• Q : Compensation-shareholder wealth....
    Finance Basics :

    The board of directors sets compensation for company executives. How should it structure compensation for the company CEO if it wants to induce the CEO to maximize shareholder wealth? If compensatio

  • Q : Proportion of total sales represented-foreign sales....
    Finance Basics :

    What is the proportion of total sales represented by foreign sales? How has this changed over the past five to ten years? What efforts has the company recently undertaken to increase or decrease globa

  • Q : Computing appropriate selling price....
    Finance Basics :

    Calculate the appropriate selling price of a 30-year 9% annual coupon paid semiannually, $1,000 corporate bond that was purchased five years ago. Marketplace interest rates are averaging 8%.

  • Q : Expected return of the three-issue portfolio....
    Finance Basics :

    What is the expected return of the three-issue portfolio with the following characteristics?

  • Q : Determining the actual excess return....
    Finance Basics :

    Suppose it turns out that the economy and the stock market do better than expected by 2% and Semitool's products experience more rapid growth than anticipated, thus pushing up the stock price by ano

  • Q : Proportion of total sales....
    Finance Basics :

    What is the proportion of total sales represented by foreign sales? How has this changed over the past five to ten years?

  • Q : Preemptive right for a company....
    Finance Basics :

    What's the preemptive right for a company's common shareholders?

  • Q : Unemployment rate and stock market performance....
    Finance Basics :

    Discuss the relationship between unemployment rate and stock market performance.

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

    The company has $200,000,000 in common stock equity with an estimated 10% annual cost of capital. You recently issued $100,000,000 in corporate bonds that currently pay a 6% annual yield. Finally, you

  • Q : Expected dollar rate of return on dollar....
    Finance Basics :

    What is the expected dollar rate of return on dollar deposits with today's exchange rate at $1.10 per euro, next year's expected exchange rate at $1.165 per euro, the dollar interest rate at 10%, an

  • Q : Real exchange rate....
    Finance Basics :

    The real exchange rate, q, is defined as: the price of the foreign basket in terms of the domestic one.

  • Q : Opportunity cost of a checking account....
    Finance Basics :

    What is the opportunity cost of a checking account that requires a $500 minimum balance to avoid service charges? Assume an interest rate of 4%.

  • Q : Result of deregulation and impact on global finance....
    Finance Basics :

    Research the Glass Steagall Act (1933) and the Financial Services Modernization Act (1999/2000). Using at least 5 references, analyze the result of deregulation and the impact on global finance. Pre

  • Q : Proportion of total sales represented by foreign sales....
    Finance Basics :

    What is the proportion of total sales represented by foreign sales? How has this changed over the past five to ten years? What efforts has the company recently undertaken to increase or decrease glo

  • Q : Estimating the duration of the bond....
    Finance Basics :

    You have discovered that the price of a bond rose from $975 to $995 when the yield to maturity fell from 9.75% to 9.25%. What is the duration of the bond?

  • Q : Use of additional and excessive leverage....
    Finance Basics :

    While there are risks associated with the use of additional and excessive leverage, what advantages exist besides its use to fund operations (without affecting equity)?

  • Q : Formulas for dividend payout....
    Finance Basics :

    What are the formulas for dividend payout, dividend yield, total return, annualized holding period yield, book value, and market-to-book ratio? Please cite your resource

  • Q : When a corporation uses excess cash....
    Finance Basics :

    When a corporation uses excess cash to buy back its own shares of stock, the result is:

  • Q : Ebit and leverage....
    Finance Basics :

    Money, Inc. has no debt outstanding and a total market value of $225,000. Earnings before interest and taxes, EBIT, are projected to be $19,000 if economic conditions are normal.

  • Q : Sales and growth exercise....
    Finance Basics :

    The most recent financial statements for Tool Co. are shown here:What is the maximum increase in sales that can be sustained assuming no new equity is issued?

  • Q : Inflation-indexed notes and bonds....
    Finance Basics :

    What are inflation-indexed notes and bonds? Please explain these securities.

  • Q : Calculating expected net present value of project....
    Finance Basics :

    The company expects that the project will produce positive cash flows of $5,050,000 a year at the end of each of the next 15 years. The project's cost of capital is 14%. Calculate the expected net p

  • Q : Types of financial success standards....
    Finance Basics :

    Let's discuss the different types of financial success standards that an organization may set. Which do you think is used most often and why? What types of standards do you use at work or at home? H

  • Q : Firm commitment versus best efforts....
    Finance Basics :

    Astro Investment Bankers offers Lunar Vacations the following options on its initial public sale of equity: (a) a best efforts arrangement whereby Astro will keep 2.5% of the retail sales or

  • Q : Determining the discount loan....
    Finance Basics :

    Up-Front Bank uses discount loans for all its customers who want one-year loans. Currently, the bank is providing one-year discount loans at 8%. What is the effective annual rate on these loans?

©TutorsGlobe All rights reserved 2022-2023.