financing....
    Finance Basics :

    External Equity Financing: Northern Pacific heating and cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production

  • Q : Pooling of interests method of accounting....
    Finance Basics :

    "Balance Sheets for Merger," Assume that the following balance sheets are stated at book value. Construct a postmerger balance sheet assuming that Jurion Co. purchases James Inc. and the pooling of

  • Q : Percent value or worth of bond....
    Finance Basics :

    Assume a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If invesotrs are willing to accept a 10.25 percent rate of return on bonds

  • Q : Implications of this for the current debate....
    Finance Basics :

    What are the implications of this for the current debate on "Off-shoring?"

  • Q : Exercise value of the warrants....
    Finance Basics :

    Calculate the exercise value of the warrants if the price of the underlying stock is $40. How much would an investor likely be willing to pay for the warrant over and above its exercise value? Why?

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