Economic order quantity (EOQ).

​ Tinnendo, Inc. believes it will sell 4 million​ zen-zens, an electronic​ game, this coming year. Note that this figure is for annual sales. The inventory manager plans to order​ zen-zens 50 times over the next year. The carrying cost is ​$0.04 per​ zen-zen per year. The order cost is $513 per order. What are the annual carrying​ cost, the annual ordering​ cost, and the optimal order quantity for the​ zen-zens? Verify your answer by calculating the new total inventory cost.

What is the annual carrying cost for the​ zen-zens?

​( ) $  (Round to the nearest​ dollar.)

An investment company intends to invest a given amount of money in three stocks.

The means and standard deviations of annual returns are as follows:

Construct the efficient frontier for portfolios of these stocks. Please explain the involved steps in your modeling and construction.

Fortescue Ltd is offering bonds with a coupon rate of 8% p.a., paid semi-annually. The par value of each bond is $1,000 and has eight (8) years to maturity. The yield to maturity is 9%. What is the value of the bond?

Marvelous Mining Company (MMC) is negotiating for the purchase of a new piece of equipment for its current operations. MMC wants to know the maximum price that it should be willing to pay for the equipment. That is, how high must the price be that it should be willing to pay for the equipment to have an NPV of zero. You are given the following facts:

1. The new equipment would replace existing equipment that has a current market value of $35000.

2. The new equipment would not affect revenues, but before-tax operating costs would be reduced by $12500 per year for 5 years. These savings in costs would occur at year-end.

3. The old equipment is now five years old. It is expected to last another five years and to have no resale value at the end of those 5 years. It was purchased at $40000 and is being depreciated at a CCA rate of 30%.

4. The new equipment will also be depreciated at a CCA rate of 30%. MMC expects to be able to sell the equipment for $6000 at the end of five years. At that time, the firm plans to reinvest in new equipment in the same CCA pool.

5. MMC has profitable ongoing operations.

6. The appropriate discount rate is 14%.

7. The tax rate is 40%.

8. Assume net acquisition cost is positive.

Develop a 1,050-word evaluation describing business structure and financial statements, including the following:

• Identify and describe the legal categories of a business organization contrasting tax-related advantages and disadvantages.
• Next, using your entrepreneur skills, consider starting your own business. What business structure would you choose and why?
• Discuss financial statements for the chosen business structure, then explain with specific examples from the University Library, how these would help you make decisions about your business.

The loan term is 15 years, the payments are made monthly, the loan amount is $3,000,000 and the interest rate is 8.25% APR.

A. Create an amortization schedule for the following loan.

B. What are the totals over the loan term for the interest? Principal? Total payments?

C. What is the total principal payment during the 4^th year (i.e. year 4 only!) of the loan?

You have just received a windfall from an investment you made in a​ friend's business. She will be paying you

$ 36 comma 678$36,678

at the end of this​ year,

$ 73 comma 356$73,356

at the end of next​ year, and

$ 110 comma 034$110,034

at the end of the year after that​ (three years from​ today). The interest rate is

13.9 %13.9%

per year.

a. What is the present value of your​ windfall?

b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?

1. Discuss the differences between horizontal, vertical and ratio analysis?

2. What are three major reasons to hold cash in an organization?

1. Briefly, describe the nature and use of the following corporate planning tools:
   1. Values statement
   2. Mission statement
   3. Vision statement
   4. Organizational goals
   5. Organizational objectives
2. What are some of the budget types used within health services organizations? Briefly describe the purpose and use of each.

Describe what kind of compensation is permissible for an independent director based on the SEC and Dodd-Frank Act guidelines.

State the difference between an insider and a control person for purposes of liability under the Securities Act of 1933, including how they are different. State whether all insiders are control persons, and whether all control persons are insiders. Provide examples of when they are the same and when they are different.

Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities.

If the bank earns $121,000 in noninterest income, incurs $81,000 in noninterest expenses, and pays $2,510,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.)

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.726 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value (salvage value) of $289,800. The project requires an initial investment in net working capital of $414,000. The project is estimated to generate $3,312,000 in annual sales, with costs of $1,324,800. The tax rate is 35 percent and the required return on the project is 9 percent.

Required:

What is the project's year 0 net cash flow (or cash flow from assets)?

What is the project's year 1 net cash flow (or cash flow from assets)?

What is the project's year 2 net cash flow (or cash flow from assets)?

What is the project's year 3 net cash flow (or cash flow from assets)?

What is the NPV?

Ginny is endowed with $ 8million and is deciding whether to invest in a restaurant. Assume perfect capital markets with an interest rate of 6%.

1. List 4 perfect capital market assumptions.

1.   ______________________________      2.   ______________________________

3.   ______________________________ 4.   _______________________________

2. Which investment option should Ginny choose?

3. Which investment option can be eliminated from consideration? Why?

Ginny is actively pursuing another business venture as a ticket scalper. She estimates that for a $2 million investment in inventory she can resell her tickets for $6 million over the next two years (cash flows realized in exactly two years). Assume the same 6% interest rate.

4. What is the NPV of the Ticket Brokering venture?

5. What is the new value of Ginny’s Corporation?

6. Suppose Ginny does not have the $2 million to start the new venture. Instead, she wants to raise equity capital by issuing 100,000 shares. What price will new investors be willing to pay?

Total acquisition price: $3,200,000

• Property consists of eight office suits, three on the first floor and five on the second
• Contract rents: two suits at $4,800 per month, one at $5,600 per month, and five at $2,200 per month
• Annual market rent increase: 3.0% per year
• Vacancy and collection losses: 5% per year
• Operating expenses: 25% of effective gross income each year.
• Capital expenditures: 6% of effective gross income each year.
• Expected holding period: 5 years.
• Expected selling price NOI capitalized at 6.75%.
• Selling expense in year 5:0% of the sale price
• Mortgage financing assumptions:
• First mortgage loan: (75% LTV).
• Annual mortgage interest rate: 6.25%
• Loan term and amortization period: 30 years.
• Total up-font financing costs: 1.75% of loan amount.
• Discount Rate: 10%

Questions You Need to Answer

What is the going in cap rate?

What is the NOI for year five?

What is the selling price after the five year hold?

What is loan balance at sale?

What is the NPV for this project?

What is the IRR for this project?

What is the DCF for this project—(note BTCF)?

What is reversion amount?

*Make sure to show your work in the Excel file (provide excel equations as well).