The following spreadsheet contains monthly returns for Cola Co. and Gas Co. for 2013. Using these​ data, estimate the average monthly return and the volatility for each stock. Month Cola Co. Gas Co.

January negative 1.80​% 8.20​%

February negative 3.70​% negative 4.60​%

March negative 0.05​% 5.50​%

April negative 1.20​% 1.90​%

May 1.90​% negative 1.00​%

June 1.90​% 4.90​%

July 0.60​% negative 2.70​%

August negative 2.10​% negative 6.00​%

September 4.10​% 4.50​%

October negative 2.40​% 1.70​%

November negative 8.60​% negative 3.70​%

December negative 2.50​% 4.80​%

The average monthly return for Cola Co. is negative 1.15​%. ​(Round to two decimal​ places.)

The average monthly return for Gas Co. is 1.13​%. ​(Round to two decimal​ places.)

The volatility for Cola Co. is __​%. ​(Round to two decimal​ places.)

The volatility for Gas Co. is __​%. ​(Round to two decimal​ places.)

You are interested in buying a house and renting it out. You expect to receive a monthly net income of $1000 from rent. You then expect to sell the house for $390,000 at the end of 42 months. If your discount rate on this investment is 1.1% per month, what is this property worth to you today? Assume that you receive rent at the beginning of each month and you receive the first rent the same day you purchase the property. Round to the nearest cent

Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets: Asset Sales Price Cost Accumulated Depreciation Building $703,000 $657,000 $54,000 Sparkle Corporation stock 138,000 246,000 n/a Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $820,000. What are Shimmer's taxable income and tax liability for the year? (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change.)

Your company is considering a capital investment of ​$212.469 million. The project will generate equal annual​ after-tax operating cash flows of ​$36.79 million for 7 years. At the end of its​ life, the project will be sold for ​$37 ​million, but the​ project's adjusted tax basis at termination will be ​$31 million. The project will require ​$16 million in additonal net working capital. With a 27​% marginal tax​ rate, what is the​ project's IRR? ​ (Percent with​ 1decimal)

Please answer both parts of the question.

Ivanhoe Specialties just purchased inventory-management computer software at a cost of $1,684,950. Cost savings from the investment over the next six years will produce the following cash flow stream: $251,340, $221,240, $455,600, $493,250, $745,320, and $553,740. What is the payback period on this investment? (Round answer to 2 decimal places,e.g. 15.25.)

Management of Brian Lee, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $322,032. They project that the cash flows from this investment will be $93,040 for the next seven years. If the appropriate discount rate is 14 percent, what is the IRR that Brian Lee management can expect on this project? (Do not round discount factors. Round other intermediate calculations to 0 decimal places e.g. 15 and final answer to 2 decimal places, e.g. 5.25%.)

You just finished a capital budgeting investment analysis on a ​$156 million project. The​ project's life is 10 years and it will generate equal annual​ after-tax cash operating cash flows of ​$25 million. You assumed a ​$47 million salvage​ value, but the​ project's adjusted tax basis at termination will be ​$55 million. The project would have no effect on net working capital. With a 24​% marginal tax​ rate, the resulting NPV is ​$negative 17.853 million. What cost of capital did you use for the​ analysis? ​ (Percent with​ 1decimal)

Topic: Investing for Retirement

Having a difficult time narrowing this down. Have to write a 10 page paper discussing this topic. Any detailed recommendations of what I should focus on in the paper. I would like to create some sort of hypothetical situation with a client as well. Any ideas are appreciated!

FITCO is considering the purchase of new equipment. The equipment costs $355000, and an additional $112000 is needed to install it. The equipment will be depreciated straight-line to zero over a 5-year life. The equipment will generate additional annual revenues of $268000, and it will have annual cash operating expenses of $82000. The equipment will be sold for $85000 after 5 years. An inventory investment of $75000 is required during the life of the investment. FITCO is in the 40 percent tax bracket, and its cost of capital is 9 percent. What is the project NPV?
Please show the formulas and do NOT use excel

Assume that sales will grow at 5.00%. The following accounts (cash, accounts receivable, inventory, net fixed assets, accounts payable and accruals, as well as operating costs) are assumed to change with sales and will maintain their current percentage of sales rates into 2016. The dividend payout ratio will remain the same. Long-term debt and notes payable will remain constant into 2016 as will interest expense, as a result. The firm also does not plan to issue any additional common stock or conduct any share repurchases. The firm’s tax rate is 40%. Any additional funds needed will be sourced through a line-of-credit (LOC) and surpluses will be paid out through a special dividend.

BALANCE SHEET AS OF 12/31/2015:

Using the percent-of-sales forecast approach, forecast the 2016 income statement and balance sheet. Be sure the balance sheet balances.

What is the Projected LOC (if any)?

Enter 0 if none.

Professor Wendy Smith has been offered the following​ opportunity: A law firm would like to retain her for an upfront payment of $ 49 comma 000. In​ return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment​ arrangement, the firm would pay Professor​ Smith's hourly rate for the eight hours each month. ​ Smith's rate is $ 535 per hour and her opportunity cost of capital is 15 % per year. What does the IRR rule advise regarding the payment​ arrangement? (Hint: Find the monthly rate that will yield an effective annual rate of 15 %​.) What about the NPV​ rule?

Broward Manufacturing recently reported the following information: Net income $558,000 ROA 10% Interest expense $184,140 Accounts payable and accruals $950,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places.

BEP: %

ROE: %

ROIC: %

Assume sales for Peach Street Industries are expected to increase by 9.00% from 2015 to 2016. Peach Street is operating at full capacity currently and expected assets-to-sales and spontaneous liabilities-to-sales to remain the same. Additionally, the firm is looking to maintain their 2015 net profit margin and dividend payout ratios for 2016. The firm’s tax rate is 37.00% and selected income statement and balance sheet information for 2015 is provided below: Entry Value Entry Value Current Assets $800.00 Sales $2,500.00 Net Fixed Assets (NFA) $700.00 Operating Costs $2,030.00 Total Assets $1,500.00 Depreciation $90.00 Accounts Payable and Accruals $30.00 Interest Expense $69.00 Notes Payable $180.00 Dividends Paid $93.30 Long term debt $510.00 Total Equity $780.00

The firm is projecting sales growth of 10% from 2015 to 2016. If the firm did not have access to or did not want to use external capital sources to grow sales, what is the maximum rate of sales growth (self-sustaining growth rate) could the firm could achieve under these conditions?