Alternative Financing Plans A. Short-term interest exp. (400‚000 + ½ (300‚000)) 5% = (550‚000) 5% = 27‚500 Long-term interest exp. (400‚000 + ½ (300‚000)) 10% = (550‚000) 10% = 55‚000 27‚500 + 55‚000 = 82‚500 Earnings before interest and taxes = 200‚000 Interest expenses = 82‚500 Earnings before taxes = 200‚000 – 82‚500 = 117‚500 Taxes = 117‚500 X 34% = 39‚950 Earnings after interest and taxes = 200‚000 – 82‚500 – 39‚950 = 77‚550 B. Short-term interest exp. ( ½ (400‚000)) 5% = (200
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LifeSource Nutrition: Succeeding Where Campbell Soup Failed Mmm! Smart Food How would you feel about eating a steady diet of frozen foods to improve your health? Well‚ that’s what Campbell Soup wanted you to do when it cooked up a line of mostly frozen meals designed to reduce certain health risks such as heart disease and diabetes. Campbell introduced the product line‚ calling it Intelligent Quisine (IQ)‚ in an Ohio test market in January 1997. How IQ made it to the test market is an
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my experience by relating similarities they have experienced in their homes. Venue’s Readership: Chicken Soup for the Soul is one of the most well-known venues in North America. The venue explores many genres and is not limited to any specific category. The venue first established through a series of books and has since expanded by sharing stories in a variety of ways. In addition‚ Chicken Soup For The Soul focuses on sharing true stories that occur
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Wal-mart ’s Strategic Initiative Richard Cannataro‚ Michelle Hayes‚ Camille King‚ Kristyna Princivalli‚ and Cynthia Zatarian FIN/370 October 24‚ 2011 Brad Simon Wal-Mart ’s Strategic Initiative It is difficult to clearly understand the goals of a company unless you look at the strategic planning involved. What is strategic planning? Strategic planning is simplifying the overall purpose and desired results of an organization‚ and showing how those results will be achieved. If the strategic
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Fin/370 I Defining Financial Terms: Finance- The study of how people and businesses evaluate investments and raise capital to fund them and it help organizations to study every decision they make from investing in a product to market short term or long term * Efficient market- A market in which all the available information is fully incorporated into securities prices and the returns investors will earn on their investments cannot be predicted. In this type of market no insider trading
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Working Capital Simulation Aljenette Brown FIN 571 December 14‚ 2014 Susanne Elliott This paper will analyze the Sunflower Nutraceuticals (SNC) and the decisions their company can make to increase working capital and maximize the organization’s growth potential. Moreover‚ this paper will examine some of the decisions made in each phase of SNC’s simulation‚ describe how SNC’s decisions affected their working capital‚ and evaluate the general effects associated with limited access to financing.
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QUESTIONS 1. Assume that you are given a set of cash flows on a time line and asked to find their present value. How would you choose the discount rate to apply to these cash flows? abcdefg 2. Consider a one-year‚ $18‚000 CD. a. What is its value at maturity if it pays 8.4 percent (annual) interest? b. Compute the future value if the CD pays 3.2 percent; if it pays 16.8 percent. Overall‚ what do these results indicate about the relation between level of interest and future value?
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Suppose that the current Bid-Offer on the Euro is $1.21/E and $1.23/E‚ and the three-month forward is $1.185/E. 1. If you wish to hedge 100‚000 Euro Revenue due in three months‚ what position would you take? Explain why. a. Buy Euro forward at $1.23/E b. Buy dollars forward at $1.23/E c. Sell Euro forward at $1.185/E d. Sell dollars forward at $1.21/E e. Buy Euro forward at $1.185/E 2. If the Bid-Offer at maturity is $1.17/E and $1.19/E (assume the bank is following the same quote convention)
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FINC 404 Fall 2011 Assignment 1 Solution 1. I need your group names! Groups of 4 people please. 2. You can deposit $10‚000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today? Solution Deposit now: Deposit in 10 years: FV40 = PV (1+k)40 FV30 = PV10 x (1+k)30 FV40 = $10‚000 x (1.09)40 FV30 = PV10 x (1.09)30 FV40 =
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FINANCE 6301 AMME Individual Assignment #2 FORMAT: You can use a Word document‚ an Excel spreadsheet or both. If you use Excel‚ submit the Excel file rather than embedding Excel into a Word document. Please use single-space‚ 11 pt. or 12 pt. font. Multiple Choice: Select the best response (3 points each). You may add comments to explain your reasons. 1. If the correlation coefficient is 0‚ A) You can completely eliminate risk by short selling the riskier asset and investing
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