Focus On Personal Finance 5th Edition Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart - Solutions

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Buy-More stocks color graphics monitors. The daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitors. The lead time to receive an order from the manufacturer is a constant 15 days.a. Determine the reorder point that will achieve a 98% service level.
The rapid growth of C. R. Plastics over the last several years has resulted in the need for the company to expand production capacity. Historically, the company has run a single shift during the off-season and then added second and third shifts during the highly seasonal plastic furniture
Three fair coins are tossed, and we let X1 denote the number of heads that appear. Those coins that were heads on the first trial (there were X1 of them) we pick up and toss again, and now we let X2 be the total number of tails, including those left from the ﬁrst toss. We toss again all coins
Randomly select 100 purchases from your checkbookÂ orÂ 100 credit card purchases that you have made in the past year. Do not mix checks and credit card purchases; pick one or the other for this study. Would you expect the cents portion of the checks to be evenly represented? Explain why
A total of 11 people, including you, are invited to a party. The times at which people arrive at the party are independent uniform (0, 1) random variables.a. Find the expected number of people who arrive before you.b. Find the variance of the number of people who arrive before you.
An investor has two investments A and B. The investor believes that investment A is equally likely to increase by $1,000 or to decrease by $1,000 by the end of the year. The investor also believes that investment B is equally likely to increase by $2,000 or decrease by $2,000 by the end of the
A random variable has possible values of 20, 21, 22, 23, and 24 that are equally likely to occur.a) What is the probability that the random variable is less than 23?b) What is the mean of the random variable?c) What is the standard deviation of the random variable?
Mergers and slow periods in the economy often result in layoffs at many firms. Many employees count on two or three months of severance pay to carry them over to the next job. However, job searches can sometimes take longer than 6 months. A survey of workers who have been with firms’ for more
The vice president of a bank wishes to provide banking services so that the probability of the number of waiting customers being greater than 8 is less than .07. Would this condition be satisfied if the number of waiting customers is a Poisson random variable with a mean of 5? Justify your answer
Which of the following items affect free cash flows to debt and equity holders? Which affect free cash flows to equity alone? Explain why and how.All answers assume a tax rate > 0.An increase in accounts receivableA decrease in gross marginsAn increase in property, plant, equipmentAn increase in
The Tim Burr Company wants to best utilize the wood resources in one of its forest regions. Within this region, there is a saw mill and a plywood mill; thus, timber can be converted to lumber or plywood.Producing a marketable mix of 1000 board feet of lumber products requires 1000 board feet of
Show & Sell can advertise its products on local radio and television (TV). The advertising budget is limited to $10,000 per month. Each minute of radio advertising costs $15 and each minute of TV commercials $300. Show & Sell likes to advertise on radio at least twice as much as on TV. In
Sunco processes oil into aviation fuel and heating oil. It costs $40 to purchase each 1000 barrels of oil, which is then distilled and yields 500 barrels of aviation fuel and 500 barrels of heating fuel. Output from the distillation may be sold directly or processed in the catalytic cracker. If
The data in the table below are the results of a random sample of recent home sales in your neighborhood that your boss has asked you to use to estimate the relationship between the selling price of the house and the number of square feet in it.a. First plot the data, with number of square feet on
Explain unequal distribution of wealth matter in terms of public policy and why does it matter. Analyze and take a position on unequal distribution of wealth and its influence on demographic changes
Explain how the CAPM assists in measuring both risk and return. Explain how the CAPM assists in calculating the weighted average costs of capital (WACC) and its components. Illustrate why some managers have difficulty applying the Capital Asset Pricing Model (CAPM) in financial
Under the authority of the IRS, real property can be seized for nonpayment of taxes. In addition, the local government could confiscate personal property for public use. Analyze how involuntary conversions differ from condemnations and how to determine the basis of the property in determining the
Calculate the following:a. The first year of depreciation on a residential rental building costing 200,000 purchased on May 2, 2012.b. The second year of depreciation on a computer costing 3,000 purchased in May 2011, using the half year convention and accelerated depreciationc. The first year of
Describe what would happen to a company’s value chain if all electronic devices and systems suddenly were unavailable and an expected time for resolution time was unknown. Could a value chain be maintained without electronics and technology to support it? If so, how?
Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During the summer of 20X2, the joint costs of processing the tomatoes were $420,000. There was no beginning or ending inventories for the summer. Production and sales value information for
Zenon Chemical, Inc. processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $240,000. Production and sales value information for the month is as follows:Determine the amount of joint cost allocated to each
Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows:Determine the value of ending inventory if the sales value at
Explain the idea of value-based management and how shareholder value relates to the interaction between product and capital markets
Prepare a ratio analysis of FedEx's 2006 and 2007 year-end results?
A semiannual 10% coupon bond that matures in 40 years has a current price of $800. What is its yield to maturity?
Chapter 9 Adjusting and Closing Entries for Governmental Activities, Government-wide Level; Preparation of Government-wide and Major Fund Financial Statementsa. Prior to preparing financial statements at the end of FY 2014, it is necessary to record depreciation expense for the year for
Explain how the role of management accounting has changed over the last 100 years
Explain the key issues in corporate governance as they relate to accounting
How is the financial plan and budget related to a company's strategic plan?
An important part of business is to plan ahead. Identify three planning tools used for forecasting and the information each provides.
An unanticipated change in the growth rate of aggregate demand affects production and employment before they affect prices. Speculate why this occurs. Provide support for your response.
The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy. Provide support for your response.
Define the term constraints and give an example. For a manufacture what product should be made first when resource constraints exist?
Describe and analyze the wartime experiences of the Revolution and the effects on women, slaves an natives.
You work for a drug manufacturing company that holds a patent on Hair Grow, the world most effective drug for restoring hair. Your job is to analyze the pricing and investment decisions facing the firm. Your marketing group estimates that Hair Grow has the following demand curve: P = 101 –
Tim's portfolio contains two stocks, Lightco and Shineco. Last year his portfolio returned 14 percent. Lightco’s return was 5 percent and Shineco returned 20 percent. What are the weights of each in Tim's portfolio? The following year Tim adds a third stock, Brightco, and relocates his funds
The lowering of barriers to trade and investment between countries within a trade group will probably is followed by increased price competition. Do you agree? Why? Why not?
Hollin Corporation has bonds on the market with 17 years to maturity, a YTM of 11.6 percent, and a current price of $617.65. The bonds make semiannual payments. The coupon rate on these bonds must be percent.
Given a company’s pressure to meet earnings forecast, discuss how earnings manipulation is most likely to occur. Suggest which type of auditing test would be most effective at detecting earnings manipulated by a company’s management team and the effectiveness of this test.
In the current year, David and Debbie Wayland, both successful physicians, made cash investment for a limited partnership interest in a California berry farm. In addition to the cash obtained from the investors, management borrowed a substantial sum to purchase assets necessary for the farm’s
List the four factions that emerged in response to foreign influences on Hebrew ways at the time of the Second Temple. Describe in detail the thinking of one of the factions.
It's Kinda China produces collectible pieces of art. The company's Raw material Inventory account includes the costs of both direct and indirect materials. Account balances for the company at the beginning and end of July 2008 follow:Raw Materials Inventory $46,600 $34,800Work in Process Inventory
Summarize New Year rituals associated with Shinto.
List the Four Noble Truths. Explain how they illustrate the practical nature of Buddhist teaching?
Kern Corporation entered into an agreement with its investment banker to sell 10 million shares of the company's stock with Kern netting $210 million dollars from the offering. The expected price to the public was $25 per share. The out-of-pocket expenses incurred by the investment banker were
Tundra Corporation is interested in acquiring Tantrell Corporation. Tantrell has 2 million shares outstanding and a target capital structure consisting of 40 percent debt. The debt interest rate is 8 percent. Assume that the risk-free rate of interest is 3 percent and the market risk premium is 7
Marcal Corporation is considering foreign direct investment in Asia. The company estimates that the project would require an initial investment of $14 million, and generate positive cash flows of $2 million a year at the end of each of the next 20 years, 12%. The project's cost of capital isa.
How do stakeholders define ethical issues in business? Can stakeholders influence ethical decision in business?
Barnes Baskets, Inc. (BB) currently has zero debt. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero growth company. BB’s current cost of equity is 13% and its tax rate is 40%. The firm has 20,000 shares of common stock outstanding selling at a price per share of
Assume you are a police officer assigned to the drug task force. Considering the principle of “ethical egoism,” take a position for or against the practice of planting evidence or holding back evidence to help ensure the conviction of a known drug trafficker. Support your position with an
Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC (and even negative), in which case it will be rejected.Show work without using excelYear Cash flows0 .......... -$9,500 Year 01
Select a leadership theory, describe if you could use or have used this theory in practice.
One of Vasudevan's divisions has above average risk and so a divisional weighted average cost of capital of 20%. This division has current sales of $600,000, operating income of $250,000, total net operating capital of $300,000, and a marginal tax rate of 35%. What is the Market Value Added (MVA)
Pacific Traders has annual sales of $1,724,684. The firm’s financial manager has determined that using a lockbox will reduce collection time by 3.9 days. If the firm’s opportunity cost on savings is 4.9 percent, the savings from using the lockbox are $____ per year?
You are considering the purchase of an apartment complex.The following assumptions are made:•The purchase price is $1,000,000.•Potential gross income (PGI) for the first year of operations is projected to be $171,000.•PGI is expected to increase at 4 percent per year.•No vacancies are
List three important ways in which DCF valuation models differ from direct capitalization models.
An office building is purchased with the following projected cash flows:NOI is expected to be $130,000 in year 1 with 5 percent annual increases.The purchase price of the property is $720,000.100% equity financing is used to purchase the propertyThe property is sold at the end of year 4 for
Residential mortgage terms (mortgage notes) have become increasingly uniform as the mortgage market has become more national and efficient. Is there any downside to this for the homeowner?
Answer the following questions on financial leverage, value, and return:a. Define financial riskb. Should the investor select the origination LTV that maximizes the IRR on equity? Explain why or why not.
For each of the following values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in autonomous spending:a. MPC = 0.9b. MPC = 0.75c. MPC = 0.6
If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC rises, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related
Given the following annual information about a hypothetical country, answer questions a through d.Billions of DollarsPersonal consumption expenditures .........$200Personal Taxes .................. 50Exports ..................... 30Depreciation .................. 10Government Purchases
On January 1, the total market value of the Tyseeland Company was $60 million. During the year, the company plans to raise and invest $30 million in new projects. The firm's present market value capital structure, shown below, is considered to be optimal. Assume that there is no short-term
Faith, a single taxpayer, had the following income and deductions for the tax year 2006:a. What is Faith’s taxable income and tax liability for the year?b. What are Faith’s marginal, average, and effective tax rates?
Will the net present value (NPV) and internal rate of return (IRR) capital budgeting rules ever not give the same accept/reject decision for an investment project? Please explain.
Assume that E. Guard Company uses a periodic inventory system and has these account balances:Purchases .............$400,000Purchase Returns & Allowances .... $ 11,000Purchase Discounts .........$ 8,000Freight-in .............$ 16,000
The CFO for Fin Tackle Company, a manufacturer of fine fishing supplies has provided you the following information from his company records. From the information presented prepare a properly formatted, multi-step Income Statement (i.e. showing intermediate profit lines Gross Profit, EBITDA,
Use the following cash flows for the next 6 questions. (All answers should show up to 2 decimal points.)1. What is the NPV? (Use 10% as a discount rate and calculator)Â 2. Compute the PI (Profitability index). (Use 10% as a discount rate and calculator)Â 3. Compute IRR (Use
The Hanky Funeral Home is South Park, Colorado is considering whether to replace one of their existing Lincoln Hurse's. If the new Lincoln Hurse is purchased, the existing Lincold Hurse will be sold to another funeral home for $50,000. The existing Hurse book value equals $65,000. What will be the
How the ratios discussed this week could be used to evaluate a company of your choice. Use finance.yahoo.com for additional information.
Cash flows from operating activities; presented below is the income statement of Angola, Inc.Sales ................$324,000Cost of goods sold .........$214,000Gross profit ............$110,000Operating expenses ......... $67,000Income before income taxes ...... $43,000Income taxes ...........
Absolute Leasing, Inc. agrees to lease equipment to Allen, Inc. on January 1, 2012. They agree on the following terms:1) The normal selling price of the equipment is $350,000 and the cost of the asset to Absolute Leasing Inc. was $275,000.2) At the end of the lease, the equipment will revert to
Presently many European countries are in the middle of an economic slump, where output has fallen below potential output (by a large degree in the case of some countries). Suppose one of these countries decides to follow the advice of a noted economic expert who claims what the economy needs to
Write an essay in which you evaluate what a business or government agency would need to consider before transferring a hardy but non indigenous species to another country.Essay needs to be 3-4 pages long with at least 4 references with at least one as a visual (chart, map, photo, cartoon etc.) to
Why are standard cost systems used?
What is ERP system? Give a brief history of ERP　system. How did ERP system bring Career Opportunities?
How did ERP system bring Career Opportunities?
Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900 million, while the current assets were sold for
1. The Durango Paper Company has identified eight activities that need to be completed in order to comply with new EPA air emission standards. Information about these activities are shown below. ActivityDescriptionImmediate PredecessorAverage Time (weeks)ABuild internal components--2BModify
Studies have concluded that the deadweight loss of monopoly power in the U.S. is less than 0.5 percent of GNP. From your knowledge of the determinants of the deadweight loss, explain why such a small figure is plausible.
A city wants to know the amount of recycling collected on an average day. They know from previous experience that the standard deviation is 1.5. City officials take a random sample of 26 days and calculate a sample mean of 4.1 tons of recycling.Estimate a 94% confidence interval for the estimated
Initially, the bus company charged $1.50 per trip had a ridership of 3,000 passengers per day. The price elasticity after a $0.50 increase in fare is. -0.5 How many passengers per day does the company have after the fare increase
Using the “New Keynesian” model, suppose households increase their rates of savings (due to some exogenous event). What will happen to real GDP and to the amount of labor employed, aggregate consumption, and aggregate savings? Compare these results to those predicted by the equilibrium business
1. In 1963, Martin Luther King gave his famous “I Have a Dream” speech in front of the Lincoln Memorial in Washington, DC. This speech can be found at: www.americanrhetoric.com/speeches/mlkihaveadream.htmWhat dreams do you think Martin Luther King had for his community? Do you think Martin
Multi-base Company Limited is a diversified business group with interests in fabric and yarn manufacturing, paper and pulp, and cement. Its manufacturing units are located across the country and number eight- one for fabric, two for yarn, two for paper and pulp, and three for cement. While the head
A company has issued 2- and 3-year bonds with a coupon of 4% per annum payable annually. The yields on the bonds (expressed with continuous compounding) are 4.5% and 4.75%, respectively. Risk-free rates are 3.5% with continuous compounding for all maturities. The recovery rate is 40%. Defaults can
a. Describe the great contribution to Capital Market Theory by Harry Markowitz.b. Discuss how the presence of a risk-free security changes the shape of the efficient frontier
Peyton’s Colt Farm issued a 30-year, 7.4 percent semiannual bond 7 years ago. The bond currently sells for 89.0 percent of its face value. The company’s tax rate is 35 percent. The book value of the debt issue is $100 million. In addition, the company has a second debt issue, a zero coupon bond
What are the key similarities and differences of charismatic and transformational leadership? What do you think are the impacts on followers of each?
The executor of Rose Shield's estate listed the following properties (at fair value):Cash .................$300,000Life insurance receivable ......... 200,000Investments in stocks and bonds ..... 100,000Rental property ........... 90,000Personal property .......... 130,000a. Prepare journal entries
Suppose that the economy begins in a position of balanced trade. Use the model of the small open economy to predict what would happen to the trade balance, and the real exchange rate in response to each of the following events.a. A fall in consumer confidence about the future induces consumers to
Consider an economy described by the following equations:Y = C + I + G + NXY = 5,000G = 1,000T = 1,000C = 250 + 0.75 (Y – T)I = 1,000 – 50 rNX = 500 - 500εr = r* = 5a. In this economy, solve for national saving, investment, the trade balance, and the equilibrium exchange rate.b. Suppose now
Assume that the price level is fixed in the short run, both at home and abroad. This means that the nominal exchange rate e equals the real exchange rate. Use the Mundell-Flemming model to predict what would happen to aggregate income and the exchange rate under both floating and fixed exchange
Suppose that the Lai Jean Co. expects before tax earnings of 5 million this coming year, assuming no liability losses. However, there is a 2 percent chance that Lai will lose a $10 million lawsuit during the year. Profits are taxed at a rate of 34 percent. Assume that Lai cannot carry losses
In the real world, is it possible to construct a portfolio of stocks that has an expected return equal to the risk-free rate? Provide examples.
Company ABC’s total capital consists of $150 million in debt, $50 million in leased assets, no outstanding preferred stock, $500 million in common stock, and $300 million in retained earnings. Its after-tax specific costs are 7% for the debt, 8% for the leases, and 9% for the equity.a. Find the
What would be common saving goals for a person who buys a five year CD is paying 5.5 percent instead of an 18- month saving certificate paying 4.75 percent?
Comparing Cost of Checking Cost: What would be the net annual cost of the following checking accounts?a) Monthly fee, $3.75; processing fee, $0.25 cent per check; check written, an average of 22 a monthb) Interest earning of 6 percent with a $500 minimum balance; average monthly balance, $600;
Comparing Checking Account Balance: Based on the following information, determine the true balance in your checking account.Balance in your checkbook ......... $356Balance on bank statement .......... $472Service charge and other fees ........ $15Interest earned on the account ........ $4Total of
John Walters is comparing the cost of credit to the cash price of an item. If John makes a $80 down payment and pays $34 a month for 24 months, how much more will that amount be then the cash price of $695?

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Focus On Personal Finance 5th Edition Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart - Solutions

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