Business Finance Help for College and University Students

Costing - Utilization Estimates

The SLD Imaging Center is currently negotiating with an MCO to provide diagnostic imaging services to 225,000 covered lives. SLD has fixed costs of $750,000 and capacity for an additional 75,000 patient encounters per year. They have two types of services MRI and CT Scans. MRI's have a variable cost of $495 and CT Scan's have a ...continues

Fixed Cost, Variable Cost - Contribution Margin; Total Revenue

A city health clinic treats two types of patients: 1) those with physical problems and 2) those with mental health problems. The revenues and costs associated with each type of patient are attached. Fixed costs are expected to be $2,000. a. What is the contribution margin for each type of patient? b. If out total revenue ...continues

Why are depreciation charges relevant to a cash flow analysis?

Why are depreciation charges relevant to a cash flow analysis?

Option analysis for capital budgeting

Has option analysis become more or less important for capital budgeting analysis in recent years?

Linear Programming: calculate the total surgeries by type and doctor

You are managing the OR and have been told to come up with the mix of surgeries and doctors that will yield $2,300,000. Currently your OR performs 5 different surgeries and has 3 different doctors. Your OR operates one shift per day with a maximum amount of 8,000 OR hours. The only constraints that you have been given are the fo ...continues

Cash Management Techniques

Among the cash management techniques used by most businesses are those that slow down their bill payments. A good example for this is "Cash Rebates" offered on household items like computers and other electronics. Are these practices sound business decisions? Are they ethical? Explain. Select a business you are familiar wi ...continues

Stock valuation

Next year's dividend for ERT stock is expected to be $4.00. You expect it to be $4.00 in 2 years, also, but then you expect it to grow at an 8% annual rate forever. If the risk-free rate of interest is 1%, the expected market return is 9%, and the ERT's beta is 2.0 then what is the price of the stock, today? possible answers: ...continues

net present value

You buy (t=0) an apartment building for $500,000. You expect to earn $40,000 a year in rent for the following 3 years (t=1-3). Then, at the end of year 3, you expect to sell the building for $550,000. The required rate of return for this sort of investment is 10%. The risk-free rate is 5%. Clearly show how you would calculate ...continues

Finding annuity

You plan to take a long trip through Europe, leaving in 5 years. You're plan is to save money for the next five years, leave at the end of the fifth year, and then survive on your savings for 3 years. You estimate you can survive in Europe on $10,000 a year. You estimate that your investment account will earn 8% forever. You ...continues

calculating a stocks beta

Explain how you would solve this problem. Specify the steps you would take and equation(s) you would use) Cartwright Brothers' stock is currently trading for $40 a share. The stock is expected to pay a $2 dividend at the end of the year. The stock's dividend is expected to grow at a constant rate of 7% a year forever. The ri ...continues