• Q : Value of etc according to mm with corporate taxes....
    Finance Basics :

    What is the value of ETC according to MM with corporate taxes? What is ETC's value (rounded to the nearest 1000) according to MM (including personal taxes)?

  • Q : Economic exposure to the eur....
    Finance Basics :

    Describe the economic exposure to the EUR from the perspective of the Tunisian JV partner. Explain. Give one recommendation how the French company could hedge its exposure to the TND. Explain. Give on

  • Q : Basic equation for the capital asset pricing model....
    Finance Basics :

    Manipulating CAPM Use the basic equation for the capital asset pricing model (CAPM) to work each of the following problems. Find the required return for an asset with a beta of 0.90 when the risk-free

  • Q : Cumulative adjustment factor....
    Finance Basics :

    On 30 January 2002, you bought one share of ABC for $80. On 30 January 2003, the stock split 2 for 1. On 31st July 2003, the stock splits 2 for 1 and on 31st January 2004, the stock price is $25. C

  • Q : Standard deviation or coefficient of variation....
    Finance Basics :

    Based solely on standard deviation, which investment is less risky? Based solely on coefficient of variation, which investment is less risky? Given that the expected rates of return are not equal, w

  • Q : Example of cash basis for tax purposes....
    Finance Basics :

    You are preparing a background report to help you prepare for the seminar. The report will include information about programs supported by tax revenue, the type of tax structure in the United States

  • Q : Comparative analysis on power point presentation....
    Finance Basics :

    Prepare a comparative analysis Power Point presentation (minimum 5 slides; maximum 10 slides). Use the notes section in PowerPoint to clarify your talking points. The notes section must be formatted

  • Q : Dupont optimal capital budget....
    Finance Basics :

    The management of DuPont is planning next year's capital budget. The company's earnings and dividends are growing at a constant rate of 5 percent. What is DuPont's optimal capital budget?  

  • Q : Determining the cost of preferred issue....
    Finance Basics :

    A company just issued at $3.20 cumulative preferred stock at a price to the public of $30 a share. The flotation costs were $1.50 a share and the issue will be retired in 20 years at its $30 par val

  • Q : Determininig the various kinds of budgets....
    Finance Basics :

    What are the various kinds of budgets? Please explain each. Which type of budget is best for your selected company? Which type of calendar year will you choose and why?

  • Q : Meaning and components of financial reporting system....
    Finance Basics :

    Describe the meaning and the components of a financial reporting system. Write a description of how management should use an activity based budget instead of an operating budget. Explain the similarit

  • Q : Partnership business structure over a corporation....
    Finance Basics :

    Create an argument for using a partnership business structure over a corporation. Provide support for your argument. How can you determine the stock ratio indicates to an investor; that the risk rel

  • Q : Sales revenue under worst case scenario....
    Finance Basics :

    Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, plus or minus 3 percent. What is t

  • Q : Determining the operating cash flow for project....
    Finance Basics :

    The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4 year life of the project. The applicable tax rate is 32 percent. Wh

  • Q : Engaging in sequential stackelberg competition....
    Finance Basics :

    Suppose firm 1 decides its quantity x1 first and firms 2 follows after observing x1. The demand function of the market is x(p) = 100 - 0.1p and the cost function for both firms are c(x) = FC + 5x2

  • Q : Evaluating addition of lower-priced handbags....
    Finance Basics :

    The firm estimates it can sell 7,000 of the of the lower-priced handbags but will sell 3,000 less of the higher priced handbags by doing so. What is the amount of the sales that should be used when

  • Q : Amount of initial cash flow for expansion project....
    Finance Basics :

    This equipment could be used for producing awnings if $12,000 is spent for equipment modifications. Other equipment costing $490,000 will also be required. What is the amount of the initial cash flo

  • Q : Estimate of intrinsic value with stock actual price....
    Finance Basics :

    Compare your estimate of intrinsic value with the stock's actual price. Would you be willing to make an investment decision on the basis of your research? Why or why not? The final one to two page p

  • Q : Importance to stockholders of publicly owned or closely held....
    Finance Basics :

    How important do you suppose control is for the average stockholder of a firm whose shares are traded on the NYSE? Is the control issue likely to be of more importance to stockholders of publicly ow

  • Q : Determining the two business process....
    Finance Basics :

    Identify at least two business process. Identify a grain from each business process. Draw the star schema for any one of the business process

  • Q : Result of volume growth price growth....
    Finance Basics :

    If you project that the gross profit will increase is the increase a result of volume growth price growth or both? Should you project that the firm's gross profit margin (gross profit divided by sal

  • Q : Detour in doing financial statement analysis....
    Finance Basics :

    Consider the statement: "Strategy analysis seems to be an unnecessary detour in doing financial statement analysis. Why can't we just get straight to the financial management and accounting issues?"

  • Q : Critical drivers of industry profitability....
    Finance Basics :

    What are the critical drivers of industry profitability (think Porter's 5 forces)? Pick a driver and discuss in some detail how the driver can affect industry profitability.

  • Q : Capital asset pricing model in financial decision making....
    Finance Basics :

    Illustrate why some managers have difficulty applying the Capital Asset Pricing Model (CAPM) in financial decision making. Identify the benefits and drawbacks of using the CAPM.

  • Q : Finance department for analysis....
    Finance Basics :

    The project manager will find the project acceptable if it results in present cash flow saving of at least $860000. The following cash flow savings data are supplied to the finance department for an

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