Blunderbluss Manufacturing's balance sheets report $305 million in total debt, $64 million in short-term investments, and $65 million in preferred stock. Blunderbluss has 5 million shares of common stock outstanding. A financial analyst estimated that Blunderbuss's value of operations is $850 million. What is the analyst's estimate of the intrinsic stock price per share? Round your answer to the nearest cent.

Show all work. Label and clearly explain your answer. This is very important. 1) You must explain how you arrived at your answer in order to get full credit. 2) If you do show your work, and your answer is wrong, you can still earn a substantial amount of credit depending on how serious the error is. 3) If your answer is wrong, and you don't show your work, you will get a zero. a. Convert 3% simple monthly rate into simple annual rate. b. Convert 6% simple annual rate into annual rate, compounded monthly. c. Convert 9% annual rate compounded monthly into annual rate, compounded daily. d. Convert 12% annual rate, compounded weekly into simple annual rate. e. Convert 15% simple annual rate into annual rate, compounded semi-annually.

Name another company in the same industry as General Electric (GE) that provides benefits to multiple stakeholders, and briefly explain who those stakeholders are and how they benefit.

If you bought a stock for $53 dollars and could sell it 16 years later for three times what you originally paid. What was your return on owning this stock?

Include functional formulas utilized in Microsoft® Excel® for your answers presented (in other words - do not simply type answers in the spaces required).

Problem 16-14
Cash Budgeting

Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently run out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of how much she should borrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs will be especially high.

Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $4,000 per month, and the rent is $2,800 per month. In addition, she must make a tax payment of $13,000 in December. The current cash on hand (on December 1) is $450, but Koehl has agreed to maintain an average bank balance of $4,500 - this is her target cash balance. (Disregard the amount in the cash register, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.)

The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $100,000.

1. Prepare a cash budget for December, January, and February.

   I. Collections and Purchases:
   	December	January	February
   Sales	$	$	$
   Purchases	$	$	$
   Payments for purchases	$	$	$
   Salaries	$	$	$
   Rent	$	$	$
   Taxes	$	---	---
   Total payments	$	$	$
   Cash at start of forecast	$	---	---
   Net cash flow	$	$	$
   Cumulative NCF	$	$	$
   Target cash balance	$	$	$
   Surplus cash or loans needed	$	$	$

   
   
2. Suppose Koehl starts selling on a credit basis on December 1, giving customers 30 days to pay. All customers accept these terms, and all other facts in the problem are unchanged. What would the company's loan requirements be at the end of December in this case? (Hint: The calculations required to answer this part are minimal.)

Joshua Kelly estimates that taking some classes would result in earning $10,000 more a year for the next 50 years. Based on an annual interest rate of 8 percent, calculate the future value of these classes. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

future value =

What is the future value of a 5%, 10 year annuity due that pays $15,000 per year? What is the present value of a 5%, 10 year annuity due that pays $15,000 per year?

What are derivatives? How can derivatives be used to reduce risk? Can derivatives be used to increase
risk? Explain

what is 10 percent increase on

(a) $25.706B

(b) $25.533B

(c) $24.536B

(d) $24.658B

If you borrow $7,000 with an interest rate of 3 percent, to be repaid in five equal yearly payments at the end of the next five years, what would be the amount of each payment? Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

Amount of each paymet

Problem 12-09
Financing Deficit

Garlington Technologies Inc.'s 2016 financial statements are shown below:

Balance Sheet as of December 31, 2016

Income Statement for December 31, 2016

Suppose that in 2017 sales increase by 15% over 2016 sales and that 2017 dividends will increase to $128,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 12%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.