how to use these tables make a style=”color:rgb(17,17,17);”>spreadsheet?The DecisionThree weeks

Get college assignment help at Smashing Essays Question how to use these tables make a style=”color:rgb(17,17,17);”>spreadsheet?The DecisionThree weeks later, the vice presidents presented the sales and cost forecasts shown in the exhibits. The information presented contains the cost of production, financing information, and warranty cost estimates. In addition, there were two options for the controller of the electric motor in the conversion kits. The CTX – 13 is more expensive to install, but has a lower warranty cost. The MT – 78 is cheaper to install, but has a higher warranty cost. Which controller should be used? The Analysis Mr. Livingston noticed that there is an abundance of enthusiasm about entering the electric car conversion kit building business, but his cautious nature made him seek a more neutral analyst. This is your responsibility. You have been hired by Electrics to analyze the proposal to build the electric motor and provide recommendations to Mr. Livingston. The issues that need to be addressed in your report are the following: How much importance should be given to the energy cost situation?What is the project’s cost of equity? What is the appropriate discount factor to use for evaluating the electric motor project?Which of the two controllers should be used in the conversion kit if you decide to go ahead with the project and why?Forecast the project’s cash flows for the next eight years. What assumptions did you use? Use MACRS depreciation for this case.Use the appropriate capital budgeting techniques to evaluate the project.Use the average demand scenario to evaluate the sensitivity of the project’s NPV with respect to sale price of the electric motor and the cost of the controller.Based on the scenario and sensitivity analysis you performed above, comment on the overall riskiness of the project.Would you recommend that Electrics accept or reject the project? What is the basis for your recommendation? Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment 98.jpg Exhibit 3 Investment needs: To implement the project, the firm has to invest funds as shown in the following table: Year 0 Year 1 $17 million Production and selling of commercial appliances starts MACRS depreciation will be used. To facilitate the operation of manufacturing the electric motors, the company will have to allocate funds to net working capital (NWC) equivalent to 10% of annual sales. The investment in NWC will be recovered at the end of the project. Exhibit 4 Financing The following assumptions are used to determine the cost of capital. Historically, the company tried to maintain a debt to equity ratio equal to 0.50. This ratio was used because lowering the debt implies giving up the debt tax shield and increasing it makes debt service a burden on the firm’s cash flow. In addition, increasing the debt level may cause a reduced rating of the company’s bonds. The marginal tax rate is 35%. All the numbers are expressed in today’s dollars. The forecasted average inflation per year is 3.0%. Cost of debt: The company’s bond rating is roughly at the high end of the A range. Surveying the debt market vielded the following information about the cost of debt for different rating levels: Bond rating AA A BBB Interest cost range 4.5% – 5.5% 5.25% – 6.5% 6.5% ~ 9% The company’s current bonds have a rating of A Cost of equity: The current 10-year Treasury notes have a yield to maturity of 3% and the forecast for the S

Name an overall healthcare performance KPI which utilizes financial information.

Question Name an overall healthcare performance KPI which utilizes financial information. Define this KPI and identify which healthcare segment (hospital, provider practice, home health, skilled nursing facility, etc) primarily uses this. Explain how it is used and calculated.

Hello I need help with this exercise:A US treasury bond

Question Hello I need help with this exercise:A US treasury bond has 8 years remaining until it matures. The face value of the bond is $100,000 and its coupon rate id 4.75%. If the bond dealer quotes prices of 101:2 and 101:14, what is this bond’s yield to maturity based on its ask price?Thanks in advance

When investors are worried about a possible “bear market,” this

Question When investors are worried about a possible “bear market,” this is an example ofdefault risk.interest-rate risk.liquidity risk.market risk.

What is cross hedge? Explain in detail the procedure that,

Question What is cross hedge? Explain in detail the procedure that, using an index futures, the market risk of a well-diversified portfolio is hedged. 

There are three main purposes of interest rate swap:to transform

Question There are three main purposes of interest rate swap:to transform a floating liability into a fixed liabilityto transform a fixed liability into a floating liabilityto utilize comparative advantage How swap transaction should be arranged in each case? Please explain the third purpose using an IRS in detail.

Please explain how to solve this questionYou own two risky

Question Please explain how to solve this questionYou own two risky assets, both of which plot on the security market line. Asset A has an expected return of 11% and a beta of 0.7. Asset B has an expected return of 20% and a beta of 1.5. If your portfolio beta is the same as the market portfolio, what proportion of your funds are invested in asset A?

HelloI need some helpBurger King is planning to add a

Question HelloI need some helpBurger King is planning to add a mango milkshake to its menu. The company tested the product in three major cities last year at a cost of $2 million and determined that there is considerable demand. At present, they only plan to sell the mango shakes for 5 years. Burger king plans to price this new flavor at $2 for shake and they anticipate selling 10 million mango shakes each year. Large quantities of mango trees will need to be purchased immediately at a total cost of $20 million. This will be a capital expense which Burger Kings will depreciate on a straight line basis to a value of 0 (Zero) over the next 5 years. Unfortunately, Burger King learned during the test market that the mango shakes will eat into the sales of their vanilla shakes. They only expect this happen during the first year though, when they expect to lose $4 million in sales of vanilla shakes from what they otherwise would have had. Both the vanilla and mango shakes have variable cost equal to 60% of their purchase price. The additional business from the new product will necessitate an injection of $1 million in net working capital immediately. Burger King expects that level of working capital to remain constant during the 5 years  that the mango shakes are sold and then they expect to recover it at the end of the 5th year. Burger Kink’s stock is selling at $25 per share and it has a beta of 9.0. The risk free rate is 3% and the market risk and debt (Bonds) with a face value of $800 million. All od its bonds will mature in 13 years are priced at 102, and have a coupon rate of 6.4%. Burger King’s marginal tax rate is 21%. Determine the free cash flows for this project and show them on the time line I have provided (in millions). Then calculate the WACC and the NPV. All cash flows should be discounted at the WACC. ___________________________________________________________________0                          1                        2                          3                        4                          5 

First presentation: CASE 1Bill Ramsey is marketing director of a

Question First presentation: CASE 1Bill Ramsey is marketing director of a small public company which banks with you. He is 38 years old, married with two sons aged seven and nine. His current income is $140,000 per annum. When Bill took up his present job two years ago he moved his account to your branch. At that time he purchased a new house for $1,120,000 and as an exceptional matter in view of the connection, you granted him a mortgage of $800,000 which included the consolidation of a $75,000 line of credit he had run at his previous bank. You agreed this arrangement partly because he had received a large salary increase on starting the new job and on the basis that he kept his account in credit in future. Subsequently you agreed a line of credit limit of $20,000 to cover delays in receipt of his business expenses.           Bill’s line of credit has been showing a steadily increasing trend and just before his last month’s salary was received it stood at $36,000. You now receive a status enquiry on Bill which appears to relate to a Platinum Card with another bank, one of your competitors. You phone Bill and ask him to call to see you to discuss matters.            At the meeting Bill tells you he has applied for a $15,000 card limit at the other bank as he needs some leeway to meet school fees of $7,000 per scholastic year for his younger son who will shortly be joining his brother at a private school. In addition to this, Bill tells you that he and his wife have run up debts on various cards over the past two years totaling $30,000. His job is going well and he hopes to receive a 20% increase in the near future but, in view of his previous arrangement to keep his account in credit, he feels that you would be unsympathetic to a request to a request for increased facilities.            However as he banked with you for nearly two years, he would prefer to confine his borrowing to your bank. Bill therefore asks if you would be prepared to increase his line of credit to $100,000 (from $75,000), although he would prefer to top up his mortgage, ideally by $30,000. He believes his house is now worth $1,300,000. You are required to decide whether to roll over his existing banking facilities. Before the meeting, you carried out a brief check on Bill’s account, which revealed:(a)         his net monthly salary is just over $10,000(b)         regular monthly payments: mortgage $5,000 (c)          interest payments for last quarter amounted to $12,000CASE 1 Recommended solutionPlease follow this structure as this is what will be expected in the presentation. FACTS OF THE CASEDo not list any concerns here, that is in the next section and this is designed to be short not more than a couple of lines maximum. CONCERNS In this section unless it is a concern, do not list it here. DECISIONAs a self check ask students to go over CAMPARI as see whether they addressed all the issues. There is no particular order or where you are supposed to include every single letter on the mnemonic CAMPARI but they need to address each letter by the end of their answer. It is evident that the marks are in the Decision section, so they are allowed to use bullet points. 

find one investment that you believe to be good to

Question find one investment that you believe to be good to add to your current average performing portfolio. Include a discussion of risk when explaining your belief that this is a good investment.

What is the present value of a series of growing

Get college assignment help at Smashing Essays Question What is the present value of a series of growing cash flows, where the first cash flow (at the end of the first period) is $200 the required rate is 11% and the growth rate is 4%?

What is the Present Value of an amount of $3,000

Question What is the Present Value of an amount of $3,000 to be received in 6 years if the rate is 14% p.a.? Your answer should be calculated to the nearest dollar. 

The annual nominal rate is jm = 0.16pa. What is

Question The annual nominal rate is jm = 0.16pa. What is the effective annual rate as a percentage to two decimal places? The number of compounding periods is 7. Enter your answer as a decimal eg 17.42% = .1742 to four decimal places. Accuracy of one basis point. Tip: use excel to get the required accuracy.

Regular DividendsThe balance sheet for Ferguson Corp. is shown here

Question Regular DividendsThe balance sheet for Ferguson Corp. is shown here in market terms. There are 12,000 shares of stock outstanding. The company has declared a dividend of $1.30 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? Share RepurchaseIn the previous problem, suppose Ferguson has announced it is going to repurchase $15,600 worth of stock. What effect will this transaction have on the equity of the firm? How many shares will be outstanding? What will the price per share be after the repurchase? Ignoring tax effects, show how the share repurchase is effectively the same as a cash dividend. 

1- The market price is ​$875 for a 10​-year bond

Question 1- The market price is ​$875 for a 10​-year bond ​($1 comma 000 par​ value) that pays 9 percent annual​ interest, but makes interest payments on a semiannual basis ​(4.5 percent​ semiannually). What is the​ bond’s yield to​ maturity?2- (Floating-rate loans) The Bensington Glass Company entered into a loan agreement with the​ firm’s bank to finance the​ firm’s working capital. The loan called for a floating rate that was 29 basis points ​(0.29 ​percent) over an index based on LIBOR. In​ addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.16 percent and a minimum of 1.72 percent. Calculate the rate of interest for weeks 2 through 10. 3- ​(Future value of an ordinary​ annuity) What is the future value of ​$500 per year for 8 years compounded annually at 10 ​percent?4- (Present value of an uneven stream of payments​) You are given three investment alternatives to analyze. The cash flows from these three investments are as​ follows: What is the present value of each of these three investments if the appropriate discount rate is 15 ​percent?5-  ​(Compound interest with​ non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit​ period: 6-ARrson​ Electronics’ management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance.The balance sheets and income statements for the two firms A Calculate the following ratios for both Carson and​ BGT: Current ratioTimes interest earnedInventory turnoverTotal asset turnoverOperating profit margin Operating return on assetsDebt ratioAverage collection periodFixed asset turnoverReturn on equity b. Analyze the differences you observe between the two firms. Comment on what you view as weaknesses in the performance of Carson as compared to BGT that​ Carson’s management might focus on to improve its operations.7- The annual sales for​ Salco, Inc. were $ 4.53 million last year. The​ firm’s end-of-year balance sheet was as​ follows: Salco’s income statement for the year was as​ follows: a. Calculate​ Salco’s total asset​ turnover, operating profit​ margin, and operating return on assets.b. Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of $ 1.03 million. The firm will maintain its present debt ratio of 50 percent when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13.2 percent. What will be the new operating return on assets ratio​ (i.e., net operating income divided by total ​assets) for Salco after the​ plant’s renovation?c. Given that the plant renovation in part ​(b​) occurs and​ Salco’s interest expense rises by $ 48 comma 000 per​ year, what will be the return earned on the common​ stockholders’ investment? Compare this rate of return with that earned before the renovation. Based on this​ comparison, did the renovation have a favorable effect on the profitability of the​ firm?8- The Brenmar Sales Company had a gross profit margin​ (gross profits divided by ​sales) of 30 percent and sales of $ 8.5 million last year. 78 percent of the​ firm’s sales are on​ credit, and the remainder are cash sales. ​ Brenmar’s current assets equal $ 1.7 ​million, its current liabilities equal $ 303 comma 900​, and it has $ 106 comma 200 in cash plus marketable securities.a. If​ Brenmar’s accounts receivable equal $ 561 comma 700​, what is its average collection​ period?b. If Brenmar reduces its average collection period to 15 ​days, what will be its new level of accounts​ receivable?c. ​Brenmar’s inventory turnover ratio is 8.5 times. What is the level of​ Brenmar’s inventories? Attachment 1 Attachment 2 Attachment 3 Attachment 4 Attachment 5 ATTACHMENT PREVIEW Download attachment Capture.PNG ATTACHMENT PREVIEW Download attachment Capture.PNG ATTACHMENT PREVIEW Download attachment Capture.PNG ATTACHMENT PREVIEW Download attachment Capture.PNG ATTACHMENT PREVIEW Download attachment Capture.PNG

Please help2. MSA Concentration: Financial Planning, Analysis

Question Please help2.        MSA Concentration: Financial Planning, Analysis

1. what are the effects of insider trading on the pricing

Question

1. what are the effects of insider trading on the pricing of the securities in the market
2. how does mispricing of securities arise
3. what are the implication of efficient markets hypothesis on the financial markets

Integrated Waveguide Technologies (IWT) is a 6-year-old company founded by

Question Integrated Waveguide Technologies (IWT) is a 6-year-old company founded by Hunt Jackson and David Smithfield to exploit metamaterial plasmonic technology to develop and manufacture miniature microwave frequency directional transmitters and receivers for use in mobile Internet and communications applications. IWT’s technology, although highly advanced, is relatively inexpensive to implement, and its patented manufacturing techniques require little capital as compared to many electronics’ fabrication ventures. Because of the low capital requirement, Jackson and Smithfield have been able to avoid issuing new stock and thus own all of the shares. Because of the explosion in demand for its mobile Internet applications, IWT must now access outside equity capital to fund its growth, and Jackson and Smithfield have decided to take the company public. Until now, Jackson and Smithfield have paid themselves reasonable salaries but routinely reinvested all after-tax earnings in the firm, so dividend policy has not been an issue. However, before talking with potential outside investors, they must decide on a dividend policy. Your new boss at the consulting firm Flick and Associates, which has been retained to prepare for its public offering and has asked you to address the following issues:a.    (1) What is meant by the term “distribution policy”? How has the mix of dividend payouts and stock repurchases changed over time?b.    Discuss the effects on distribution policy consistent with: (1) the signaling hypothesis (also called the information content hypothesis) and (2) the clientele effect.c.    (1) Assume that IWT has completed its IPO and has a $112.5 million capital budget planned for the coming year. You have determined that its present capital structure (80% equity and 20% debt) is optimal, and its net income is forecasted at $140 million. Use the residual distribution approach to determine IWT’s total dollar distribution. Assume for now that the distribution is in the form of a dividend. Suppose IWT has 100 million shares of stock outstanding. What is the forecasted dividend payout ratio?What is the forecasted dividend per share? What would happen to the payout ratio and DPS if net income were forecasted to decrease to $90 million? To increase to $160 million.c.    (3) What are the advantages and disadvantages of the residual policy? (Hint: Don’t neglect signaling and clientele effects.)e.   Discuss the advantages and disadvantages of a firm repurchasing its own shares.

Vesulvios currently has a cash only policy but is considering

Question Vesulvios currently has a cash only policy but is considering going to a net 30 days policy. Its sale price per unit is $125 and its variable cost per unit is $96. It currently sells 1,320 units per month, and believes that under the new policy it will sell 1,350 units per month. The required return is 0.95% per month. What is the net present value of this proposed change? Should the company make it?

A company has $7.80 per unit in variable costs and

Question A company has $7.80 per unit in variable costs and $3.50 per unit in fixed cots at a volume of 50,000 units. If the company marks up total cost by 0.57, what price should be charged if 68,000 units are expected to be sold?

(a) Yujie — the treasurer of Yakubovich, Inc. — want

Question (a) Yujie — the treasurer of Yakubovich, Inc. — want to issue 7% coupon paid semi-annually, 15-year maturity bonds with a face value of $1,000. If similar bonds are priced to yield 8%, at what price can the bonds sell for?b Find the price of the bonds if after 6 months if the yield to maturity is 7%c If you buy the bond at time 0 and sell it after 6 months, what will be your 6 month holding period return?

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