You have a bike store. Your assets consist of $10,400 in inventory, $1,000 in equipment (phones, computers, etc.) and $600 cash. You are capitalized with $10,000 owners’ equity and $2,000 debt at 6%. Assume your only variable cost are the bikes you purchase from the manufacturer, $60/bike. Your fixed costs total $2500. During the year you purchased 250 bikes and sold them at $80/bike. But you only paid for half the bikes you bought; the rest were sold to you “on credit.” Your profits tax rate is 20%. What is your ROE for the year? You “took out” all the profits. Do the “money in – money out” to calculate the net change in cash for the year. What does your balance sheet look like at the end of the year?

Inputs: Use 2 inputs: cash flow vector, interest rate. Use values: cash flow = (-10, 2, 4, 5, 9, 6), interest rate = 12%. Assume that cash flows start at t=0 and go on year by year.

Output: Produce a table containing years, cash flows, PV of cash flows, and a summary with NPV, PI, and Payback.

(Rstudio)

Please explain the methodology for assessing property and calculating property tax for a residence. Use examples with calculations as part of your answer.

You have $45,000 in an account earning an interest rate of 3%. What are the equal beginning-of-month withdrawals you can make from this account before it is depleted in 25 years? Round to the nearest cent.

Problem 4-03 (Algorithmic) The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenueproducing investments together with annual rates of return are as follows:

Type of Loan/Investment Annual Rate of Return (%)

-Automobile loans: 8%

-Furniture loans 10%

-Other secured loans 11%

-Signature loans 12 %

-Risk-free securities 9 %

The credit union will have $1.8 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments. Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). Furniture loans plus other secured loans may not exceed the automobile loans. Other secured loans plus signature loans may not exceed the funds invested in risk-free securities. How should the $1.8 million be allocated to each of the loan/investment alternatives to maximize total annual return? Round your answers to the nearest dollar. Automobile Loans $ 472,500 Furniture Loans $ 127,500 Other Secured Loans $ 0 Signature Loans $ 163,636 Risk Free Loans $ 540,000 What is the projected total annual return? Round your answer to the nearest dollar. $ 170,673

Please show excel input!

Two assets' correlation is 0.1. The first has expected return of 9% and standard deviation of 16%, the second has expected return of 13% and standard deviation of 20%. Calculate the minimum amount of risk (standard deviation) you'll need to take if investing in these two assets.

Memory makers cc are deciding wether to pay R90 000 in accumulated cash in the form of an extra dividend to shareholders or embark on a share repurchase scheme.Current profits are R3.40 per share and their shares currently trade for R35.

This is the abbreviated balance sheet before paying out the dividend

Equity R350 000 BANK/CASH 130 000

DEBT R120 000 Other assets 340,000

= 470 000 =470 000

1.calculate the number of shares in issue

2. the dividends per share

3. calculate the new share price

Calculte the eps and the price -earning ratio

Please show and explain the formulars.

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 5%. The probability distribution of the risky funds is as follows:

    Expected Return   Standard Deviation
Stock fund (S)      17   %      38   %
Bond fund (B)      13         18     

The correlation between the fund returns is 0.12.

You require that your portfolio yield an expected return of 12%, and that it be efficient, on the best feasible CAL.

a. What is the standard deviation of your portfolio?
b. What is the proportion invested in the T-bill fund and each of the two risky funds?

You are operating a mutual fund which today has $100mil in assets. Your returns and fund flows into/out of the fund are listed below.

What is the dollar-weighted average (mean) of the returns?

Abreviated statement of financial position

. Assets 2017 2016

Non current /fixed 4 200 000 3 000 000

Inventory 4 00 000 600 000

Receivables 1 550 000 1 200 000

Cash 600 000 300 000

total 6750 000 5 100 000

Equity and Liabilities

Share Capital (R2 per shares) 4 2 00 000 4 000 000

Retained in come 600 000 300 000

Long term debt 250 000 200 000

Payables 1 700 000 6 00 000

6 750 000 5 100 000  

calculate the account period (days) , noting that Newtech ltd has after tough negotiation secured 90 day account with all creditors.calculate the return on equity.

Calculte the invetory turnover

a. What are the incremental earnings for this project for years 1 and​ 2?​ (Note: Assume any incremental cost of goods sold is included as part of operating​ expenses.)

b. What are the free cash flows for this project for years 1 and​ 2?

ABC,. Inc just paid a dividend of $11.24. The dividends are expected to grow by 24% in Years 1-3. After that, the dividends are expected to grow by 3% each year. If the required rate of return is 20%, what is today's price of the stock?

The Howland Carpet Company has grown rapidly during the past 5 years. Recently, its commercial bank urged the company to consider increasing its permanent financing. Its bank loan under a line of credit has risen to $250,000, carrying an 8% interest rate. Howland has been 30 to 60 days late in paying trade creditors. Discussions with an investment banker have resulted in the decision to raise $500,000 at this time. Investment bankers have assured the firm that the following alternatives are feasible (flotation costs will be ignored).

● Alternative 1: Sell common stock at $8.

● Alternative 2: Sell convertible bonds at an 8% coupon, convertible into 100 shares of common stock for each $1,000 bond (i.e., the conversion price is $10 per share).

● Alternative 3: Sell debentures at an 8% coupon, each $1,000 bond carrying 100 warrants to buy common stock at $10.

John L. Howland, the president, owns 80% of the common stock and wishes to maintain control of the company. There are 100,000 shares outstanding. The following are extracts of Howland’s latest financial statements:

Balance Sheet

Line of credit 250,000

Other current liabilities $150,000

Long-term debt 0

Common stock, par $1 100,000

Retained earnings 50,000

Total assets $550,000

Total claims $550,000

Income Statement

Sales $1,100,000

All costs except interest 990,000

EBIT $110,000

Interest 20,000

Pre-tax earnings $90,000

Taxes (40%) 36,000

Net income $54,000

Shares outstanding 100,000

Earnings per share $0.54

Price/earnings ratio 15.83

Market price of stock $8.55

a. Show the new balance sheet under each alternative. For Alternatives 2 and 3, show the balance sheet after conversion of the bonds or exercise of the warrants. Assume that half of the funds raised will be used to pay off the bank loan and half to increase total assets.

b. Show Mr. Howland’s control position under each alternative, assuming that he does not purchase additional shares.

c. What is the effect on earnings per share of each alternative, assuming that profits before interest and taxes will be 20% of total assets?

d. What will be the debt ratio (TL/TA) under each alternative?

e. Which of the three alternatives would you recommend to Howland, and why?

Take two of the five functions of insurers and describe and discuss the functions. Rate the five functions in terms of (1) importance, and separately, (2) difficulty. Explain your reasoning.