• Q : Calculating index value....
    Finance Basics :

    Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million and $150 million respectively. If you were to construct a price-weighted index of the three s

  • Q : Making loan entries....
    Finance Basics :

    Young Company lends Dobson Industries $30,000 on January 1, 2010, accepting a 9-month, 12% interest note. If Dobson dishonors the note and does not pay it in full at maturity but Young expects that it

  • Q : Calculate the price of the combined test....
    Finance Basics :

    Allied Laboratories is combining some of its most common tests into one-price packages. One such package will contain three tests that have the following variable costs:

  • Q : Calculating new market value....
    Finance Basics :

    Ezzell Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value is $100.

  • Q : Calculate the break even quantity....
    Finance Basics :

    Dr. Gulakowicz is an orthodontist. She estimates that adding two new chairs will increase fixed costs by $150,000, including the annual equivalent cost of the capital investment and the salary of one

  • Q : Capital budgeting and capital structure....
    Finance Basics :

    The acquisition cost is $50,000 if it is purchased. The depreciation of the equipment will be $10,000 for years 2 through 4. If the equipment is leased, it will cost $11,000 per year for 5 years.

  • Q : Indicate amount to be reported on income statement....
    Finance Basics :

    As of January 1, 2010, the company had a projected benefit obligation of $900,000, an accumulated benefit obligation of $800,000, and a balance of $400,000 in accumulated OCI (PSC).

  • Q : Determining dollar growth in assets....
    Finance Basics :

    Middleton Clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2006. One year later, at the end of 2007, the clinic had $575,000 in assets and $380,000 in equity.

  • Q : Formulating a linear goal programming model....
    Finance Basics :

    Ferris, an investment management firm located in New York, has recently been retained as the endowment fund manager for a small Midwestern college.

  • Q : Distinct demand curves for admission....
    Finance Basics :

    The local space museum has hired you to assist them in setting admission prices. The museum's managers recognize that there are two distinct demand curves for admission.

  • Q : Commercial letters of credit....
    Finance Basics :

    Based on your reading in the textbook, write your answers to the following questions in a Word document and submit them to the Drop Box as explained below:

  • Q : Managing the pricing and purchasing changes....
    Finance Basics :

    How would you determine whether Albanese managed the pricing and purchasing changes at Sunflower successfully? Do you think the changes were implemented successfully? Why or why not?

  • Q : Computing the expected return and standard deviation....
    Finance Basics :

    Jane is considering investing in three different stocks or creating three distinct two-stock portfolios. Jane considers herself to be a rather conservative investor. She is able to obtain forecasted r

  • Q : Discuss the nature of the consortium....
    Finance Basics :

    Identify a non-North American project in the global arena that was funded by a consortium of public and private financial institutions. Discuss the nature of the consortium and evaluate the role of ea

  • Q : Calculate the portfolio standard deviation....
    Finance Basics :

    You own a portfolio that has 35% invested in asset A, and 65% invested in asset B. Asset A's standard deviation is 12% and asset B's standard deviation is 18%.

  • Q : Increasing the minimum wage by a dollar....
    Finance Basics :

    Have you ever worked for the minimum wage? If so, for how long? Would you favor increasing the minimum wage by a dollar? By two dollars? By five dollars? Explain your reasoning.

  • Q : Making up relevant numbers as appropriate....
    Finance Basics :

    Say the level of the market as measured by the Dow Jones Industrial Average is currently at 12,000. A forecaster has made a prediction of 13,300 for the level of the market in one year,

  • Q : Find the debt to equity ratio....
    Finance Basics :

    Find the debt to equity ratio for 2 other companies similar to Under Armour. Which has the hiehgest ratio? Which has the lowest? In your opinion, why did that company choose to have a low ratio?

  • Q : Calculate the annual end of year loan payment amount....
    Finance Basics :

    Messineo LLC borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end of year payments.

  • Q : Determining projects annual cash flows....
    Finance Basics :

    The common stock for Grapevine Plumbing Company currently sells for $40 per share. If a new issue is sold, the flotation cost is estimated to be $7 per share. The company had earnings of $2.00 per sha

  • Q : Determine the amount of sales....
    Finance Basics :

    Open the excel file and click on the data worksheet. Use the SUMIF function to calculate the total amount of sales in dollars (A/R Change) for each of the four types

  • Q : Preparing balance sheet and income statement....
    Finance Basics :

    Johnsons Scuba Co. has a weird accountant who reported the balance sheet and income statement items in alphabetical order.

  • Q : Selecting best option for production....
    Finance Basics :

    Harley Davidson sells motorcycle X and Y. Motorcycle X sells for $10,000, has variable cost (labor and material) of $2,000, and requires 10 hours of use of machinery to produce.

  • Q : Calculating the current value of stock....
    Finance Basics :

    Currently a firm is earning $3.80 per share (EPS=$3.80)and has a dividend payout ratio of 70% today and in the foreseeable future. Starting next year EPS is expected to grow by 30% for three years and

  • Q : Calculating value of share....
    Finance Basics :

    Horse and Buggy Inc, is a declining industry. Sales, earnings, and dividends are all shrinking at rate of 10% per year.

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