• Q : Determining the currency appreciation....
    Finance Basics :

    Suppose that 1 Danish krone could be purchased in the foreign exchange market for 14 US cents today. If the krone appreciated 10 percent tomorrow against the dollar, how many krones would a dollar b

  • Q : Positive cash flows....
    Finance Basics :

    Golden Corporation is considering the purchase of new, technologically advanced thin film solar panels costing $80,000. The excess electricity from the panels will be sold back to the current electr

  • Q : Difference between call option and put option....
    Finance Basics :

    What is the difference between the call option and put option?

  • Q : Operating or capitalized leases....
    Finance Basics :

    Give an example of a publicly traded company that has either operating or capitalized leases?

  • Q : Holding cash and investing in money market instruments....
    Finance Basics :

    Discuss the trade-offs between holding cash and investing in money market instruments. Then, identify which you lean toward and state why.

  • Q : Ways in which businesses manage working capital....
    Finance Basics :

    Analyze the ways in which businesses manage working capital. Determine the single greatest challenge to small businesses and how those challenges may be addressed. Provide specific examples to support

  • Q : Determining arithmetic and geometric returns for the stock....
    Finance Basics :

    A stock has had returns of 34%, 18%, 29%, -6%, 16%, -48% over the last six years. What are the arithmetic and geometric returns for the stock?

  • Q : Determining the amount of direct labor....
    Finance Basics :

    Jan. 1, 2012 18,500 Work in process inventory, Dec. 31, 2012 22,500 Direct materials used 15,800 Assuming manufacturing overhead costs of $83,375, what is the amount of direct labor incurred by Vill

  • Q : Incorporate substantial analysis-textual comment....
    Finance Basics :

    Your project plan may be better suited to a capital budgeting type of analysis that includes a detailed NPV calculation. How you choose to analyze your company is up to you; however, you must incorp

  • Q : Evaluating expansion program....
    Finance Basics :

    Calculate the weighted cost of capital that is appropriate to use in evaluating this expansion program.

  • Q : Determining value of cash coverage ratio....
    Finance Basics :

    A firm has sales of $68,400, costs of $42,900, interest paid of $2,100, and depreciation of $6,500. The tax rate is 34 percent. What is the value of the cash coverage ratio?

  • Q : Calculating returns and variability....
    Finance Basics :

    You've observed the following returns on Mary Ann Data Corporation's stock over the past five years: 34 percent, 16 percent, 19 percent, - 21 percent, and 8 percent.

  • Q : Important factors that are beyond firm diret control....
    Finance Basics :

    A firm can affect its cost of capital through its capital structure policy, dividend policy and investment policy. Discuss the three most important factors that are beyond a firm's direct control.

  • Q : Find the irr and mirr of project....
    Finance Basics :

    Find the IRR and MIRR of a project if it has estimated cash flows of $5,500 annually for seven years if its year-zero investment is $25,000 and the firm's minimum required rate of return on the proj

  • Q : Npv and pi of an annuity....
    Finance Basics :

    Find the NPV and PI of an annuity that pays $500 per year for eight years and costs $2,500. Assume a discount rate of 6 percent.

  • Q : Specific examples of projects or decisions....
    Finance Basics :

    What are some specific examples of projects or decisions, which could be made using, discounted cash flows analysis within your company or business experience?

  • Q : Risk adjustment techniques....
    Finance Basics :

    Explain how simulation can be used in multinational capital budgeting. What can it do that other risk adjustment techniques cannot?

  • Q : Determining the portfolio alpha....
    Finance Basics :

    The average T-bond rate was 7 percent and the realized rate of return on the S&P 500 was 12 percent. What was the portfolio's alpha?

  • Q : Find the payback period....
    Finance Basics :

    A project requires cash outlay of rs 20000and generate cash inflows of rs 80000,rs 4000,and rs 3000 during the next 4 years. Find the payback period?

  • Q : Cost of internal equity for alpha tool....
    Finance Basics :

    This annual dividend growth rate is expected to decline to 8 percent for years 3 and 4 and then to settle down to 4 percent per year forever. Calculate the cost of internal equity for Alpha Tool.

  • Q : Computing after-tax cost of preferred stock....
    Finance Basics :

    Calculate the after-tax cost of this preferred stock offering assuming that this stock is a perpetuity. If the stock is callable in 5 years at $66 per share and investors expect it to be called at th

  • Q : Difference between capital markets and money markets....
    Finance Basics :

    Explain the differences between capital markets and money markets. What are their respective purposes? How does each of these markets affect you and other individuals?

  • Q : Calculate the equity capital ratio....
    Finance Basics :

    Calculate the equity capital ratio. Calculate the Tier 1 Ratio using risk-adjusted assets. Calculate the Total Capital (Tier 1 plus Tier 2) Ratio using risk-adjusted assets.

  • Q : Present value of given annuity....
    Finance Basics :

    Consider an ordinary annuity with seven cash flows of $4800 each. The cash flows occur at the end of each year, beginning one year from today. Assuming the interest rate is 9% per year, what is the

  • Q : Standard deviation of return of two portfolios....
    Finance Basics :

    Ones investor creates a portfolio on the efficient frontier with an expected return of 10%. Another creates a portfolio on the efficient frontier with an expected return of 20%. What is the standard

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