Use the following financial statements for Lake of Egypt Marina, Inc.

Calculate the following ratios for Lake of Egypt Marina, Inc. as of year-end 2021. (Use sales when computing the inventory turnover and use total stockholders' equity when computing the equity multiplier. Round your answers to 2 decimal places. Use 365 days a year.)

Profit Margin) (answer is not 30.68 or 55.33)

ROA) (answer is not 17.36 or 18.64 or 18.05)

Days sales in inventory) (the answer is not 309.46 or 138.21 or 1.179 or 1.18)

ROE) (the answer is not 38.25 or 44.38 or 39.50)

Finance is exciting! In this course, we learned how money can grow through the use of compounding and interest rates and your growth strategies may now be different. What are your new financial goals? Would you like to become more liquid, to save more for your retirement, or to start a new business? Whatever your goals, finance is right at the core. Think about what you learned in this course regarding investing to complete this assignment.

Write a two to three (2-3) page paper in which you: Describe (3) ways you will invest in your future based on the principles of finance discussed in this course. Include terminology from the course and use citations as necessary to support your explanation of the terminology. Discuss one of the (3) ways you feel most confident as a way to invest in your future. Explain your level of confidence. Of the (3) ways you will invest in your future, discuss the one you perceive might be the most challenging. Then, discuss how you might overcome some of those challenges.

1. Dana needs to make some house repairs in three years that will cost $8,000. She has some money in an account earning 6% annual interest. How much money needs to be in the account today so she will have enough to pay for the repairs?

2. Unfortunately, Dana doesn't have enough money in her account right now. She needs to make additional contributions at the end of each of the next three years to be able to pay for the repairs. Her account currently has $3,500, which, along with her additional contributions, is expected to continue earning 6% annual interest. If she makes equal contributions each year, how large must each contribution be for Dana to have $8,000 after three years?

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $2.10. The dividends are expected to grow at 15 percent over the next five years. In five years, the estimated payout ratio is 34 percent and the benchmark PE ratio is 40. a. What is the target stock price in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the stock price today assuming a required return of 15 percent on this stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Please discuss the two most common traditional valuation methods: Earnings Multiple, and Discounted Cash Flow Method. How can they be applied to various actual situations? How effective are these methods?

4. A small town has been cryogenically frozen since 2014.When they thaw out, they want to know how their tax rates have changed after the Tax Cuts and Jobs Act of 2017. In all cases assume the standard deduction is taken and personal exemptions are taken for everyone in the household.a. Mo earns $90,000. He is a single filer. What is his average tax rate in 2014 versus in 2019?b. Elaina earns $90,000. She is married, and files as a married couples filing jointly with her spouse who earns no income. What is her average tax rate in 2014 versus in 2019? c.Meriam earns $90,000. She files as a head of household with four dependents. What is her average tax rate in 2014 versus in 2019?d. Based on this example, what demographic has benefitted the most from the changes in the Tax Cuts and Jobs Act of 2017?

Many firms have been under pressure to declassify their boards of directors. Why would investors want a board to be declassified? What are the advantages of a classified board?

S&S Air was founded 10 years ago. The company has manufactured and sold light airplanes over this period, and the company’s products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models: The Birdie, which sells for $53,000, and the Eagle, which sells for $78,000. S&S Air is not publicly traded, but the company needs new funds for investment opportunities. Mark Sexton and Todd Story, the owners of S&S Air, have decided to expand their operations. They instructed their newly hired financial analyst, Chris Guthrie, to enlist an underwriter to help sell $20 million in new 10-year bonds to finance construction. Chris has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features S&S Air should consider and what coupon rate the issue will likely have. Although Chris is aware of the bond features, he is uncertain as to the costs and benefits of some features, so he isn't clear on how each feature would affect the coupon rate of the bond issue. You are Renata's assistant, and she has asked you to prepare a memo to Chris describing the effect of each of the following bond features on the coupon rate of the bond. She would also like you to list any advantages or disadvantages of each feature.

a. The security of the bond—that is, whether the bond has collateral.

b. The seniority of the bond.

c. The presence of a sinking fund.

d. A call provision with specified call dates and call prices.

e. A deferred call accompanying the preceding call provision.

f. A floating rate coupon.

NPVs, IRRs, and MIRRs for Independent Projects

Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $17,100 and that for the pulley system is $22,430. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:

1. Calculate the IRR for each project. Round your answers to two decimal places.

   Truck:    %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

   
   Pulley:    %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

2. 
   

3. Calculate the NPV for each project. Round your answers to the nearest dollar, if necessary. Enter each answer as a whole number. For example, do not enter 1,000,000 as 1 million.

   Truck: $
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

   
   Pulley: $
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

4. 
   

5. Calculate the MIRR for each project. Round your answers to two decimal places.

   Truck: %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

   
   Pulley:    %
   
   What is the correct accept/reject decision for this project?
   -Select-Accept or Reject

(Future value)  You are hoping to buy a house in the future and recently received an inheritance of ​$16,000. You intend to use your inheritance as a down payment on your house. a.  If you put your inheritance in an account that earns 8 percent interest compounded​ annually, how many years will it be before your inheritance grows to ​$35,000​? b.  If you let your money grow for 10 years at 8 percent​, how much will you​ have? c.  How long will it take your money to grow to ​$35,000 if you move it into an account that pays 3 percent compounded​ annually? How long will it take your money to grow to ​$35,00 if you move it into an account that pays 13 percent​? d.  What does all this tell you about the relationship among interest​ rates, time, and future​ sums?

Calculate the Macaulay duration of a 9%, $1,000 par bond that matures in three years if the bond's YTM is 14% and interest is paid semiannually. You may use Appendix C to answer the questions.

A. Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places.

B. Assuming the bond's YTM goes from 14% to 13.0%, calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter negative value, if any.

Statement of the Assignment:

Please prepare a comprehensive list of financial ratios as introduced in Chapter 3 of the textbook. Write a brief explanation below each financial ratio, e.g. what does the financial ratio measures or what the significance of it is.

For example:

Current Ratio = Current Assist / Current Liabilities

Current ratio measures whether our current assets, if liquidated, are sufficient to pay all of our current liabilities. A CR of 1.5, for example, shows that if we were to liquidate all of our current assets, we will be able to cover 1.5x our current liabilities, whereas a CR of 0.5 shows that liquidating our current assets only covers half of our current liabilities.

Problem 21-12 Black–Scholes model

Use the Black–Scholes formula to value the following options:

a. A call option written on a stock selling for $68 per share with a $68 exercise price. The stock's standard deviation is 6% per month. The option matures in three months. The risk-free interest rate is 1.75% per month.

b. A put option written on the same stock at the same time, with the same exercise price and expiration date.

Q2 2016:

The use of derivatives by banks for hedging, trading and speculation has been
the subject of great debate by regulators, customers and other stakeholders.
Critically evaluate a bank’s use of financial derivatives and the benefits and risks
this generates for both the bank and other stakeholders in the wider financial
system.