explain the basic characteristics of universal life policies?

Bob’s Submarine Sandwiches expects annual sales of $180,000, annual fixed cash outlays are $51,750 a year at each location, variable cash outlays are 36 percent of sales, depreciation is $14,000 per year, and taxes are 28% (of pretax income). Opening promotion and other costs require an initial outlay of $86,000. The company does its analysis based on a 8-year store life. Bob believes the business can be sold for $110,000 after taxes (disposal value) at the end of its 8 year lifer. Using a 9% required return, what is the net present value of this venture?

explain the components of the cash cycle and how changes in these components can increase or decrease the cash cycle. What is preferable a negative or positive cash cycle? Why?

Media Bias Inc. issued bonds 10 years ago at $1,000 per bond. These bonds had a 35-year life when issued and the annual interest payment was then 10 percent. This return was in line with the required returns by bondholders at that point in time as described below:
  

Assume that 10 years later, due to good publicity, the risk premium is now 2 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 25 years remaining until maturity.

Compute the new price of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
  

Explain the definitions and differences between the weighted average cost of capital and the marginal cost of capital.   What business decisions are impacted by the marginal cost of capital and why is the marginal cost of capital calculated for this purpose?

Carol plans to invest some money so she has $4,200 at the end of the 3 years. Determine how much she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny.)

a. 4.2 percent compounded daily

Amount required to be invested: $

b. 4.9 percent compounded monthly

Amount required to be invested: $

c. 5.2 percent compounded quarterly

Amount required to be invested: $

d. A 5.4 percent compounded annually

Amount required to be invested: $

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.9 million and net plant and equipment equals $2.4 million. It has notes payable of $140,000, long-term debt of $745,000, and total common equity of $1.45 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet. Write out your answers completely. For example, 25 million should be entered as 25,000,000. Negative values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar, if necessary. What is the company's total debt? $ What is the amount of total liabilities and equity that appears on the firm's balance sheet? $ What is the balance of current assets on the firm's balance sheet? $ What is the balance of current liabilities on the firm's balance sheet? $ What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as a single line item on the firm's balance sheet.) $ What is the firm's net working capital? If your answer is zero, enter "0". $ What is the firm's net operating working capital? $ What is the monetary difference between your answers to part f and g? $ What does this difference indicate?

Question 5.

(a) Assume that your savings account offers you an APR of 6% with quarterly compounding. What is the present value of $1, 000 to be received 3 quarters from today?

(b) Your bank charges you 0.5% per month on your car loan. What APR must the bank report on your loan? What is the effective annual interest rate (EAR) on your loan? Explain why the EAR is higher than the APR.

(c) You have been given the once-in-a-lifetime opportunity to invest $2, 000 in a certificate of deposit paying an APR of 24% with monthly compounding. Exactly how many months will it take for your $2, 000 to grow to $10, 000?

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 13,000 Accounts receivable 35,000 25,000 Inventories 32,775 21,000 Total current assets $ 82,775 $ 59,000 Net plant and equipment 50,000 47,000 Total assets $132,775 $106,000 Liabilities and Equity Accounts payable $ 10,400 $ 8,000 Accruals 7,700 5,000 Notes payable 6,700 5,500 Total current liabilities $ 24,800 $ 18,500 Long-term bonds 20,000 20,000 Total liabilities $ 44,800 $ 38,500 Common stock (4,000 shares) 40,000 40,000 Retained earnings 47,975 27,500 Common equity $ 87,975 $ 67,500 Total liabilities and equity $132,775 $106,000 Income Statement for Year Ending December 31, 2019 Sales $216,000 Operating costs excluding depreciation and amortization 170,000 EBITDA $ 46,000 Depreciation & amortization 7,000 EBIT $ 39,000 Interest 1,850 EBT $ 37,150 Taxes (25%) 9,287.50 Net income $ 27,862.50 Dividends paid 7,387.50 Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000. Round your answers to the nearest whole number, if necessary. What was net operating working capital for 2018 and 2019? Assume that all cash is excess cash; i.e., this cash is not needed for operating purposes. 2018 $ million 2019 $ million What was Arlington's 2019 free cash flow? $ million Construct Arlington's 2019 statement of stockholders' equity. Statement of Stockholders' Equity, 2019 Common Stock Retained Earnings Total Stockholders' Equity Shares Amount Balances, 12/31/18 million $ million $ million $ million 2019 Net Income million Cash Dividends million Addition to retained earnings million Balances, 12/31/19 million $ million $ million $ million What was Arlington's 2019 EVA? Assume that its after-tax cost of capital is 10%. Round your answer to the nearest cent. $ million What was Arlington's MVA at year-end 2019? Assume that its stock price at December 31, 2019 was $25. Round your answer to the nearest cent. $ million

A common size balance sheet or common size income statement expresses everything in percentages rather than in numbers. Your manager has just asked you why you need to spend the time and money to have your analyst create both a common size and a regular balance sheet and income statement. How would you respond to her?

Assess the pros and cons of single tier board system in 500 words please.

You started a company 5 years ago by taking a loan of $100,000. The APR on the loan is 12%. You agreed to make fixed payments every month for 10 years. Today, your 60th payment is due and you decide to make a double payment. (You paid twice what you were paying each month). You will continue to make single payments to pay the rest of the loan. By how many months your loan shortened? (According to the contract you signed with the bank, you can make double payments, your APR stays the same, your fixed monthly payments do not change, therefore, your loan term shortens)