You have been offered the opportunity to invest in a project that will pay $4,155 per year at the end of years one through three and $8,519 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 18.89 percent per year. What is the future value of this cash flow pattern at the end of year five?

write a conclusion about a partnership business

-the advantages of doing a partnership company

-how's the management of the company run

1. Problem 3.01 (Balance Sheet) eBook Problem Walk-Through The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.6 million and net plant and equipment equals $2.1 million. It has notes payable of $150,000, long-term debt of $759,000, and total common equity of $1.5 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet. Write out your answers completely. For example, 25 million should be entered as 25,000,000. Negative values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar, if necessary. What is the company's total debt? $ What is the amount of total liabilities and equity that appears on the firm's balance sheet? $ What is the balance of current assets on the firm's balance sheet? $ What is the balance of current liabilities on the firm's balance sheet? $ What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as a single line item on the firm's balance sheet.) $ What is the firm's net working capital? If your answer is zero, enter "0". $ What is the firm's net operating working capital? $ What is the monetary difference between your answers to part f and g? $ What does this difference indicate?

11.2   Your rich uncle in France has decided to give you an annuity of €2,000 per month. Because you live in Canada, you’re concerned about the effect of foreign currency fluctuations on your new income. You heard a finance guy on the radio talking about how “foreign currency exchange rate could move against you, if you’re not properly prepared.”                                                                                              

a.    What does it mean for the currency exchange rate to move against you?

b.    Would moving to France mitigate some of the risk? If so, how? If not, why not?

c.     Assume you want to stay in Canada. Your grandparents, who have retired to Provence (France), each receive a Canadian pension of C$1100 monthly. What could you do to reduce the risk for all of you?

You have already saved $6850 to buy a used car. You invest this money in a certificate of deposit earning 0.30% APR compounded monthly. How many years will it take your account to reach your target of $7275 in order to buy the new car?

You expect a share of stock to pay dividends of $2.10, $2.35, and $2.60 in each of the next 3 years. You believe the stock will sell for $33.00 at the end of the third year.

a. What is the stock price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is the dividend yield for year 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. What will be the dividend yield at the start of year 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

1. If markets are efficient, when new information about a stock becomes available, the price will:

a. remain unchanged because it already reflects this information.

b. accurately and rapidly adjust to include this new information.

c. adjust to accurately reflect this new information over the course of the next few days.

d. most likely increase because all new information has a positive effect on stock prices.

2. Which one of these is included in the yield of a bond with a low credit rating but not included in a U.S. Treasury bond yield? Assume both bonds are selling at a premium.

a. Real rate of return

b. Inflation premium

c. Default premium

d. Loss of premium

3. Market efficiency implies

a. that investors are irrational.

b. that there is no point to buying common stocks.

c. that consistently superior performance is very difficult even for professional investors.

d. that there are no taxes.

One year​ ago, your company purchased a machine used in manufacturing for $ 120, 000. You have learned that a new machine is available that offers many advantages and you can purchase it for $ 140, 000 today. It will be depreciated on a​ straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin​ (revenues minus operating expenses other than​ depreciation) of $ 60,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $ 23,000 per year. The current machine is being depreciated on a​ straight-line basis over a useful life of 11​ years, and has no salvage​ value, so depreciation expense for the current machine is $ 10,909 per year. The market value today of the current machine is $ 45,000. Your​ company's tax rate is 45 %​, and the opportunity cost of capital for this type of equipment is 10 %. Should your company replace its​ year-old machine?

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The NPV of replacing the​ year-old machine is (...) ​(Round to the nearest​ dollar.)

You are considering a project that will pay you $710 in the first year, $2,000 in the second year, and $1,090 in the third year. In the fourth year, the project will pay you a cash flow of 3,000, which starting from the fifth year will grow forever at a rate of 2%. If the interest rate for this project is 12%, and the time-zero cost of starting this project is $10,000, what is the Net Present Value (PV of benefits minus PV of costs) of the project? Round your answer to the first two decimal places.

1. On Jan 1, you sold short 400 shares of AT&T at $35 per share. You post $7000 to the margin account. On April 1, you received a margin call on this trade. Assume the minimum margin requirement is 40%, what is the price of the stock that triggered the margin call?

1. You are an investment advisor for Alan and Jimmy. You've helped them optimally allocate their investment portfolios along the same capital allocation line (CAL). If Alan's portfolio has a higher weight on risk-free asset than Jimmy's portfolio, then which of the following statements MUST be true:
   
   [I]   Alan’s portfolio has lower expected returns than Jimmy’s
   [II]  Alan is less risk-averse than Jimmy
   [III] Alan must hold a positive position in the risky asset

1. On January 1, you sold short 200 shares of Walt Disney Co at $150 per share and pledged 50% initial margin. On March 1, a dividend of $10 per share was paid. On June 1, you closed your position buying 200 shares at $170 per share. What is your rate of return?

Suppose that you are a consultant that specializes in mergers and acquisitions. A client has extra cash on hand and wants your advice on what to look for in a potential take-over. In addition to your general advice about purchasing another firm, your client wants to know the potential sources of value from a merger and how that value affects the amount to offer for the target firm.

Book Name: Principles of Managerial Finance - 180 Day Option, 14th Edition

Define the term finance and explain how unemployment, minimum wage, stock markets and our economy as a whole affected the people? How people could benefit their career from doing finance as a whole?

Please include an explanation. I'm really trying to learn the material. Interest versus dividend income   Last​ year, Shering Corporation had pretax earnings from operations of $484,000. In​ addition, it received $22,000 in income from interest on bonds it held in Zig Manufacturing and received $22,000 in income from dividends on its 4% common stock holding in Tank​ Industries, Inc. Shering is in the 21% tax bracket and is eligible for a 50% dividend exclusion on its Tank Industries stock.

a. Calculate the​ firm's tax on its operating earnings only.

b. Find the tax and the​ after-tax amount attributable to the interest income from Zig Manufacturing bonds.

c. Find the tax and the​ after-tax amount attributable to the dividend income from the Tank​ Industries, Inc., common stock.

d.​ Compare, contrast, and discuss the​ after-tax amounts resulting from the interest income and dividend income calculated in parts b. and c.

e. What is the​ firm's total tax liability for the​ year?

1. Suppose that you are a consultant that specializes in mergers and acquisitions. A client has extra cash on hand and wants your advice on what to look for in a potential take-over. In addition to your general advice about purchasing another firm, your client wants to know the potential sources of value from a merger and how that value affects the amount to offer for the target firm.

1. You are considering a project with an initial investment of $14 million and annual cash flow (before interest and taxes) of $2,000,000. The project’s cash flow is expected to continue forever. The tax rate is 34%, the firm’s unlevered cost of equity is 12% and its pre-tax cost of debt is 10%. The only side-effect from the use of debt that you are concerned about is related to the tax shield.

1. If the project were to be financed with 100% equity, would you accept the project?
2. If the project were to be financed with $5 million in perpetual debt and the rest with equity, use the APV method to help you decide whether to accept the project or not. Does your decision change from part (a)?
3. Redo part (b) by using the FTE approach.
4. Redo part (b) by using the WACC approach.
5. What is the minimum level of debt you would have to use in order to accept this project?