Describe the benefits of the privateequity ownership model versus public ownership and familyownership.
In: Finance
3. Problem 311 (Balance Sheet Analysis)
Balance Sheet Analysis Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data: Total assets turnover: 1.7 Do not round intermediate calculations. Round your answers to the nearest whole dollar.

In: Finance
Profit Margin and Debt Ratio
Assume you are given the following relationships for the Haslam Corporation:
Sales/total assets  1.4 
Return on assets (ROA)  4% 
Return on equity (ROE)  7% 
Calculate Haslam's profit margin and liabilitiestoassets ratio. Do not round intermediate calculations. Round your answers to two decimal places.
Profit margin: _______%
Liabilitiestoassets ratio: ______%
Suppose half of its liabilities are in the form of debt. Calculate the debttoassets ratio. Do not round intermediate calculations. Round your answer to two decimal places. ________%
In: Finance
4. Problem 312 (Comprehensive Ratio Calculations)
Comprehensive Ratio Calculations The Kretovich Company had a quick ratio of 1.3, a current ratio of 4.0, a days sales outstanding of 36.5 days (based on a 365day year), total current assets of $900,000, and cash and marketable securities of $110,000. What were Kretovich's annual sales? Do not round intermediate calculations. Round your answer to the nearest dollar. $ ______________ 
In: Finance
Know what an offshore financial center means and be able to differentiate between an operational center and booking center
In: Finance
can you please give example and explanation about opportunities cost, discount cash flow, discount rates ,prescent value, free cash flow, NPV, IRR , stock valuation in finance management.
In: Finance
Describe the characteristics and benefits of interest
rate swaps compared with other forms of interest rate risk
management, such as forward rate agreements and interest rate
futures
In: Finance
what is the difference between idiosyncratic and systemic risk? please give an example of each. which one can be eliminated through diversification? how do we measure a company's systemic risk?
In: Finance
Describe the characteristics and benefits of interest
rate swaps compared with other forms of interest rate risk
management, such as forward rate agreements and interest rate
futures
In: Finance
Suppose your company needs to raise $43 million and you want to issue 30year bonds for this purpose. Assume the required return on your bond issue will be 6 percent, and you’re evaluating two issue alternatives: A semiannual coupon bond with a 6 percent coupon rate and a zero coupon bond. Your company’s tax rate is 35 percent. Assume a par value of $1,000
a1.  How many of the coupon bonds would you need to issue to raise the $43 million? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) 
Number of coupon bonds 
a2.  How many of the zeroes would you need to issue? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) 
Number of zero coupon bonds 
b1. 
In 30 years, what will your company’s repayment be if you issue the coupon bonds? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) 
Coupon bonds repayment  $ 
b2. 
What if you issue the zeroes? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) 
Zeroes repayment  $ 
c. 
Calculate the firm’s aftertax cash outflows for the first year for each bond. (Enter your answers as positive values in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) 
Coupon bonds 
$  
Zero coupon bonds 
$  
In: Finance
Halliford Corporation expects to have earnings this coming year of $3.29 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 48 % of its earnings. It will then retain 20 %of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 27.77 %per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is 9.6 %, what price would you estimate for Halliford stock? Note: Remenber that growth rate is computed as: retention rate times × rate of return. The price per share is $. ?. (Round to the nearest cent.)
In: Finance
You have $243358 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 15.62 percent, and Stock L, with an expected return of 10.48 percent. Legal constraints require you to invest at least $45252 in stock L. If your goal is to create a portfolio with an expected return of 21.52 percent on your original wealth, what is the minimum amount you must borrow (and subsequently repay) at the risk free rate of 4.41 percent to achieve your goal? Answer in $ to two decimals.
In: Finance
Exchange rate movement
Suppose a basket of goods in Paris cost 133 euros and the same
basket purchased in
New York cost $153.
A. At what exchange rate between euros and dollars is
the cost of the basket of goods the same in each City?
B. Now suppose that over the next year inflation in
France is expected to be 2% while in the US the forecast is
for 6% inflation. What exchange rate do you expect a year from
today?
In: Finance
Explain how the debt mechanism can be a leverage in the company?
In: Finance
You have the following information about the yield curve – Term 1 2 3 4 Rate 4% 4.50% 5% 5.50% What should be the price of a bond with a face value of $100 and an annual coupon of 5% that matures in 4 years. Show all calculations.
In the above question if the market price of the bond is $95, can you do arbitrage? Show how and your profit or loss. Show all calculations.
If the market price of the bond is $115, can you do arbitrage? Show how and your profit or loss. Show all calculations.
Estimate the 1year forward rate 1 year from now. Show all calculations.
Estimate the 1year forward rate 2 years from now. Show all calculations.
Estimate the 1year forward rate 3 years from now. Show all calculations.
In: Finance