1. Stock Transactions You have decided to purchase 1,000 shares of Caterpillar and short 600 shares of Home Depot. Complete these transactions on Stock-Trak.

2. Stock Transactions The next day, you decide that you want only 600 shares of Caterpillar and want to short 200 more shares of Home Depot. Complete the necessary transactions.

3. Stock Transactions You have now decided to close your long position in Caterpillar and close out your short position in Home Depot. Complete the necessary transactions. What is your total dollar gain or loss on these transactions?

(Please show the steps and use any dollar amount)

To borrow $1,600, you are offered an add on interest loan at 8.2 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Equal Payments

Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR ____ %

Question 1: Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 60 per cent and a recession is 40 per cent. It is projected that Good Time will generate a total cash flow of Rs 250 million in a boom year and Rs100 million in a recession. The firm’s required debt payment at the end of the year is Rs 150 million. The market value of Good Time’s outstanding debt is Rs108.93 million. Assume a one-period model, risk neutrality, and annual discount rate of 12 per cent for both the firm’s debt ratio and equity. Good Time pays no taxes.

A) What is the value of the firm’s equity?

B) What is the promised return on Good Time’s debt?

C) What is the value of the firm?

D) How much would Good Time’s debt be worth if there were no bankruptcy costs?

E) What payoff, after bankruptcy costs, do bondholders expect to receive in the event of a recession?

F) What costs do bondholders expect Good Time to incur should bankruptcy arise at the end of the year?

1 (a). Define the followings:

Cost pool

Cost driver

Direct cost allocation

Step-down cost allocation

Direct Cost

Indirect Cost

Fixed cost

Variable cost

(b) Effective cost drivers, and hence the resulting cost allocation system, must have what two important attributes?

(c) What is the better cost driver for the costs of a hospital’s financial services department: patient services department revenues or number of bills generated? Explain your rationale.

Consider a person who begins contributing to a retirement plan at age 25 and contributes for 40 years until retirement at age 65. For the first ten years, she contributes $3,700 per year. She increases the contribution rate to $5,700 per year in years 11 through 20. This is followed by increases to $10,700 per year in years 21 through 30 and to $15,700 per year for the last ten years. This money earns a return of 10 percent.

First compute the value of the retirement plan when she turns age 65. (Round your answer to 2 decimal places.)

Compute the annual payment she would receive over the next 40 years if the wealth was converted to an annuity payment at 9 percent. (Round your answer to 2 decimal places.)

Creative Web Design uses a job-order costing system to track the costs of its web design projects. The company provides complete website design and hosting services. The following table provides data concerning the three design projects that were in process during May. There was no work in process at the beginning of May:

Actual overhead costs were $4,750 for May. Overhead costs are applied to projects on the basis of designer-hours. The predetermined overhead rate is $27 per designer-hour. The Car City and Jan’s Flowers projects were completed in May; the Happy Daycare project was not completed by the end of the month. No other jobs were in process during May.

Required:

1. Compute the amount of overhead cost that would have been charged to each project during May.

2. Prepare a journal entry showing the completion of the Car City and Jan’s Flowers projects and the transfer of costs to the Completed Projects (i.e., Finished Goods) account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. What is the balance in the Work in Process account at the end of the month?

4-a. What is the balance in the Overhead account at the end of the month?

4-b. What is this balance called?

• Overapplied overhead

• Underapplied overhead

Rachel purchased a car for $17,000 three years ago using a 4-year loan with an interest rate of 9.0 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan.

What is the minimum price Rachel would need to receive for her car? Calculate her monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

.a)What attracts you to JP Morgan and specifically the Asset Managemnt opportunity?
b) Describe what factors have influenced financial markets in recent months and how they might affect our clients.
C. Tell us about a time when you faced a complex problem and how you found the solution.
Help me with these interview questions please and how i can answer them

Explain the difference between a corporation that only holds real estate and a REIT.

​(Select all the choices that​ apply.)

A.

REITs must pay corporate income​ taxes; a corporation that holds only real estate does not pay corporate taxes but must substantially pass through all the income to shareholders to whom it is taxable.

B.

A corporation that holds only real estate must pay corporate income​ taxes; REITs do not pay corporate taxes but must substantially pass through all the income to trust unit holders to whom it is taxable.

C.

A corporation that holds only real estate is limited to 75 shareholders and cannot have corporate or foreign stockholders.

D.

REITs are limited to 150 shareholders and cannot have corporate or foreign stockholders.

How to calculate the DuPont equation

A leading author in accounting and finance, Alfred Rappaport focuses in his work on the importance of a firm's management continually taking steps that increase shareholder value. In a recent article he set out his "Ten Ways to Create Shareholder Value:"

1. Do not manage earnings or provide earnings guidance; do not focus on earnings as it reflects neither the company's value or the change in value over the reporting period.
2. Make the strategic decisions that maximize expected value, even at the expense of lowering near-term earnings; this may mean divesting units that do not contribute to the company's long-term strategic goals though they do contribute to current profits.
3. Make acquisitions that maximize expected value, even at the expense of lowering near-term earnings; do not make acquisitions that improve only current earnings per share, but those that are expected to contribute to long-term value.
4. Carry only assets that maximize value; continually review assets and be prepared to sell units, brands, real estate, or other assets that can be sold for a price that is greater than their value to the company.
5. Return cash to shareholders when there are no credible value-creating opportunities to invest in the business; through cash dividends and stock buybacks.
6. Reward CEOs and other senior executives for delivering superior long-term returns.
7. Reward operating unit managers for adding superior multiyear value.
8. Reward middle managers and frontline employees for delivering superior performance on the key value drivers that they influence directly.
9. Require senior executives to bear risks of ownership just as shareholders do.
10. Provide investors with value relevant information.

Required: Based on Chapter 20, identify managerial concepts that you would apply for each of the 10 steps. Compensation concepts, management comp programs, business valuation techniques. Please do not simply write "Book Value" valuation. Explain why you would use such concepts and valuation models and why.

Bond Dave has a 7 percent coupon rate, makes semiannual payments, a 7 percent YTM, and 26 years to maturity. If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? 4 decimals (e.g. 0.0123).

You enter into a short position in one gold futures contract worth $500 per ounce. Contract size is 100 ounces. The initial margin is $2,500 per contract and the maintenance margin is $1,500 per contract.

1. How much will the price of gold have to change for you to receive a margin call and will it need to increase or decrease?

2. What is your initial margin deposit?

3. . If the market closes at $497.50 per ounce at the end of the day, what is the balance on your margin account?

1. You are evaluating the purchase of a vehicle for your business. You've decided that the best choice is a car that will cost you $35,000, but you're uncertain how long you should plan on holding the car before you replace it. The table below lists the running costs and salvage value of the vehicle for each year.

What is the annual equivalent cost of replacing the vehicle every 3 years? Assume your cost of capital is 12.2%. Enter your answer to the nearest cent. Ignore taxes.

(Your answer will be a cost, and therefore a negative number. Don't forget the minus sign.)