Homework Help for Finance

1. Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?
2. What is the advantage of using comparative statements for financial analysis rather than statements for a single date or period?
3. The current year’s amount of net income (after income tax) is 20% larger than that of the preceding year. Does this indicate an improved operating performance? Discuss.
4. How would you respond to a horizontal analysis that showed an expense increasing by over 80%?
5. How would the current and quick ratios of a service business compare?

1. The condensed income statements through income from operations for Dell Inc. and Apple Computer, Inc., are reproduced below for recent fiscal years (numbers in millions of dollars).

                                                                                             Apple

                                                                 Dell Inc.        Computer, Inc.

Sales (net)                                                     $57,420            $24,006

Cost of sales                                                   44,904               15,852

Gross profit                                                  $12,516               $8,154

Selling, general, and administrative expenses$ 5,948              $ 2,963

Research and development                                  498                    782

Operating expenses                                        $6,446               $3,745

Income from operations                                  $6,070               $4,409

Prepare comparative common-sized statements, rounding percents to one decimal place. Interpret the analyses.

1. The following data apply to Jacobus and Associates (millions of dollars):

Current liability                                   $100.00

Prepaid expense                                       20.00

Total assets                                         $283.50

Sales                                                 $1,000.00

Net income                                             $50.00

Quick ratio                                                 2.0

Current ratio                                              3.0

A/R Turn over                                      4 times

ROE                                                         12%

Capitalization ratio                                   30%

Jacobus has no preferred stock—only common equity

1. Find Jacobus’s (1) Average collection period, (2) current assets, (3) Inventory, (4) ROA, (4) common equity, and (5) long-term debt.

What is a financial planner?

Suppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the borrower to pay the interest on the loan balance each year and to reduce the loan balance each year by GHC 1000, what would the loan repayment schedule look like? 

GUIDELINE FOR ARTICLE REVIEW

Instruction: Download research articles related to financial management course from reputable journal sites and pick one you are interested and review based on the following guideline only.

 You should use only research articles published the recent years.

Part I: Article summary

Write a brief review of the article’s aim and purpose by addressing the following questions.

 What is the research topic, and why it is (scientifically and/or socially) important?

 What is the research gap or knowledge gap as identified by the article’s literature review?

 How does the paper aim to fill in that research gap?

 What are the major findings?

Part II: Assessment of data quality

 What is the source of data for the article? Describe the unit of analysis, time period covered by the data, the number of observations, the key variables, procedure of data collection etc.

 How appropriate is the data for the research topic?

 What are the potential limitations of the data (including issues in data collection and sample design, measurement of variables, missing values etc.)?

Part III: Assessment of research design and method

 How suitable is the research design for the research goal of the article?

 Is the research method suited for the data?

 What are the statistical (or data) assumptions of the research method (or the specific model)?

 Are you satisfied with the goodness-of-fit of the estimated models? Explain using specific results.

 What kinds of model diagnostics were implemented, and what kinds of (additional or substitute) diagnostics would you recommend?

 How many of the hypothesized relationships (if any) are supported by the analysis? Are there sufficient explanations for negative results (i.e. for hypothesis that were not supported by the analysis?)

Part IV: Critical evaluation of the article

 In terms of overall quality, and especially with respect to research design and method, what are the major strengths of the article?

 In terms of overall quality, and especially with respect to research design and method, what are the major limitations of the article?

 If you were to write a follow up paper on this topic, what potential improvements or extensions would you do in your article (in terms of data, research design, research method, or presentation)?

Skyline Corp. will invest $130,000 in a project that will not begin to produce returns until after the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $34,000. If the cost of capital is 12 percent, should this project be undertaken?

Kuehner estimates that it can lease Parker Road Plaza for $19.00 per square foot (GLA) base rent with a 3 percent overage on gross sales in excess of $200 per square foot (GLA). The company expects rents to increase by 5 percent per year during the lease period and tenant reimbursements to run $8 per square foot (GLA) and to increase at the same rate as rents. Kuehner expects to have the shopping center 70 percent leased during the first year of operation After that, vacancies should average about 5 percent per year. The vacancy losses should be cal-culated on the entire gross potential income, which includes minimum rents, percentage rents and tenant reimbursements. Sales, which are expected to average $220 per square foot (GLA) for the first year of operation, should grow at 6 percent per year. The operating expenses are expected to average $14 per square foot of GLA for the first year and will increase at the same rate as the rents. Kuehner will collect an additional 5 percent of EGI as an annual management fee. The final sales price is expected to be $19.9 million and Kuehner will incur sales expenses of 2 percent. Two schedules provide necessary information about this phase of the project:

1. What cash flows would Kuehner Development Co. earn before and after taxes for Parker Road Plaza if it were operated for five years (assuming the marginal tax rate to be 35% for ordinary income, 20% capital gains, and 25% for depreciation recapture)?

2. What cash flows will Kuehner realize before and after taxes from the sale of the project after five years?

3. Assuming that Kuehner's before-tax required rate of return is 16 percent, should the company develop Parker Road Plaza? Also determine BTNPV and BTIRR.

You have $23,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 12 percent and Stock Y with an expected return of 12.5 percent. If your goal is to create a portfolio with an expected return of 12.18 percent, how much money will you invest in Stock X?
In Stock Y

You have $23,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 12 percent and Stock Y with an expected return of 12.5 percent. If your goal is to create a portfolio with an expected return of 12.18 percent, how much money will you invest in Stock X?
In Stock Y?

Generally high growth stocks don’t pay
Select one:
a. High dividends
b. Erratic dividends
c. Stable dividend
d. None of the above

Suppose today is July 1 and that you own the S&P 500 and the current price is 370. You have achieved large gains over the past six months which you would like to lock in through the end of the year. Suppose the dividend yield on the S&P 500 is 3.3%, the volatility is 15% and the interest rate is 7%.
a. What is the cost of putting a 340 floor value of your portfolio

b. Find a call which when added to the 340 floor gives you a zero cost collar

For chase,Bank of America, and TD bank

can you share me an article review about financial management journal

can you share me an  article review about financial management research

bro, if u keep answering i will also..but we both will just waste the questions...take the second place this time i wont participate next...if u agree i will stop or i am ready to keep on answering as i have staffs to work for me and faster wifi