See the data below for Alyssa Corporation as of 12/31/08: Treasury stock, common (at cost) $4,000,000 Additonal paid-in capital, common 9,000,000 Dividends payable 100,000 Retained income 12,000,000...

Monica bought a $1800 4K Ultra HD TV for 15% down, with the balance to be paid with interest at 15% compounded monthly in six equal monthly payments. Construct the full amortization schedule for the...

Golden Dragon Restaurant obtained a $10600 loan at 9% compounded annually to replace some kitchen equipment. Prepare a complete amortization schedule if the loan is repaid by semiannual payments over...

Taggart Transcontinental has issued at par a zero-coupon bond with a ten-year maturity. Investors believe there is a 10% chance that Taggart Transcontinental will default on these bonds. If they do...

Mr. Eric Wong operates a real estate agency that specializes in selling properties that are hard to sell. He is approached one day by a prospective client who has three properties he wishes to sell....

A friend of yours needs to decide whether or not to invest in a multiyear project. If your friend decides not to invest the project,he or she has nothing to lose or gain.If your friend decides to...

The current spot rate on the Euro is 0.59 per $1. U.S. Treasury bills are yielding 3 percent. The rate on a risk-free European asset is 1 percent. What is the approximate 4-year forward rate if...

Ray Flagg took out a 60-month fixed installment loan of $12,000 to open a new pet store. He paid no money down and began making monthly payments of $232. Ray's business does better than expected and...

Develop a cash budget based on the blowing information about a preschool: Revenue Tuition fee: $100,000 paid monthly Event income: $50,000 by Thanksgiving Foundation support: $200,000 semiannually....

Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $61,000 per year for 7 years. At the beginning of the project, inventory will...

Anne is a financial investor who actively buys and sells in the securities market. Now she has a portfolio of all blue chips, including: $13,500 of Share A, $7,600 of Share B, $14,700 of Share C, and...

Consider a primary mortgage market lender who has just now originated 1,000 30-year, monthly payment loans for $300,000 each at 5.5% interest. The lender wishes to sell the pool of mortgages as...

We find the following information on NPNG (No-Pain-No-Gain) Inc. (18 marks total) EBIT = $2,000,000 Depreciation = $250,000 Change in net working capital = $100,000 Net capital spending = $300,000...

"Hero" firm just paid $1 dividend. Analysts are predicting that the firm will pay $1 in a year, $2 in two years and $3 in three years from today. After that, the growth rate will be 6% a year...

Ima Greedy, the CFO of Financial Saving Techniques has been granted options on 200,000 shares. The stock is currently trading at $23 a share and the options are at the money. The variance of the...

We explore several techniques for allocation costs. Let's pretend you are on a committee to determine how much much tuition should increase per student for an upgrade in computer technology. For...

The ABCEasyAs123 Corporation has numerous retail clothing stores in the Lower Mainland. Its tax rate is 40 percent. ABC is going to expand its business by building a new retail store in the Lower...

(i)Shoes for kids is a company producing kids shoes and has the demand function Q = 40 2P. Find the point price elasticity of demand when P = $4 price units and state what type of commodity this is...

Assume that Bessemer net income for next year would be 500 million and its optimal capital budget for next year is 250 million. Also assume that the revised capital structure consists of 50% debt and...

The spot market price of premium olive oil is $30 per liter. A forward contract on 100,000 liters with a 12-month expiry is currently priced at $33.20 per liter. The one-year interest rate is 7% p.a....

For more than half a century, Walmart has prided itself on providing value to customers by being a low-price leader. But the consumer mindset is changing. Now value also means convenience, ease of...

Suppose a basket of goods in Paris costs 133 and the same basket purchased in New York costs $153. 1. At what exchange rate between euros and dollars is the cost of the basket of goods the same in...

There are three distinct frontier portfolios, A, B and C. a) Compute, AB, the correlation between frontier portfolios A and B. b) Calculate the expected return on the global minimum variance...

Tip Top Canadian Inc owns a nationwide chain of supermarkets. The company plans to open another in Montreal, Quebec. In discussion about how the company can acquire the desire building and other...

John, age 28, and Emily, age 27, have just had their first child, Lindsey. They have a combined income of $55,000 and rent a two-bedroom apartment. For the past several years, John and Emily have...

The following are the details of two potential merger candidates, Northrop and Grumman, in 1993 Northrop Grumman Revenues $4,400.00 $3,125.00 Cost of Goods Sold (w/o Depreciation)87.50% 89.00%...

X Ltd. paid Part I federal tax of $26,473 on taxable income of $200,000 that included deductions for a net capital loss $15,000 and a non-capital loss of $8,000. Net income for tax purposes includes...

Hope is the majority owner and manager of Hope Floats, a medium sized manufacturer of life jackets. Over the past several years, her company has expanded rapidly and now has over 100 employees. Hope...

Fateh (29) and Mahaan (28) are a married couple who live in Prince Albert, Saskatchewan. Fateh works as a farm hand for a local wheat farmer and he operates the farming equipment including combine...

Ted and Gayle, both 47, have been married for 20 years. Gayle has not worked outside of the home since their marriage while Ted is a cabinet-maker. Gayle helps Ted with the billings for his work and...

It is important to consider the time value of money along with financial risk when making financial decisions. Determine the best course of action for your company using the information below: Assume...

Opus, Incorporated, owns 80 percent of Bloom Company. On January 1, 2017. Opus acquires half of Bloom's $700,000 outstanding bonds. Opus paid $390.226 for this investment, indicating an 8 percent...

Kumar applies for a disability insurance policy through Better Life Insurance Company and meets with his agent, Carmello, to review the application. Kumar's application indicates certain health and...

Ninety days after purchasing a disability insurance policy, Harriet is diagnosed with cancer, a condition that is covered by her policy. 60 days after the diagnosis, Harriet makes a claim with her...

Dr. Craig McGilvary is an Endodontist who shares a practice with three other dentists. He and the other dentists are members of a plan which issues individual policies. Under the plan, the dentists...

Bonita and Vincenzo are in the process of obtaining a mortgage through Sovereign National Bank to purchase their first home. Simpreet, the mortgage advisor at Sovereign National, tells them that they...

Camel Telecom operates in the telecommunications industry under the name Mobistar which it developed itself. Camel has entered into a number of transactions relating to non-current assets on which it...

Ash Countys organizational structure includes one county manager and three deputy county managers. Each of the deputies oversees a handful of departments and provides human resource support and...

Hector has an individual extended health plan that offers dental coverage with a $75 deductible and a 70% co- insurance factor. Hector recently had some dental work done vhich qualifies and the total...

Salem is a newly licensed insurance agent working with his first set of clients on an application for an accident and sickness policy. Salem is working with a more senior agent who is heiping with...

Sven (age 38) and Nancy (age 34) have two children, Barry (age 4) and Brianna (age 2). Nancy is a business manager and Sven works part-time at a local grocery store. The couple meet with an insurance...

Fern completes a needs analysis for life insurance coverage for her clients Celeste and Gilbert and recommends an insurance policy for them. Fern highlights and explains the important clauses of the...

You are given information concerning two issues of bonds, Bond X and Bond Y, which have a par value of RM100 per unit. Both bonds pays a coupon of 10% and are payable on a semi-annual basis. Bond X...

Global Corp. expects sales to grow by 6 % next year. Assume that Global pays out 50 % of its net income. Global developed the pro forma financial statements given below. What is the amount of net new...

HCI's growth to date has been financed by its profits. When the company had sufficient capital, it would open a new store. Other than scouting locations, relatively little formal analysis has been...

This video talks about Noble Group, once one of the worlds biggest commodity trading houses. During 2015, a series of reports by Iceberg Research, an anonymous group, began attacking Nobles...

(22 points) There are two (and only two) firms in the market for carrots: Grimhouse (G) and Boltway ("B"). Due to superior farmland and technology, G has a cost advantage over B. Specifically, CG(qG)...

1. An all-equity financed bank currently has existing assets (mortgage-backed securities) with value of 150 or 450 when a new project opportunity emerges. The bank can invest 300 in profitable...

Frankfort Enterprises is trying to select the best investment from among three alternatives to shift and process Kentucy Blue grass seeds. Each alternative involves an initial outlay of $56,500....

Given the following financial statements, historical ratios, and industry averages, calculate J & J Company's financial ratios for the most recent year. (Assume a 365-day year.) Analyze its...

Capstone Case: Sunrise Bakery Expansion The Sunrise Bakery Corporation was originally founded in Houston, TX in 1991 by Griffin Harris, who currently serves as the company's Chief Executive Officer....

1 [6-d-1] On January 2, 2019, the Street Improvement Bond Debt Service Fund (DS) budget for 2019 was legally adopted. The budget provides for estimated property tax revenue of $900,000, of which...

On January 1, 2017, Posh Company buys 100 % of the voting stock of Spice Inc. for $150 million in cash. After the acquisition, the trial balance of each company (in millions) at January 1, 2017,...

You have interviewed a prospective new employee who could be a key member of your team. The new person's required salary would compromise the integrity of your salary structure, because it is 20%...

(1) You've done a great job modeling our new SIM system! I'd like to consider the possibility of an off-the-shelf solution. Let's see what software is out on the market. I'd like you to research...

Suppose that Alex attempts to execute a bond market-neutral trading strategy. He establishes a long position in an 8% annual coupon payment 6-year IBM bond and a short position in a 5-year (Treasury)...

Emma Bean operates a yoga studio and wants to sell some of her business equipment and a piece of land that is used as a parking lot. She expects to realize a $10,000 loss on the equip- ment and a...

CQS plc is a UK company that sells goods solely within the UK. CQS plc has recently tried a foreign supplier in Netherland for the first time and needs to pay 250,000 to the supplier in six months...

David owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is expected to grow by $10000/year in each of the next 5 years. Assume his exemptions and deductions are...

Keene Hospital Pharmacy fills three types of prescriptions. Prescription X requires refrigeration to maintain the drug's efficacy. Prescription Y has potentially fatal interactions with other drugs...

On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Style Corporation in exchange for $2,361,000 in cash and securities. On the acquisition date, Stylene had the...

Atchley Corporation's last free cash flow was $1.55 million. The free cash flow growth rate to be constant at 1.5% for 2 years, after which free cash flows are expected to grow at a rate of 8.0%...

Find the average rate of change mavg of the model from 2010 to 2014 (Round your answer to four decimal places) mavg billion dollars per year

Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $182,000 salary working full time for Angels Corp. Angels Corp. reported $408,000 of taxable business...

2. On 30th June 2009 when a forward contract matured for execution you are asked by an importer customer to extend the validity of the forward sale contract for US$ 10,000 for a further period of...

The triplets are now three and a half years old, and Jamie Lee and Ross, both 38, are finally beginning to settle down in to a regular routine now that their children are a little more...

Read Chapter 6, Strategic Risk Management at the LEGO Group, 30 POINTS starting on page 93. Review the corporate culture and solutions and history of LEGO Group again. Then answer the questions below...

Marc has purchased a new car for $15,000. He paid $2,500 as down payment and he paid the balance by a loan from his hometown bank. The loan is to be paid on a monthly basis for two years charging 12...

Nate Network ("Nate") developed an idea for a new social media venture. He would like to form a start-up company, raise $150,000 of additional capital and hire an experienced person to manage the...

Suppose that the current value of a company's operating assets is $100 million. company has 10-year zero-coupon debt outstanding the only debt it has with a principal amount at maturity of $155...

P Corporation acquired 80% of S Corporation on January 1, 2011 for $240,000 cash when S's stockholders' equity consisted of $100,000 of Common Stock and $30,000 of Retained Earnings. The difference...

1. How can looking at the ratio of total assets to total liabilities mislead an analyst? 2. A company has book equity of $20. After it is acquired, the combined balance sheet shows goodwill of $70,...

The output at a certain factory is Q(K, L) = (K 1 3 +L 2 3 ) 2 units per day, where K is the capital needed in $1,000 needed and L is the labor used in 100 person-hours. Currently, $5,000 of capital...

A proposed new investment has projected sales of $830,000 Variable costs are 60 percent of sales, and fixed costs are $181,000 depreciation is $77,000 Prepare a pro forma statement of comprehensive...

Suppose you purchase a call option on XYZ stock when the stock price is $81. The option premium is $3, and the strike price is $85. What is your net profit on the call option if the stock price is...

Mercadolibre is an Argentinian based online shopping platform partially owned by Amazon. The company has had moderate success growing their topline at a steady rate of 30% while maintaining 18.5% net...

1. It is March 26 and you hold a $1mm (market value) long position in the 1-yr zero-coupon bond. Using modied durations, determine how much of the 5-yr zero-coupon bond you need to short so that your...

1. Show the calculation for the analysis of the present value for taking benefits at age FRA. 2. Also discount the PV found at FRA back to age 62 for an apples to apples comparison. Richard is a...

A currency swap has a remaining life of 16 months. It involves exchanging interest at 8% on 30 million for interest at 5% on $40 million once a year. The term structure of interest rates in both the...

Company A considers acquiring company B. Shares of the company A trade at $30 and there are 5,000 of A shares outstanding. Company B has 200 shares outstanding worth $100 each. If A acquires B, then...

The Brenham General Hospital was approached by Health Food, Inc. (HFI) which specializes in the preparation of meals for institutional patients. HFI stated that it would prepare all inpatient meals...

A bank makes a package of three loans to a small business. (a) $120,000 amortized monthly for ten years at a nominal discount rate of 6.8% convertible monthly. (b) $100,000 to be repaid by monthly...

Bloopers analysts have come up with the following revised estimates for its magnoosium mine: Range Pessimistic Optimistic Initial investment + 30 % 25 % Revenues 25 % + 20 % Variable costs + 25 % ...

Mr. Donald Heffernan, a 35 years old account manager At Wells Fargo has gross annual income after all deductibles of $85,000. Mrs. Heffernan quit her job at Walmart to take care of their twin kids,...

Why is it inherently more difficult to value some assets than others? Show the data you will use in the analysis. Post a Balance Sheet for several years, and an Income Statement for the selected...

Within a company is a (micro)economy that is monitored by the accounting procedures. In terms of the accounts, the various departments "produce" costs, some of which are internal and some of which...

Paul and Mary, aged 40 and 36 respectively, are a couple with two children aged 3 and 1. Paul is a secondary school teacher while Mary is a social worker. Their combined after tax annual income is...

You wanted to join a booth fair, and you are aiming to get a profit that is twice as your capital. Your starting capital is P15,000.00. Make a financial plan for the booth that you will set up and...

Today, a SFr future contract has the settlement price of $1.72/SFrat CME. The initial and maintenance margin are 150,000 USD and 100,000 USD of the contract value of 1,000,000 SFr in that order. The...

Project Instructions The purpose of this memo is to provide some additional clarity and expectations regarding the upcoming Bookkeeping Project. Background Paddleboard Adventures, Inc. is a local...

Question 1 The ABC Corporation has reported earnings available to common stock of $4,200,000 last year. The following information applies to the company. Dividend (preferred stock) # of outstanding...

You have 25 years until retirement and your current annual income is $75,000. Using a marginal tax rate of 22% and an inflation rate of 3.5%, how much life insurance will you need to purchase using...

For the initial scenario, assume your current age, zero current savings, a retirement age of 60, a life expectancy of 95 years, an inflation rate of 3.5%, an investment portfolio return of 9% and...

Fareh is not married and supports her 12 year old child who lives with her. Fareh works as an employee with gross salaries and wages of $122,000. Fareh's only other income was interest of $7,300,...

Due to liability issues it is imperative that drug makers have rigorous quality-control standards. Production control at Betapharm requires that its Malic acid input have a pH level between 2.9 and...

The company expects to invest approximately $1 million in three months in corporate bonds. The current rate of interest is 2.40%. To hedge the position, the company wishes to use 3 year Treasury bond...

MINI CASE Shrewsbury Herbal Products, Ltd. Shrewsbury Herbal Products, located in central england close to the Welsh border, is an old-line producer of herbal teas, seasonings and medicines. Their...

1 What is the utopian value of Jims venture? Provide all details of your calculations. 2 What is the P/E multiple utopian value of Jims venture? Provide all details of your calculations. 3 What is...

You invest $8000 in a floating rate guaranteed investment certificate. For the first 24 months you earn 6% compounded semi-annually. For the next 6 months you earn 12% compounded monthly. What is the...

During a normal month, hanks receive a total of nine checks with a total value of $148,500 on average, it takes 1 day from the date of deposit for the funds from these checks to be available to the...