• Q : Concepts of depreciation and amortization....
    Finance Basics :

    Your friend Lucy slept through a class in which her professor explained the concepts of depreciation and amortization. Think about cash flow and then write an explanation of the concepts for Lucy. B

  • Q : Purchase price of the machinery....
    Finance Basics :

    1) What was the purchase price of the machinery? 2) What was the Int Rate called fpr on the note?

  • Q : What is the equation for security market line....
    Finance Basics :

    a. What is the equation for Security Market Line (SML)? (Hint : First determine the expected market return) b. Calculate Kish's required rate of return.

  • Q : Whether or not you think apple will have a successful future....
    Finance Basics :

    Write a two to three page paper discussing whether or not you think Apple, INC company will have a successful future. Get to the company's web site, into the "investors relations" section and provid

  • Q : Types of capital-market instruments....
    Finance Basics :

    The following are the returns for 1980 to 1986 on 5 types of capital-market instruments: common stocks, small-capitalization stocks, long-term corporate bonds, long-term U.S. government bonds, and U

  • Q : Example of step-down or joint costs....
    Finance Basics :

    My question is....would this be an example of step-down or joint costs? Or one rather than the other?

  • Q : Professional obligation to make decisions....
    Finance Basics :

    Since managers are agents of stockholders, it is their professional obligation to make decisions to maximize the wealth of existing stockholders.

  • Q : Financial statements-delta airlines and dell computers....
    Finance Basics :

    I) Provide a brief overview of each company and highlight key information that is available on each statement, including the following items for each company chosen: 1) What is the company's product

  • Q : Elements of investment policy....
    Finance Basics :

    Problem 1: The three key elements of investment policy are the return, risk, and constraints. Explain why they are important.

  • Q : Calculate the total amount of her capital gain....
    Finance Basics :

    The father's cost was $2 per share at the time of purchase and $84 per share at the time of his death. Sophia sold them at $86 per share. Calculate the total amount of her capital gain. (Show your w

  • Q : Nominal annual interest rate....
    Finance Basics :

    The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?

  • Q : Par value-zero coupon bonds....
    Finance Basics :

    Problem: Jia Hua Enterprises wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is priced to yield 7% , how much will Jia Hua receive ( ignoring issuance costs) when the

  • Q : Price of the market index....
    Finance Basics :

    Investors being more risk averse demand an equity risk premium of eight percent. If the growth rate of dividends is expected to be 10 percent, what will be the price of the market index if the earni

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

    Given its higher volatility, should we expect Microsoft to have an equity cost of capital that is higher than 10%?

  • Q : Subject to federal income tax....
    Finance Basics :

    1. Dividends reinvested are not subject to federal income tax. 2. The value of a stock depends in part on future dividends and on the investors' required return 3. The value of a stock should increase

  • Q : Portfolio and rationale for the selection....
    Finance Basics :

    Write about 300 words report on the formation of the portfolio and the rationale for the selection.

  • Q : Calculate mollycaits operating breakeven point....
    Finance Basics :

    a) Calculate Mollycaits' operating breakeven point. b) Calculate Mollycaits' EBIT on the department store order.

  • Q : Required return on similar-risk bonds....
    Finance Basics :

    Question: Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12%. The required return on similar-risk bonds is 20%.

  • Q : Compute payments for the selected loan....
    Finance Basics :

    Calculate the EAR for two banks, make a recommendation to the best option and compute payments for the selected loan.

  • Q : Estimated beta coefficient of company....
    Finance Basics :

    What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio?

  • Q : Determining current futures prices....
    Finance Basics :

    One specialized type of security is called an equity futures. This is a contract that guarantees you a share of a particular company to be delivered to you not today, but sometime in the future, at

  • Q : What is the funds required rate of return....
    Finance Basics :

    If the market's required rate of return is 14% and the risk free rate is 6%, what is the funds required rate of return?

  • Q : Identify a potential capital project for apple....
    Finance Basics :

    Identify a potential capital project for Apple, Inc., describe the project and explain the problems they might encounter getting the funding to see it through.

  • Q : Expected inflation rate....
    Finance Basics :

    Problem: Other things held constant, if the expected inflation rate decreases and investors also become more risk averse, the Security Market Line would shift in this manner:

  • Q : Computing the bid price....
    Finance Basics :

    Please compute the bid price that should be submitted from the given information: If a project is to supply 100 million postage stamps per year to the USPS for the next five years. You have land ava

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