Accounting Help for College and University Students

Explanation and calculation for DuPont Identity from given financial statements.

Construct the DuPont identity for Smolira Golf. What is the DuPont identity?

Determining the price-earnings ratio, dividends per share and market-to-book ratio with an attached balance sheet and income statement.

Smolia Golf has 1,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2000 was $63. What is the price-earnings ratio? What are the dividends per share? What is the market-to-book ratio at the end of 2000? Attached are a balance sheet and income statement.

Calculating the Plowback Ratio. The balance sheet and income statement attached in Excel.

Assets and costs are proportional to sales. Debt & equity are not. Filer Manufacturing Co. maintains a constant 40% dividend payout ratio. No external financing is possible. What is the internal growth rate? How do I determine the addition to retained earnings to compute the plowback ratio? Attached is the income stat ...continues

Understanding Excel formulas for financial analysis.

How do I use the Excel financial formulas to calculate present value, future value and discount rates?

Calculating the return on an investment. Attachment in Excel.

A 1949 Vincent Black Shadow Series V motorcycle sold for about $45,000 in 1996. If you were fortunate enough to have purchased one new for $630 in 1949, what return did you earn on your investment? If the value of a $20,000 1998 Bimota Supermono appreciates at the same rate, what will it be worth in another 47 years?

Determining the future value of a savings bond using Excel.

How do I set this problem up in a spreadsheet? You have just made your first $20,000 contribution to your individual returment account. Assuming you earn an 11% rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing?

Calculating which investment option has the higher present value.

Investment X offers to pay you $2,000 per year for 10 years, whereas Investment Y offers to pay you $4,000 per year for 4 years. Which of these cash flow streams has the higher present value if the discount rate is 5%? If the discount rate is 15%?

Determining the annuity present value.

An investment offers $5000 per year for 15 years, with the first payment occurring 1 year from now. If the required return is 10%, what is the value of the investment?

Determining the perpetuity values of a policy.

Blue Grass Life insurance is trying to sell you an investment policy that will pay you and your heirs $10,000 per year forever. If the required return on this investment is 12%, how much will you pay for the policy?

Calculating the present value of an investment that is compounded daily.

An investment will pay you $45,000 in 6 years. If the appropriate discount rate is 8% compounded daily, what is the present value? Solve using a spreadsheet.