Finance Questions

I'm not sure what to do?? Thanks 1. Suppose your expected incomes in years 1 and 2 are $60,000 and $70,000 respectively. You have 40,000 in cash in year 0. Market interest rates for one-year loans are 8% in year 0 and 14% in year 1. a) If your minimum consumption level today is 20,000 and it is growing at 10% for the ...continues

Business evaluation

Andre has asked you to evaluate his business, Andre's Hair Stylling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Assume that the only se ...continues

Case Study: Warren E. Buffett: A Would the GEICO acquisition serve the long term goals of Berkshire Hathaway? B Was the bid price appropriate? C What might account for the share price increase for Berkshie Hataway at the annoucement?

Questions: A Would the GEICO acquisition serve the long term goals of Berkshire Hathaway? B Was the bid price appropriate? C What might account for the share price increase for Berkshie Hataway at the annoucement? No complex calculations, but simple mathematical analysis to support answers. Case Study and data attache ...continues

Current/noncurrent method : traslation gain(loss)

Ajax Manufacturing's German subsidiary has the following balance sheet(in DM): Cash, marketable securities: 250,000 Accounts receivable 1,000,000 Inventory ( at market) 2,700,000 Fixed assets: 5,100,000 Total assets DM 9,050,000 Current liabilities DM 750,000 Long-term debt 3,400,000 Equity 4,900,000 Total liabi ...continues

Currency translation methods: temporal method to calculate Ajax's traslation gain(loss)

Ajax Manufacturing's German subsidiary has the following balance sheet(in DM): Cash, marketable securities: 250,000 Accounts receivable 1,000,000 Inventory ( at market) 2,700,000 Fixed assets: 5,100,000 Total assets DM 9,050,000 Current liabilities DM 750,000 Long-term debt 3,400,000 Equity 4,900,000 Total liabi ...continues

currency translation methods

Ajax Manufacturing's German subsidiary has the following balance sheet(in DM): Cash, marketable securities: 250,000 Accounts receivable 1,000,000 Inventory ( at market) 2,700,000 Fixed assets: 5,100,000 Total assets DM 9,050,000 Current liabilities DM 750,000 Long-term debt 3,400,000 Equity 4,900,000 Total liabi ...continues

currency translation methods

Ajax Manufacturing's German subsidiary has the following balance sheet(in DM): Cash, marketable securities: 250,000 Accounts receivable 1,000,000 Inventory ( at market) 2,700,000 Fixed assets: 5,100,000 Total assets DM 9,050,000 Current liabilities DM 750,000 Long-term debt 3,400,000 Equity 4,900,000 Total liabi ...continues

Capital Budgeting Mini-Case

2. Capital Budgeting Mini-Case Your company is thinking about acquiring another corporation. You have two choices; the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data: a. Corporation A: 1) Revenues = 10 ...continues

Explain how a bank could lose on a transaction assuming no 'hedging'.

PLEASE DO NOT TAKE THE PROBLEM, UNLESS YOU CAN ANSWER BOTH PARTS OF THE PROBLEM. Please include in your response, the formulas for this problem, along with a detailed explanation of how it is solved, and your rationale for reaching your conclusions. You are the Vice President of Finance for Daniel's Resources, headquarte ...continues

Value of Bonds

This should be an easy one, for those with financial calculators. PLEASE POST ANSWERS AND MANUAL CALCULATIONS/FORMULAS for all 3 parts. Smith Industries has a $1,000 par value bond with an 8 percent coupon interest rate outstanding. The bond has 12 years remaining to maturity date. If interest is paid annually, what is t ...continues