problem areas in the Hobby Horse Company? The problem with Hobby Horse Company is that they were having a tough year throughout 2011. The company has $45 million loan that is due at the end of September‚ however the company does not have the means to cover the cost of the loan. Looking at the financial statement the company has fairly high leverage where their equity is not as strong. In addition‚ their current assets don’t cover current liabilities—meaning that the company is not as liquid. For the year
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ACC553 Week 4 You Decide Activity To : John and Jane Smith From : Kathy Polk‚ CPA Near Lakes City Date : August 2‚ 2012 Dear Mr. and Mrs. Smith‚ I would like to thank you for coming into the office and permitting us to review and deliberate the concerns you have with your tax questions. Please contact me‚ after you both have studied my suggestions‚ so we can address any other questions you may have at that time. John Smith’s questions: 1(a) How is the $300‚000 treated for purposes
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In order to decide on an IPO price‚ we must look at the current financial position of the company‚ as well as make projections for possible future scenarios. From the data given‚ we know that Prairie Home Stores (PHS) has a current book value of $80‚000‚000. With 400‚000 outstanding shares‚ the book equity per share is $200. There are two possible paths for future performance to consider. The first‚ a constant growth scenario‚ assumes that PHS will continue on its current trajectory of paying
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"Why do I keep this around?" Martin Drysdale wondered. "It infuriates me every time I see all that satisfaction over something that is now the bane of my existence." He looked gloomily at the offending photo which showed the project team happily "clinking" pop cans and coffee cups in a toast: "Here’s to TUFS!" The Technical Underwriting Financial System (TUFS) was the largest single investment in IT ever made by Northern Insurance‚ and it was going to transform Northern by streamlining the underwriting
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exercise price. In this case‚ option B’s premium price is lower. The trade off is between a lower exercise price‚ higher premium price‚ option A‚ that better hedges against the yen if it were to appreciate in value (exercising the option) and a higher exercise price‚ lower priced premium that reduces cost if the hedge does not appreciate in value (the option is not exercised). 2.Should Blades allow its yen position to be unhedged? Describe the tradeoff. The case stated that “the futures
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Company Information Applebee’s: Applebee’s International‚ Inc.‚ is an American company which develops‚ franchises‚ and operates the Applebee’s Neighborhood Grill and Bar restaurant chain. As of September 2011‚ there were 2‚010 restaurants operating system-wide in the United States‚ one U.S. territory and 14 other countries. The company is headquartered in Kansas City‚ Missouri after moving from Lenexa‚ Kansas in September 2011. The Applebee’s concept focuses on casual dining‚ with mainstream American
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1. MINING INDUSTRIES IN THE PHILIPPINES: * Luis Gonzales Jr. Mining * Goldenboys ‚Inc. * Steelfab Water Solutions Asia Inc. * Fil Edward Rey A. Manila * Mg-gelber Trading Co. * Sytenco Philippines Corporation * Maricalum Mining Corporation * Tangshan Relia Industrial Pump. Co.‚Itd Maricalum Mining Corporation (MMC) in south Negros. Having 2‚673 claims on mining in Barangays Cansauro‚ Hinablan‚ Tao-angan and Hinablan‚ of the towns of Cauayan and Sipalay‚ Negros Occidental
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Mini Cases: Cost of Capital Part A: Cost of Debt Mini Case 1: Cost of perpetual/Irredeemable debt Ashok Leyland issued Rs 100 Lakhs 12% debentures of Rs. 100 each. Calculate the cost of debt in each of the following cases. (Assume corporate tax rate being 40%). Case (a) If debentures are issued at par with no floatation cost. Case (b) If debentures are issued at par with 5% floatation cost. Case (c) If debentures are issued at 10% premium with 5% floatation cost. Case (d) If debentures are issued
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uncontrolled and dashed against a tree. Fatal accidents during 2006 Dumpers Three fatal accidents occurred in three different accident due to falling of dumper from height continue Four fatal accidents occurred due to run over by tipper. In one case dumper run over one light vehicle causin two fatalities. One fatal accident occurred due to rolling back of dumpers which hit a mine foreman who died. Continue One person died due to hitting of reversing dumper. Two persons died due to rolling
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Capital Budgeting Mini Case There are many different methods business owners use to efficiently analyze business investment. One of these effective methods is the calculation of the net present value or NPV. The second most effective method would be the calculations of the internal rate of return or IRR. There are also other useful methods as well‚ for example‚ the payback rule and the profitability index. Many business owners use the above procedures to help them in their decision making of acquiring
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