According to the Blockbuster FY 2004 10K, what change in Blockbuster revenue, net income, liquidity, leverage, turnover, profitability, and/or market value measures are most descriptive Blockbuster’s performance for the period 2003 through 2004? How did the overall market change over that time frame? How has Netflix performed in this time frame? Select the single best available answer from those presented below. Group of answer choices
A) Experienced a massive loss of shareholders' equity; consumer spending for in-home movie viewing in the United States increased; revenues and subscribers have more than tripled.
B) Maintained a stable dividend; DVD sales increased; experienced their first Net income gains .
C)Experienced a massive loss of shareholders' equity; DVD sales increased; experienced Net income losses.
D) Maintained a stable dividend; consumer spending for in-home movie viewing in the United States increased; revenues and subscribers have more than tripled.
In: Economics
You have the following information for a Croatian company
| Revenue (Croatian Kuna) | CDS spread | Standard Dev of gov't bond | Standard Deviation of Stock Market | |
| EU (excluding Croatia) | 120 | 0.5% | 4% | 8% |
| South-easter Europe | 180 | 3% | 9% | 14% |
| Croatia | 250 | 2% | 7% | 12% |
German Euro bond rate = 0.50%. Croatian Gov't Bond, in local currency Kuna has a rate of 4%. Kuna's credit rating is 2%, the same as implied by the CDS spread.
Estimate the cost of equity for this company if a mature market such as US or Germany has an ERP of 5% and its beta=1.56
a.
14.95%
b.
17.45%
c.
11.05%
d.
18.25%
Please show work. Answer 11.05 is incorrect. Thanks
In: Finance
A revenue bond matures in 15 year, pays a 5.5 percent coupon rate every 6 months, and has a face value of $5,000. The market interest rate for similar risk and maturity municipal bonds is 4 percent. What is the current price of the bond? What would the price be if the market was 6 percent?
In: Finance
Question 1 Impact of changing price upon revenue and
profit
A suburban factory makes three types of motorcycles. Each type of
motor is made of engine parts and two wheels. The factory uses
three brands of engine parts – Chrome Catalyst, Platinum Power and
Silver Streak. Motorcycles are built and sold as
follows;
Type 1 -Chrome Catalyst engine parts
Type 2 Platinum Power engine parts
Type 3 Silver Streak engine parts Cost of engine parts $876 $1228
$1024 Cost of wheels (each) $65 $65 $65 Sale price range $1000 -
$1200 $1400 - $1600 $1200 - $1400
Regardless of the type of engine parts used to make a motorcycle,
there are fixed production costs of $4000.
Your task is to investigate the cost, revenue and profit associated
with each type of motorcycle.
Steps to complete to undertake the investigation
1. Find the total cost and total revenue functions for each type of
motorcycle and plot these functions using Excel. You will produce 3
graphs (one for each motorcycle type), each with two lines on it.
For the revenue function, select a price for each motorcycle type
within the price ranges in the table above.
2. Confirm any points of intersection between the cost and revenue
function lines using algebra, round your final answer up to the
next whole number.
3. Profit will also differ for each motorcycle type. Find the
profit functions and the break-even points for each type of
motorcycle.
4. Summarise your findings in 200 words. In your conclusion:
a. Explain the meaning and significance of any points of
intersection noted from steps 1 and 2 and any similarities noted
from you results in step 3. b. Discuss any differences in
profitability between each type of motorcycle (for example, which
motorcycle type would be easiest to make a profit from?) c. Note
any assumptions you have made and any limitations of your
findings.
In: Economics
The IRS revenue agent who audited Mr. and Mrs. Marlow's 2015 Form 1040 assessed a $49,200 tax deficiency. The Marlow's strongly disagree with the result of the audit. What is their first step in contesting the result? They may request that a different revenue agent conduct a second audit.
They must file a petition with the U.S. Tax Court.
They must appeal the result of the audit to the regional Appeals Office of the IRS.
They must pay the deficiency and sue the federal government for a refund.
In: Accounting
How do you calculate revenue for a firm that makes one product? How do you calculate costs for a firm that makes only one product? How does a competitive firm maximize profits?
In: Economics
In: Accounting
Use the following information to answer this question:
|
per unit |
ratio |
|
|
Sales Revenue |
$250 |
|
|
Variable Costs |
$75 |
30% |
|
Contribution Margin |
$175 |
70% |
Fixed expenses are $910,000 per month. The company is selling 7,000 units. The marketing manager believes that a $65,000 increase in the monthly advertising budget would result in an 8% increase in monthly sales. What is the change on the company's monthly net operating income of this change?
In: Accounting
Do you know how many newspaper companies are suffering
from the big Revenue Drops and enormous Profit Losses [CO
C]?
Let's think about All the resources that combine to produce Daily
Newspapers:
Management, Editors, Reporters, Photographers, Delivery people,
Printing Presses, Pulp Mills, pulp mill Workers, Ink Makers,
Loggers, Logging truck Drivers and so on.
Then how come we can get a high-Quality newspaper less than
one dollar?
In: Economics
Project Overview
Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has been privately held since the firm’s inception ten years ago. The organization’s board of directors is keen on expanding the operations globally to take advantage of a growing market. Based on reports from the research and development team, the organization can increase its profitability metrics by 15 to 25% if it expands the operations to China, Japan, and Germany. Becoming a multinational organization will not be easy. To finance this expansion, the board of directors has decided to take the organization public and issue some bonds to raise an additional $50 million. The research team has already determined that the organization meets the financial requirements outlined by the Securities Exchange Commission. The goal is to maximize the Initial Public Offering (IPO), and the leadership must efficiently manage the capital, measure the risk of the investments, and ensure the financial metrics are robust relative to similarly sized organizations.
Based on the concepts that you learned this week from the assigned videos and articles surrounding growth strategies for companies, make an initial assessment of whether Gentry should expand into China, Japan, and Germany all at one time or in a phased approach.
In your assignment, recall the strategies that you discussed in this module’s discussion questions about the different types of financial investments companies use for growth.
It is very important for the companies to define their growth strategy and how they will achieve their growth goals that is by using external financing like bonds and stocks or through internal funding. Mostly the companies grow using external funds by raising money through debt offering or stock offering.
Here is my discussion:
The two main type of financial investments that a company use are
1- Bonds It reduces their bottom line due to interest payments and debt repayments.
2- Stocks It doesn't affect the bottom line directly.
Three types of financing policies are
1- through internal funding
Advantages are there is no external funding required which means no debt repayment burden on the company.
Disadvantages are seriously reduce the company's cash position and their current ratios.
2- Debt offering
Advantages are no dilution of the ownership of the company.
Disadvantages are regular interest payments which reduces the bottom line.
3- Stock offering:
Advantages are no regular payments to the stock holders.
Disadvantages are dilution of ownership stake in the company.
Provide your recommendation in a 700-word paper with APA formatting.
Include the advantages and disadvantages of expanding with debt and equity (using the information that you learned in this module’s materials).
Assess and research the steps necessary to expand globally by finding articles in the book or
In: Finance