how do I figure out the following ratios based on the consolidated financial data:

1.) Gross Profit Margin 2.) Operating Profit Margin 3.) Return on Equity 4.) Earnings Per Share 5.) Current Ratio 6.) Total debt-to-assets ratio 7.) Debt-to-equity ratio 8.) CAGR % 9.) Bakery-café sales 10.) Total Revenues 11.) Total bakery-café expenses 12.) Net income to shareholders

The 1095 Corporation is considering purchasing equipment which will require an initial cash investment of $285,000. It expects to increase its cash flow from the equipment as follows: Year 1 - $125,000;   Year 2 - $155,000;   Year 3 - $115,000. (All yearly cash flows are positive #s). If the company’s required return is 13%, what is the approximate IRR for this investment?

1. Less than 0
2. Between 0 and 5%
3. Between 5% and 10%
4. Between 10% and 15%
5. Greater than 15%

Holmes Manufacturing is considering a new machine that costs $270,000 and would reduce pretax manufacturing costs by $90,000 annually. The new machine will be fully depreciated at the time of purchase. Management thinks the machine would have a value of $23,000 at the end of its 5-year operating life. Net operating working capital would increase by $25,000 initially, but it would be recovered at the end of the project's 5-year life. Holmes's marginal tax rate is 25%, and an 11% WACC is appropriate for the project.

1. Calculate the project's NPV. Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent.
   $  
   
   Calculate the project's IRR. Do not round intermediate calculations. Round your answer to two decimal places.
     %
   
   Calculate the project's MIRR. Do not round intermediate calculations. Round your answer to two decimal places.
     %
   
   Calculate the project's payback. Do not round intermediate calculations. Round your answer to two decimal places.
     years
2. 
   
3. Assume management is unsure about the $90,000 cost savings-this figure could deviate by as much as plus or minus 20%. What would the NPV be under each of these situations? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
   20% savings increase: $  
   20% savings decrease: $  
   
4. Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the net operating working capital (NOWC) requirement. She asks you to use the following probabilities and values in the scenario analysis:

   Scenario	Probability	Cost Savings	Salvage Value	NOWC
   Worst case	0.35	$72,000	$18,000	$30,000
   Base case	0.35	$90,000	$23,000	$25,000
   Best case	0.30	$108,000	$28,000	$20,000

   
   Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer for expected NPV and for standard deviation to the nearest cent and for coefficient of variation to two decimal places.
   

   E(NPV):	$
   σNPV:	$
   CV:

   
   Would you recommend that the project be accepted?
   -Select-YesNo

Part A: ABC Inc. is considering a proposal to manufacture a new product and add it to the existing lines of their products. The project requires the use of an existing warehouse, which the firm acquired three years ago for £1 million and which it currently rents out for £120,000 per year. Rental rates are not expected to change going forward. In addition to using the warehouse, the project requires an up-front investment into machines and other equipment of £1.4m. This investment can be fully depreciated straight-line over the next 10 years for tax purposes. However, ABC Inc. expects to terminate the project at the end of eight years and to sell the machines and equipment for £500,000. Finally, the project requires an initial investment into net working capital equal to 10% of predicted first-year sales. Subsequently, net working capital is 10% of the predicted sales over the following year and it is fully recovered at the end of the project. Sales of the new product are expected to be £4.8 million in the first year and to stay constant for eight years. Total manufacturing costs and operating expenses (excluding depreciation) are 80% of sales, and profits are taxed at 30%. [15 marks]

i. What are the free cash flows of the project? Show your calculations.

ii. If the cost of capital is 15%, what is the NPV of the project?

Part B: Colgate-Palmolive Company has just paid an annual dividend of £1.50. Analysts are predicting dividends to grow by £0.12 per year over the next five years. After then, Colgate's earnings are expected to grow 6% per year, and its dividend payout rate will remain constant.

If Colgate's equity cost of capital is 8.5% per year, what price does the dividend-discount model predict Colgate stock should sell for today? [10 marks]

Mr. Wong has just turned 30 today. He approaches Nopay Assurance Limited to buy a $1,000,000 WHOLE life insurance protection. The mortality table appropriate for an average male of Mr. Wong's age and health conditions is given below.

The insurance premiums are paid at the beginning of each period and death benefit is paid at the end of the period of death. The current interest rate is so low that it can be assumed to be 4% per year. Ignore the cost loadings and the profit margin of Nopay Assurance.

(a) If Mr. Wong wants to make one and only one premium payment at Age 30, what is the single premium payment?

(b) Determine the level premiums for Mr. Wong's whole life policy. There are FOUR level premiums.

(c) Determine the cash value at each age of Mr. Wong.

The capital structure of a company with relevant market information are shown as below:

Common stock: There are 55 million shares outstanding of $10 par. The stock has a beta coefficient of 1.8. The management of the company just paid an annual dividend of $1.5 per share and the market expects that the dividend growth rate to be 20 percent for coming three years and grow by 5 percent per year thereafter in the foreseeable future. The required rate ofreturn on your company’s stock is 15 percent.

Preferred stock: 12 million shares currently selling at $96 per share, with dividend rate of 6 percent and face value of $100.

Debt: Three years ago, the company issued 9 million 15-years 8% semi-annual coupon bonds with par value of $1,000 that are still outstanding. The yield-to-maturity (in terms of an effective rate of return) on the bond is 16% per annum.

Market: The current Treasury bill yields 3 percent and the expected return on the market is 12 percent. The company is in the 40% corporate tax bracket.

Required:

(a) Estimate the current common stock value using the Dividend Growth Model.

(b) Calculate the bond price today. [answers in a whole dollar amount] (Additional Question: Noted the YTM is stated as effective rate of return. Should I change it to in terms of annual percentage rate ?)

(c) Based on answers in above (a) and (b), determine the company’s capital structure weights(WE, WP, WD) for equities and debt. [answers in %]

(d) Compute the cost of equity (RE) using CAPM, cost of preferred stock (RP), and pre-tax cost of debt (RD). [answers in %]

(e) Assuming that the company is going to maintain the current capital structure, calculate the weighted average cost of capital (WACC) of the company. [answer in %]

You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $210,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $62,000. The equipment would require a $5,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $50,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 25%.

1. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar.
   $   
2. 
   
3. What are the project's annual cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar.
   Year 1: $   
   Year 2: $   
   Year 3: $   

Use the cash flows of a portfolio of the following three bonds to calculate the yield to maturity of he porfolio. Each bond has a face value of $1,000. Use the cash flows and yield to maturity to calculate the duration of the portfolio:

Three-yeear zero coupon bond with 5% yield.

Five-year zero-coupon bond with 7% yield.

Seven-year zero-coupon bond with 6% yield.

Verify your portfolio duration calculation using the weighted average of the individual bond durations.

Calculate the amount to be paid by the buyer of the 10-year bond 20/05/2008-2018, at a fixed interest rate of 8.60%, with a par value of 500,000,000$, with price at 98.5 on

a) 20/06/2012

b) 20/04/2013

c) 20/07/2013.

Options in Corporate Financing

Company B is a small, publicly traded technology company.  Company B is close to completing development of a new software/hardware product for schools that uses voice recognition to quickly translate a lecture into written notes that are projected onto a screen and automatically sent to students as PDF documents.  The lecturer can then annotate the notes with a drawing pad linked to the computer projection system.  These annotations are included in the PDF that is distributed after the lecture is complete.  

      The company needs about $30 million to complete development and begin production and marketing of this product.  The company is profitable with one other product that generates about $1,200,000 in cash flow annually.  For many reasons the company has been very secretive about its new product so its stock price is quite low, being based on the modest cash flows of its existing product.  Company officials and outside consultants agree that it is too early to reveal the new product’s details given what they know of competing products.

      The company has hired an investment banker to help it determine how to raise the $30 million.  The banker immediately recommends convertible bonds.  Current interest rates on bonds or notes for companies of this type are in the range of 8% to 10%, but convertible debt would probably have a coupon rate of 3% to 5% depending on the conversion price.  The higher the conversion price the higher the coupon rate.  

The banker says that convertible bonds are a win-win for the company in this situation.  The company can keep their product secret but issue stock at a higher price (the conversion price) than the current stock price.  In the meantime, the interest rate on the debt will be about 4% or 5%, which the company should be able to support from its cash flow.  The banker explains that if for some reason the product is not a success, and there is no conversion to stock, the company has issued debt at a very low rate. Probably 5% below the rate on non-convertible debt.  Win-win!

The company’s tax rate is about 28%.

1. Can the company afford the interest on $30 million of convertible debt?
2. Is the banker correct about this being a win-win situation for the company?  Is there a different perspective that company managers need to understand before making this decision?  Explain.
3. If convertible debt has a lower coupon rate because the conversion option has value.  Why don’t all companies issue convertible debt and save on interest costs?

advantage and disadvantage of having or investing in online stock market. please cite an example

Holmes Manufacturing is considering a new machine that costs $270,000 and would reduce pretax manufacturing costs by $90,000 annually. The new machine will be fully depreciated at the time of purchase. Management thinks the machine would have a value of $23,000 at the end of its 5-year operating life. Net operating working capital would increase by $25,000 initially, but it would be recovered at the end of the project's 5-year life. Holmes's marginal tax rate is 25%, and an 11% WACC is appropriate for the project.

1. Calculate the project's NPV. Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent.
   $  
   
   Calculate the project's IRR. Do not round intermediate calculations. Round your answer to two decimal places.
     %
   
   Calculate the project's MIRR. Do not round intermediate calculations. Round your answer to two decimal places.
     %
   
   Calculate the project's payback. Do not round intermediate calculations. Round your answer to two decimal places.
     years
2. 
   
3. Assume management is unsure about the $90,000 cost savings-this figure could deviate by as much as plus or minus 20%. What would the NPV be under each of these situations? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
   20% savings increase: $  
   20% savings decrease: $  
   
4. Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the net operating working capital (NOWC) requirement. She asks you to use the following probabilities and values in the scenario analysis:

   Scenario	Probability	Cost Savings	Salvage Value	NOWC
   Worst case	0.35	$72,000	$18,000	$30,000
   Base case	0.35	$90,000	$23,000	$25,000
   Best case	0.30	$108,000	$28,000	$20,000

   
   Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer for expected NPV and for standard deviation to the nearest cent and for coefficient of variation to two decimal places.
   

   E(NPV):	$
   σNPV:	$
   CV:

   
   Would you recommend that the project be accepted?
   -Select-YesNo

Describe one cybersecurity attack that has occurred in the past 6 months, and based on your understanding of this week’s readings, explain what vulnerabilities within the organization may have contributed to the breach.