does company as a business form preclude any activities aimed at social impact in New Zealand.
(charitable trusts and limited liability companies)

Your are the CFO of a factory.What procedures will be used for monitoring overall business performance? What level of performance will your business shoot for? These should be targets for next year and in five years. They should be financial performance standards used to monitor the overall business. What yield and output levels could you attain? What efficiency levels will you reach?

in 400 words describe the following,

1. Offer some reasons that the intrinsic value that you might calculate with the methodologies learned might yield a price different than what the stock trades at in the stock market. You can reference any method of valuation models in offering thoughts on why there might be differences between intrinsic and market values.

2. Describe three different examples of analysis where you might use discounted cash flows.

What is the purpose of the loan that Mass Stove is requesting?

Kolby corporation is comparing two different capital structures, Plan I, would result in 1,300 shares of stock and $80,640 in debt. Plan II would result in 2,900 shares of stock and $19,200 in debt. The interest rate on the debt is 10%.

a. Ignoring taxes, compare both of these plans to an equity plan assuming that EBIT will $10,500. The all equity plan would result in 3,400 shares of stock outstanding. Which of the three plans has the highest EPS? and which one with the lowest?

b. In part (a) what are the break-even levels of EBIT for each plan as compared to that for all equity plan? Is one higher than the other? Why?

c. Ignoring taxes, when will EPS be identical for Plan I and Plan II?

The following two projects are mutually exclusion the firm's cost of capital is12%. The cash flow for each projects are given in the following table. initial investment-60000 year CF(A) CF(B) 1 36000 46000 2 31500 30000 3 28500 15000 Based on NPV IRR PI Payback period which project should be accepted?

The mortgage on your house in Winnipeg is 5 years old. It required monthly payments of $ 1 comma 390 ​, had an original term of 30​ years, and had an interest rate of 10 % ​(APR with​ semi-annual compounding). In the intervening 5​ years, interest rates have​ fallen, housing prices in the Unite States have​ fallen, and you have decided to retire to Florida. You have decided to sell your house in Winnipeg and use your equity for the down payment on a condo in Florida. You will roll over the outstanding balance of your old mortgage into a new mortgage in Florida. The new mortgage has a​ 30-year term, requires monthly​ payments, and has an interest rate of 5.625 % ​(APR with monthly compounding which is typical for U.S.​ mortgages). ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.) a. What monthly repayments will be required with the new​ loan? b. If you still want to pay off the mortgage in 25​ years, what monthly payment should you make on your new​ mortgage? c. Suppose you are willing to continue making monthly payments of $ 1 comma 390 . How long will it take you to pay off the new​ mortgage? d. Suppose you are willing to continue making monthly payments of $ 1 comma 390 and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the new​ financing?

You are bearish on Telecom and decide to sell short 100 shares at the current market price of $40 per share.

a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position?

Initial margin            $

b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places.)

Stock price reaches            $

Robert is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 205,000 shares of stock outstanding. Under Plan II, there would be 155,000 shares of stock outstanding and $3.1 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. a.If EBIT is $600,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If EBIT is $850,000, what is the EPS for each plan? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the break-even EBIT?

Quantitative Problem 1: Findley Furniture Company must install $7.0 million of new equipment in one of its plants. It can obtain a bank loan for 100% of the required amount. Alternatively, management believes it can arrange a lease. Assume that the following facts apply:

1. The equipment falls in the MACRS 5-year class. The applicable MACRS rates are 20%, 32%, 19%, 12%, 11%, and 6%.
2. The lease includes maintenance, whereas if the equipment is purchased, it would require maintenance provided by a service contract for $170,000 per year, payable at the end of the year.
3. Findley’s federal-plus-state tax rate is 45%.
4. If the money is borrowed, the bank loan will be at a rate of 11%, amortized in 5 equal installments to be paid at the end of each year.
5. The tentative lease terms call for end-of-year payments of $1.35 million per year for 5 years.
6. At the end of the lease term, the equipment will have an estimated salvage value of $800,000. At that time, Findley plans to replace the equipment regardless of whether the firm leases or purchases it.

What is the firm’s cost of owning the equipment? Enter your answer in thousands. For example, an answer of $1,234,000 should be entered as 1,234. Do not round intermediate calculations. Round your answer to the nearest thousand dollars. Enter your answer as a positive number.
$   thousand

Ghost, Inc., has no debt outstanding and a total market value of $250,000. Earnings before interest and taxes, EBIT, are projected to be $40,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 20 percent lower. The company is considering a $105,000 debt issue with an interest rate of 4 percent. The proceeds will be used to repurchase shares of stock. There are currently 10,000 shares outstanding. Ignore taxes for this problem.

a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Calculate 7 ratios of your choosing

1

2

3

4

5

6

7

Show work.

A) Calculate the PV of a single payment of $1,000,000 that you are receive in 5 years and that has an interest rate of 5%.

B) Calculate the PV of a single payment of $21,500,000 that you are receive in 5 years and that has an interest rate of 8%.

C) Calculate the PV of a single payment of $4,000,000 that you are receive in 5 years and that has an interest rate of 12%.

D) Calculate the FV of a single payment of $1,000,000 that you are receive in 5 years and that has an interest rate of 5%.

E) Calculate the FV of a single payment of $21,500,000 that you are receive in 5 years and that has an interest rate of 8%.

F) Calculate the FV of a single payment of $4,000,000 that you are receive in 5 years and that has an interest rate of 12%.

G) Define a lump sum.

H) Define an annuity and give an example.

You are bullish on Telecom stock. The current market price is $10 per share, and you have $1,000 of your own to invest. You borrow an additional $1,000 from your broker at an interest rate of 8.5% per year and invest $2,000 in the stock.

a. What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.)

Rate of return             %

b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. (Round your answer to 2 decimal places.)

Stock price falls below            $

Ghost, Inc., has no debt outstanding and a total market value of $369,600. Earnings before interest and taxes, EBIT, are projected to be $51,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 15 percent higher. If there is a recession, then EBIT will be 24 percent lower. The company is considering a $185,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,400 shares outstanding. Ignore taxes for questions a and b. Assume the company has a market-to-book ratio of 1.0 and the stock price remains constant.

Consider a mutual fund with $218 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $4 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end.

a. What is net asset value at the start and end of the year? (Enter your answers in dollars rounded to 3 decimal places.)

b. What is the rate of return for an investor in the fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Rate of return             %