This course is about Understanding Finanical Statement.

There are two companies which are competitors(same SIC classifications). The Coca Cola Company will be a publicly-traded U.S. company which reports under GAAP and Coca- Cola European Partners will be a foreign competitor, also publicly-traded, which reports under IFRS. Here is the requirement: briefly describe, in your own words and citing company literature where appropriate, the companies under consideration. Finally “which company would be the better investment?” based upon your ratio analysis.

A program at SF State is concerned about their graduation rates. Every year they enroll 400 junior-level students, and they’ve been tracking the percent who manage to finish (graduate from) the program in a timely manner. Below are the data for the past 8 years. Express all calculations to 3 significant figures: ie. 12.3% or 0.123 (also 3-decimal spaces).

• Calculate the proportion of the class that graduates each year.
• What kind of control chart should be used in this situation? pChart Justify Why.
• Compute the 3 sigma control limits

Are we in control, give the control

You are Given the Following Information for an OECS country for the years 2005 and 2004:

1. Calculate GDP for the years 2005 and 2004.You have just calculated nominal GDP.

2.You are told that inflation in 2005 was approximately 2%,what would be your initial estimate of real GDP growth in 2025?Briefly outline the difference between nominal and real GDP.

Please show excel sheets for the following, answers are provided

The CPI-U for Americans 62 years of age and older (some of your professors and some of your authors are interested in this!) present the following annual inflation rates in percent:

Compare the disclosure requirements of the publicly traded company between the united states and the United Kingdom

USE THE INFORMATION BELOW FOR PROBLEMS 1-4

An analyst wishes to estimate the share price for Ashley Corporation. The following information

is made available:

Estimated profit margin = 15%

Total asset turnover = 2

Financial leverage = 1.2

Estimated dividend payout ratio = 75%

Required rate of return = 14%

Estimated EPS = $2.50

1. Calculate the firm's ROE.

2. Calculate the firm's sustainable growth rate.

3. Calculate the firm’s P/E multiple.

4. Calculate the firm’s estimated share price.

USE THE INFORMATION BELOW FOR PROBLEMS 5-8

At the end of the year 2004 the Office Equipment Industry had free cash flow to equity (FCFE)

of $2.50 per share. The following annual growth rates in FCFE are projected:

Year

Growth Rate

2005

10%

2006

15%

2007

20%

2008

25%

2009

20%

2010

15%

2011

10%

2012

7%

From year 2013 onward growth in FCFE is expected to remain constant at 5% per year. The

industry has a beta of 0.90 and the current industry price is $105. Currently the yield on 10-year

Treasury notes is 5% and the equity risk premium is 4%

5. Calculate the required rate of return on equity. (Hint: derived from CAPM)

6. Calculate the present value now (Year 2004) of FCFE during the period of increasing growth

(that is for years 2005 to 2008).

7. Calculate the present value now (Year 2004) of FCFE during the period of constant growth

(that is for years 2013 onwards).

8. Calculate the intrinsic value of the industry now (Year 2004).

1.)Coffey's Coffee Shop was organized on January 1, 2005 and was authorized to issue 200,000 shares of $2 par value common stock and 100,000 shares of $100, 6% cumulative preferred stock. The preferred stock is convertible to common at the rate of 1 preferred share to 4 shares of common. The conversion rate is restated for all stock dividends and splits. Coffee had the following stock transactions in 2005:

1/1/2005 - Sold 30,000 shares of common stock at $20 per share.

1/1/2005 - Sold 10,000 shares of preferred stock at $100 per share.

4/1/2005 - Issued at 50 percent stock dividend when the market price is $26 per share.

9/1/2005 - Purchased 4,000 treasury shares at $30 per share.

10/1/2005 - Sold 1,000 of the treasury shares at $32 per share.

11/1/2005 - Sold 2,000 of the treasury shares at $25 per share.

12/1/2005 - Issued a 2-1 for stock split.

12/20/2005 - Declared the required dividend to preferred stock holders and a $.25 per share dividend to common stockholders. Dividends are payable on 12/31/2005.

12/31/2005 - Paid dividends declared on 12/20/2005.

Prepare journal entries to record all of the above business events

2.)

(A) Welson Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Welson's lawyer states that it is probable that Welson will lose the suit and be found liable for a judgment costing Welson anywhere from $400,000 to $2,000,000. However, the lawyer states that the most probable cost is $1,200,000. As a result of the above facts, Welson should accrue and what should be disclosed?

(B) On August 1, 2006, the Frost Company purchased property from Anderson that had a fair value of $399,271. Frost gave Anderson a $500,000 noninterest-bearing note payable in five equal annual installments of $100,000 with the first payment due July 31, 2007. What is the amount of interest expense that should be recognized by Frost in 2007, using the effective interest method?

(C) Pryor Corporation issued a 2-for-1 stock split of its common stock which had a par value of $10 before and after the split. At what amount should retained earnings be capitalized for the additional shares issued?

(D) On January 2, 2004, a calendar-year corporation sold 8% bonds with a face value of $1,500,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $1,384,000 to yield 10%. Using the effective interest method of computing interest, how much should be charged to interest expense in 2004?

(E) On its December 31, 2002, balance sheet, the Forge Corporation reported the following as investments in marketable equity securities which are classified as available for sale: Investment in marketable equity securities at cost $500,000 Less: valuation allowance 40,000 $460,000 At December 31, 2003, the market valuation of the portfolio was $490,000. What should Forge include in net income for 2003 as a result of the change in the market value of its investments?

(F) On February 10, 2005, after issuance of its financial statements for 2004, Goll Company entered into a financing agreement with Lebo Bank, allowing Goll Company to borrow up to $4,000,000 at any time through 2009. Amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. Goll Company presently has $1,500,000 of notes payable with First National Bank maturing March 15, 2005. The company intends to borrow $2,500,000 under the agreement with Lebo and liquidate the notes payable to First National. The agreement with Lebo also requires Goll to maintain a working capital level of $6,000,000 and prohibits the payment of dividends on common stock without prior approval by Lebo Bank. From the above information only, the total short-term debt of Goll Company as of the December 31, 2004 balance sheet date is __________________.

please asnwer all parts of question 5

Question 5:                         Use Data5 Sheet             

                                This sheet reports monthly value of SP500 index and prices of 5 stocks.

                                REMEMBER to check the timeline order.

                Based on the whole data, create a table reporting the average monthly Return and Total Risk for each of the following stocks:

                Put both Risk and Return in percentage format (say 12.56%)

                (For Total Risk, you use the Standard Deviation based on a Sample – STDEV.S)

                Return=Price(t)/Price(t-1)-1

5a.          Report ticker of the stock with the highest average monthly return

5b.          Report ticker of the stock with the highest total risk

5c.          If you can only invest in 01 stock for only 1 month, which stock and which yearmonth will you choose to maximize your return.

                                Put in the answer sheet that the ticker (in Cap) and year month continuously, say MGM200103.

A magazine published data on the best small firms in a certain year. These were firms that had been publicly traded for at least a year, have a stock price of at least $5 per share, and have reported annual revenue between $5 million and $1 billion. The table below shows the ages of the corporate CEOs for a random sample of these firms. 47 58 52 62 56 59 74 63 53 50 59 60 60 57 46 55 63 57 47 55 57 43 61 62 49 67 67 55 55 49 Use this sample data to construct a 90% confidence interval for the mean age of CEO's for these top small firms. Use the Student's t-distribution. (Round your answers to two decimal places.)

A magazine published data on the best small firms in a certain year. These were firms that had been publicly traded for at least a year, have a stock price of at least $5 per share, and have reported annual revenue between $5 million and $1 billion. The table below shows the ages of the corporate CEOs for a random sample of these firms. 49 57 51 60 57 59 74 63 53 50 59 60 60 57 46 55 63 57 47 55 57 43 61 62 49 67 67 55 55 49 Use this sample data to construct a 90% confidence interval for the mean age of CEO's for these top small firms. Use the Student's t-distribution. (Round your answers to two decimal places.) ,