1. In February, Cap Inc. Announced That It Would Split Into Two Independent Publicly
1. In February, Cap Inc. announced that it would split into two independent publicly traded companies: one comprised of its Old Navy brand, and the second a yet-to-be-named company that includes its other brands like Banana Republic and Athleta. The planned breakup is an acknowledgment of the two chains’ diverging fortunes and how much Gap has lost its once-powerful grip on American consumers. For several years, Old Navy has outperformed its sister brands Gap and Banana Republic with its lower price-points and catchy marketing. Old Navy now exceeds the original brand in sales, making up nearly half of Gap Inc.’s $16.6 billion of sales in 2018. In your opinion, what are the benefits and downsides to splitting Gap into two firms? How did Gap’s stock react to the news in after-market trading? How would you explain this reaction? Will the separation save the company in the long run? Please elaborate on your answers.
Dorothy Purchases A 1000 Par Value 10-year Bond With 9% Semiannual Coupons For 925.
Dorothy purchases a 1000 par value 10-year bond with 9% semiannual coupons for 925. She has found a place to invest her coupons at a nominal rate of 7% convertible semiannually. Calculate her nominal annual yield rateconvertible semiannually over the ten-year period .
Explain The Different Financial Records You Would Analyze To Assess The Company’s Financial Strength
explain the different financial records you would analyze to assess the company’s financial strength
How You Would Use The Strategic Profit Model To Analyze The Company’s Performance Ratio.
how you would use the strategic profit model to analyze the company’s performance ratio.
Question #14 Preparing A Balance Sheet Prepare A 2018 Balance Sheet For Rogers Corp
Question #14 Preparing a balance sheet prepare a 2018 balance sheet for Rogers Corp based on the following information cash= @127,000 patents and copyright = $660,000 accounts payable $210,000 account receivable =$115,000Tangible net fixed assets=$1,610,000 inventory =$286,000 Notes payable =$155,000 Accumulated retained earnings=$13,68,000 long term debt= $830,000.
Andrew Borrows 360,000 At I=.05. He Repays This Loan By Paying Off Only The
Andrew borrows 360,000 at i=.05. He repays this loan by paying off only the interest due at the end of each year to the lender and depositing a level amount Y at the end of each year into a sinking fund account offering 8% APY so as to accumulate the full balance of the loan amount in the sinking fund at the end of 20 years. What value Y must he deposit into the SF account at the end of every year? Find the AEIR that Andrew has ended up paying on his loan
Please Answer All And Explain In Detail. Explain The Importance Of “environmental Scanning” When
please answer all and explain in detail. Explain the importance of “environmental scanning” when making marketing plans and strategic plans in general
A Company’s Fixed Operating Costs Are $570,000, Its Variable Costs Are $2.85 Per Unit,
A company’s fixed operating costs are $570,000, its variable costs are $2.85 per unit, and the product’s sales price is $4.75. What is the company’s break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.
Introduction To International Finance. Why Would One Select This Concept Of International Finance For
Introduction to international finance. Why would one select this concept of International finance for further examination? Why is it an important aspect of financial management? Respond to the following two posts, Below are two participant response you must respond back Lisa, I believe international finance is important because it’s part of our financial economics. When looking at international finance you are also thinking about exchange rates of currency, the different monetary systems in the world, foreign direct investments, foreign markets and any other financial issues connected with the international financial management. Businesses today are going global more than ever thanks to the internet which includes all major economic functions such as consumption, production and investments. It is vitally important to understand all the areas that come with international finances and how they could affect your business. Not only does international finances affect our economic functions but also our government. Countries are known to borrow from each other, and it is good to understand how the money is used and the value of the exchange rates. One of the areas we hear most often about are the international and foreign trades which have a huge affect on the growth of economies around the world. Here in the U.S., stock watchers often see what is happening in the foreign markets because ultimately it could trickle to us and affect our market and economy. Proper management and analysis of international finances helps in managing all markets. International finance affects everything we do so it is important to be informed on what is happening here in the U.S. and around the world. John, It seems with each passing day our economic ties become more and more intertwined with other countries. We are truly in a global economy. The international markets impact our domestic economy much more that ever before. I think that the international finance component was included because of our global economy. I also think that when a firm is investing in financial instruments international tools are an essential tool in the financial toolbox. I, for one strongly believe in the American Economy, but I still invest a portion of our family′s investments in international funds. Not only is it easy to invest in international economies, but it certainly adds to a well rounded and diversified portfolio of investments. With so many firms doing business across national boundaries, it only makes sense to include the international finance component as a part of this class. It is also important to understand currency exchange principles and exchange rates when a firm is doing business internationally. The firm also needs to understand tariffs, international tax rates, and other regulations. Again, it seems the inclusion of international finance was a wise addition to this class
Jo-Anne Just Bought 200 Bonds At A Purchase Price Of R1 043.70 Each. The
Jo-Anne just bought 200 bonds at a purchase price of R1 043.70 each. The bonds will mature in 7 years’ time and have a face value of R1 000.00. The coupon rate is 11% and is paid semi-annually. 1.4. Lee-Anne bought the bonds at R1 043.70 and after four years she decides to sell the bonds while the prevailing interest rate is 9%. Answer the following questions relating to this scenario: 1.4.1 Calculate the capital gains yield. (5) 1.4.2 Calculate the current yield. (3) 1.4.3 Calculate the total Rand return. (3)
Schwartz Industry Is An Industrial Company With 89.2 Million Shares Outstanding And A Market
Schwartz Industry is an industrial company with 89.2 million shares outstanding and a market capitalization (equity value) of $ 4.92 billion. It has $ 1.41 billion of debt outstanding. Management have decided to delever the firm by issuing new equity to repay all outstanding debt. a. How many new shares must the firm issue? b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this decision. a. How many new shares must the firm issue? The firm must issue nothing million shares. (Round to one decimal place.) b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this decision. You should buy/sell nothing new shares and lend/borrow $nothing. (Select from the drop-down menus, round the number of shares to the nearest integer, and round the dollar amount to the nearest dollar.)
1.Hartford Mining Has 70 Million Shares That Are Currently Trading For $ 4 Per
1.Hartford Mining has 70 million shares that are currently trading for $ 4 per share and $ 130 million worth of debt. The debt is risk free and has an interest rate of 5 %, and the expected return of Hartford stock is 11 %. Suppose a mining strike causes the price of Hartford stock to fall 22 % to $ 3.12 per share. The value of the risk-free debt is unchanged. Assuming there are no taxes and the risk (unlevered beta) of Hartford’s assets is unchanged, what happens to Hartford’s equity cost of capital? Equity cost of capital is nothing%. (Round to two decimal places.) 2.Acort Industries owns assets that will have a(n) 80 % probability of having a market value of $ 51 million one year from now. There is a 20 % chance that the assets will be worth only $ 21 million. The current risk-free rate is 4 %, and Acort’s assets have a cost of capital of 8 %. a. If Acort is unlevered, what is the current market value of its equity? b. Suppose instead that Acort has debt with a face value of $ 16 million due in one year. According to MM, what is the value of Acort’s equity in this case? c. What is the expected return of Acort’s equity without leverage? What is the expected return of Acort’s equity with leverage? d. What is the lowest possible realized return of Acort’s equity with and without leverage? a. Current market value of the unlevered equity is $nothing million. (Round to three decimal places.) b. Current market value of the levered equity is $nothing million. (Round to three decimal places.) c. The expected return of Acort’s equity for each case is: Expected Return Without Leverage: nothing% (Round to two decimal places.) With Leverage: nothing% (Round to two decimal places.) d. The lowest possible realized return of Acort’s equity with and without leverage is: Realized Return Without Leverage: nothing% (Round to two decimal places.) With Leverage: nothing% (Round to two decimal places.)
Private Cars Is A Medium Size Car Manufacturer Planning To Start A New Business
Private cars is a medium size car manufacturer planning to start a new business of sports cars. As part of Initial investment, the firm needs to purchase manufacturing equipment worth $ 10 million today and also incur an additional R
QUESTION 1 [41 MARKS] ABC Holdings Is Considering Two Projects. The Projects Are Similar
QUESTION 1 [41 MARKS] ABC Holdings is considering two projects. The projects are similar in nature and are expected to both operate for four years. Due to unavailability of funds to undertake both of them, only one project can be accepted. The cost of capital is 12%. The following information is available: Net cash flows Project A Project B N$000 N$000 Initial investment 46 000 46 000 Year 1 17 000 15 000 Year 2 14 000 13 000 Year 3 24 000 15 000 Year 4 9 000 25 000 Estimated scrap value at the end of year 4 4 000 4 000 Depreciation is charged on the straight line basis. REQUIREMENT MARK Subtotal Total a) Calculate the following for both proposals: i) The payback period (round off your answer to one decimal place) 2 2 ii) The net present value (NPV) 4 6 iii) The return on investment (ROI) 8 14 iv) The residual income (RI) 4 18 v) If the two projects are mutually exclusive, which project should be chosen and why? b) Determine the sensitivity of project A to a change in cost of capital c) Determine the sensitivity of project B to a change in initial investment d) Assuming that the management of ABC holdings have decided to undertake both projects and the projects can be undertaken in part, how much NPV will they get if they have N$80 000 000 available to invest. e) Explain three non-financial considerations that should be taken into account before a project is chosen. please help
QUESTION 1 [41 MARKS] ABC Holdings Is Considering Two Projects. The Projects Are Similar
QUESTION 1 [41 MARKS] ABC Holdings is considering two projects. The projects are similar in nature and are expected to both operate for four years. Due to unavailability of funds to undertake both of them, only one project can be accepted. The cost of capital is 12%. The following information is available: Net cash flows Project A Project B N$000 N$000 Initial investment 46 000 46 000 Year 1 17 000 15 000 Year 2 14 000 13 000 Year 3 24 000 15 000 Year 4 9 000 25 000 Estimated scrap value at the end of year 4 4 000 4 000 Depreciation is charged on the straight line basis. REQUIREMENT MARK Subtotal Total a) Calculate the following for both proposals: i) The payback period (round off your answer to one decimal place) ii) The net present value (NPV) 4 6 iii) The return on investment (ROI) 8 14 iv) The residual income (RI) 4 18 v) If the two projects are mutually exclusive, which project should be chosen and why? b) Determine the sensitivity of project A to a change in cost of capital c) Determine the sensitivity of project B to a change in initial investment d) Assuming that the management of ABC holdings have decided to undertake both projects and the projects can be undertaken in part, how much NPV will they get if they have N$80 000 000 available to invest. e) Explain three non-financial considerations that should be taken into account before a project is chosen.
A Bank Has The Following Balance Sheet ASSETS LIABILITIES Cash = 3 Retail Deposits
A bank has the following balance sheet ASSETS LIABILITIES Cash = 3 Retail Deposits (stable) = 25 Treasury Bonds (>1 year) = 5 Retail Deposits (less stable) = 15 Corporate Bonds Rated A = 4 Wholesale Deposits = 44 Residential Mortgages = 18 Preferred Stock (> 1 yr) = 4 Small Business Loans (<1 yr) = 60 Tier 2 Capital = 3 Fixed Assets = 10 Tier 1 Capital = 9 TOTAL = 100 TOTAL = 100 (a) What is the Net Stable Funding Ratio? (b) The bank decides to satisfy Basel III by raising more retail deposits and keeping the proceeds in Treasury bonds. What extra retail deposits need to be raised?
In A Privately Owned Business, Neither Debt Nor Equity Is Traded. In Most Publicly
In a privately owned business, neither debt nor equity is traded. In most publicly traded firms, equity has a market value but a significant portion (or often all) of the debt is not publicly traded. (a) How do you calculate market value of debt when all or even some of your firm’s debt is bank debt and not publicly traded? How would you compute an updated cost of debt for an unrated company with bank debt? (b) How do you calculate the market value of equity for a private entity?
Hyper Drive Co Is An Early Stage Growth Company And They Need To Plan
Hyper Drive Co is an early stage growth company and they need to plan for their capital requirements for the upcoming year. What working capital increases and PP
The Crescere Corporation, An Italian Firm, Has Purchased An Asset In Canada Which Will
The Crescere corporation, an Italian firm, has purchased an asset in Canada which will generate Euro 1.5 millions in annual depreciation charges (converted at the current spot rate) at the end of each year for 10 years. Assuming inflation in Italy will be 6.42%, inflation in Canada will be 3.2%, and the Italian tax rate is 27.5%. What is the expected real value in today’s currency of the depreciation on taxes at the end of year 5 ? Select the right answer: (a) Euro 0.797 million (b) Euro 0.302 million (c) Euro 0.400 million (d) Euro 0.352 million
Your Firm Recently Divested Some Non-core Assets And Now Has A Significant Amount Of
Your firm recently divested some non-core assets and now has a significant amount of excess cash. Branda Sim, the CEO, is considering investing in either Singapore Technologies Engineering Limited (“STE”) shares or 10-year Singapore Government Securities (“SGS”) or a combination of both. She knows that you are studying a Finance course, and she is seeking your advice. Based on your research, the following market data was obtained: Information relating to STE Date Share Price ($) Dividends Per Share (Cents) 31-Dec-13 3.59 15 31-Dec14 3.25 15 31-Dec-15 2.83 15 31-Dec-16 3.30 31-Dec-17 3.37 0.15 31-Dec-18 3.72 0.15 As at December 2018, beta is 0.72. Information relating to SGS Date Bond Price 31-Dec-13 101.61 31-Dec14 106.21 31-Dec-15 98.15 31-Dec-16 97.08 31-Dec-17 112.47 31-Dec-18 104.94 The coupon rate is 2.75% per year and will mature in December 2023. Other market data • Market risk premium = 5.5% • Inflation rate = 1.2% (a) Calculate the annual returns for both STE and SGS for the 5 years 2014 to 2018.
How To Develop A Operating And Capital Budget. Have Financial Statement. What Formulas If
How to develop a operating and capital Budget. have financial statement. What formulas if need any?
The post 1. In February, Cap Inc. Announced That It Would Split Into Two Independent Publicly appeared first on Smashing Essays.
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
