Columbus Business Daily

Butler, Inc.'s return on equity is 17% and management retains 75% of earnings for investment purposes...? Butler, Inc.'s return on equity is 17% and management retains 75% of earnings for investment purposes. Based on this information, what will be the firm's growth rate? 4.25% 22.67% 44.12% 12.75%

What is the primary goal of financial management? What is the primary goal of financial management? Question 31 answers Increased earnings Maximizing cash flow Maximizing shareholder wealth Minimizing risk of the firm

Stock dividend and value problem? Can't figure out this problem, anyone know how to do it? Scott Manufacturing is a firm in the machine-tool-component industry. The firm's most recent common-stock dividend was $2.40 per share. Due to its stable sales and earnings, the firms management feels that the dividends will remain at the current level for the foreseeable future. a. If the required return is 12%, what is the value of the common stock? If the firm's risk increases, causing the required return to rise to 20%, what will be the common stocks value?

I need help with common stock valuation! I do not understand anything about it.? I need help with this problem...if a firm's common stock dividend is $2.40 per share. Because of its maturity as well as its stable sales and earnings, the firm’s management feels that dividends will remain at the current level for the foreseeable future. a. If the required return is 12%, what will be the value of common stock? b. If the firm’s risk as perceived by market participants suddenly increases, causing the required return to rise to 20%, what will be the common stock value? c. Based on A and B answers, what impact does risk have on value?

What do you think will become of Morgan Stanley? I'm really hoping the firm remains independent. It would be so sad to see a firm with roots back 200 years to be taken down my rumors,short selling and rating agencies. It is completely unbelievable to me how they can have so much influence on the fate of the firm. Morgan reported strong capital and liquidity positions and beat all forecasts for earnings. I have such conviction in John Mack and the management team and really hope the firm can survive this meltdown. Interested to hear other thoughts...

Web Cites Research projects a rate of return of 20 percent on new projects.? Management plans to plow back 30 percent of all earnings into the firm. Earnings this year will be $3 per share, and investors expect a 12 percent rate of return on the stock. What is the sustainable growth rate? What is the stock price? What is the present value of growth opportunities? What is the P/E ratio? What would the price and P/E ratio be if the firm paid out all earnings as dividends? What do you conclude about the relationship between growth opportunities and P/E ratios?

financial management help please? The comfort corporation manufactures sofas and tables for the recreational vehicle market. The firm's capital structure consists of 60 percent common equity, 10 percent preferred stock, and 30 percent long-term debt. This capital structure is believed to be optimal. Comfort will requite $120 million to finance expansion plans for the coming year. The firm expects to generate enough internal equity to meet equity portion of its expansion needs. The cost of retained earnings is 18 percent. The firm can raise preferred stock at a cost of 15 percent. First-mortgage bonds can be sold at a pretax cost of 14 percent. The firm's marginal tax rate is 40 percent. Calculate the cost of capital for the funds needed to meet the expansion goal.

company's spend money on pollution control? does it seem ethical for firms to spend money on pollution control even if it increases cost, lowers profits and lowers management earnings, please help and explain, thankyou

financial management. Can anyone help I am so lost? The following tabulation gives earnings per share figures for the Foust Company during the preceding 10 years. The firm’s common stock, 7.8 million shares outstanding, is now (1/1/03) selling for $65 per share, and the expected dividend at the end of the current year (2003) is 55 percent of the 2002 EPS. Because investors expect past trends to continue, g may be based on the earnings growth rate. (Note that 9 years of growth are reflected in the data.) YEAR EPS YEAR EPS 1993 $3.90 1998 $5.73 1994 4.21 1999 6.19 1995 4.55 2000 6.68 1996 4.91 2001 7.22 1997 5.31 2002 7.80 The current interest rate on new debt is 9 percent. The firm’s marginal tax rate is 40 percent. Its capital structure, considered to be optimal, is as follows: Debt $104,000,000 Common equity 156,000,000 Total liabilities and equity $260,000,000 a. Calculate Foust’s after-tax cost of new debt and common equity. Calculate the cost of equity as ks D1/P0 g. b. Find Foust’s weighted average cost of capital.

management? Question 1 Milwaukee Melon Manufacturers sells exotic melons at one price, Rs.10 each. The firm has variable costs of Rs. 160,000 on sales of 32,000 melons. Fixed costs are Rs. 80,000. Operating income (EBIT) this year is Rs. 80,000 and after-tax net income is Rs. 30,000. Interest expense is Rs. 20,000. (5) a.What is its degree of financial leverage at the current level of EBIT? b.Suppose that EBIT were to decline 10 percent next year. What would be the percentage decline in earnings per share (EPS)? Question 2 ABC gearing limited has a degree of 2 at its current production and sales level of 10,000 units. The resulting operating income figure is Rs. 1,000. (5) a.If sales are expected to increase by 20% from the current 10,000 unit, sale position, what would be the resulting operating profit figure? b.At the company’s new sale’s position of 12,000 units, what is the company’s new DOL figure?

Financial Mini Case...........? Assume you have just been hired as business manager of PizzaPalace, a pizza restaurant located adjacent to camps. The company‘s EBIT WAS $500,000 last year, and since the university’s enrollment is capped, EBIT is expected to remain constant ( in real terms) over time. Since no expansion capital will be required, PizzaPalace plans to pay out all earnings as dividends. The management group owns about 50 percent of the stock, and the stock is traded in the over-the-counter market. The firm is currently financed with all equity; it has 100,000 shares outstanding; and P0= $ 25 per share. When you took your corporate finance course, your instructor stated that most firms’ owners would be financially better off if the firms used some debt. When you suggested this to y our new boss, he encouraged you to pursue the idea. As a first step, assume that you obtained from the firm’s investment banker the following estimated costs of debt for the firm at different capital structures: Percent Financed with Debit, WdRd 0%- 208.0% 308.5 4010.0 5012.0 If the company were to recapitalize, debt would be issued, and the funds received would be used to repurchase stock. PizzaPalace is in the 40 percent state-plus-federal corporate tax braket, its beta is 1.0, the risk-free is 6 percent, and the market risk premium is 6 percent. a.Provide a brief overview of capital structure effects. Be sure to identify the ways in which capital structure can affect the weighted average cost of capital and free cash flows. b.(1) What is business risk? What factors influence a firm’s business risk? (2) What is operating leverage, and how does it affect a firm’s business risk? Show the operating breakeven point if a company has fixed costs of $200, a sales price of $ 15, and variable costs of $10. c.Now, to develop an example that can be presented to PizzaPalace’s management to illustrate the effects of financial leverage, consider two hypothetical firms: Firm U, which uses no debt financing, and Firm L, Which uses $10,000 of 12 percent debt. Both firms have $20,000 in assets, a 40 percent tax rate, and an expected EBIT of $3,000. (1)Construct partial income statements, which start with EBIT, for the two firms. (2)Now calculate ROE for both firms. (3)What does this example illustrate about the impact of financial leverage on ROE? d.Explain the difference between financial risk and business risk. e.Now consider the fact that EBIT is not known with certainty, but rather has the following probability distribution: Economic StateProbabilityEBIT Bad0.25$2,000 Average0.503,000 Good0.254,000 Redo the part a analysis for Firms U and L, but add basic earnings power (BEP), return on invested capital (ROIC, defined as NOPAT/Capital = EBIT (1 – T)/TA for this company), and the times-interest-earned (TIE) ratio to the outcome measures. Find the values for each firm in each state of the economy, and then calculate the expected values. Finally, calculate the standard deviations. f.What does capital structure theory attempt to do? What lessons can be learned from capital structure theory? Be sure to address the MM models. g.With the above points in mind, now consider the optimal capital structure for PizzaPalace. (1)For each capital structure under consideration, calculate the levered beta, the cost of equity, and the WACC. (2)Now calculate the corporate value, the value of the debt that will be issued, and the resulting market value of equity. (3)Calculate the resulting price per share, the number of shares repurchased, and the remaining shares. h.Considering only the capital structure under analysis, what is PizzaPalace’s optimal capital structure? i.What other factors should managers consider when setting the target capital structure? Any one can solve this case Scientifically? Califrich- Thank you match for passing through my question at least? I did all my homework, 21 cases like this. But wondering what people are doing here, it seems that they are having fun only. Good Luck!

Really need help with this test!!!? Just put the number with the answer.. 1. Maximization of shareholders wealth is a concept in which a. Profits are maximizes on a quaterly basis b. Optimally increasing the long-term value of the firm is emphasized c. Virtually all earnings are paid as dividens to common stockhplders d. Increased earnins is of primary importance 2. What is the primary goal of financial management? a. Maximazing cash flow b. Minimazing the risk of the firm c. Maximazing shareholder wealth d. Increased earnings 3. Corporate governance is the a. Relationship between the chief financial officer and institutional investors b. governance of the company by the board of directors with the focus on social responsibility c. Operation of a company by the chief executive officer (CEO) and the senior executives on the management team d. Relationship and the exercise of the oversight by the board of directors of the company Which account represents the cumulative earnings of the firm since its formation, minus dividends paid? A. Retained earnings B. Accumulated depreciation C. Paid-in capital D. Common stock 5) An increase in investments in long-term securities will: A. increase cash flow from financing activities. B. decrease cash flow from financing activities. C. increase cash flow from investing activities. D. decrease cash flow from investing activities. 6) Which of the following would represent a use of funds and, indirectly, a reduction in cash balances? A. an increase in accounts payable B. the sale of new bonds by the firm C. an increase in inventories D. a decrease in marketable securities 7) If a firm has both interest expense and lease payments, A. times interest earned will be the same as fixed charge coverage. B. fixed charge coverage cannot be computed. C. times interest earned will be smaller than fixed charge coverage. D. times interest earned will be greater than fixed charge coverage. 8) A quick ratio that is much smaller than the current ratio reflects A. that the firm will have a high inventory turnover. B. that the firm will have a high return on assets. C. a small portion of current assets is in inventory. D. a large portion of current assets is in inventory. 9) Which of the following is not considered to be a profitability ratio? A. return on equity B. return on assets (investment) C. profit margin D. times interest earned 10. Refer to the figure above. The firm’s debt to asset ratio is: a. 25% b. 33% c. 48% d.58% 11) A firm's long term assets = $75,000, total assets = $200,000, inventory = $25,000 and current liabilities = $50,000. A. current ratio = 1.5; quick ratio = 2.0 B. current ratio = 1.0; quick ratio = 2.0 C. current ratio = 2.5; quick ratio = 2.0 D. current ratio = 0.5; quick ratio = 1.5 12) A firm has current assets of $75,000 and total assets of $375,000. The firm's sales are $900,000. The firm's fixed asset turnover is A. 2.4x B. 12.0x C. 5.0x D. 3.0x 13) In general, the larger the portion of a firm's sales that are on credit, the A. more rapidly credit sales will be paid off. B. higher will be the firm's need to borrow. C. more the firm can buy raw materials on credit. D. lower will be the firm's need to borrow. 14) In financial statements, the number of units shown in cost of goods sold as compared to the number of the units actually produced A. is the same. B. is lower. C. can be either higher or lower. D. is higher. 15) In the percent-of-sales method, an increase in dividends A. has no effect on required new funds. B. will decrease required new funds. C. more information is needed. D. will increase required new funds. 6) The difference between total receipts and total payments is referred to as A. net cash flow. B. beginning cash flow. C. cash balance. D. cumulative cash flow. 17) In developing the pro forma income statement we follow four important steps: 1) compute other expenses, 2) determine a production schedule, 3) establish a sales projection, 4) determine profit by completing the actual pro forma statement. What is the correct order for these four steps? A. 2,1,3,4 B. 3,2,4,1

Please say if statement is true or false. thanks.? Please say if statement is true or false. thanks. 1. The financial manager must execute his or her duties independent of the other activities of the firm in order to properly maximize the value of the firm. 2. A financial decision which results in an increase in net income is necessarily consistent with the firm's objective of maximizing its stock price. 3. If management is maximizing the firm's net income, this is necessarily identical to maximizing earnings per share and stock price. 4. Normal profits are those that result in rates of return that are just sufficient to attract new capital in financial markets. 5. If an individual investor buys and sells existing stocks through a broker, these are primary market transactions. 6. In general, the role of the financial manager is to plan for the acquisition and use of funds so as to maximize the value of the firm.

In which of the following situations you can expect multiple answers of IRR? 1. Why net present value is the most important criteria for selecting the project in capital budgeting? a. Because it has a direct link with the shareholders dividends maximization b. Because it helps in quick judgment regarding the investment in real assets c. Because we have a simple formula to calculate the cash flows d. Because it has direct link with shareholders wealth maximization 2. In which of the following situations you can expect multiple answers of IRR? a. More than one sign change taking place in cash flow diagram b. There are two adjacent arrows one of them is downward pointing & the other one is upward pointing c. During the life of project if you have any net cash outflow d. All of the given options 3. Which one of the following selects the combination of investment proposals that will provide the greatest increase in the value of the firm within the budget ceiling constraint? a. Cash budgeting b. Capital budgeting c. Capital expenditure d. Capital rationing 4. Who is responsible for the decisions relating capital budgeting and capital rationing? a. Chief executive officer b. Junior management c. Division heads d. All of the given option 5. What is a legal agreement, also called the deed of trust, between the corporation issuing bonds and the bondholders that establish the terms of the bond issue? a. Indenture b. Debenture c. Bond d. Bond trustee 6. __________ is a high-risk, high-yield bond rated below investment grade; while a/ (an) __________ bond has its interest payment contingent on sufficient earnings of the firm. a. A junk bond; income b. A subordinated debenture; mortgage c. A debenture; subordinated debenture d. An income bond; mortgage 7. __________ is a long-term, unsecured debt instrument with a lower claim on assets and income than other classes of debt; while a/(an) __________ bond issue is secured by the issuer's property. a. A subordinated debenture; mortgage b. A debenture; subordinated debenture c. A junk bond; income d. An income bond; junk 8. The value of the bond is NOT directly tied to the value of which of the following assets? a. Liquid assets of the business b. Fixed assets of the business c. Lon term assets of the business d. Real assets of the business 9. The value of a bond is directly derived from which of the following? a. Cash flows b. Coupon receipts c. Par recovery at maturity d. All of the given options 10. Which of the following is not the present value of the bond? a. Intrinsic value b. Fair price c. Theoretical price d. Market price 11. The current yield on a bond is equal to ________. a. The yield to maturity b. Annual interest divided by the par value c. Annual interest divided by the current market price d. The internal rate of return 12. A coupon bond pays annual interest, has a par value of Rs.1,000 matures in 4 years, has a coupon rate of 10%, and has a yield to maturity of 12%. What is the current yield on this bond is? a. 10.45% b. 10.95% c. 10.65% d. 10.52% 13. Which of the following is a characteristic of a coupon bond? a. Does not pay interest on a regular basis but pays a lump sum at maturity b. Can always be converted into a specific number of shares of common stock in the issuing company c. Pays interest on a regular basis (typically every six months) d. Always sells at par 14. Which of the following value of the shares changes with investor’s perception about the company’s future and supply and demand situation? (Comprehension) a. Par value b. Intrinsic value c. Market value d. Face value 15. The value of direct claim security is derived from which of the following? a. Fundamental analysis b. Underlying real asset c. Supply and demand of securities in the market d. All of the given options 16. _________ is equal to (common shareholders' equity/common shares outstanding). a. Liquidation value per share b. Book value per share c. Market value per share d. None of the above 17. Low Tech Company has an expected ROE of 10%. The dividend growth rate will be ________ if the firm follows a policy of paying 40% of earnings in the form of dividends. a. 4.8% b. 6.0% c. 7.2% d. 3.0% 18. High Tech Chip Company is expected to have EPS in the coming year of Rs. 2.50. The expected ROE is 12.5%. An appropriate required return on the stock is 11%. If the firm has a plowback ratio of 70%, what would be the growth rate of dividends? a. 6.25% b. 8.75% c. 6.60% d. 7.50% 19. In the dividend discount model, _______ which of the following are NOT incorporated into the discount rate? a. Real risk-free rate b. Risk premium for stocks c. Return on assets d. Expected inflation rate 20. Bond is a type of Direct Claim Security whose value is NOT secured by __________. a. Tangible assets b. Fixed assets c. Intangible assets d. Real assets

Why do institutions still hold onto a stock after the stock declined 48% in 6 months(NSTK)? IT IS QUITE SURPRISING THAT INSTITUTIONS AND ESPECIALLY MUTUAL FUNDS ARE STILL INVESTED IN NASTECH PHARMACUTICAL AFTER A 48% DECLINE IN STOCK PRICE SINCE LAST AUGUST. CONTINUOS BAD EARNINGS REPORTS, DELAYS, BAD RATINGS, AND THE STOCK PRICE CONTINUES TO FALL. SO WHAT GENIOUS IS IN CHARGE OF THE INSTITUTIONS AND MUTUAL FUNDS, IF HALF THEIR MONEY IS ALREADY GONE AND THEIR STILL HOLDING THE STOCK. IT'S LIGHT YEARS AWAY FROM ANY POTENTIAL APPROVAL AND EARNINGS. SO WHAT IS THE REASONING PLEASE? WHERE TALKING ABOUT $30 MILLION DOLLARS NOT $30 DOLLARS. RESEARCH FIRMS ARE FINALLY RE-EVALUATING THE TARGET PRICES AFTER 6 MONTHS OF DOWNWARD STOCK PRICE DEPRECIATION. THEY TO SHOULD BE ASHAMED OF THEMSELVES FOR HAVING SET HIGH TARGETS THAT ARE NOT WARRANTED. AND WHY DOES MANAGEMENT CONTINUE TO BLEED THE COMPANY MONTHLY FOR DECADES. IT'S LIKE A LEGAL WAY TO STEAL AND THE POOR SHAREHOLDERS SOON WILL BE LEFT WITH A WORTHLESS CERTIFICATE.

Hi...Can anyone help with the following information about McDonald fast food company or related links or sites As I need to work on my project work based on the company's profile regarding the following aspects, I seek your help The company’s auditing firm. The company’s major customer. The company’s inventory valuation method. The company’s revenue recognition method. The company’s depreciation method. Management’s strategy for the future. The company’s opportunity for growth. The risks and trends in the industry. The quarterly earnings per share for the past year. The quarterly dividends per share for the past year. The quarterly high and low stock prices for the past year. any help is appreciated...thank you

can SOME1 EXPLAIN THIS PLEASE?? =]? PLS EXPLAIN LONG BUT UNDERSTANDABLE AND EXPLAINABLE.!! =] Earnings: Nowhere to go but up: NEW YORK (CNNMoney.com) -- Poor results from the banking sector in the fourth quarter are likely to lead to the biggest drop in quarterly profits for large U.S. companies in six years. With 73% of the companies in the benchmark S&P 500 having reported results, overall fourth-quarter earnings are on track to fall 20.1% from a year ago, according to the latest figures from Thomson Financial. That's far worse than what had been expected as recently as Jan. 1, when analysts were predicting a drop of 9.4% "We're really seeing the impact of the credit crunch here," said Jack Ablin, chief investment officer at Harris Private Bank. Unfortunately for investors, the economic slowdown is likely to make things worse for the next two quarters. Thomson is forecasting a slight drop in profits in the first quarter and only a 1% increase in second-quarter earnings. But some market experts are predicting that results in the second half of the year should improve, assuming that most of the financial sector writedowns are out of the way. By the second half of 2008, year-over-year comparisons will get easier, since the third quarter and fourth quarter 2007 earnings were so miserable, said David Dropsey, senior research analyst at earnings tracker Thomson Financial. Dropsey said that if, as some analysts expect, banks are done writing off most of their exposure to bad mortgages by the middle of this year, earnings could rebound in the latter part of 2008. Of course, that depends on what happens to the economy. Barring what Dropsey referred to as a "full-blown recession," earnings growth could return to a more "normal" pace, which historically has averaged about 7.6% a quarter versus the previous year. 4Q blues limited mainly to banks Yes, banks had an awful fourth quarter. With 77 of the 92 companies in the financial sector having reported, the fourth-quarter results from this group are on track to be the worst for any sector since Thomson Financial started tracking earnings in 1997. The sector has been hit hard by massive losses from heavily weighted companies such as Merrill Lynch (MER, Fortune 500), Bear Stearns (BSC, Fortune 500), E*Trade Financial (ETFC), Morgan Stanley (MS, Fortune 500) and Citigroup (C, Fortune 500) And because of the losses, Thomson has yet to be able to determine just how big of a percentage drop financial earnings have taken. But if you strip out the financials, earnings for the S&P 500 would be on track to rise 11.8% versus a year ago thanks to healthy results from several other sectors. Tech and energy deliver In particular, technology earnings are forecast to have grown 26% in the fourth quarter, while energy sector earnings are expected to have grown 20%. That strength is expected to continue in the first quarter of 2008, with technology earnings expected to grow 10% and energy 24%. The performance of tech and energy could add weight to the argument that outside the financial and housing sectors, the economy is holding up better than market psychology would suggest, said Peter Brodie, director of investments at Bryn Mawr Trust Wealth Management. "Investors have been questioning whether or not we are in a recession and if so, how deep of one we'll see," Brodie said. He said that the financial sector earnings show Wall Street is still muddling through the mortgage situation, but that earnings growth in other sectors suggests the economic outlook isn't as dire as it appears to be. Homebuilders and materials struggle But it's not fair to blame all of the market's earnings woes on the financial sector. Consumer discretionary companies, which include homebuilders, are expected to post an earnings decrease of 15% versus a year ago. Strip out the homebuilders though and the sector's earnings would be up 6%. The weakness in the financials and homebuilders reflects the credit and housing market crises that have set sent the economy teetering on the edge of a recession. Beyond housing, there are some indications that other sectors are starting to feel the pinch from a slowdown as well. Earnings from materials companies, which include chemicals firms, are expected to drop 17% from a year ago, partly due to tough comparisons but also due to a sluggish economy. Second-half surge? One encouraging sign for investors is that the earnings picture for financial services companies should start to improve after their dismal fourth quarter. Granted, financial earnings are still expected to slide in the first quarter. But the erosion is expected to wane, with analysts forecasting a profit decrease of 21%. What's more, consumer discretionary companies are expected to only report a 1% drop in first quarter profits, Thomson forecasts. The S&P 500 should return to profit growth in the second quarter and that should usher in even higher levels of growth for the rest of the year as comparisons get easier and tech and energy sector earnings continue to show strong growth. However, Ablin is not so sure that the second half will be quite as robust as some are forecasting. He thinks forecasts are too rosy for the third and fourth quarter and for 2008 overall, particularly for companies outside of technology and energy. Ablin said he is looking for 2008 earnings growth of about 3%, versus current forecasts for over 15%.

Why would crammer rate a buy on nastech 3/16/07? No earnings No real pipeline Yes they raised money recently but then turned around and management got raises and more stock options. it is below 200day moving average it's down almost 45% from 6 months ago. volume isn't great daily light years away from any approvals management bleeds company monthly ratings are poor fundamentals are sloppy and if it weren't for institutions this stock would be $2dollars Merck ended contract with them last year pg delayed payment in december 2006 all research firms since last spring 2006 until last week were 100% wrong on target price of $22dollars. now they revised after my question a week ago to $14 dollars and some put nstk on hold! So why would an intelligent successful person like crammer pick and tout nastech pharmacutical? (I do know that shorts have made a bundle on this stock for 6 months to date. And probably will continue to do so when someone pumps the stock that is shallow, hollow & is made up of mirrors and smoke. Worst CO.period!)

What would you recommend? You are the project manager for developing the latest release of your software firm's flagship product. The product release date is just two weeks away and enthusiasm for the product is extremely high among your customers. Stock market analysts are forecasting sales of more than $25 million per month. If so, earnings per share will increase by nearly 50 percent. There is just one problem: two key features promised to customers in this release have several bugs that would severely limit the features' usefulness. You estimate that at last six weeks are needed to find and fix the problems. In addition, even more time is required to find and fix 50 additional, less severe bugs uncovered by the QA team. What would you recommend to management?

Why does bush want to stay in Iraq if the majority of the people don't? Congress Must Cut Off Bush Family War Profits by Evelyn Pringle Global Research, April 10, 2007 Countercurrents.org - 2007-04-11 Email this article to a friend Print this article On Monday, April 9, 2007, the Boston Herald reported that the US military had announced the Easter weekend deaths of 10 more American soldiers, including six killed on Sunday. The Associated Press reports that, since the war began in March 2003, over 3,000 members of the US military have been killed in Iraq, as of April 8, 2007. The military reported the deaths of four more US soldiers on Tuesday. Its nearly impossible to estimate the number of deaths of civilians in Iraq, but the Herald reports that at least 47 people were killed or found dead in violence on Easter Sunday, including 17 execution victims dumped in the capital. News releases out of Iraq also report that a woman wearing a black veil and strapped with explosives blew herself up outside a police station in Iraq on Tuesday, killing 16 people. According to the January 14, 2007 LA Times, Steven Kosiak, director of budget studies at the Center for Strategic and Budgetary Assessments in Washington, says that, starting with the anti-terrorism appropriation a week after the 9/11 attacks, he estimates the US has spent $400 billion fighting terrorism through fiscal 2006, which ended on September 30, 2006. In January 2007, Marine Corps spokeswoman, Lt Col Roseann Lynch, told Reuters that the war in Iraq is costing about $4.5 billion a month for military “operating costs,” which did not include new weapons or equipment. Since this war on terror was declared following 9/11, the pay levels for the CEOs of the top 34 defense contractors have doubled. The average compensation rose from $3.6 million during the period of 1998-2001, to $7.2 million during the period of 2002-2005, according to an August 2006, report entitled, "Executive Excess 2006," by the Washington-based, Institute for Policy Studies, and the Boston-based, United for a Fair Economy. This study found that since 9/11, the 34 defense CEOs have pocketed a combined total of $984 million, or enough, the report says, to cover the wages for more than a million Iraqis for a year. In 2005, the average total compensation for the CEOs of large US corporations was only 6% above 2001 figures, while defense CEOs pay was 108% higher. But the last name of one family, which is literally amassing a fortune over the backs of our dead heroes, matches that of the man holding the purse strings in the White House. On December 11, 2003, the Financial Times reported that three people had told the Times that they had seen letters written by Neil Bush that recommended business ventures in the Middle East, promoted by New Bridges Strategies, a firm set up by President Bush’s former campaign manager, who quit his Bush appointed government job as the head of FEMA, three weeks before the war in Iraq began. Neil Bush was paid an annual fee to "help companies secure contracts in Iraq," the Times said. But Neil Bush is by no means the only Bush profiting from the war on terror. The first President Bush is so entangled with entities that have profited greatly that it's difficult to even know where to begin. Bush joined the Carlyle Group in 1993, and became a member of the firm's Asian Advisory Board. The Carlyle Group was best known for buying defense companies and doubling or tripling their value and was already heavily supported by defense contracts. But in 2002, the firm received $677 million in government contracts, and by 2003, its contracts were worth $2.1 billion. Prior to 9/11, some Carlyle companies were not doing so well. For instance, the future of Vought Aircraft looked dismal when the company laid off 20% of its employees. But business was booming shortly after the wars in Afghanistan and Iraq began, and the company received over $1 billion in defense contracts. The Bush family's connections to the Osama bin Laden's family seem almost surreal. On September 28, 2001, two weeks after 9/11, the Wall Street Journal reported that, "George H.W. Bush, the father of President Bush, works for the bin Laden family business in Saudi Arabia through the Carlyle Group, an international consulting firm." As a representative of Carlyle, one of the investors that Bush brought to Carlyle was the Bin Laden Group, a construction company owned by Osama's family. The bin Ladens have been called the Rockefellers of the Middle East, and the father, Mohammed, has reportedly amassed a $5 billion empire. According the Journal, Bush convinced Shafiq bin Laden to invest $2 million with Carlyle. The Journal found that Bush had met with the bin Ladens at least twice between 1998 and 2000. On September 27, 2001, the Journal reported that it had confirmed that a meeting took place between Bush Senior and the bin Laden family through Senior's Chief of Staff, Jean Becker, but only after the reporter showed her a thank you note that was written and sent by Bush to the bin Ladens after the meeting. The current President’s little publicized affiliation with the bin Laden family goes back to his days with Arbusto oil when Salem bin Laden funneled money through James Bath to bail out that particular failed company. Probably the most eerie report about this strange group of bedfellows is that on 9/11, the day that served as a kick-off for the highly profitable war on terror, Shafiq bin Laden attended a meeting in the office of the Carlyle Group, and stood watching TV with other members of the firm as the WTC collapsed. The fact that so many Saudis, including many bin Ladens, were allowed to fly out of the country right after 9/11, while Americans were still grounded, has always seemed a bit strange to most people also, especially when nobody in the Bush administration was able to explain who gave permission for the flights. About a month after 9/11, in October 2001, the Carlyle Group severed its ties with the Bin Laden Group, but the Bush family did not. In January 2002, Neil Bush took a trip to Saudi Arabia that was sponsored by the Bin Laden Construction Company and Prince Alwaleed bin Talal, the same Prince who offered New York Mayor, Rudy Giuliani $10 million to help the 9/11 victims, a gesture that Rudy refused. In the fall of 2003, Bush Senior finally resigned from the Carlyle Group as the accusations of family war profiteering grew louder. However, according to the Washington Post, he still retained stock in the firm and gave speeches on its behalf for a fee of $500,000. Carlyle companies have also scored big in the Homeland Security bonanza. Federal Data Systems and US Investigations Services hold multi-billion- dollar contracts to provide background checks for airlines, the Pentagon, the CIA and the Department of Homeland Security. US Investigations used to be a federal agency, until it was privatized in 1996 and taken over by Carlyle. Marvin and Jeb Bush are also highly successful members of the family war profiteering team. Marvin is a co-founder and partner in Winston Partners, a private investment firm, and Jeb is an investor in the Winston Capital Fund, which is managed by Marvin. Winston Partners is part of the Chatterjee Group, which owned 5.5 million shares in a company called Sybase in 2001, a firm that had contracts worth $2.9 million with the Navy, $1.8 million with the Army and $5.3 million with the Department of Defense. All totaled, the federal procurement database listed the firm's contracts that year as $14,754,000. And, Sybase was not the only company delivering war profits to Marvin and Jeb. The portfolio of Winston Partners also included the Amsec Corp, which, in 2001, was awarded $37,722,000 in Navy contracts. Marvin's business partner, Scott Andrews, sat on the board of directors at AMSEC, and the company's CEO was Michael Braham, who formerly worked for Paul Bremer, the leader of the Coalition Provisional Authority responsible for handing out contracts Iraq. This is the same Paul Bremer who used Iraqi money from the Development Fund for Iraq to award 5 no-bid contracts to Dick Cheney’s cash cow, Halliburton, worth $222 million, $325 million, $180 million, and $194 million combined for the last two, according to a July 28, 2004, report by the CPA Inspector General Stuart Bowen, entitled, "Comptroller Cash Management Controls over the Development Fund for Iraq." As it turns out, Halliburton received 60% of all contracts paid for with Iraqi money. In a January 2005 report, Inspector Bowen concluded that occupation authorities accounted poorly for $8.8 billion in Iraqi funds, and said, "The CPA did not implement adequate financial controls.” The President's uncle, William (Bucky) Bush, is the most visible war profiteer on the team. He sat on the board of a major military contractor called Engineered Support Systems. Six months before the war in Iraq began, on September 16, 2002, CNN/Money Magazine called ESS one of "seven defense stocks that fund managers like," and one fund manager said ESS was one of two companies that "would gain the most from a war from Iraq." As a director, Uncle William received a monthly fee and held stock options. In January 2003, before the Iraq war began, he owned 33,750 shares of stock, but a year later, in January 2004, he owned 56,251. The fact that Uncle William had an inside line to the White House can hardly be disputed. On March 25, 2003, Bush asked Congress for funding, "to cover military operations, relief and reconstruction activities in Iraq, and ongoing operations in the global war on terrorism," and the very next day, ESS announced a large order from the Army for its Chemical Biological Protected Shelter systems. Uncle William has become a very rich man since his nephew took office. In January 2005, SEC filings show that he made about $450,000 by selling ESS stock. But he did even better the next year. According to the Excess Report, through a series of defense contracts, ESS earnings reached record levels and set the stage for the sale of the firm to another defense contractor, DRS Technologies, in January 2006, and among the beneficiaries of the deal was Uncle William, who cleared $2.7 million in cash and stock off the sale. Its time for Congress to stop the direct deposits of tax dollars into the Bush bank accounts. Lawmakers need to notify the White House that all funding for Iraq is done, other than what is needed for the immediate removal of our troops from this disgusting war profiteering scheme.

What does this contract mean? PERSONAL MANAGEMENT CONTRACT I desire to obtain your advice, counsel and direction in the development and enhancement of my artistic and theatrical career. The nature and extent of the success or failure of my career cannot be predetermined and it is therefore my desire that your compensation be determined in such manner as will permit you to accept the risk of failure and likewise benefit to the extent of my success. In view of the foregoing we have agreed as follows: I do hereby engage you as my personal manager for a period of years from date. As and when requested by me during and throughout the term hereof you agree to perform for me one or more of the services as follows: advice and counsel in the selection of literary, artistic and musical material; advice and counsel in any and all matters pertaining to publicity, public relations and advertising; advice and counsel with relation to the adoption of proper format for presentation of my artistic talents and in the determination of proper style, mood, setting, business and characterization in keeping with my talents; advice, counsel and direction in the selection of artistic talent to assist, accompany or embellish my artistic presentation; advice and counsel with regard to general practices in the entertainment and amusement industries and with respect to such matters of which you may have knowledge concerning compensation and privileges extended for similar artistic values; advice and counsel concerning the selection of theatrical agencies and persons, firms and corporations to counsel, advise, seek and procure employment and engagements for me. You are authorized and empowered for me and in my behalf and your discretion to do the following: approve and permit any and all publicity and advertising; approve and permit the use of my name, photograph, likeness, voice, sound effects, caricatures, literary artistic and musical materials for purposes of advertising and publicity and in the promotion and advertising of any and all products and services; execute for me in my name and/or in my behalf any and all agreements, documents and contracts for my services, talents and/or artistic literary and musical materials, collect and receive sums as well as endorse my name upon and cash any and all checks payable to me for my services, talents and literary and artistic materials and retain therefrom all sums owing to you; engage, as well as discharge and/or direct for me, and in my name theatrical agents and employment agencies as well as other persons, firms and corporations who may be retained to obtain contracts, engagements or employment for me. The authority herein granted to you is coupled with an interest and shall be irrevocable during the term hereof. I agree to at all times devote myself to my career and to do all things necessary and desirable to promote my career and earnings therefrom. I shall at all times engage proper theatrical agencies to obtain engagements and employment for me and I agree that I shall not engage any theatrical or employment agency of which you may disapprove. It is clearly understood that you are not an employment agent or theatrical agent, that you have not offered or attempted or promised to obtain employment or engagements for me that you are not obligated, authorized or expected to do so. This Agreement shall not be construed to create a partnership between us. It is specifically understood that you are acting hereunder as an independent contractor and you may appoint or engage any and all other persons, firms and corporations throughout the world in your discretion to perform any or all of the services which you have agreed to perform hereunder. Your services hereunder are not exclusive and you shall at all times be free to perform the same or similar services for others as well as engage in any and all other business activities. You shall only be required to render reasonable services as and when reasonably requested by me. Due to the difficulty which we may have in determining the amount of services to which I may be entitled, it is agreed that you shall not be deemed to be in default hereunder until and unless I shall first deliver to you a written notice describing the exact service which I require on your part and then only in the event that you shall thereafter fail for a period of fifteen consecutive days to commence the rendition of the particular service required. You shall not be required to travel or to meet with me at any particular place or places except in your discretion and following arrangements for costs and expenses of such travel. In compensation for your services I agree to pay to you, as and when received by me, and during and throughout the term hereof, a sum equal to percent of any and all compensation, sums and other things of value which I may receive as a result of my activities in and throughout the entertainment, amusement, musical recording and publishing industries, including any and all sums resulting from the use of my artistic talents and the results and proceeds thereof and, without in any manner limiting the foregoing, the matters upon which your compensation shall be computed shall include any and all of my activities in connection with matters as follows: motion pictures, television, radio, music, literary, theatrical engagements, personal appearances, public appearances, in places of amusement and entertainment, records and recordings, publications, and the use of my name, likeness and talents for purposes of advertising and trade. I likewise agree to pay you a similar sum following the expiration of the term hereof upon and with respect to any and all engagements, contracts and agreements entered into during the term hereof relating to any of the foregoing, and upon any and all extensions, renewals and substitutions thereof. In the event of any dispute under or relating to the terms of this agreement it is agreed that the same shall be submitted to arbitration to the American Arbitration Association in (Insert New York City or Los Angeles) and in accordance with the rules promulgated by the said association. In the event of litigation or arbitration the prevailing party shall be entitled to recover any and all reasonable attorney's fees and other costs incurred in the enforcement of the terms of this agreement. This agreement shall be deemed to be executed in the State of and shall be construed in accordance with the laws of said State. In the event any provision hereof shall for any reason be illegal or unenforceable then, and in any such event, the same shall not affect the validity of the remaining portions and provisions hereof. This agreement is the only agreement of the parties and there is no other or collateral agreement (oral or written) between the parties in any manner relating to the subject matter hereof. If the foregoing meets with your approval please indicate your acceptance and agreement by signing in the space hereinbelow provided. Very truly yours, ____________________________________________________ (Artist) I DO HEREBY AGREE TO THE FOREGOING Manager___________________________ Date:_____________________________

Trouble calculating break-even level? A company is an all equity firm that has 2,500 shares of stock outstanding at a market price of $20 a share. Company management has decided to issue $10,000 worth of debt and use the funds to repurchase shares of outstanding stock. The interest rate on the debt will be 8.5 percent. What are the earnings per share at the break-even level of earnings before interest and taxes? ignore taxes.

How will those earning more than $250,000 adjust their investments and compensation packages to shelter income? Will they invest in ways that are more or less productive in stimulating the economy? How might such a tax affect their consumer spending? Do you think most of them will end up paying the full tax increase? I work in the tax-exempt bond business and high net worth investors have been tranferring funds into muni bonds at unprecedented rates since August. My business has been approached by four different law firms offering to set up C corporations to shelter income in post-employment health benefits, private school tuition benefits for children and specialized management corporations to bipass full employee participation in 401(k) plans to increase the retirement contribution to the maximum of $46,000. I would also expect to see Section 529 college saving plans to grow in popularity since you can deposit $250,000 per child into an account and have all earnings be tax free if they are spent on education or other qualified costs. Has anyone else noticed the uptick in tax shelter marketing since October? Rush, I actually thought my last question was a little worse. Stephen, it cannot be otherwise. Capital seeks the highest after tax return adjusted for risk tolerance. When the tax rate is zero, it seeks the highest return which creates the maximum growth to GDP. As the tax rates grow, alternative tax preferred investments that would otherwise not produce the highest return become more attractive on an after tax basis. It is almost a universal truth that aas tax rates grow, capital diminishes it abilitity to contribute to GDP growth. Moiko, I assume you do not make enough money to bother with the lawbreaking and moral and ethical lapses that the wealthy routinely engage in as part of their tax planning?

Critical thinkers, does reading this help? By David Boaz John McCain's campaign is under fire for his campaign manager's ties to Freddie Mac. Rick Davis's lobbying firm, it turns out, was still receiving monthly payments until very recently, despite previous assurances that the relationship had ended three years ago. Meanwhile, McCain is running television ads tying Sen. Barack Obama to Franklin Raines, the CEO of Fannie Mae who was forced out for misstating the company's earnings. Obama vigorously protests that Raines isn't really one of his advisers, though Raines had previously said that he advised the campaign. But McCain doesn't need to focus on Raines. Obama selected another Fannie Mae CEO, James A. Johnson, to head his vice presidential search. Johnson had been executive assistant to Vice President Walter Mondale and a lobbyist before his nine years at Fannie Mae. Fannie Mae's regulator, the Office of Federal Housing Enterprise Oversight, found that Fannie Mae had misrepresented its expenses during his tenure, allowing him and other officers to receive larger bonuses than warranted. After revelations that Johnson had received loans directly from Angelo Mozilo, the CEO of Countrywide Financial, he resigned his position with the Obama campaign. (Given his experience, Johnson could probably have helped Obama choose a better vice president than the gaffe-prone fabulist Joe Biden.) Obama is also the second-biggest recipient of campaign contributions from Fannie Mae and Freddie Mac, behind only Senate Banking Committee chairman Christopher Dodd. What's remarkable is that the calculation by the Center for Responsive Politics covers 20 years, from 1989 to 2008, and yet Obama is at the top of the list after only one Senate campaign and four years in office. What all this really indicates is how deeply Fannie and Freddie have been enmeshed in Washington politics. They hire top lobbyists from both parties, give lavishly to members of Congress from both parties, and generously subsidize lots of influential think tanks and charities in the Washington area. Robert Zoellick, who was a top aide to James A. Baker III in the Reagan and Bush I administrations, handled Fannie Mae's lobbying before joining the second Bush administration as U.S. Trade Representative and president of the World Bank. Jamie Gorelick was deputy to Attorney General Janet Reno in the Clinton administration, then joined Fannie Mae as vice chair during Clinton's second term. John Buckley, nephew of conservative icons William F. Buckley Jr. and James L. Buckley and press secretary for the Bob Dole and Jack Kemp campaigns, spent 10 years as head of communications for Fannie Mae. Just a few months ago Fannie hired Lorraine Voles, former communications director for Vice President Al Gore and Sen. Hillary Rodham Clinton, to work in its communications shop alongside Charles Greener, former spokesman for the Republican National Committee. According to the Associated Press, Fannie and Freddie have spent $170 million on lobbying in the past decade and have given more than $16 million to members of Congress, as well as some $10 million in soft money donations to Republican and Democratic committees. "Fannie Mae's 51-member lobbying stable, according to its most recent disclosure, includes former Reps. Tom Downey, D-N.Y., and Ray McGrath, R-N.Y.; Steve Elmendorf, a Democratic political strategist and former congressional aide; and Donald Fierce, a longtime GOP operative. Freddie Mac's list of 91 lobbyists includes former Reps. Vin Weber, R-Minn., and Susan Molinari, R-N.Y." Many more aides to Ronald Reagan, Bill Clinton, Al Gore, Newt Gingrich, and senior members of Congress have worked for Fannie Mae or served as well-compensated members of the Board of Directors. Is it any wonder that for years Fannie and Freddie were able to fight off any attempts to restrict their size, their scope, or the huge salaries they paid their officers? Over the years Fannie, Freddie, and their friends in Washington were able to block proposals to privatize the two huge government-sponsored enterprises or to eliminate the federal guarantee of their debts. In the past decade they frustrated efforts to impose such reforms as requiring them to submit to regulations of the Securities and Exchange Commission; to adopt financial accounting standards; to follow bank standards for capital requirements; and to shrink their portfolios of assets from risky levels. The Bush administration pressed to strengthen the regulator of Fannie and Freddie, but Congress wasn't interested. Plenty of people warned that Fannie and Freddie were ticking time bombs, including Federal Reserve Chairman Alan Greenspan and Treasury Secretary Lawrence Summers. Yet as Alex Pollock of the American Enterprise Institute noted in 2005, "In spite of the opportunity presented by their acutely embarrassing accounting scandals costing many billions of dollars and the missteps that caused both of their top managements to be for

I am stuck with my finance homework.? 5. ABC Company has 10,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts. # of shares outstanding10,000 Taxes10,000 Interest expense10,000 Depreciation expense10,000 Selling, general and administrative expense20,000 Sales revenue100,000 Cost of goods sold30,000 Calculate (a) gross profits. Answers: Sales revenue – Cost of goods sold = 70,000 (b) operating profits. Answer: Sales revenue + taxes / Cost of goods sold = 3.66% (c) net profits before taxes. Answer: (d) net profits after taxes. (e) earnings per share. 6. What is the difference between trend or time-series analysis and cross-section analysis? Answer: With time-series it uses ratios to evaluate a firm’s performance over time. And cross-section analysis uses the ratio to compare different companies at the same point in time. 7. List the five basic categories of financial ratios. Answers: The five basic types of financial ratios are Liquidity ratios, Asset- management ratios, Financial- leverage ratios, Profitability ratios and Market- value ratios. 8. Would a firm’s financial manager prefer that his or her firm has an average collection period of 30 days or 60 days? 9. Which profitability ratio would a firm’s stockholders be most concerned with? 10. Assume a firm is developing, manufacturing, and selling a basic software package at $500 per copy. Raw materials and direct labor total $200 per copy. Fixed costs are $250,000. If the firm sells 5,000 units per year, what will be the operating profit margin?

Why are Obama's lies about McCain taken as cannon, when the truth is in writing? Below is a few examples...? Statement by Senator John McCain, May 25, 2006: Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were "illusions deliberately and systematically created" by the company's senior management, which resulted in a $10.6 billion accounting scandal. The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr. Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac. The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform. For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay. I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole. I urge my colleagues to support swift action on this GSE reform legislation. ------ The above is fact - McCain was on this case well before Obama. The New York Times has charged that McCain-Palin campaign manager Rick Davis was paid by Freddie Mac until last month. Fact is Mr. Davis quit from his consulting firm in 2006. Mr. Davis has seen no income from Davis Manafort since 2006. Davis was not a registered lobbyist since 2005. This is just a lie. People, get away from the media, and read!!! Thanks Mavericky Maverickness, your absolutely right about the Canon and Cannon. I'll be sure to watch my speling... As for the above joke, (on canon and cannon and speling...) if your entire opinion is based on my misspelling of a word, why are you here? Someone even used a colorful metaphor to describe me based on this. One correction is appreciated, and honestly thanked for pointing out my error. All following are lemmings. This all detracts from the original point, which is what the democrats seem to be good at.

this is for chris scorza hahaha? SHOULD YOU GO INTO PHARMACY Pharmacists work with drugs and medicines and advise people on proper use of drugs. They work in clean. Well-lighted areas that resemble small labs. They spend a lot of time on their feet and must pay close attention when filling prescriptions. Some of them research: other work only part time. Most towns have at least one pharmacy. Many pharmacists own their own pharmacies and thus must have good sense of business. Honesty and the ability to win the confidence of people necessary characteristics and are valuable to any who select this career. People will put their health need your care. A license to practice pharmacy is needed in every state. In order to get this, you must have a degree in pharmacy, pass a state board examination, and serve an internship under a licensed pharmacist. Five years are needed to get a bachelor’s degree, which is the basic requirement for a job in the field. Most collages or pharmacy require one or two years of pre-pharmacy training in a junior college or a four year college. Math and basic science such as chemistry, biology and physics are included in training. If you are good in these in these subjects, pharmacy may be the field for you. Besides mixing and dispensing machines, a pharmacist may have other duties. Some buy and sell supplies and goods, hire and supervise other who work in the firm, and keep various records. Those who go into business on their own should be ready to assume all of the responsibilities for operating the company. Many pharmacies are open in the evening and on the evenings and on weekends, so self-employed persons often work more hours than those in salaried jobs. There is a trend toward working fewer hours: these may lead to hireling more pharmacist. If you know what kind of job you want, it is certainly possible to shop around and find just what you were looking for- on that fits your particular needs. The work of a pharmacist is crucial for good health care. Some of those who can train to be pharmacists go into related work areas. They may work on sales for drug companies, teach in collages of pharmacy, or work in research. In industry, they may have a chance to move into management level jobs or into other areas. Those who are employed by chain drugstores have a chance to advance to managerial or even to executive positions as they get experience and knowledge. Whatever the type of job a pharmacist may choose, the traits of honesty, orderliness, and accuracy are important. The job market for pharmacists is expected to grow, but keen job competition may materialize in the areas where a surplus of qualified people occurs. Advances in science that make a wider range of drug products available and a raising health standard are two things that will affect the demand for pharmacists. The pay is good. For those who do consulting work in addition toe their regular jobs, the total earnings may be far above the average. Pharmacy is a rewarding career chooses with rewarding conditions and the chance to help others. The lives of many people often rest in the hands of pharmacists.

Financial management help please? The comfort corporation manufactures sofas and tables for the recreational vehicle market. The firm's capital structure consists of 60 percent common equity, 10 percent preferred stock, and 30 percent long-term debt. This capital structure is believed to be optimal. Comfort will requite $120 million to finance expansion plans for the coming year. The firm expects to generate enough internal equity to meet equity portion of its expansion needs. The cost of retained earnings is 18 percent. The firm can raise preferred stock at a cost of 15 percent. First-mortgage bonds can be sold at a pretax cost of 14 percent. The firm's marginal tax rate is 40 percent. Calculate the cost of capital for the funds needed to meet the expansion goal I did read the book like ten times I just don't get it

Hi...Can anyone help with the following information about McDonald fast food company or related links or sites As I need to work on my project work based on the company's profile regarding the following aspects, I seek your help The company’s auditing firm. The company’s major customer. The company’s inventory valuation method. The company’s revenue recognition method. The company’s depreciation method. Management’s strategy for the future. The company’s opportunity for growth. The risks and trends in the industry. The quarterly earnings per share for the past year. The quarterly dividends per share for the past year. The quarterly high and low stock prices for the past year. any help is appreciated...thank you

1. Which of the following is not a reason why financial analysts use ratio analysis? a. Ratios help to pinpoint a firm's strengths. b. Ratios restate accounting data in relative terms. c. Ratios are ideal for smoothing out the differences that may exist when comparing firms that use different accounting practices. d. Some of a firm’s weaknesses can be identified through the usage of ratios. 2.Which of the following relationships is true, regarding the costs of issuing the below securities? a.Common stock > bonds > preferred stock b.Preferred stock > common stock > bonds c.Bonds > common stock > preferred stock d.Common stock > preferred stock > bonds 3.According to the SEC, the correct sequence of events for a security issue is: a.red herring, final prospectus, SEC registration. b.SEC registration, red herring, final prospectus. c.final prospectus, SEC registration, red herring. d.red herring, SEC registration, final prospectus. 4.What is the most important ingredient in developing a firm’s financial plan? a.A forecast of sales revenues b.Determining the amount of dividends to pay shareholders c.Projecting the rate of interest on proposed new debt d.Deciding upon which method of depreciation a firm should utilize 5.Which of the following statements about the percent-of-sales method of financial forecasting is true? a.It is the least commonly used method of financial forecasting. b.It is a much more precise method of financial forecasting than a cash budget would be. c.It involves estimating the level of an expense, asset, or liability for a future period as a percent of the forecast for sales revenues. d.It projects all liabilities as a fixed percentage of sales. 6.You wish to borrow $2,000 to be repaid in 12 monthly installments of $189.12. The annual interest rate is: a.24%. b.8%. c.18%. d.12%. 7.If you invest $750 every six months at 8% compounded semi-annually, how much would you accumulate at the end of 10 years? a.$10,065 b.$10,193 c.$22,334 d.$21,731 F.v = C ((1+i)/m)^nm-1)/i/m Cash Inflow C = 750 Number of months m = 2 (semi annually) = 8% = 8/2 = 4% Number of years n = 10 Putting the value in the equation you will get F.v = 750 (1+(.08)/2)^2*10-1)/ .08/2 F.v = 750 ((1.04)^20 - 1)/ 0.04 F.v = 22333.5589 >>>answer 8.The focus of current asset management is on: a.property, plant, and equipment acquisition. b.cash, accounts receivable, and inventory levels. c.investments in marketable securities. d.both a and c. e.all of the above. 9.With regard to the hedging principle, which of the following assets should be financed with current liabilities? a.Minimum level of cash required for year-round operations b.Expansion of accounts receivable to meet seasonal demands c.Machinery used to produce a firm’s inventory d. Both a and b e. Both b and c 10.If you place $50 in a savings account with an interest rate of 7% compounded weekly, what will the investment be worth at the end of five years (round to the nearest dollar)? a.$72 b.$70 c.$71 d.$57 11.The break-even model enables the manager of the firm to: a.calculate the minimum price of common stock for certain situations. b.set appropriate equilibrium thresholds. c.determine the quantity of output that must be sold to cover all operating costs. d.determine the optimal amount of debt financing to use. 12.A firm that uses large amounts of debt financing in an industry characterized by a high degree of business risk would have __________ earnings per share fluctuations resulting from changes in levels of sales. a.no b.constant c.large d.small 13.A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answer to the nearest $10.) a.$490 b.$570 c.$900 d.-$150 14.If the NPV of a project is positive, then the project’s IRR ____________ the required rate of return. a.must be less than b.must be greater than c.could be greater or less than d.cannot be determined without actual cash flows 15.Once a cash discount period has passed: a.one should pay immediately. b.there is no financial incentive to pay before the final due date. c.one should pay after the final due date. d.cannot be determined from the information. 16.A managerial benefit of a lock box arrangement is: a.better audit control of the documents received. b.elimination of clerical functions. c.less chance of losing documents. d.all of the above. 17.A firm expects total demand for its product over the planning period to be 10,000 units with an ordering cost per order of $400 and a carrying cost per unit of $2. This firm’s economic ordering quantity is: a.1,000. b.2,000. c.3,000. d.4,000. 18.Safet

What happens to share price if the firm? AB Ltd. has been doing reasonably well in the market. The current operations yield 20% return and is matched by shareholders’ expectations. With current level of earnings at Rs.10 per share the market price of the share is Rs.50. The management decision of growth is facing 3 alternatives. a) to enter conventional line of garments that provides a return of 15 % but expands the market b) expand the current operations in other geographies that would yield 20 % and c) enter another niche of high and apparel that has low volume but provides 25% return. As a policy matter management funds all its operations through plough back of earnings. Since 3 operations are scalable the management again faces 3 alternatives of retaining 50%, 60% or 70 % of the earnings. What happens to share price if the firm: a)enters conventional garment line b)expands current operations and c)ventures into high end apparel niche Provide an explanation to the change in the share price. Note: For calculations use Gordon’s model Po = Eps1 (1-b) / (r – bg)

Help With Finance Questions? 1.The goal of the firm should be the maximization of profit. (True/False) 2.For the risk-averse financial manager, the more risky a given course of action, the higher the expected return must be. (True/False) 3.The corporation is the best form of organization in terms of raising capital? True/False 4.The owners of a corporation enjoy unlimited liability.(True/False) 5.Financial management is concerned with the maintenance and creation of wealth.(True/False) 6.Shareholder wealth is measured by the market value of the firm’s common stock. (True/False) 7.Which of the following statements best represents what finance is about? a.How political, social, and economic forces affect corporations b.Maximizing profits c.Creation and maintenance of economic wealth d.Reducing risk 8.The goal of the firm should be: a.Maximization of profits. b.Maximization of shareholder wealth. c.Maximization of consumer satisfaction. d.Maximization of sales. 9.Consider the timing of the profits of the following certain investment projects: Profit L S Year 1 $ 0 $ 3000 Year 2 $ 3000 $ 0 a.Project S is preferred to Project L. b.Project L is preferred to Project S. c.Projects S and L are equally desirable. d.A goal of profit maximization would favor Project S only. 10.Which of the following best describes the goal of the firm? a.The maximization of the total market value of the firm’s common stock b.Profit maximization c.Risk minimization d.None of the above 11.Which of the following goals of the firm is equivalent to the maximization of shareholder wealth? a.Profit maximization b.Risk minimization c.Maximization of the total market value of the firm’s common stock d.None of the above 12.In finance, we assume that investors are generally: a.neutral to risk. b.averse to risk. c.fond of risk. d.none of the above. 13.Which of the following is not an advantage of the sole proprietorship? a.Limited liability b.No time limit imposed on its existence c.No legal requirements for starting the business d.None of the above 14.The true owners of the corporation are the: a.holders of debt issues of the firm. b.preferred stockholders. c.board of directors of the firm. d.common stockholders. 15.Assume that you are starting a business. Further assume that the business is expected to grow very quickly and a great deal of capital will be needed soon. What type of business organization would you choose? a.Corporation b.General Partnership c.Sole proprietorship d.Limited partnership 16.If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: a.positively affect profits. b.increase the market value of the firm’s common stock. c.either increase or have no effect on the value of the firm’s common stock. d.accomplish all of the above. 17.Profit maximization is not an adequate goal of the firm when making financial decisions because: a.it does not necessarily reflect shareholder wealth maximization. b.it ignores the risk inherent in different projects that will generate the profits. c.it ignores the timing of a project’s returns. d.all of the above are correct. 18.Which of the following goals is in the best long-term interest of stockholders? a.Profit maximization b.Risk minimization c.Maximizing of the market value of the existing shareholders’ common stock d.Maximizing sales revenues 19.Which of the following factors enable a public corporation to grow to a greater extent, and perhaps at a faster rate, than a partnership or a proprietorship? a.Unlimited liability of shareholders b.Access to the capital markets c.Limited life d.Elimination of double taxation on corporate income e.All of the above 20.Which of the following should be considered when assessing the financial impact of business decisions? a.The amount of projected earnings b.The risk-return tradeoff c.The timing of projected earnings; i.e., when they are expected to occur d.The amount of the investment in a given project e.All of the above 21.Financial management is concerned with which of the following? a.Creating economic wealth b.Making investment decisions that optimize economic value c.Making business decisions that optimize economic wealth d.Raising capital that is needed for growth e.All of the above 22.If one security has a greater risk than another security, how will investors respond? a.They will require a lower rate of return for the investment that has greater risk. b.They would be indifferent regarding their expectation of rates of return for either investment. c.They will require a higher rate of return for the investment that has greater risk. d.None of the above. 23.How could you c