Business Finance Help for College and University Students

Lease vs Buy

Describe how the lease verses buy analysis is conducted.

Warren E. Buffett

Read the "Warren E. Buffett, 1995," case (see attached). Complete and submit a 350-700-word report analyzing and responding to these questions: 1. Would the GEICO acquisition serve the long-term goals of Berkshire Hathaway? 2. Was the bid price appropriate? 3. What might account for the share price increase for Berkshi ...continues

Calculating yied and years till maturity

Fill in the attached table for the following zero coupon bonds. The face value of each bond is $1,000 See attached 4-14

Analyze the risk of a portfolio

Using the attached data and considering portfolio weights of .60 in stocks and .40 in bonds a. What is the rate of return on the portfolio in each scenario? b. What is the expected retrun and standard deviation of the portfolio? C. Would you prefer to invest in the portfolio of stocks only or in bonds only? See attach ...continues

Calculate IRR

attached are the cash flows for two mutally exclusive projects A. At what interest rates would you prefer project A to B? What is the IRR of each project See attached 6-20

Calculate NPV and IRR

Growth Enterprise believes its latest project, which will cost $80,000 to install, will generate a perpetual growing stream of cash flows. Cash flows at the end of this year will be $5,000 and cash flows in future years are expected to grow indefinitely at an annual rate of 5%. A. If the discount rate for this project is 10 ...continues

Calculate project cash flows, NPV and IRR

Revenues generated by a new fad product in each of the next 5 years are forecasted as follows: Year Revenue 1 $40,000 2 30,000 3 20,000 4 10,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is ex ...continues

Calculate the Weighted average cost of capital

Find WACC of William Tell Computers. The total book value of the firm's equity is $10 million; book value per share is $20. The stock sells for a price of $30 per share, and the cost of equity is 15%. The firm's bond have a par value of $5 million and sell at a price of 110% of par. The yeild to maturity on the bonds is 9 pe ...continues

Determine the capital structure of a firm

Examine the attached book-value balance for University Products, Inc. What is the capital structure of the firm based on market value? The preferred stock currently sells for $15 per share and the common stock for $20 per share. There are one million common shares outstanding. Please see attached template 11-15

Calculate break-even points: Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $30. The fixed costs incurred each year for factory upkeep and administrative expenses are $200,000. The machinery costs $1 million a year and is depreciated straight line over 10 years to a salvage value of zero. A. What is the accounting break-even level of sales in terms of number of diamonds sold? B. What is the NPV break-even sales assuming a tax rate of 35%, a 10-year project life and a discount rate of 12%

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $30. The fixed costs incurred each year for factory upkeep and administrative expenses are $200,000. The machinery costs $1 million a year and is depreciated straight line over 10 ...continues