• Q : Differences between absorption costing and variable costing....
    Finance Basics :

    There are several ways a company can allocate overhead costs to products produced or services provided. Two of these methods are absorption costing and variable costing.

  • Q : What is the opportunity cost of capital....
    Finance Basics :

    What is the opportunity cost of capital?How is this rate used in discounted cash flow analysis?Define financial risk.Why is risk analysis so important to capital investment decisions?

  • Q : What was the price of this bond when it was issued....
    Finance Basics :

    Suppose that GM issues a bond with ten years until maturity, a face value of $1000, and a coupon rate of 7%(annual payments). The yield to maturity on this bond when it was issued was 6%.

  • Q : Explain the meaning of the variances....
    Finance Basics :

    Compute the volume, mix, and price revenue variances. How did things turn out for the group considering just revenues? How did they turn out from a profit perspective? Use either the approach from c

  • Q : Design a requires an initial outlay....
    Finance Basics :

    Design A requires an initial outlay of $180,000 and has a net after-tax cash inflow of $60,000(revenues of $180,000 minus costs of $120,000) compute NPV, IRR and the payback period?

  • Q : What is the value of the investment....
    Finance Basics :

    An investment offers $5,700 per year for 10 years, with the first payment occurring one year from now. If the required return is 5 percent, what is the value of the investment?

  • Q : What is the average compounded growth rate....
    Finance Basics :

    Compute a market capitalization-weighted stock price index using the 5 given securities. Set the base of the index to 100 as at May 2000. What is the average compounded growth rate per month for yo

  • Q : What is the nvp of the new plant....
    Finance Basics :

    A new issue of common stock: The flotation costs of the new common stock would be 8 percent of the amount raised. The required return on the company’s new equity is 14 percent.

  • Q : What is the portfolio weight of stock....
    Finance Basics :

    You own a portfolio that consists of $8,000 in stock A, $4,600 in stock B, $13,000 in stock C, and $5,500 in stock D. What is the portfolio weight of stock D?

  • Q : Which asset appears riskiest based on standard deviation....
    Finance Basics :

    From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset.

  • Q : What is the new common stock issue....
    Finance Basics :

    A new common stock issue that paid a $1.76 dividend last year The firm's dividends are expected to continue to grow at 6.7 per year forever.The price of the firms common stock is now $27.0?

  • Q : Analyze current receivables management....
    Finance Basics :

    Use the Internet to research two publically held health care organizations in your state that you believe would benefit from a merger. Download and review each organization’s financial statement

  • Q : How effectively is the firm using leverage....
    Finance Basics :

    Calculate the financial ratios.Discuss the trend.  Does the trend appear to be strengthening or weakening?Compare these ratios. How is the firm performing compared to the competition?

  • Q : Write a piecewise definition of the monthly charge....
    Finance Basics :

    Write a piecewise definition of the monthly charge S(x) (in dollars) for a customer who uses x kWh in a summer month:Energy charge.

  • Q : What would be the approximate food....
    Finance Basics :

    What would be the approximate food, beverage, and non food-supplies inventory value of a full service restaurant with an annual sales volume of $600,000?

  • Q : Calculate which product is over cost....
    Finance Basics :

    Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period i

  • Q : What is the value of this lease....
    Finance Basics :

    What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%.

  • Q : How to investors expect past trends to continue....
    Finance Basics :

    WACC The following table gives Foust Company’s earnings per share for the last 10 years. The common stock, 7.8 million shares outstanding, is now selling for $65.00 per share.

  • Q : Successories e-commerce strategy....
    Finance Basics :

    If the management team decides to make the shift from catalogs to the web, what recommendations can you make concerning successories's e-commerce strategy?

  • Q : What is the opportunity cost of capital....
    Finance Basics :

    Define financial risk. Why is risk analysis so important to capital investment decisions?What is the goal of cash management?

  • Q : What was the price of this bond....
    Finance Basics :

    .Suppose that GM issues a bond with ten years until maturity, a face value of $1000, and a coupon rate of 7%(annual payments). The yield to maturity on this bond when it was issued was 6%.

  • Q : What is the current share price....
    Finance Basics :

    Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.10, $16.10, $21.10, and $2.90. Afterwards, the company pledges to maintain a constant 5.25 percent grow

  • Q : Design a requires an initial outlay....
    Finance Basics :

    Design A requires an initial outlay of $180,000 and has a net after-tax cash inflow of $60,000(revenues of $180,000 minus costs of $120,000) compute NPV, IRR and the payback period?

  • Q : Compute the swap spread for swap....
    Finance Basics :

    Swap 1 is a 10–year fixed-for-floating swap for riskless counterparties using the riskless 1–year floating rate, and swap 2 is a 10-year fixed–for–floating swap for risky count

  • Q : What is the highest amount in six years....
    Finance Basics :

    You have $10,000 to invest for 6 years. You can invest this at a rate of 7.67% compounded annually, at a rate of 7.52% compounded quarterly, or at a rate of 7.35% compounded monthly. Which of the 3 al

©TutorsGlobe All rights reserved 2022-2023.