Questions
What are three legal forms of business organizations? What are their advantages and disadvantages?

What are three legal forms of business organizations? What are their advantages and disadvantages?

In: Finance

is it cheaper to pay $2000 per month for campus housing or to purchase a house...

is it cheaper to pay $2000 per month for campus housing or to purchase a house near campus for $100000 assuming that you are eligible for a 4% APR 30 year fixed rate HUD mortgage loan with 3 % down payment? Show your work.

In: Finance

Year A Returns B Returns 2005 -4.6 15.7 2006 1.7 -6.7 2007 -31.5 -26.5 2008 -11.6...

Year A Returns B Returns
2005 -4.6 15.7
2006 1.7 -6.7
2007 -31.5 -26.5
2008 -11.6 -3.7
2009 29.8 9.6
2010 26.9 8.6
2011 22.9 4.7
2012 50.7 42.7
2013 37.3 41.7
2014 30.5 39.2

The following​ table, LOADING...​, contains annual returns for the stocks of Company Upper A ​(Upper A​) and Company Upper B ​(Upper B​). The returns are calculated using​ end-of-year prices​ (adjusted for dividends and stock​ splits) retrieved from ​http://www.finance.yahoo.com/. Use the information to create an Excel spreadsheet that calculates the standard deviation of annual returns over the​ 10-year period for Upper A​, Upper B​, and of the​ equally-weighted portfolio of Upper A and Upper B over the​ 10-year period. ​(Hint​: Review the Excel screenshot on page 173​.)

In: Finance

   Projected Return       Year   Asset A   Asset B   Asset C 2018   13%   15%   11% 2019  ...

   Projected Return      
Year   Asset A   Asset B   Asset C
2018   13%   15%   11%
2019   15%   13%   13%
2020   17%   11%   15%
You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following​ data: LOADING.... You have been told that you can create two portfolioslong dashone consisting of assets A and B and the other consisting of assets A and Clong dashby investing equal proportions ​(50 %​) in each of the two component assets. a. What is the average expected​ return, r overbar​, for each asset over the​ 3-year period? b. What is the standard​ deviation, s​, for each​ asset's expected​ return? c. What is the average expected​ return, r overbar Subscript p​, for each of the the​ portfolios? d. How would you characterize the correlations of returns of the two assets making up each of the portfolios identified in part c​? e. What is the standard deviation of expected​ returns, s Subscript p comma for each​ portfolio? f. Which portfolio do you​ recommend? Why?

In: Finance

You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:...

You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018: Net sales = $39,100,000. Cost of goods sold = $22,260,000. Other operating expenses = $6,800,000. Addition to retained earnings = $1,214,500. Dividends paid to preferred and common stockholders = $1,953,000. Interest expense = $1,870,000. The firm’s tax rate is 30 percent. In 2019: Net sales are expected to increase by $10.10 million. Cost of goods sold is expected to be 60 percent of net sales. Depreciation and other operating expenses are expected to be the same as in 2018. Interest expense is expected to be $2,145,000. The tax rate is expected to be 30 percent of EBT. Dividends paid to preferred and common stockholders will not change. Calculate the addition to retained earnings expected in 2019.

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Blooper Industries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap...

Blooper Industries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap purification system for $12 million. The system will last 6 years. Do-It-Right sells a sturdier but more expensive system for $20 million; it will last for 8 years. Both systems entail $1 million in operating costs; both will be depreciated straight-line to a final value of zero over their useful lives; neither will have any salvage value at the end of its life. The firm’s tax rate is 30%, and the discount rate is 13%. Either machine will be replaced at the end of its life.

a. What is the equivalent annual cost of investing in the cheap system? (Do not round intermediate calculations. Enter your answers as a positive value. Enter your answers in whole dollars, not in millions.)

b. What is the equivalent annual cost of investing in the more expensive system?

In: Finance

Q8. During the planning process, if there is a gap between future desired sales and projected...

Q8. During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap. (0.5 points) (20-70 words)

In: Finance

Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of...

Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065 and it sells for $1,270.

  1. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.
    %

    What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.
    %

    Would an investor be more likely to earn the YTM or the YTC?
    -Select-Since the YTM is above the YTC, the bond is likely to be called.Since the YTC is above the YTM, the bond is likely to be called.Since the YTM is above the YTC, the bond is not likely to be called.Since the YTC is above the YTM, the bond is not likely to be called.Since the coupon rate on the bond has declined, the bond is not likely to be called.Item 3
  2. What is the current yield? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Round your answer to two decimal places.
    %

    Is this yield affected by whether the bond is likely to be called?
    1. If the bond is called, the current yield will remain the same but the capital gains yield will be different.
    2. If the bond is called, the current yield and the capital gains yield will remain the same.
    3. If the bond is called, the capital gains yield will remain the same but the current yield will be different.
    4. If the bond is called, the current yield and the capital gains yield will both be different.
    5. If the bond is called, the current yield and the capital gains yield will remain the same but the coupon rate will be different.

    -Select-IIIIIIIVVItem 5
  3. What is the expected capital gains (or loss) yield for the coming year? Use amounts calculated in above requirements for calcuation, if reqired. Round your answer to two decimal places. Enter a loss percentage, if any, with a minus sign.
    %

    Is this yield dependent on whether the bond is expected to be called?
    1. The expected capital gains (or loss) yield for the coming year depends on whether or not the bond is expected to be called.
    2. The expected capital gains (or loss) yield for the coming year does not depend on whether or not the bond is expected to be called.
    3. If the bond is expected to be called, the appropriate expected total return is the YTM.
    4. If the bond is not expected to be called, the appropriate expected total return is the YTC.
    5. If the bond is expected to be called, the appropriate expected total return will not change.

In: Finance

Please, this is the fifth time I am posting this question, all the answers I am...

Please, this is the fifth time I am posting this question, all the answers I am getting are inaccurate because the experts are not putting all value into account like the loan interest rate, tax rate, depreciation, annual cash outflows, salvage value, annual cash inflows, and discount rate.

please also support the answer with a full interpretation and the step by step approach in solving the answer. thank you:)

In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation.

This case continues following the new project of the WePPROMOTE Company, that you and your partner own. WePROMOTE is in the promotional materials business. The project being considered is to manufacture a very unique case for smart phones. The case is very durable, attractive and fits virtually all models of smart phone. It will also have the logo of your client, a prominent, local company and is planned to be given away at public relations events by your client.

As we know from prior cases involving this company, more and more details of the project become apparent and with more precision and certainty.

The following are the final values to the data that you have been estimating up to this point:

  • You can borrow funds from your bank at 3%.
  • The cost to install the needed equipment will be $105,000 and this cost is incurred prior to any cash is received by the project.
  • The gross revenues from the project will be $25,000 for year 1, then $27,000 for years 2 and 3. Year 4 will be $28,000 and year 5 (the last year of the project) will be $23,000.
  • The expected annual cash outflows (current project costs) are estimated at being $13,000 for the first year, then $12,000 for years 2, 3, and 4. The final year costs will be $10,000.
  • Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for the life of the equipment.
  • After 5 years the equipment will stop working and will have a residual (salvage) value of $5,000).
  • The discount rate you are assuming is now 7%.

Requirements of the paper:

  • Perform the final NPV calculations and provide a narrative of how you calculated the computations and why.
  • Then provide a summary conclusion on whether you should continue to pursue this business opportunity.
  • Research, using at least three sources other than the textbook materials that support your calculations and conclusions.

Papers will be assessed on the following criteria:

  • Provide the final, accurate NPV calculations.
  • A narrative on how the NPVs were calculated. The narrative should include how the data relating to depreciation and its tax consequences affect the cash flow of the project.
  • Supporting narrative based on research of sources other than the textbook materials.
  • Provide a conclusion on whether this business opportunity should be pursued.

In: Finance

a)does google make profit in 2018? b)does google have high internal fund to develop their product?...

a)does google make profit in 2018?

b)does google have high internal fund to develop their product?

c)talk about the strength of google in financial resources

In: Finance

It is now January 1. You plan to make a total of 5 deposits of $300...

It is now January 1. You plan to make a total of 5 deposits of $300 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 10% but uses semiannual compounding. You plan to leave the money in the bank for 10 years. Do not round intermediate calculations. Round your answers to the nearest cent. How much will be in your account after 10 years?

You must make a payment of $1,788.04 in 10 years. To get the money for this payment, you will make five equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 10% with quarterly compounding. How large must each of the five payments be? $

In: Finance

A house (real estate investment) is purchased for $600,000, 20% cash down, 80% mortgage financing, 4%...

  1. A house (real estate investment) is purchased for $600,000, 20% cash down, 80% mortgage financing, 4% interest rate, 30 years monthly. The appreciation in the house is 5%/ year. What is the compound annual growth rate (CAGR) of the equity in the house?
  2. In problem #1, what is the interest in years 1 through 5? (amort)

In: Finance

Following her 18th birthday, Madison began investing $26 at the end of each week in an...

Following her 18th birthday, Madison began investing $26 at the end of each week in an account earning 6% per year compounded weekly. She plans to continue making weekly investments until she turns 68. If she had waited until she turned 48, how much would she have to invest weekly in order to have the same retirement nest egg at age 68? Round to the nearest cent.

In: Finance

Elements a. Engagement risk and Acceptable Audit Risk Inverse Direct No Relationship b. Assessed Inherent Risk...

Elements
a. Engagement risk and Acceptable Audit Risk Inverse Direct No Relationship
b. Assessed Inherent Risk and Planned Detection Risk Inverse Direct No Relationship
c. Materiality and Amount of Substantive Evidence Needed Inverse Direct No Relationship
d. Assessed Inherent Risk and Assessed Control Risk Inverse Direct No Relationship
e. Acceptable Audit Risk and Assessed Control Risk Inverse Direct No Relationship
f. Amount of Substantive Evidence collected and Achieved Detection Risk Inverse Direct No Relationship
g. Actual Inherent Risk and Actual Control Risk Inverse Direct No Relationship
h. Achieved Detection Risk and Achieved Audit Risk Inverse Direct No Relationship

In: Finance

What is the accumulated (future) sum of monthly contributions of $500 invested at an average return...

What is the accumulated (future) sum of monthly contributions of $500 invested at an average return of 5% p.a. over 30 years? What if the average return increases to 8% from the 16th year?

In: Finance