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Tutors Answer Your Questions about Finance (FREE)
Question 172745: At year end, Ted's Company balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. Next year, Ted is projecting that it will have net income of $1.5 million. If the average PE multiple in Ted’s industry is 15, what should be the price of Ted’s stock?
Click here to see answer by Mathtut(3670)   |
Question 172780: A broker invested $13,000 in two different stocks. One earned dividends at a rate of 8% and the other at 7%. If a dividend of $1370 was earned on both stocks, how much was invested at each rate?
I set up the equation as follows:
Quantity(amount Invested)::
StockA = A
StockB = $13000 – A
Value(Interest rate):
StockA = 0.08
StockB = 0.07
Quantity * Value:
StockA = .08A
StockB = 0.07($13000 – A)= 910 -.07A [WHERE DID YOU GET THE 910 TERM?????]
Therefore:
0.08A + 910 – 0.07A = $1370
910 + 0.01A = $13000 = $1370
0.01A = $460
A = $46,000 ????
Here is where I am lost because the broker only had $13,000 to invest. $46,000 > $13,000. What’s wrong???
Click here to see answer by vleith(1977) |
Question 172780: A broker invested $13,000 in two different stocks. One earned dividends at a rate of 8% and the other at 7%. If a dividend of $1370 was earned on both stocks, how much was invested at each rate?
I set up the equation as follows:
Quantity(amount Invested)::
StockA = A
StockB = $13000 – A
Value(Interest rate):
StockA = 0.08
StockB = 0.07
Quantity * Value:
StockA = .08A
StockB = 0.07($13000 – A)= 910 -.07A [WHERE DID YOU GET THE 910 TERM?????]
Therefore:
0.08A + 910 – 0.07A = $1370
910 + 0.01A = $13000 = $1370
0.01A = $460
A = $46,000 ????
Here is where I am lost because the broker only had $13,000 to invest. $46,000 > $13,000. What’s wrong???
Click here to see answer by checkley77(7032) |
Question 172901: Joe wants to buy a house but does not want to get a loan. The average price of the dream house is $500,000 and its price is growing at 5 percent per year. How much should Joe invest in a project at the end of each year for the next 5 years in order to accumulate enough money to buy his dream house with cash at the end of the fifth year? Assume the project pays 12 percent rate of return.
Click here to see answer by gonzo(654) |
Question 173062: An investor has a total of $26,400 deposited in 3 different accounts, which earn annual interset rates of 6%, 5%, 4%. The amount deposited in the 6% account is twice the amount in the 5% account. If the 3 acccounts earn a total annual nterest of $1331. How much money is deposited in each account?
Click here to see answer by stanbon(26252) |
Question 173061: A chemist has 2 alloys, 1 of which is 10% gold and 20% lead, and the other of which is 30% gold anf 35% lead. How many grams of each of the 2 alloys should be used to make an alloy that contains 63g of gold and 111g of lead?
Click here to see answer by stanbon(26252) |
Question 173059: The Pacific investment group invested some money in a certificate of deposit (cd) that earns 6.5% annual simple interest. Twice the amount at 6.5% was invested an a 2nd cd that earns 8.5% annual simple interest. If a total annual interest earned from 2 investments $5875.00 How much was invested at 6.5%. How much was deposited in the certificate of deposit?
Click here to see answer by stanbon(26252) |
Question 173063: When Sara changes jobs, she rolledover $8480.00 in her retirement account into 2 simple interest accounts. on 1 account the annual simple interest rate is 8.25%, the 2nd account has annual simple interest rate is 5%. How much must be invested in each account if the 2 accounts earned the same amount of annual interest?
Click here to see answer by Mathtut(3670) |
Question 173799: 4-6A. (Cash budget) The Sharpe Corporation’s projected sales for the first eight months of 2004
are as follows:
Of Sharpe’s sales, 10 percent is for cash, another 60 percent is collected in the month following
sale, and 30 percent is collected in the second month following sale. November and December
sales for 2003 were $220,000 and $175,000, respectively.
Sharpe purchases its raw materials two months in advance of its sales equal to 60 percent of their
final sales price. The supplier is paid one month after it makes delivery. For example, purchases
for April sales are made in February and payment is made in March.
In addition, Sharpe pays $10,000 per month for rent and $20,000 each month for other expenditures.
Tax prepayments of $22,500 are made each quarter, beginning in March.
The company’s cash balance at December 31, 2003, was $22,000; a minimum balance of $15,000
must be maintained at all times. Assume that any short-term financing needed to maintain the cash
balance is paid off in the month following the month of financing if sufficient funds are available.
Interest on short-term loans (12 percent) is paid monthly. Borrowing to meet estimated monthly
cash needs takes place at the beginning of the month. Thus, if in the month of April the firm expects
to have a need for an additional $60,500, these funds would be borrowed at the beginning of April
with interest of $605 (.12 1/12 60,500) owed for April and paid at the beginning of May.
a. Prepare a cash budget for Sharpe covering the first seven months of 2004.
b. Sharpe has $200,000 in notes payable due in July that must be repaid or renegotiated for
an extension. Will the firm have ample cash to repay the notes?
Click here to see answer by solver91311(5072)  |
Question 173800: 5-1A. (Compound interest) To what amount will the following investments accumulate?
a. $5,000 invested for 10 years at 10 percent compounded annually
b. $8,000 invested for 7 years at 8 percent compounded annually
c. $775 invested for 12 years at 12 percent compounded annually
d. $21,000 invested for 5 years at 5 percent compounded annually
5-4A. (Present value) What is the present value of the following future amounts?
a. $800 to be received 10 years from now discounted back to the present at 10 percent
b. $300 to be received 5 years from now discounted back to the present at 5 percent
c. $1,000 to be received 8 years from now discounted back to the present at 3 percent
d. $1,000 to be received 8 years from now discounted back to the present at 20 percent
5-5A. (Compound annuity) What is the accumulated sum of each of the following streams of
payments?
a. $500 a year for 10 years compounded annually at 5 percent
b. $100 a year for 5 years compounded annually at 10 percent
c. $35 a year for 7 years compounded annually at 7 percent
d. $25 a year for 3 years compounded annually at 2 percent
5-6A. (Present value of an annuity) What is the present value of the following annuities?
a. $2,500 a year for 10 years discounted back to the present at 7 percent
b. $70 a year for 3 years discounted back to the present at 3 percent
c. $280 a year for 7 years discounted back to the present at 6 percent
d. $500 a year for 10 years discounted back to the present at 10 percent
Click here to see answer by solver91311(5072) |
Question 174152: Can someone please, please help me figure out how to do this problem:
Hart requires approximately 1 hour of labor to make one handle bar of either type. During the most recent accounting period, the company made 8,000 steel bars and 2,000 titanium bars. Setup costs amounted to $48,000 for the 24 batches (i.e., 12 of each type) of bars produced during the period. If activity-based costing is used to allocate overhead costs to the two products, the amount of setup cost assigned to the titanium bars will be:
$9,600
$24,000
$38,400
$48,000
Click here to see answer by Mathtut(3670) |
Question 174151: Can someone please help me with this problem:
The monthly data are provided:
Unit selling price: Standard = $100 ; Premium = $150
Variable manufacturing costs: Standard = $60; Premium = $90
Variable selling and administrative costs: Standard = $15 ; Premium = $10
Estimated unit sales per month: Standard = $1,000 ; Premium = $2,000
Total monthly fixed costs are expected to be $15,000. What is the break-even volume in sales dollars at the expected sales mix?
a. $25,714
b. $45,000
c. $48,000
d. $60,000
Click here to see answer by Mathtut(3670) |
Question 174211: Can someone please help me with this problem:
The company's total fixed costs are expected to be $280,000.Based on the information, what is the combined number of units of the two products that would be required to breakeven (round your answer to the nearest whole unit)
Unit selling price: Canister Bag = $250 ; Tote Bag = $120
Unit variable cost: Canister Bag = $110 ; Tote Bag = $80
Number of units produced and sold: Canister Bag = 6,000 ; Tote Bag = 4,000
a. 1,556 units
b. 2,714 units
c. 2,800 units
d. None of the above
Click here to see answer by Mathtut(3670) |
Question 174286: Can someone please help me with this problem:
A light company currently outsources an electrical switch that is a component in one of its products. The switches cost $20 each. The company is considering making the switches internally at the following projected annual production costs:
Unit-level material cost: $3
Unit-level labor cost: $2
Unit-level overhead: $1
Batch-level set-up cost(5,000 units per batch): $25,000
Product-level supervisory salaries: $37,500
Allocated faclity-level costs: $20,000
The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $1,500 a month. If the company decided to make the parts, total costs will be:
$30,500 more than if switches were purchased
$27,000 less than if switches were purchased
$20,000 less than if switches were purchased
$10,500 more than if switches were purchased
Click here to see answer by solver91311(5072) |
Question 174285: Can someone please help me with this problem:
A company allocated overhead on the basis of direct labor hours. It allocated overhead costs of $4,000 to two different jobs as follows:
Job 1:(10 hours) = $2,000
Job 2:(10 hours) = $2,000
Assume that, then the production process for Job 1 was automated. Now Job 1 requires only 2 hours of direct labor but four hours of mechanical processing. As a result, total overhead increased to $6,000. How much overhead cost will be assigned to Job 2 after automation?
$1,000
$2,000
$3,000
$5,000
Click here to see answer by Mathtut(3670) |
Question 174432: Can someone please help me with this problem:
A company reported the following information for 2007:
Sales = $800,000
Average Operating Assets = $500,000
Margin = 8%
The company's return on investment for 2007 was: (percent)
Click here to see answer by edjones(3291)  |
Question 174489: Can someone please help me with this problem:
An investment that cost $48,000 provided annual cash inflows of $9,000 per year for six years. The desired rate of retun is 10%. The actual return from the investment was:
a. less than the desired rate of return.
b. equal to the desired rate of return.
c. greater than the desired rate of return.
d. the answer cannot be determined from the information provided.
Click here to see answer by rapaljer(3610) |
Question 174487: Can someone please help me with this problem:
The Fairland Restaurant chain had a 12% return on a $60,000 investment in new ovens. The investment resulted in increased sales and an increase in income that was 4% of the increase in sales. The increase in sales was:
Click here to see answer by checkley77(7032) |
Question 174513This question is from textbook Foundations of Finance
: Please advise:
Which of the following has the highest interest rate risk?
A) a 20 yr U.S. Treasury Bond
B) Bendix Corporations 6 month commercial paper
C) a six month market certificate at a federally insured bank
D) a Southwest Airlines bond maturing in 4 years.
I have eliminated A since the financial banking is from the US Gov.
The remaining 3 options all will have a high interst rate, please help and thank youThis question is from textbook Foundations of Finance
Click here to see answer by Mathtut(3670) |
Question 174524: Can someone please help with this problem:
A company reported teh following information for 2007:
Sales = $787,000
Average Operating Assets = $375,000
Desired ROI = 12%
Residual Income = $11,250
The company's operatin income for 2007 was:
a. $94,440
b. $33,750
c. $45,000
d. $56,250
Click here to see answer by Mathtut(3670) |
Question 174430: Can someone please help me with this problem:
A company reported the following information for 2007:
Sales = $787,000
Average Operating Assets = $375,000
Desired ROI = 12%
Residual Income = $11,250
The company's operating income for 2007 was?
Click here to see answer by Mathtut(3670) |
Question 174525: Can someone please help with this problem:
A company has two investment opportunities. Both investments cost $5,000 and will provide the following net cash flows:
Investment A: Year 1 = $3,000; Year 2 = $3,000; Year 3 = $3,000 ; Year 4 = $3,000
Investment B: Year 1 = $3,000; Year 2 = $4,000; Year 3 = $2,000; Year 4 = $1,000
The total present value of Investment A's cash inflow assuming a 10% minimum rate of return is (round to the nearest whole dollr):
a. $10,638
b. $9,510
c. $3,452
d. $3,000
Click here to see answer by actuary(84) |
Question 175070: Many people can no longer afford their mortgage payment and I want to help them find a principal and interest payment they can afford. Using the current income and liabilities I can calculate the amount of payment they can afford. Now I am trying to determine the interest rate associated with this paymentand determine what is the best corse of action for them. For example, The borrower can afford a monthly payment of $2,362.00. My options are to either change their interest rate, make the term of the loan 360 OR 480 payments, forgive some of the principal or provide a combination of all three options. They currently owe $415,000 on the loan and their payment is $3112.50. I need a series of formulas to determine which is best for the borrower.
Click here to see answer by ankor@dixie-net.com(6689)  |
Question 175265: Please help: i just can't figure these two questions out:
#1 Find two negative consecutive integers such that the square of the larger diminished by five times the smaller is equal to 71.
#2 find three consecutive odd integers such that the square of the second integer exceeds the largest integer by 10.
thank you - desperatly seeking help :)
Click here to see answer by gonzo(654) |
Question 175358: Can someone please help me with this problem:
A Corporation reported a beginning balance of $600 in its Prepaid Insurance Account for 2008. During the year, a total of $8,000 was recognized as Insurance Expense and the Prepaid Insurance account had an ending balance of $800. How much cash did Lemmone pay for insurance during 2008?
a. $8,600
b. $8,200
c. $8,000
d. $7,400
Click here to see answer by alireelaw(1) |
Question 175361: Can someone please help me with this problem:
Manufacturing is currently working on two jobs. The job order cost sheets for Job 101 and Job 102 showed the following information:
Job 101:
Direct Materials $12,000
Direct Labor 24,000
Job 102:
Direct Materials $15,000
Direct Labor 45,000
If overhead is applied to jobs at $.80 per direct labor dollar, the total manufacturing cost for the two jobs would be:
a. $96,000
b. $151,200
c. $55,200
d. $162,000
Click here to see answer by gonzo(654) |
Question 175353: Can someone please help me with this problem.
During the year Leyland Company completed 1,300 units of products. Ending inventory consisted of 400 units that were 50% complete. The total dollar coast associated with production of inventory was $45,000. The cost per equivalent whole unit would be which of the following? (Round all answers to the nearest whole penny.)
a. $26.00
b. $30.00
c. $34.61
d. $41.91
Click here to see answer by gonzo(654) |
Question 175351: Can someone please help me with this problem.
A company began the accounting period with $13,500 in accounts receivable. The ending balance in accounts receivable was $5,000. If the credit sales during the period were $22,000, what is the amount of cash received from customers?
a. $13,500
b. $22,000
c. $30,500
d. $40,500
Click here to see answer by gonzo(654) |
Question 175658: Please help me solve this equation: Pat invested a total of $3,000. Part of the money yields 10 percent interest
per year, and the rest yields 8 percent interest per year. If the total yearly
interest from this investment is $256, how much did Pat invest at 10 percent
and how much at 8 percent?
Click here to see answer by jim_thompson5910(13785) |
Question 175658: Please help me solve this equation: Pat invested a total of $3,000. Part of the money yields 10 percent interest
per year, and the rest yields 8 percent interest per year. If the total yearly
interest from this investment is $256, how much did Pat invest at 10 percent
and how much at 8 percent?
Click here to see answer by Mathtut(3670) |
Question 176145: Can someone please help me with this problem:
A Corporation reported beginning balance of $600 in its Prepaid Insurance Account for 2008. During the yrar, a total of $8,000 was recognized as Insurance Expense and the Prepaid Insurance account had an ending balance of $800. How much cash did the Corporation pay for insurance during 2008?
a. $8,200
b. $8,000
c. $8,600
d. $7,400
Click here to see answer by Mathtut(3670) |
Question 176195: Current formula for finding Margin
m= Margin
S= sell price
c= cost
M=(S=C)/S
Problem
Find an equation that given C, and desired M, will give you S
Having a hard time understanding the steps to find the answer:
S=C/(1-M)
Please help !
Click here to see answer by solver91311(5072) |
Question 176234: days in year? [answer:365]
sleep about 8 hours per day, or 1/3 of the year?
this leaves? ___
you have 52 saturdays and sundays off
this leaves? __
you have summer vacation for 3 months
this leaves? ___
you have winter and spring for 19 days total
this leaves? ___
you spend 2 hours each day eating
days left to go to school? ___
how many days in a year do i go to school?
how do you explain your results?
what is wrong with the conclusion based on the data given above?
Click here to see answer by solver91311(5072) |
Question 176209: Can someone please help me with this problem:
Port Corporation reported a $1,800 balance in accounts receivable on January 1, 2006. During the year, $12,400 of sales on account were made. During the year, Port wrote off as uncollectible, accounts receivable of $850. If the ending balance of accounts receivable is $1,000 what is the amount of cash received from customers?
a. $10,600
b. $10,750
c. $12,350
d. $14,200
Click here to see answer by MathTherapy(336) |
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