• Q : International financial system....
    Finance Basics :

    Imagine you diversify your financial institution and enter the international financial system. What challenges are most difficult to overcome? Explain your answer. Will the benefits outweigh the ch

  • Q : Cost of capital to firm for preferred stock....
    Finance Basics :

    Your Firm is planning to issue preferred stock. The stock is expected to sell for $98.03 a share and will have a $100 par value on which the firm will pay 14.7% dividend. What is the cost of capital

  • Q : Differences in cash flow between subsidiaries versus parents....
    Finance Basics :

    Discuss MNC capital budgeting decisions from the subsidiary versus the parent perspective. Explain important factors that cause differences in cash flow between subsidiaries versus parents.  

  • Q : Benefits and incentives for dfi....
    Finance Basics :

    What are the benefits and incentives for DFI? Find some real-world examples and discuss. Explain and discuss host government views about DFI.

  • Q : Utility portfolio for investor with risk aversion parameter....
    Finance Basics :

    The standard deviation of the S&P500 portfolio is 20%. What are the expected returns and variances of portfolios invested in T-bills and the S&P 500 with S&P weights 0%, 10%, 20%, 30%, 4

  • Q : Comprehensive credit-risk analysis report....
    Finance Basics :

    Perform a comprehensive credit-risk analysis report for General Motors Company, using its 2012 annual report.

  • Q : Determining project profitability index....
    Finance Basics :

    Consider a BORROWING capital budgeting project. Which of the following would indicate that the project's profitability index is less than one?

  • Q : Building society and credit union operations....
    Finance Basics :

    What are the major regulations and major regulatory bodies that oversee building society and credit union operations? how do these regulations and regulatory bodies affect them?

  • Q : Payroll and its accounts payable....
    Finance Basics :

    The firm has maintained a current ratio above the average for the wholesale industry. Mr. Jones has asked you to explain possible reasons why the firm is having difficulty meeting its payroll and it

  • Q : Annual report of two companies....
    Finance Basics :

    Search the annual report of two companies of your choice and analyze the footnotes about liabilities and equity. Explain your findings.

  • Q : Administration of us social security program....
    Finance Basics :

    Research the development and administration of the U.S. Social Security program. Include its history, current structure, and calculation of benefits; also, include other benefits available through t

  • Q : Determining tax consequences of partnerships....
    Finance Basics :

    Identify and discuss the Financial Accounting Standards (FAS) that govern accounting for partnerships including both creation, operation, and liquidation. What are the tax consequences of partnershi

  • Q : Determining current value of property....
    Finance Basics :

    A rental property is providing a 5% rate of return. Next year's rent is expected to be $0.6 million and is expected to grow at 2% per year forever. What is the current value of the property?

  • Q : Aftertax salvage value of the equipment....
    Finance Basics :

    Annual sales are estimated at $420,000 and NWC will increase by 20% of sales. All NWC will be recouped in Year 7. The required return is 16% and the tax rate is 35%. What is the aftertax salvage val

  • Q : Difference on investors decision-making....
    Finance Basics :

    Pick an annual report company of your choice that has operating leases footnote, and convert operating leases to capital leases. Explain the significance of the difference on investors' decision-mak

  • Q : Financial ratios to measure firm liquidity....
    Finance Basics :

    What are some financial ratios to measure a firm's liquidity? Explain some of these ratios. Is it important to compare a company's financial ratios to the industry benchmarks? Please explain.  

  • Q : Uncertainty surrounding foreign target for mnc....
    Finance Basics :

    Discuss examples of successful and unsuccessful international mergers and acquisitions. What factors made each case successful or unsuccessful?

  • Q : Minimizing cost of capital....
    Finance Basics :

    Discuss how an MNC finances its operations using capital structure while minimizing its cost of capital.

  • Q : Present value of bond of lone star company....
    Finance Basics :

    The Lone Star Company has $1000 par value bonds outstanding at 10 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds if the present value is:

  • Q : Ni approach and an equity capitalisation rate....
    Finance Basics :

    Using NI approach and an equity capitalisation rate of 18%, compute the total value of firm and the weighted average cost of capital if the firm has (i) no debt (ii) Rs. 3,00,000 debt and (iii) Rs.

  • Q : Addition of debt to capital structure....
    Finance Basics :

    It's assets are currently 100% equit financed (no debt). What is Hugh Brokett's current ROE? If they replace 60% of the equity with debt financing at an interest rate of 12%, what is their ROE? What a

  • Q : Cash and annual payment options....
    Finance Basics :

    If you choose the cash payment, you will receive a one-time lump sum payment of $65,460,904.06. At what interest rate would you be indifferent between the cash and annual payment options?

  • Q : Equally weighted average annualized return....
    Finance Basics :

    Assuming no intermediate flows before the terminal payoff, verify that the associated annualized rates are -42.55%, 8.45% and 19.35%. What is the equally weighted average annualized return? Does it

  • Q : Determining current yield on the bonds....
    Finance Basics :

    Stealer Wheel Software has 8% percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 93% of par. What is the current yield on the bon

  • Q : Determining current stock price....
    Finance Basics :

    After that, investors believe that the dividend will grow at 20% per year for three years before settling down to a long-run growth rate of 4%. The required rate of return on Groningen stock is 15%.

©TutorsGlobe All rights reserved 2022-2023.