• Q : Determine share price of stock....
    Finance Basics :

    Big Blue Banana (BBB) is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. Suppose that Big Blue Banana announces plans to lower its corporate taxes by b

  • Q : The concept of earnings management....
    Finance Basics :

    The concept of earnings management connotes different things to different users of the term. Define earnings management. Discuss why it is difficult to discern whether a firm does in fact practice ear

  • Q : Markets expectations - future of the economy....
    Finance Basics :

    Complete the following assignment by entering the information in an excel spreadsheet and using the graphing capabilities in Excel to create the yield curve. your conclusions may be typed into your Ex

  • Q : Test of controls and substantive tests....
    Finance Basics :

    Red Corporation had a temporary cash squeeze near its balance sheet date. It needed cash badly for a seasonal dip in sales. However, a loan covenant requiring a certain debt/equity ratio would be viol

  • Q : Portfolio investments....
    Finance Basics :

    You are an investment advisor. Your 60 year old client with $200,000 in investable assets firmly believes in market inefficiency. Suggest and discuss five specific real-world investments you would rec

  • Q : Estimate the expected value and standard deviation....
    Finance Basics :

    Bell Curve, Inc., estimates the expected value and standard deviation of its total liability losses for the forthcoming year as $10 million and $3 million respectively.

  • Q : Illegitimate political behavior....
    Finance Basics :

    You are the sales manager of a specific territory in Missouri for a company that manufactures highly specialized electrical parts. Your boss, the head of sales for Missouri, is being temporarily moved

  • Q : Calculate average daily receipts and weighted average delay....
    Finance Basics :

    Float and weighted average delay: your neighbor goes to the post office once a month and picks up two checks, one for $17,000 and one for $6,000.

  • Q : Find the amount reported in the balance sheet....
    Finance Basics :

    On January 1, 2008, Rans Co. purchased a patent for $595,000. The patent is being amortized over its remaining legal life of 15 years expiring on January 1, 2023.

  • Q : Determine the actual interest....
    Finance Basics :

    You can purchase a new building within the city limits for $525,000. The city will offer a special incentive reducing the price by $25,000.

  • Q : Compute approximate risk premium for common stocks....
    Finance Basics :

    Assume that the consensus required rate of return on common stocks is 14 percent. In addition, you read in Fortune that the expected rate of inflation is 5 percent and the estimated long-term real gro

  • Q : Calculate the amount for the land....
    Finance Basics :

    An investor is considering the purchase of 25 acres of land. An analysis indicates that the land will produce a cash flow (net of all expenses) of $10,000 per year forever.

  • Q : Determine the average before-tax profit....
    Finance Basics :

    Michael Bordellet is the owner/pilot of Bordellet Air Service. The company flies a daily round trip from Seattle's Lake Union to a resort in Canada. In 2010 the company recorded an annual income befor

  • Q : Determining financial performance....
    Finance Basics :

    If you were to get a physical from your Doctor and they only took your blood pressure prior to stating that you are in good health, would you be concerned?

  • Q : Identify and analyze the effect of the payment of interest....
    Finance Basics :

    Assume the same set of facts for Stacy Company as in Problem 10-2 except that the market rate of interest of January 1, 2008, is 8% and the proceeds from the bond issuance equal $10,803.

  • Q : Setup the adjusting entry....
    Finance Basics :

    On August 31, Jenks Co. partially refunded $180,000 of its outstanding 10% , note payable, made 1 year ago to Arma State Bank by paying $180,000 plus $18,000 interest.

  • Q : Determine nominal cost of trade credit....
    Finance Basics :

    What is the nominal cost of trade credit to a customer who pays on the due date? Set calculator to four decimal places to obtain the percentage answer to two decimal places

  • Q : Regulate financial institutions in the us....
    Finance Basics :

    Discuss why financial institutions are heavily regulated, with specific focus on their ability to increase or reduce the money supply. How does the Federal Reserve currently regulate financial institu

  • Q : Calculate the asset turnover and equity multiplier....
    Finance Basics :

    Choose a public company, and present findings from your financial analysis in a report. Your report must include the following:

  • Q : Using afn equation to estimate the funds needed....
    Finance Basics :

    After tax profit margin is 3.0% and the firm pays out 40% of its earnings in dividends. Sales last year were 12,000. Profit Margin and payout ratio will remain constant.

  • Q : Determine expected return and risk....
    Finance Basics :

    You have been scouring The Wall Street Journal looking for stocks that are "good values" and have found the following five candidates for addition to your portfolio:

  • Q : Determine business ethics perspective....
    Finance Basics :

    What are your thoughts regarding if ethics can be taught? Can we teach people right from wrong from a business ethics perspective?

  • Q : Make a recommendation for product mix....
    Finance Basics :

    The Pine Furniture Company makes fine country furniture. The company's current product lines consist of end tables, coffee tables, and dining room tables. The production of each of these tables requir

  • Q : Calculating the expected loss....
    Finance Basics :

    Suppose that Kate and Anne enter into a pooling arrangement. Assume that both women have the following loss-distributions and that losses are independent.

  • Q : Additional procesing decision....
    Finance Basics :

    Mega Chemical Company produces ZylexA and a related product called Zylex B. Zylex B, which sells for $15.00 per gallon, is made from a base of ZylexA plus additional ingredients.

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