• Q : Comparing a capitated environment....
    Finance Basics :

    Comparing a capitated environment to a fee-for-service environment; in a capitated environment:

  • Q : Determine dollar amount of the maintenance margin....
    Finance Basics :

    An American company sells yen futures contracts to cover possible exchange losses on its export orders denominated in Japanese yen. The amount of the initial margin is $20,000, and the maintenance mar

  • Q : Overemphasis on short-term and long-term profits....
    Finance Basics :

    Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits.

  • Q : Calculating real cost....
    Finance Basics :

    A US company negotiated a forward contract to buy 100,000 British pounds in 90 days. The company was supposed to use the £100,000 to buy British supplies.

  • Q : Calculating insurance costs....
    Finance Basics :

    Marisa has a policy with replacement cost coverage and 80% co-insurance, and has a loss of $100,000 on her house. The replacement cost is $400,000 and the total policy coverage is $300,000. 

  • Q : Estimate precise tradeoffs....
    Finance Basics :

    In a tradeoff between two decision criteria such as ease of commuting and attractiveness of job, can you use money as a common denominator to estimate precise tradeoffs?

  • Q : Calculation of unit costs....
    Finance Basics :

    Cordoba Plc has the selling price of £25 per unit, direct material cost of £10 per unit, direct labour cost £6 per unit & variable overheads of £4 per unit. It has a fixed

  • Q : Prepare a table showing the development of initial portfolio....
    Finance Basics :

    One way to diversify your portfolio is to invest in the mutual funds. A mutual fund is a professionally managed type of collective investment that pools money from many investors to buy stocks, bonds,

  • Q : Evaluation of international investments....
    Finance Basics :

    International investment is a prudent part of any investment portfolio. International investment helps to diversify the investment portfolio. Although, international investments are beneficial, they a

  • Q : Determine external funding requirement....
    Finance Basics :

    Your company, Martin Industries, Inc., has experienced a higher than expected demand for its new product line. The company plans to expand its operation by 25% by spending $5,000,000 for an additional

  • Q : Implications of a change in the return on equity....
    Finance Basics :

    How does the degree of operating and financial leverage change the profitability of the firm when sales levels change significantly. Use examples and explain your answers?

  • Q : Determine firm fundamental, or intrinsic value....
    Finance Basics :

    Edmund Enterprises recently made a large investment to upgrade its technology. Although these improvements won't have much of an impact on performance in the short run, they are expected to reduce fut

  • Q : Calculate the value of a preferred stock....
    Finance Basics :

    You are trying to calculate the value of a preferred stock you are examining. This preferred stock has an annual dividend of $5 per share and a par value of $30.

  • Q : How the liquidity risk affects business risk....
    Finance Basics :

    Financial risk relates to the business debt, which may be incurred by business operations, but business risk is independent of the debt of the business."

  • Q : Social security benefits....
    Finance Basics :

    As retirees look to squeeze the most from their Social Security benefits, financial firms and advocacy groups are offering more advice on maximizing payouts.

  • Q : Find the u.s. trade in goods and services....
    Finance Basics :

    The United States exported almost $2 trillion worth of goods and services in 2010 yet realized a trade deficit of more than $500 million, meaning it imported more than it exported.

  • Q : Evaluating retirement plan....
    Finance Basics :

    Peggy gets paid every other week (bi-weekly) and her husband Patrick gets paid monthly. Peggy is going to make a $150 deposit from her paycheck every two weeks into a new retirement fund,

  • Q : Determine the fixed plant capacity....
    Finance Basics :

    My group is about to start a new company that will enter the international microcomputer business. In order to get our new company off the ground, the members of the executive team,

  • Q : Computing new expected rate of return....
    Finance Basics :

    ABC Corporation's stock had expected return of 11.75% last year, when the risk free rate was 5.50% and the MARKET RISK PREMIUM was 4.75%. Then an increase in investor risk aversion caused the MARKET R

  • Q : Weak mortgage and real estate market....
    Finance Basics :

    Suppose you have $50,000 that you must invest. Generally, how will you invest it? What are your reasons for this investment?

  • Q : Determine importance of risk....
    Finance Basics :

    You plan to meet with her on her first day of work to discuss one of the foundational issues behind all financial decisions, regardless of whether an individual investor is involved, a small company,

  • Q : Calculate the amounts to preferred and common shareholders....
    Finance Basics :

    Smith Jones Market Company has 3,000 shares 9%, $60.00 par cumulative preferred stock outstanding and 4,900 shares of $3.75 par value common stock outstanding.

  • Q : Discuss the risks the google faces....
    Finance Basics :

    Discuss the risks the Google faces and the actions they take to mitigate those risks. Refer to the Management Discussion and Analysis section of the annual report for this information.

  • Q : Identify an example of a recent price adjustment....
    Finance Basics :

    Identify an example of a recent price adjustment. This can be a new sale price, a price increase or a special offer. Research the history of the price for this product, including competitive influence

  • Q : Measuring the transaction risk....
    Finance Basics :

    One of your newer clients is the Senior Lending Officer of a local bank. He is new to his position and does not have a lot of experience in risk management.

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