Mini case p.45 a. Why is corporate finance important to all managers? Corporate finance is important because of the skills that mangers can obtain from it. Some of these skills are selecting the best corporate strategies and projects that add value to business. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. The organizational forms are proprietorships‚ partnerships‚ and corporations
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Homework (2-6) Statement of Retained Earnings In its most recent financial statements‚ Newhouse Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings were $780 million. How much in dividends was paid to shareholders during the year? Answer: NI = $50‚000‚000; R/EY/E = $810‚000‚000; R/EB/Y = $780‚000‚000; Dividends = ? R/EB/Y + NI – Div = R/EY/E $780‚000‚000 + $50‚000‚000 – Div = $810‚000‚000 $830‚000‚000 – Div = $810
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The questions below draw on the material in Chapter 11 and the associated lecture material. 1. What distinguishes money from other assets in the economy? Money is the most liquid asset. 2. What is commodity money? What is fiat money? Which kind do we use? Commodity money may be used for other purposes. Fiat money is useful only as money. 3. What are demand deposits? Why should they be included in the stock of money? Demand deposits are balances in bank accounts that can be accessed on demand
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FIN 534- Homework Set #1 1. $502‚640 + 120‚000-169‚056=$453‚584- 17050= $436‚534 2. If Congress change the tax laws Berndt’s‚ the reported profit would decrease and the net cash flow would most likely remain the same. 3. Current Ratios (Current Assets / Current Liabilities): $2‚680‚112 / $1‚039‚800 = $2.577 /Ratio= 2:6:1 Quick Ratios (Cash + Marketable Securities +Accounts Receivable)/ Current Liabilities: $14‚000 + $71‚632 + $878‚000/$1‚039‚800= $0.926/ Ratio= 0:9:1 The company’s liquidity
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Chapter 6 1. Why are people willing to take the risks of entrepreneurship? People are willing to take the risks of entrepreneurship because it allows them freedoms and many opportunities that they feel are worth the risks involved. Many are finding that the corporate world is just as risk involved these days as owning their own business‚ since it is becoming more and more common to see hard working and long term employees being fired when times got hard. 2. What are the advantages of entrepreneurial
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modalities‚ read the policies governing your current class modality. Course Materials Schultz‚ K. M. (2012). HIST2‚ volume 2 (2nd ed.). Boston‚ MA: Wadsworth‚ Cengage Learning. All electronic materials are available on the student website. Week One: Reconstruction and the New South Details Due Points Objectives 1.1 Evaluate the outcomes of Reconstruction. 1.2 Summarize the economic‚ political‚ and social characteristics of the New South. 1.3 Explain the populist response to late
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FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14‚ Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010‚ and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget
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Week 7 Homework Mohamed E. Abdelrahman Prof: James Glenn International Finance FIN: 535 Strayer University Spring 2013 15. DFI Strategy: A. What comparative advantage does JCPenney have when establishing a store in a foreign country‚ relative to an independent variety store? B. Why might the overall risk of JCPenney decrease or increase as a result of its recent global expansion? C. JCPenney has been more cautious about entering China. Explain the potential obstacles associated with
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Making a sound financial decision is a vital component of the success of a business. The business must conduct market research‚ description of products‚ services and marketing strategies‚ and setting principles for the business’s success. Expenses should be noted prior to writing a financial plan. The goal of a business is to operate on a predefined budget. Ensure there are no undefined or hidden cost that could cause problems later. The business plan helps the business to make day-to-day decisions
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FIN-516 – WEEK 2 - HOMEWORK ASSIGNMENT PROBLEM BASED ON CHAPTER 15 – WACC AND THE HAMADA FORMULA Bickley Engineering Company has a capital structure of 30% Debt and 70% Equity. Its current Beta is 1.3‚ and its Market Risk Premium is 7.5% Points. The current Risk Free Rate is 3.5%. Bickley’s marginal tax rate is 40%. What is the Unlevered Beta of Bickley? Bickley’s management would like to change its capital structure to 15% Debt and 85% equity by retiring its bonds yielding 8%. The
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