Course Project- Part 2 Introduction You will assume that you still work as a financial analyst for AirJet Best Parts, Inc. The company is considering a capital investment in a new machine and you are in charge of making a recommendation on the purchase based on (1) a given rate of return of 15% (Task 4) and (2) the firm’s cost of capital (Task 5). […]

Capital Structure   Create an argument for a publically traded health care organization to issue stocks or bonds as part of its capital structure. Provide support for your position.  Imagine that a publicly traded health care organization has just experienced a downgrade in its credit rating from a rating agency, such as Moody’s or Standard & Poor’s. Determine the most likely impact that this event […]

1. Additional Funds NeededThe Booth Company’s sales are forecasted to double from $1,000 in 2012 to $2,000 in 2013. Here is the December 31, 2012, balance sheet:Cash $ 100 Accounts payable $ 50 Accounts receivable 200 Notes payable 150 Inventories 200 Accruals 50 Net fixed assets 500 Long-term debt 400 Common stock 100 Retained earnings 250 Total assets $1000 Total liabilities and equity $1000 Booth’s […]

The Genesis operations management team is now preparing to implement the operating expansion plan. Previously, the firm’s cash position did not pose a challenge. However, the planned foreign expansion requires Genesis to have a reliable source of funds for both short-term and long-term needs. One of Genesis’s potential lenders tells the team that in order to be considered as a viable customer, Genesis must prepare […]

1.What theory most identifies with the term structure of interest rates? And, why?  2.What is evidence that does not support an efficient market hypothesis?  3.What is the risk structure of interest rates? And, what are the three major components that are included?  4.Yearly rates are 4%, 5%, 6%, 7%, and 8% for the next five years. Please compute and explain the expected interest rate for […]

Ace Electronics can produce four potential products: MP3 Players, CD Players, Digital Radios and DVD players. There are three major inputs for all products: electronic components, other components and assembly time. Electronic components cost $14 each, other components $10 each and assembly time $20 per hour. Consumption of theses inputs per unit of product together with total available monthly supply of components are shown below:   […]

By walking through a set of financial data for XYZ, this assignment will help you better understand how theoretical stock prices are calculated and how prices may react to market forces such as risk and interest rates. You will use both the CAPM (capital asset pricing model) and the constant growth model (CGM) to arrive at XYZ’s stock price.   Assignment Guidelines: * Find an […]

Your manager has asked you to draft a proposal for improving the management of human resources in your company.   Resource: Ch. 13 of Introduction to Business   Describe the best ideas for improvement presented in the brainstorm session from the human resource improvement Discussion Question.   Select the best ideas from at least two of the different areas discussed. What are the different ways that changes to these […]

Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $140.00; the materials cost for a standard diamond is $40.00; the fixed costs incurred each year for factory upkeep and administrative expenses are $216,000; the machinery costs $2.5 million and is depreciated straight-line over 10 years to a salvage value of zero. A) what is the accounting break-even level […]

Discussion Questions: select any THREE questions from the list below (preferably at least one from each chapter) and post your response in the discussion forum. Think about a restaurant, store, office or factory where you have worked. What safety and health hazards existed in that workplace? What measures were used to address those hazards? Was safety given sufficient attention? (Ch 15) The “historic bargain” that […]