Your firm is deciding to raise capital. BRIEFLY describe issues to consider to get the most appropriate financing worldwide and the lowest WACC for your company on a worldwide basis.

Compare and contrast a 5-year AAA corporate bond with a 5-year Treasury Note. Which would typically offer a higher interest rate? Why? What risk affects both types of bonds?

Parramore Corp has $14 million of sales, $3 million of inventories, $2 million of receivables, and $1 million of payables. Its cost of goods sold is 85% of sales, and it finances working capital with bank loans at an 8% rate. Assume 365 days in year for your calculations. Do not round intermediate steps.

1. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places. days If Parramore could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places.

_____ days

2. If Parramore could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places.
_____ days

3. How much cash would be freed up, if Parramore could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
$ _______

4. By how much would pretax profits change, if Parramore could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
$______

1What are examples of pro forma financial statements? How are they used?

2. Discuss the differences between GAAP financial statements and pro forma statements?

Elmo​ Inc.'s stock is currently selling at $60.26 per share. For each of the following situations​ (ignoring brokerage​ commissions), calculate the gain or loss that Courtney Schinke realizes if she makes a 100​-share transaction.​ (Enter all losses as negative​ numbers.)

a. She sells short and repurchases the borrowed shares at $68.01 per share.

b. She takes a long position and sells the stock at $75.21 per share.

c. She sells short and repurchases the borrowed shares at $42.35 per share.

d. She takes a long position and sells the stock at $60.26 per share.

The Neal Company wants to estimate next year's return on equity (ROE) under different financial leverage ratios. Neal's total capital is $11 million, it currently uses only common equity, it has no future plans to use preferred stock in its capital structure, and its federal-plus-state tax rate is 40%. The CFO has estimated next year's EBIT for three possible states of the world: $5.1 million with a 0.2 probability, $2.1 million with a 0.5 probability, and $0.7 million with a 0.3 probability. Calculate Neal's expected ROE, standard deviation, and coefficient of variation for each of the following debt-to-capital ratios. Do not round intermediate calculations. Round your answers to two decimal places at the end of the calculations.

1. Debt/Capital ratio is 0.

2. Debt/Capital ratio is 10%, interest rate is 9%.

3. Debt/Capital ratio is 50%, interest rate is 11%.

4. Debt/Capital ratio is 60%, interest rate is 14%.

Is it possible for a company to have negative net income but at the same time a positive cash flow?

Please explain why in detail and provide an example.

Saudi Arabia or Iraq, which is more likely to be a full democracy by 2050? Explain your answer.

Discuss the differences between GAAP financial statements and pro forma statements?

A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers. It can be upgraded now for $81,000 or sold to a smaller company internationally for $43,000. The upgraded machine will have an annual operating cost of $79,000 per year and a $29,000 salvage value in 3 years. If upgraded, the presently owned machine will be retained for only 3 more years, then replaced with a machine to be used in the manufacture of several other product lines. The replacement machine, which will serve the company now and for a maximum of 8 years, costs $225,000. Its salvage value will be $53,000 for years 1 through 5; $20,000 after 6 years; and $10,000 thereafter. It will have an estimated operating cost of $45,000 per year. Perform an economic analysis at 10% per year using a specified 3-year planning horizon.

a) Determine if the current machine should be replaced now or 3 years from now.

b) Once decided, determine the equivalent AW for the next three years.

Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its investments.

Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 decimal places.)

Martin Enterprises needs someone to supply it with 142,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $995,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that, in five years, this equipment can be salvaged for $136,000. Your fixed production costs will be $570,000 per year, and your variable production costs should be $19.05 per carton. You also need an initial investment in net working capital of $124,000. Assume your tax rate is 22 percent and you require a return of 11 percent on your investment. a. Assuming that the price per carton is $29.40, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Assuming that the price per carton is $29.40, find the quantity of cartons per year you can supply and still break even. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Assuming that the price per carton is $29.40, find the highest level of fixed costs you could afford each year and still break even.

Motorola Mobility LLC is a company that develops mobile devices. Headquartered in Chicago, Illinois, United States, the company was formed on January 4, 2011 by the split of Motorola Inc. into two separate companies; Motorola Mobility took on the company's consumer-oriented product lines, including its mobile phone business and its cable modems and set-top boxes for digital cable and satellite television services, while Motorola Solutions retained the company's enterprise-oriented product lines. Early 2012, Google decided to purchase Motorola mobility LLC for $12.5b. Google had a plan to keep Motorola mobility for 5 years. Google financial analysis team made the following forecasts:

And that the average book value of asset is $8b and Google’s required rate of return is its WACC.

7- Calculate payback period USING EXCEL. If you know that google accepts projects with 4 years payback period. Would you accept that project?

a.Joe Smith has asked your financial advice. He would like to have $2,000,000 in his investment account 25 years from now. He expects a stable 6% return and has $250,000 now. How much does he need to add to his account annually to achieve his goal?

b.Joe Smith has asked your financial advice. He would like to have $2,000,000 in his investment account 25 years from now. He expects a stable 6% return and has $250,000 now. What would he need to add annually if his return was reduced to 5.5%?

c.Joe Smith has asked your financial advice. He would like to have $2,000,000 in his investment account 25 years from now. He expects a stable 6% return. What would he need to add annually if he started with $300,000 now.

Compare and contrast the features of common stock. Describe the characteristics of long-term debt. Distinguish between floating rate & fixed rate corporate bonds.