Complete the following Questions and Problems from each chapter as indicated.
Show all work and analysis.
Prepare in Microsoft® Excel® or Word.
A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?
For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?
A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depr
What is the accumulated sum of the following stream of payments?
$20,881 every year at the beginning of the year for 6 years, at 7.71 percent, compounded annually.
round answer to two decimal places.
ABC Company is considering a new project
. The project is expected to generate annual sales of $75,275, variable costs of $26,275, and fixed costs of $13,947
. The depreciation expense each year is $18,938 and the tax rate is 29 percent
. What is the annual operating cash flow?
Lee Manufacturing
Capital Budgeting Analysis
In 2004 David Lee started Lee Manufacturing, a company dedicated to manufacturing simple yet efficient gas barbecues. The barbecues are made of aluminum and stainless steel and are priced at the middle of the market. David’s goal has always been to make a barbecue that cooks great food. This means, good quality parts, simple construction, even heat, no hot or cold spots, and a barbecue that will hold temperature from the lowest setting to the highest setting. David’s motto is “high quality for a fair price”. The company offers four basic grill sizes (models) and several options and accessories that can be added on to each model. Lee’s barbecues have been well received. Revenue and profits have grown steadily.
Based on the recommendation from his sales and marketing department Mr. Lee is considering broadening his product line by adding a new product line of Lee charcoal barbecues
Portfolio Rebalancing
You manage a portfolio of two stocks, FedEx Corp. (ticker: FDX) and McDonald's Corp.
(ticker: MCD), that begins trading on 1/3/1995 with $20,000 invested. To exploit the bene ts
of diversi cation, the investment is split equally between both stocks, i.e. $10,000 are initially
allocated to each.
1
After setting up the portfolio, stock prices change and portfolio weights start
to deviate from the initial weights of 50% in each stock. Your task is to determine the trades
necessary for rebalancing the portfolio.
On Blackboard, you will nd a spreadsheet with daily prices for the two stocks from 1/3/1995
to 12/31/2014. The sheet also contains information on historical dividends and stock splits.
2
To
simplify the analysis, assume that the dividend dates in the spreadsheet are both the ex-dividend
date and the payment date.
3
The columns "Bid" and "Ask" are computed by adding and subtracting a percentage of the
daily closing price from that price itself
Lee Manufacturing
Capital Budgeting Analysis
In 2004 David Lee started Lee Manufacturing, a company dedicated to manufacturing simple yet efficient gas barbecues. The barbecues are made of aluminum and stainless steel and are priced at the middle of the market. David’s goal has always been to make a barbecue that cooks great food. This means, good quality parts, simple construction, even heat, no hot or cold spots, and a barbecue that will hold temperature from the lowest setting to the highest setting. David’s motto is “high quality for a fair price”. The company offers four basic grill sizes (models) and several options and accessories that can be added on to each model. Lee’s barbecues have been well received. Revenue and profits have grown steadily.
Based on the recommendation from his sales and marketing department Mr. Lee is considering broadening his product line by adding a new product line of Lee charcoal barbecues
Book is Bodie, Kane and Marcus: "Essentials of Investment"
detail in attachments， data is not complete, if you need it, please contact m
In a rapidly changing world, leaders are challenged to become more strategic in both their individual leadership and in service of the enterprise. This course focuses on the strategic planning and decision making processes of organizations, including determining vision, core mission, goal development, implementation, and evaluation. Included in strategy are the financial viability, planning, and monitoring needed to ensure long term sustainability and success. Students will apply current theory, practice, and research to real world examples of organizations for which they will develop a comprehensive strategic and financial plan that addresses the needs of all stakeholders.
For: BUS 330 - PRINCIPLES OF FINANCE
The entire instructions are uploaded in additional materials.
PLEASE read them completely as this is a paper that requires a financial analysis, graphing, and calculations.
The following ratios must be used: Current ratio, quick ratio, average collection period, inventory turnover, debt ratio, times interest earned, total asset turnover, fixed asset turnover, and return on common equity.
A solid six pages must be writing with another four pages of graphs and figures.
I. Background of Company
II. Industry Info and Competitor Info
III. Financial analysis including ratio analysis and financial statement analysis (must compare data to historical company data as well as competitor data).
IV. Projections for the company. Based on your analysis, how do you think the company is performing? Are they managing their finances well?
V. Recommendations. What are your recommendations for the company?
