• Q : Analyzing futures market....
    Finance Basics :

    Analyze how the futures market has developed in some areas such as cattle and hogs, but not chickens. Predict the next addition to the futures market. Provide support for your answer.

  • Q : Find the current rate of inflation....
    Finance Basics :

    Work out how many years (10) to go before you retire, now look back the same number of years, and see how much the dollar has fallen in value from then to now. The US Government has the statistics.

  • Q : Computing portfolios beta....
    Finance Basics :

    Your investment club has only two stocks in its portfolio, $20,000 is invested stock with a beta of 0.7 and $35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta?

  • Q : H2o innovations - capital investments....
    Finance Basics :

    Choose and discuss two projects that require an investment for your firm, H20 Innovations. One should be a 'current project' and the other long-term investment project.

  • Q : Prepare a pro forma balance sheet....
    Finance Basics :

    Assets and costs are presumed to be proportional to Sales. Debt and Equity are not. Current dividends of $ 2,300 were paid; and the company's dividend policy is to maintain a constant payout ratio. Ne

  • Q : Margin required to hold a futures contract....
    Finance Basics :

    The margin required to hold a futures contract is not a down payment but a form of security bond. If the market goes against the trader's position, he may lose some, all, or possibly more than the mar

  • Q : Candidates for ascertaining the value effects....
    Finance Basics :

    A project costs $19,000 and promises the followig cash flows: Year 1 $12,500 Year 2 $6,000 and year 3 $3,000. The appropriate discount rate is %15 per annum.

  • Q : Repurchases of share to pay out cash to shareholders....
    Finance Basics :

    Apple's current share price is $491. The exercise price of your stock option is $520. The value of the stock option is equal to the difference between Apple's stock price and the exercise price of $52

  • Q : Consequences of under or over forecasting....
    Finance Basics :

    Just looking for your thoughts - Multiple bullet points would be acceptable. Minimum of five bullet on each question with explanation where necessary

  • Q : Computing net borrowing rate....
    Finance Basics :

    Three years ago, ABC AG arranged a five-year fixed borrowing facility at 5%. At that time the company correctly predicted that interest rates were about to fall, and decided to receive fixed on a five

  • Q : Discriminatory in plan allocation formula....
    Finance Basics :

    All profit-sharing plans must have a formula under which contributions are allocated to participants' accounts. Elliott Knitwear Co. has a profit-sharing plan for its 10 employees.

  • Q : Determine plan provision....
    Finance Basics :

    Ross Corporation is a 3-year old company with a relatively young staff of 12 employees, of whom two are highly compensated. The company wants to establish a Section 401(k) plan.

  • Q : Compute maximum total amount of contributions....
    Finance Basics :

    Alright Printing Company employs five individuals: Karl who earns $70,000 this year, Rachal who earns $50,000, and three sales representatives who each earn $40,000.

  • Q : Requirement for hardship distributions....
    Finance Basics :

    Mr. Fossett has a Section 401(k) plan account to which salary and matching contributions have been made for a number of years. He has had unexpected financial obligations in the current year and would

  • Q : Employee account diversification....
    Finance Basics :

    Black, Inc. is an ESOP-owned company with three employees: Kermit, age 62, who has participated in the plan for 21 years; Isaac, age 38, who has participated in the plan for eight years; and Nathan, a

  • Q : Finding correctly described stock bonus plan....
    Finance Basics :

    Randy, age 63, is a participant in the stock bonus plan of XYZ, Inc., a closely held corporation. Randy received contributions in shares of XYZ stock to the stock bonus plan and XYZ, Inc. had the foll

  • Q : Determine stock bonus plan....
    Finance Basics :

    Marcus, age 61, is a participant in a stock bonus plan. The value of the employer stock contributions to the plan over the course of his participation totaled $165,000.

  • Q : Determine roe on the investment....
    Finance Basics :

    The Metallica Heavy Metal Mining (MHMM) Corporation wants to diversify its operations. Some recent financial information for the company is shown below:

  • Q : Estimating npv....
    Finance Basics :

    Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,313,519 and have a life of five years and

  • Q : Determine the effect of the price increase....
    Finance Basics :

    Chip's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 87 percen

  • Q : Determine capital after-tax wacc....
    Finance Basics :

    Capital Co. has a capital structure, based on current market values, that consists of 34 percent debt, 12 percent preferred stock, and 54 percent common stock

  • Q : Diminishing marginal utility....
    Finance Basics :

    Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time.

  • Q : Updating current manual accounting system....
    Finance Basics :

    Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company money, the cost of the sy

  • Q : Difference between price and value....
    Finance Basics :

    Would you value a privately-owned company where there is no market value different than a publicly owned company where there is a market price every day?

  • Q : Asymmetric information....
    Finance Basics :

    Choose an area where someone would have insurance. Now use your knowledge of the problems associated with asymmetric information to explain why the insurance companies might include deductibles as par

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