Business Finance Help for College and University Students

Exchanges, NYSE, NASDAQ, etc

How does the two exchanges operate? How are NYSE and NASDAQ similar, if at all? How are the two exchanges different from one another, if at all? In light of the recent corporate scandals like Enron, WorldCom, etc, have any of the two exchanges taken some meaningful measures to help allay the concerns of investors? Exp ...continues

New hire training manual for Strident Marks

Consider the role of the finance department at Strident Marks. The finance department has a couple of new hires, and the CFO has asked that you spend a short amount of time with them, catching them up on some areas that are very important to the company at this time. These also happen to be areas for which Strident Marks does no ...continues

Cash flows and bond decision making for Milken Toupee and Lawn Service

Background: The M. Milken Toupee and Lawn Service (MMTLS) is considering purchasing a new paving machine, the Beta. This new machine will replace the current paving machine, the Alpha. The Alpha was purchased two years ago for $2 million and is being depreciated on a straight-line basis, over its original economic life of 5 year ...continues

market risk and decision making

BACKGROUND: Ponza International has three divisions. One is engaged is leisure wear, one in graphics, and one in household paint. The company has identified proxy companies in these lines of business whose stocks are publicly traded. Neither Ponza International nor the proxy companies employ debt in their capital structures ...continues

Flexible Budgetary Variance Model

You are evaluating the performance of the laboratory department manager. The output of this department is the number of tests performed. A static budget was prepared at the beginning of the year. You are now examining that budget in relation to actual experience. The relevant data are included in the attachment. The department m ...continues

Starbucks Financial Ratio Analysis

Calculate three ratios for Star Bucks Corporation for the years 2001, 2002, and 2003. The ratios are: Debt Ratio Long-Term Debt Ratio Cash Coverage Ratio What are the trends and identify strengths and weaknesses for each ratio. Additionally. Discuss other factors beyond the ratios that need to be considered ...continues

Question

Is there really such a thing as ironclad assurance that funds will not lose value? I have always been told that there is risk in every investment, some are just less risky than others.

Building Financial Models The following tables contain financial statements for Dynastatics Corporation. a. Produce a set of financial statements for 2001. Assume that net working capital will equal 50 percent of fixed assets. b. Now assume that the balancing item is debt, and that no equity is to be issued. Prepare a completed pro forma balance sheet for 2001. What is the projected debt ratio for 2001?

Building Financial Models. The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (that is, assets net of depreciation) by $200,000 per year for the next 5 years and forecasts that the ratio of revenues to ...continues

Compensating Balances

Compensating Balances. A bank loan has a quoted annual rate of 6 percent. However, the borrower must maintain a balance of 25 percent of the amount of the loan, and the balance does not earn any interest. a. What is the effective rate of interest if the loan is for 1 year and is paid off in one payment at the end of the yea ...continues

Trade Credit and Receivables

Trade Credit and Receivables. A firm offers terms of 2/15, net 30. Currently, two-thirds of all customers take advantage of the trade discount; the remainder pay bills at the due date. a. What will be the firm's typical value for its accounts receivable period? b. What is the average investment in accounts receivable if an ...continues