You are the finance manager of a company and currently your company has $100 million in cash that will not be needed for a few more weeks. You are thinking about arbitrage opportunities using Euro and GBP in order to put the cash reserves into use and hopefully earn more money for your company. You have to make a decision about details of your arbitrage with regard to which currency to buy in which order. Check exchange rates, find current rates for USD, Euro, and GBP, and share the details of your arbitrage plan with your CEO. Is it poosible to find an arbitrage trade to generate some profits (assume you will have no trading costs)? If so, what should be the order of your transactions in order to make a profit from this arbitrage operations?
I received a response stating "need enough knowledge" and about "exchange rates". I am not sure what that means, please elaborate instead of 2-3 word responses.
In: Finance
Wilson Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate is 35%. The common stock is trading at $50 per share and next year's dividend is $2.50 per share that is growing by 4% per year. Prepare a minimum 700-word analysis including the following: Calculate the company's weighted average cost of capital. Use the dividend discount model. Show calculations in Microsoft® Word. The company's CEO has stated if the company increases the amount of long term debt so the capital structure will be 60% debt and 40% equity, this will lower its WACC. Explain and defend why you agree or disagree. Report how would you advise the CEO
In: Finance
You work for ABC financial management. Your client is XYZ company. The CEO contacts you directly on the 1st July, thanking you for the satisfaction of current objectives in line with the financial plan. Current objectives are reporting annual financial reports including preparing the BAS.
The client asks that this now ceases as the finance officer will take over the duties. The client asks that you prepare a manual to assist the finance officer in their new duties. The client also asks that you now assist with preparing for and recording monthly governance board meetings.
Prepare a quarterly financial management questionnaire for the current quarter to show the current and proposed new objectives as if they had been discovered as a result of the quarterly questionnaire process.
Prepare a file note to properly record the main points of your phone call with the CEO.
In: Accounting
A company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO believes the IRR is the best selection criterion, while the CFO advocates other methods. If the decision is made by choosing the project with the higher IRR, how much, if any, value will be forgone, i.e., what's the:
|
WACC: |
7.00% |
||||
|
Year |
0 |
1 |
2 |
3 |
4 |
|
CFS |
−$1,100 |
$550 |
$600 |
$100 |
$100 |
|
CFL |
−$2,750 |
$725 |
$725 |
$800 |
$1,400 |
Discuss your results of these methods and make a recommendation
on the projects to the CEO about which one to go for and why?
Please include all formulas.
In: Finance
In: Operations Management
Elf Company manufactures miniature picnic tables to be sold to elementary schools and children daycares. The controller of Elf Company is currently preparing a budget for the second quarter of the year. The following sales forecast has been made by the sales manager for the first half of 2020:
January 8,500 tables
February 9,000 tables
March 9,500 tables
April 10,000 tables
May 12,000 tables
June 15,000 tables
Each table sells for $50 and all sales are on account. Past history has shown that 30% of credit sales are collected in the month that the sale occurred, 40% of the sales are collected the month following the month of sale, 25% of credit sales are collected two months following the month of sale and the remaining 5% is collected in the third month following the sale. The estimated sales for July and August are 16,000 and 16,500 tables respectively. Elf Company had 2,000 tables in finished goods inventory at the end of March. The department ends each month with enough finished-goods inventory to cover 20 percent of the next month’s sales.
Each picnic table requires 10 board metres of spruce blanks to manufacture. Spruce planks cost $0.50 per board metre, and the production department ends each month with enough wood to cover 10 percent of the next month’s production requirements. The company had 10,400 board metres of spruce wood in its ending raw material inventory at the end of March. The purchase of wood is all on account and the company pays 60% of its purchases in the month of purchase and the remaining 40% in the month following the purchase. Purchases of wood in March totalled $48,400.
Each table requires 1.5 hours of direct labour to manufacture. The production department incurs a cost of $20 per hour for direct-labour wages and fringe benefits.
Required:
We need all the budgets and schedules above, you must show a column for April, May and June as well as a column for the total of Quarter 2 of the year. Excel answer only.
In: Accounting
When carrying out the analysis of a company to add to your portfolio what considerations do you take into account? explain how you will build a portfolio based on your knowledge acquired in the last 7 weeks.
In: Finance
Nash Company asks you to review its December 31, 2020, inventory
values and prepare the necessary adjustments to the books. The
following information is given to you.
| 1. | Nash uses the periodic method of recording inventory. A physical count reveals $258,379 of inventory on hand at December 31, 2020. | |
| 2. | Not included in the physical count of inventory is $14,762 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. | |
| 3. | Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $14,080 on December 31. The merchandise cost $8,085, and Champy received it on January 3. | |
| 4. | Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $17,193. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. | |
| 5. | Not included in inventory is $9,394 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. | |
| 6. | Included in inventory was $11,482 of inventory held by Nash on consignment from Jackel Industries. | |
| 7. | Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped on December 31 after it was counted. The invoice was prepared and recorded as a sale for $20,790 on December 31. The cost of this merchandise was $11,572, and Kemp received the merchandise on January 5. | |
| 8. |
Excluded from inventory was a carton labeled “Please accept for credit.” This carton contains merchandise costing $1,650 which had been sold to a customer for $2,860. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged; Nash will honor the return. Determine the proper inventory balance for Nash Company at December 31, 2020 & Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2020. Assume the books have not been closed |
In: Accounting
Taxpayer, age 19, is a full-time graduate student at State University. During 2017, he received the following payments:
Loan from college financial aid office $ 1,500
Resident adviser housing 2,500
State scholarship for ten months (meals allowance) 6,000
State scholarship (tuition and books) 2,400
Cash award for being the outstanding resident adviser 3,000
Cash support from parents 2,000 $17,400
Taxpayer served as a resident adviser in a dormitory and, therefore, the university waived the $2,500 charge for the room he occupied. What is Taxpayer 's adjusted gross income for 2017
In: Accounting
ABC Company has the following information pertaining to its biological assets for the year 2020:
A herd of 150, 3-year old animals was held at January 1, 2020. Eight animals aged 2.5 years were purchased on July 1, 2020 for P 3,400, and ten animals were born on July 1, 2020. No animals were sold or disposed of during the period. Per unit fair values less estimated point-of-sale costs were as follows:
|
3.0-year old animal at January 1, 2020 |
2,000 |
|
Newborn animal at July 1, 2020 |
1,500 |
|
2.5-year old animal at July 1, 2020 |
3,400 |
|
Newborn animal at December 31, 2020 |
2,600 |
|
0.5-year old animal at December 31, 2020 |
3,000 |
|
3.0-year old animal at December 31, 2020 |
2,750 |
|
2.5-year old animal at December 31, 2020 |
3,650 |
|
4.0-year old animal at December 31, 2020 |
3,000 |
Instructions:
21. How much is the balance of biological assets as of January 1, 2020?
22. How much of the increase in the fair value of the biological asses due to price change?
23. How much of the increase in the fair value of the biological assets due to physical change?
24. What is the fair value of the biological assets as of December 31, 2020?
25. If four 2.5 years old animal was sold on July 1, 2020, how much is the balance of biological assets as of December 31, 2020?
In: Accounting