Consider that you are 35 years old and have just changed to a new job. You have $155,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new employer. You will also contribute $7,700 each year into your new employer’s plan.

If the rolled-over money and the new contributions both earn a return of 6 percent, how much should you expect to have when you retire in 30 years?

Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $150,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.29 times during the year. Its receivables balance at the end of the year was $13,117.75 and its payables balance at the end of the year was $7,399.8. Using this information calculate the firm's cash conversion cycle. Do not intermediate calculations. Round your answer to the nearest whole number.

1)

The current stock price for Ford is $31 and for Coca-cola is $66. The consensus predictions by Wall Street economists for the state of the economy next year and the associated stock prices are the following:

The stock prices above are given ex-dividend. Next year, Ford is expected to pay a dividend of $1.24 per share and coca-cola is expected to pay a dividend of $0.88 per share.

a) What is the expected return on Ford stock? What is the standard deviation of the rate of return on Ford stock?

b) What is the expected return on Coca-cola stock? What is the standard deviation of the rate of return on Coca-Cola stock?

c) What is the covariance between the rate of return on Ford and Coca-cola? What is the correlation coefficient between their rates of return?

Based on the following information: State of Economy Probability of State of Economy Return on Stock J Return on Stock K Bear .24 −.026 .028 Normal .59 .132 .056 Bull .17 .212 .086 a. Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)

The answer to the following questions may be found in either the Annual Report to Stockholders or on the SEC Form 10-K. It may also be necessary for you to use other sources. To fully answer the questions, you must identify the source for your information and also include the answer. If the question is not applicable to your company, place “NA” as the answer. To identify the source use “AR” for Annual Report to Stockholders and “10K” for the SEC Form 10-K. If something else, use “Other” and include the identification at the end of your answer.

FORD MOTOR COMPANY

1. Tell me the best scenario when an investor should consider the purchase of a corporate bond in a portfolio. Also, talk to me about how spread tightening and widening can be trading opportunities.

You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 5.600 Jan 15, 2022 94.203 ?? 57,364 Kenny Corp. (KCC) 7.140 Jan 15, 2021 ?? 5.18 48,943 Williams Co. (WICO) ?? Jan 15, 2028 94.755 6.88 43,804

New-Project Analysis

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $980,000, and it would cost another $23,500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $531,000. The machine would require an increase in net working capital (inventory) of $9,000. The sprayer would not change revenues, but it is expected to save the firm $461,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%.

1. What is the Year 0 net cash flow?
   $ ???
2. 
   
3. 
   
4. 
   
5. What are the net operating 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	$

6. 
   
7. What is the additional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)? Do not round intermediate calculations. Round your answer to the nearest dollar.
   $ ???
8. 
   
9. 
   
10. If the project's cost of capital is 14 %, what is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar.
    $ ???
    
    Should the machine be purchased?
    -Select-YesNo

What is the firm's total change in cash from the prior year to the current year?

Cash disbursements schedule   Maris​ Brothers, Inc., needs a cash disbursement schedule for the months of​ April, May, and June. Use the format given here

and the following information in its preparation.

​Sales:

February $505,000​;

March $518,000​;

April $572,000​;

May $617,000​;

June $670,000​;

July $665,000

​Purchases: Purchases are calculated as

55%

of the next​ month's sales,

9%

of purchases are made in​ cash, 52% of purchases are paid for 1 month after​ purchase, and the remaining 39% of purchases are paid for 2 months after purchase.

​Rent: The firm pays rent of $8,030 per month.

Wages and​ salaries: Base wage and salary costs are fixed at

$6,200 per month plus a variable cost of

6.9%of the current​ month's sales.

​Taxes: A tax payment of $54,300 is due in June.

Fixed asset​ outlays: New equipment costing $74,800 will be bought and paid for in April.

Interest​ payments: An interest payment of $30,100is due in June.

Cash​ dividends: Dividends of $12,000 will be paid in April.

Principal repayments and​ retirements: No principal repayments or retirements are due during these months.

Feb    Mar Apr May Jun Jul

Sales Disbursements

Purchases

Cash

1 month delay

2 month delay

Rent

Wages and salary

Fixed

Variable

Taxes

Fixed assets

Interest

Cash dividends

Total
Disbursements

( Please explain how you got the answer )

Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 46%. The T-bill rate is 5%. Your risky portfolio includes the following investments in the given proportions: Stock A 30 % Stock B 30 Stock C 40 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 14%. a. What is the proportion y? (Round your answer to 1 decimal places.) b. What are your client's investment proportions in your three stocks and in T-bills? (Round your intermediate calculations and final answers to 1 decimal places.) c. What is the standard deviation of the rate of return on your client's portfolio? (Round your intermediate calculations and final answer to 2 decimal places.)

1. Over the past three decades about half of the public firms were regular dividend payers, while the other half were not paying dividends at all. Assuming wealth maximization of shareholders is a primary objective of the management, explain: a) why some firms choose to pay dividends consistently (give at least three possible reasons); b) why other firms choose not to pay any dividends at all (at least three reasons); c) why some other firms choose to combine stock repurchases and cash dividends (at least three reasons).

Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 4%. Your client chooses to invest 85% of a portfolio in your fund and 15% in a T-bill money market fund. a. What is the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.) b. Suppose your risky portfolio includes the following investments in the given proportions: Stock A 32 % Stock B 36 Stock C 32 What are the investment proportions of your client’s overall portfolio, including the position in T-bills? (Round your answers to 1 decimal places.) c. What is the reward-to-volatility ratio (S) of your risky portfolio and your client's overall portfolio? (Round your answers to 4 decimal places.)

BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.17%. If Janet sold the bond today for $1,125.36, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Create a page length written analysis based on the numbers in the spreadsheet. What do the numbers mean? What should be done with the information?