Williamson Industries has $5 billion in sales and $1.6 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity.

1. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent.
   $
2. 
   
3. What is Williamson's target fixed assets/sales ratio? Round your answer to two decimal places.
   %
4. 
   
5. If Williamson's sales increase 13%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. Do not round intermediate calculations.
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Consider the three stocks in the following table. P_t represents price at time t, and Q_t represents shares outstanding at time t. Stock C splits two-for-one in the last period.

a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. Calculate the rate of return of the price-weighted index for the second period (t = 1 to t = 2).

Business Finance Question

5-16.

Suppose today is January 2, 2019, and investors expect the annual risk-free interest rates in 2023 and 2024 to be:

Year    One-Year Rate

2023    4.5%

2024    2.3

Currently, a four-year Treasury bond that matures on December 31, 2022, has an interest rate equal to 2.5 percent. What is the yield to maturity for Treasury bonds that mature at the end of (a) 2023 (a five-year bond) and (b) 2024 (a six-year bond)? Assume the bonds have no risks.

1. How do you differentiate between assets and liabilities on the balance sheet?

2. What is the basic Balance Sheet equation and why is it important?

You have been hired as a risk manager for Acorn Savings and Loan.​ Currently, Acorn's balance sheet is as follows​ (in millions of​ dollars):

When you analyze the duration of​ loans, you find that the duration of the auto loans is 1.8 ​years, while the mortgages have a duration of 7.1

years. Both the cash reserves and the checking and savings accounts have a zero duration. The CDs have a duration of 2.1

​years, and the​ long-term financing has a 9.6-year duration.

a. What is the duration of​ Acorn's equity?

b. Suppose Acorn experiences a rash of mortgage​ prepayments, reducing the size of the mortgage portfolio from $ 152.8 million to $ 101.9

​million, and increasing cash reserves to $ 99.7 million. What is the duration of​ Acorn's equity​ now? If interest rates are currently4 % and were to fall to 3 %

estimate the approximate change in the value of​ Acorn's equity.​ (Assume interest rates are APRs based on monthly​ compounding.)

c. Suppose that after the prepayments in part (b​), but before a change in interest​ rates, Acorn considers managing its risk by selling mortgages​ and/or buying 10​-year Treasury STRIPS​ (zero coupon​ bonds). How many should the firm buy or sell to eliminate its current interest rate​ risk?

Bonds of RCY Corporation with a face value of $1000 sells for $960, mature in 5 years, and have a 7% coupon rate paid semiannually. Calculate the investor's RCY by assuming the following: - Bond sold to yield at 7% and the end of the 3-year holding period. - Reinvestment rate 6% APR during this holding period. - PS: state what assumption(s) you need to make in calculating this RCY.

3–14. (Analyzing the cash flow statement) (Related to Checkpoint 3.3) Google, Inc. (GOOG), is one of the most successful internet firms, and it experienced very rapid growth in revenues from 2011 through 2014. The cash flow statements for Google, Inc., spanning the period are as follows:

Answer the following questions using the information found in these statements:

1. Is Google generating positive cash flow from its operations?

2. How much did Google invest in new capital expenditures over these four years?

3. Describe Google’s sources of financing in the financial markets over these four years.

4. Based solely on the cash flow statements for 2011 through 2014, write a brief narrative that describes the major activities of Google’s management team over these four years.

3–15. (Analyzing the cash flow statement) The cash flow statements for retailing giant BigBox, Inc., spanning the period 2013–2016 are as follows:

Answer the following questions using the information found in these statements:

1. Does BigBox generate positive cash flow from its operations?

2. How much did BigBox invest in new capital expenditures over these four years?

3. Describe BigBox’s sources of financing in the financial markets over these four years.

4. Based solely on the cash flow statements for 2013 through 2016, write a brief narrative that describes the major activities of BigBox’s management team over these four years.

1. Explain how carelessness and ignorance can result in breaches of confidentiality.

2. What does respecting your employer’s resources mean?

You are the CFO of a company: What are the important assumptions that underlie your projections? These assumptions may be associated with both external or internal factors.

The retail sales tax has become a popular way to finance state, county, and city governments as well as special districts. What are the pros and cons of reliance on the retail sales tax as a primary source of revenue, especially for local governments?