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    Financial Forecasting Problems

    Please help with the following problem. Gainesville Surgicenter Inc. is a large, ambulatory surgery center owned by a group practice of surgeons in Gainesville, Florida. The 2006 financial statements for the firm are shown below: (***see attached excel file***) a. Assume that the company was operating at full capacity

    Cash conversion cycle

    Northern Manufacturing Company found that during the last year, it took 47 days to pay off its suppliers, while it took 63 days to collect its receivables. The companyâ??s daysâ?? sales in inventory was 49 days. What is Northernâ??s cash conversion cycle?

    Finance 1

    1. The accompanying Excel file provides you with monthly price and dividend data for CVS Caremark (Ticker symbol: CVS) from Yahoo Finance. (If you want to see where the data came from, go to Yahoo Finance. Type in the ticker, CVS. Then, click historical prices.) 2. Expand the spreadsheet and compute monthly HPRs for each of

    The NPV for a Project

    Franklin Mints, a confectioner, is looking to purchase a new jellybean-making machine at a cost of $312,500. The company projects that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent, what is the net present value (NPV) for the project?

    Marginal Cost

    Retirement Planning Services.com is a wholesale producer of standardized retirement plans for high net worth individuals. These plans are produced and e-mailed to financial planners who incorporate them in their client presentations. The following relation exists between the firm's output and total production costs in this highl

    Discounted Payback Period: Example Problem

    A project has an initial cost of $8,500 and produces cash inflows of $2,600, $4,900, and $1,500 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7%? A. 2.13 years B. 2.33 years C. 2.67 years D. 2.91 years E. Never

    Project comparison is attained.

    43. Matt is analyzing two mutually exclusive projects of similar size and has prepared the following data. Both projects have 5 year lives. Project A Project B NPV $15.090 $14,693 Payback period 2.76 years 2.51

    Present value

    27. You just won the lottery! As your prize you will receive $1,200 a month for 100 months. If you can earn 8% on your money, what is this prize worth to you today? A. $87,003.69 B. $87,380.23 C. $87,962.77 D. $88,104.26 E. $90,723.76

    Compounding interests

    25. The stated rate of interest is 10%. Which form of compounding will give the highest effective rate of interest? A. annual compounding B. monthly compounding C. daily compounding D. continuous compounding E. It is impossible to tell without knowing the term of the loan.

    Determining the optimal level of parties for society

    In the accompanying figure, the number of parties that Cassanova gives per month is measured on the horizontal axis, and dollars are measured on the vertical. MCp is the marginal cost of providing parties and MBp is Cassanova's marginal benefit schedule from having parties. a. Graphically, show how many parties Cassanova will h

    Earnings per Share.

    Need help to answer sample problem . Please provide a detail working of answers. Beckett, Inc., has no debt outstanding and a total market value of $ 128,000. Earnings before interest and taxes, EBIT, are projected to be $ 12,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be

    Memorandum: Tax Efficient Financial Planning

    Details: Your managing director asks if you can participate in a seminar that the firm is doing on tax efficient financial planning. He would like you to send him, in memo form, the various types of vehicles that can be used by clients to reduce the various kinds if taxation. Prepare a memo to the managing director that expla

    Additional financing needed

    In 2009, Hepler Company's sales were $26 million and its total assets were $10 million. Current liabilities were $4 million and total equity was $2 million. Hepler Company's sales for 2010 are forecast to be $34 million, earnings after taxes are expected to be 5% of sales and dividends of $800,000 are expected to be paid. Assumi

    Geometric and aritmetic index disparities

    Geometric Indexes. We have seen the importance of geometric returns through time. A geometric index is formed across different stocks at a particular point in time, such as a day. Constructing a portfolio that exactly replicates a geometric index is thus impossible. Given this, why would you want to use a geometric index? In oth

    Hypothesis Testing

    # 1 A study was designed to compare the effects of drug A and drug B on bone mineral density (BMD). One of the outcome measures was the percent increase in BMD at 12 months. Drug A produced a significantly higher percent change (4.8 percent) in BMD than drug B (2.8) with a p value < .001. a) What is the variable o

    The market value of common equity

    Go to http://finance.yahoo.com and get the â??Market Capâ? for AT&T (ticker: T). The market value of common equity (i.e., the market capitalization) is the stock price multiplied by the number of shares.

    Opportunity Costs

    Opportunity Costs. Two graduate business students are considering opening a full-service car wash in Greenville, North Carolina, after graduation. This is an alternative to employment with a local manufacturing firm where they would each earn $70,000 per year. A fully equipped facility can be leased at a cost of $35,000 for the

    Calculation of full costs and selling prices

    A company manufactures refrigrators for domestic use .There are three models: Lo ,Mid and Hi.The Models ,their quality and their price are aimed at different markets..Product costs arecomputed on ablanket (business-wide)overheadrate basis using a labour-hour method .Prices as a general rule areset based on cost plus 20 per cent

    Theory of cost

    According to the theory of cost, specialization in the use of variable resources in the short-run results initially in: a) decreasing returns, and declining average and marginal costs b) increasing returns, and declining average and marginal costs c) increasing returns, and increasing average and marginal costs d)

    Rank the sensitivity

    Rank the sensitivity of the following from most sensitive to an interest rate change to the least sensitive. 1. 8% coupon, non callable 20 year maturity, par bond 2. 9% coupon, currently callable 20 year maturity, premium bond 3. zero coupon, 30 year maturity bond

    Help with explaining credits and debits

    My uncle has ran a motorcycle shop. He has decided to computerize his records and has asked me to explain the basics of accounting to him so that he can enter his data into his accounting software. 1. Explain to him the rules of debits and credits for the balance sheet and income statement. 2. Provide examples from the manufac

    Total Return Generated on Both Bull and Bear Predictions

    Please help. Chuck, an imperfect forecaster correctly predicts 57% of all bull markets and 68% of all bear markets. Roy is a perfect forecaster. If Chuck is able to charge a fee of $125000, what is the fee that Roy should charge? (assume both of them manage similar size funds)

    expected return on these portfolios

    Assume that both X and Y are well-diversified portfolios and the risk free rate is 8%. Portfolio X has an expected return of 14% and a beta 1. Portfolio Y has an expected return of 9,5% and beta 0,25. In this situation, you would conclude that portfolios X and Y________________ a. Are in equilibrium b. Offer an arbitrage opp

    expected excess return

    Consider the following two stocks, A and B. Stock A has an expected rate of return 10% and beta 1,20. Stock B has an expected rate of return 14% and beta 1,80. The expected market rate of return is 9% and the risk free rate is 5%. Security______would be a good buy because________ 1. A, It offers an expected excess return of 0

    Investment - portfolios

    Consider a risky portfolio. The end of year cash flow derived from the portfolio will either be $50 000 or $150 000, with equal probabilities of 0.5 . The alternative riskless investment in t-bills pays 5%. 1.If you require a risk premium of 10%, how much will you be willing to pay for the portfolio? 2.Suppose the portfol

    value of volatility

    You calculate the black schoals value of a call option as $3.50 for a stock that doesnâ??t pay dividends but the actual price is $3.75 . The most likely explanation is that either the option is_________or the volatility you input into the model is too_________ a. Overvalued and should be written; low b. Undervalued and shou

    Corporate Valuation and Governance

    Please see attached spreadsheet. Zieber Corporation's 2010 financial statements are shown below. Forecast Zeiber's 2011 income statement and balance sheets. Use the following assumptions: (1) Sales grow by 6%. (2) The ratios of expenses to sales, depreciation to fixed assets, cash to sales, accounts receivable to sales, and in

    Economics Problem - Price Probability

    A firm has decided to invest in a piece of land. Management has estimated that the land can be sold in 5 years for the following possible prices: Price Probability 10,000 .20 15,000 .30 20,000 .40 25,000 .10 a. Determine the expected selling price

    Breakeven point in dollars and units

    Carrier Company produces a part used in the small appliance industry. The company produces and sells 120,000 parts per year. The selling price is $4 per part; variable costs are $2.50 per part; fixed costs are $50,000 per year. What is the breakeven point in dollars and units? After conducting research, the president fee