• Q : Advantage of linear programming....
    Finance Basics :

    Discuss an advantage of linear programming. Please explain the reason for your choice.

  • Q : Relationship of strategic and financial planning....
    Finance Basics :

    Write a 1,050- to 1,400-word paper in which you describe the relationship between strategic and financial planning. Include the following:

  • Q : Determine the new price of a bond....
    Finance Basics :

    Determine the new price of a bond if duration is 21, convexity is 181, and current price of bond is $93.27. Assume yield changes by 40 basis points.

  • Q : Determining the expected gross profit....
    Finance Basics :

    Expected production costs are $600 per unit. In 2011, volume is expected to increase by 10%, while inflation will increase both the sales price and the cost per unit by 3%. In real dollars, expected

  • Q : Determining the expected npv of project....
    Finance Basics :

    If early results indicate savings of $75,000 per year, four additional sets of panels will be installed immediately at the same cost with the same projected savings. The probability of either outco

  • Q : Determining the new degree of operating leverage....
    Finance Basics :

    A proposed project has fixed costs of $36,000 per year. The operating cash flow at 18,000 units is $58,000. What will be the new degree of operating leverage if the number of units sold rises to 18,

  • Q : Determining the companys target debt-equity ratio....
    Finance Basics :

    P & P communication has weighted average cost of capital of 9.5 perecent. The company's cost of equity is 15.5 percent, and its pretax cost of debt is 8.5 percnt. The tax rate is 34 percent. Wha

  • Q : Systems analysis phase of development....
    Finance Basics :

    Outputs of the systems analysis phase of development typically would include all of the following except:

  • Q : Evaluating the cost of preferred stock....
    Finance Basics :

    Calculate the cost of preferred stock (rPS) for each of the following:

  • Q : Determining the tax advantage of merger....
    Finance Basics :

    Tax benefits and price Hahn Textiles has a tax loss carryforward of $800,000. Two firms are interested in acquiring Hahn for the tax loss advantage. What is the tax advantage of the merger each year

  • Q : Economic and financial definitions of business failure....
    Finance Basics :

    Explain the difference between economic and financial definitions of business failure  

  • Q : Estimating the value of operations....
    Finance Basics :

    Suppose Leonard, Nixon, & Shull Corporation's projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of

  • Q : Determining the growth rate of dividends....
    Finance Basics :

    Determine the growth rate of dividends (g). By applying the constant-growth valuation model, determine the cost of retained earnings common equity (rs). By applying the constant-growth valuation model

  • Q : Derive the risk premium on common stock....
    Finance Basics :

    JPM Corporation common stock has a beta of 1.2. The risk-free rate is 6%, and the market return is 11%. Derive the risk premium on JPM common stock.

  • Q : Determining the level of sales....
    Finance Basics :

    What level of sales is necessary to break even if the product is sold for $4.25? What will be the manufactories profit or loss on the sales of 100,000 units?

  • Q : Components of cost of risk for pharmaceutical company....
    Finance Basics :

    All of the following are important components of the cost of risk for a pharmaceutical company which is developing a new prescription drug for the treatment of AIDS except:  

  • Q : Routine inspection of aircraft for mechanical problems....
    Finance Basics :

    What impact does routine inspection of aircraft for mechanical problems have on the risk of airplane crashes for United Airlines?

  • Q : Market risk premium for set of circumstances....
    Finance Basics :

    The Security market line: If the expected return on the market is 6.59 percent and the risk free rate is 4 percent, what is the expected return for a stock with a beta equal to 1.64? What is the ma

  • Q : Benefits of diversification achieved by creation portfolio....
    Finance Basics :

    How would you characterize the correlation of returns of the two assets L and M? e) Discuss ane benefits of diversification achieved through creation of the portfolio

  • Q : Eight-month forward contract on a stock....
    Finance Basics :

    Evaluate an eight-month forward contract on a stock with a price of $98/share. The delivery date is eight months hence. The firm is expected to pay a $1.85/share dividend in four months time.

  • Q : Firm''s tax payments and earnings after taxes....
    Finance Basics :

    The expected earnings given are assumed to fall within the annual limit that is legally allowed for application of the tax loss carry forward resulting from the proposed merger. Trapani is in the 4

  • Q : Financial and managerial accounting....
    Finance Basics :

    Describe the differences between financial and managerial accounting. Explain how ERP systems benefit both. What are the best strategies for determining system requirements?

  • Q : Determining the yield to maturity on bonds....
    Finance Basics :

    Generic, Inc. has bonds outstanding that mature in 20 years. The bonds have $1,000 par value, pay interest annually at a rate of 10%, and have a current selling price of $875.25. The yield to maturi

  • Q : Net present value of project-required return....
    Finance Basics :

    The equipment will be salvaged at the end of the project creating a $48,000 aftertax cash flow. At the end of the project, net working capital will return to its normal level. What is the net presen

  • Q : Determining the regular payback period for project....
    Finance Basics :

    Find the regular payback period for each project. Find the discounted payback period for each project. Assume that the two projects are independent and the cost of capital is 10%. Which project or pr

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