• Q : What is a uniform comparison....
    Finance Basics :

    What happens if an investor does not deposit enough funds in the account to pay for the shares bought? What happens if an investor deposits funds four days after placing an order? What is a Uniform Co

  • Q : Current ratios-quick ratios-debt to equity ratios....
    Finance Basics :

    Identify two publicly traded corporations in the same industry and compare and contrast their current ratios, quick ratios, and debt to equity ratios. Explain what these ratios mean and how they he

  • Q : Role of financial institutions in financial management....
    Finance Basics :

    What role do financial institutions play in financial management? What role do financial markets have in financial management? Please compare and contrast the two.  

  • Q : Standards of ethical business practices....
    Finance Basics :

    Reconcile high standards of ethical business practices with the concept of shareholder wealth maximization and stakeholder theory. What responsibility do executives have to their shareholders and th

  • Q : Advantages and disadvantages of gold standard....
    Finance Basics :

    Provide your own definition of transaction exposure. How is it different from economic exposure? Give a full definition of the market for foreign exchange. Discuss the advantages and disadvantages of

  • Q : Percentage flotation cost....
    Finance Basics :

    The Evanec company's next expected dividend,D1 is $3.18,its growth rate is 6% and the stock now sells for $36. New stock can be sold to net the firm $32.40 per share. What is Evanec percentage flota

  • Q : Next dividend payment....
    Finance Basics :

    Suppose a preferred stock pays a quarterly dividend of $2 a share. The next dividend comes in exactly one-fourth of a year. If the prince of the stock is $80, what is its current market price? What

  • Q : Corporate finance management.....
    Finance Basics :

    A project costing $1 million is expected to save $300,000/yr for 4 years. What is the simple payback, NPV, and IRR. Would you prefer to invest in a project with a high IRR, or low IRR? Why?

  • Q : Draw the security market line....
    Finance Basics :

    Draw the security market line (SML) on a set of "nondiversifiable risk (X-axis) - required return (y axis)" axes. Calculate and label the market risk premium on the axes in part a. Given the previous

  • Q : Risk-free rate for a firm....
    Finance Basics :

    Find the required return for an asset with a beta of 0.90 when the risk free rate and market return are 8% and 12%, respectively. Find the risk-free rate for a firm with a required return of 15% and

  • Q : Important role in the budgetary process....
    Finance Basics :

    Discuss additional behavioral implications of planning and control when a company's management employs an imposed budgetary approach and a participative budgetary approach. Communications plays an

  • Q : Expected nominal interest rate....
    Finance Basics :

    Assume investors expect a 2.0 percent real rate of return over the next year. If inflation is expected to be 0.5 percent, what is the expected nominal interest rate for a one-year U.S. Treasury secu

  • Q : Impact of credit crisis on risk premiums....
    Finance Basics :

    Explain how the credit crisis affected the credit risk premium in the commercial paper market.

  • Q : Payback period-discounted payback periodn....
    Finance Basics :

    Lemon Company is evaluating two mutually exclusive investment projects. The projects have the following cash flows: Year1,2,3,4, Project A Cash Flow: -$50,000, 10,000, 15,000, 40,000, 20,000 Project

  • Q : Purchase of the alpha stock....
    Finance Basics :

    Alpha has an expected return of 13.0% and a beta of 1.50. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the A

  • Q : Expected return of shares....
    Finance Basics :

    After contemplating the risk of Petscan stock, Gail is willing to hold the stock only if it provides an annual expected return of at least 13%. Should she buy Petscan shares or not?

  • Q : Determinning net advantage to leasing....
    Finance Basics :

    Arkansas Instruments (AI) can purchase a sonic cleaner for $1,000,000. The machine has a five-year life and would be depreciated straight line to a $100,000 salvage value.

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

    Calculating present values A 5-year annuity of 10 $7,800 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now.

  • Q : Hedge business in foreign country....
    Finance Basics :

    Discuss how currency futures or options can be used to hedge your business in a foreign country. (Pick a foreign country, assume any business you want to do, describe a situation you face to hedge y

  • Q : Calculate the price corresponding to bid....
    Finance Basics :

    Calculate the price corresponding to the bid and the price corresponding to the asked above (report the prices as a percent of face value). Which price is higher? Why does this make sense?

  • Q : Computing value of the annuity....
    Finance Basics :

    A four year annuity payment of $500 per year, with payment begin in year 6, assuming a 10% discount rate. What is the value of the annuity in year 6? What is the value of the annuity today?

  • Q : Weekly fluctuations in sales....
    Finance Basics :

    You wish to display a continuous series of data showing weekly fluctuations in sales. The chart you will select is the

  • Q : Effects of eliminating all securities laws and regulations....
    Finance Basics :

    What would be the effects of eliminating all securities laws and regulations? Consider the effects on insider trading, disclosures such as financial statements and public information, risk of invest

  • Q : Prepare a balance sheet for alaskan orange....
    Finance Basics :

    Prepare a balance sheet for Alaskan Orange Corp. as of December 31,2010, based on the following information: cash = $193,000; patents and copyrights = $847,000; accounts payable = $296,000;

  • Q : Effective annual interest rate associated with loan....
    Finance Basics :

    A bank lends a firm $500,000 for one year at 8 percent and requires compensating balances of 10 percent of the face value of the loan. The effective annual interest rate associated with this loan is

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