All businesses have associated risks. Businesses must cope with risk in order to operate. The risks can be minimized when you are certain of the outcome and can be maximized when there are uncertainties. The internal and external factors also impact risk. With all other factors held constant in financial markets, the higher the risk associated with the decision, the higher the expected return. Many […]

1. Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation. Debt: One thousand bonds were issued five years ago at a coupon rate of 8%. They had 25-year terms and $1,000 face values. They are now selling to yield 9%. The tax rate is 39% Preferred stock: Two thousand shares of preferred are outstanding, each […]

A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be […]

Althea has accumulated substantial wealth and plans to gift some of her wealth to her son Jamal. She is considering two assets: a beach house, which cost $150,000 20 years ago and now has a fair market value of $500,000; and stock in Rich Corporation, which cost her $400,000 5 years ago and now has a fair market value of $500,000. Prepare a memo advising […]

Careers in FinanceFinance is an exciting field in need of intelligent, skilled people. The job opportunities range from corporate finance; financial planning; investment banking; insurance; and real estate from individuals, institutions, government, and businesses. Finance managers acquire, spend, and manage money and other financial assets. Use the Internet and / or Strayer Resource Center to research career options within the field of finance. Consider the […]

Proposals for RevenueTwo proposals to generate more revenue for your city are underconsideration. You have been tasked to review both proposals andrecommend which proposal to implement in the near future. The twoproposals (London Congestion Charge and Charging for Firefighting) canbe found on pages 561 – 566 in your textbook. For each proposal: Identify the source(s) of revenue and how the income will support the program […]

arry Landlord has recently renovated an apartment and has put it on the market to be rented for $800.00 a month. Larry Landlord has been in business for approximately five (5) years and has had both positive and negative experiences with tenants. Larry Landlord is hoping to find a good, long-term tenant for his apartment. Roger Renter saw Larry’s sign for the apartment for rent […]

expected to write a “front end” paper using the references provided in the reading list as well as from current peer-reviewed articles (published within the last 5 years). A front end paper includes an introduction section; a literature review of at least 10 articles is required. A literature review is not just a synopsis. In addition to a synopsis, you must look for connections, consensus, […]

A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be […]

 manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be a […]