## CHECK THESE SAMPLES OF Corporate Finance Math Problem

...of the period. Since in this case, the payment is done at the beginning of the period every time, hence it is a case of an immediate annuity as each yearly payment is allowable to compound for an additional year as compared to the normal annuity case. In this context, Future Value of Annuity = A [{(1+i) ^n -1} / i] (**Finance** Formulas., n.d.) Where, A= Annual payment, i= interest rate per year, n= number of periods As in this case, each annual payment is completed at the start of each period, the same is allowed to compound for one extra period and hence its future value would be the product of value of a matching normal annuity and (1+ interest rate). Future Value of Annuity Due = (1+i) * A [{(1+i)^n -1} / i ]...

3 Pages(750 words)Math Problem

.... In order to determine which project should be accepted, Net Present Value will be used. Net Present value discounts the future cash flows of the project and identifies its work in present (McLaney, 2009). After using the NPV following values have been identified of each of the project: Project M Project N Project O Project P Rate 6% 9% 15% 22% NPV $100,171.60 $306,230.05 $285,765.03 ($935,170.55) Ranking 3 1 2 The above table shows that the project N would be the most feasible one for Quark industries. Ranking has been made that is showing that the Quark industries should invest first in Project N and then in Project O and then in Project M. The company should not invest in Project P as it has a negative NPV. References McLaney, E....

4 Pages(1000 words)Math Problem

...or not. This report discusses and analyzes two projects that Salsbury has been evaluating; opening a retail store or health and fitness complex. After using the Net Present Value method, the report reveals that a new retail store should be opened instead of health and fitness complex as it has a higher NPV. Moreover, NPV is compared with other methods like ARR and PI and justifications have been presented about using of NPV. Ultimately, other factors that the management needs to consider are discussed as well. Reference List Gitman, L. (2003). Principles of Managerial **Finance**. Boston: Addison-Wesley Publishing. Jensen, M. C. (2001). ‘Value Maximization, Stakeholder Theory, And The **Corporate** Objective...

5 Pages(1250 words)Math Problem

...from operations can be boosted. iii. Can this project be **financed** with current cash flow from the company? Why or why not? This project cannot get **financing** from the current cash flow from the company because it is not adequate. For instance, the current year’s cash flow statement revealed only $5,000 was left as the net balance. The anticipated project needs fiance to be sourced from outside, for example by borrowing from a bank or issuing new shares among other sources (Leary and Roberts 2575). iv. If the company needs additional **financing** beyond what the ABC Company can provide internally (either now or sometime throughout the life of the project), how would you suggest the company...

5 Pages(1250 words)Math Problem

...QUESTION Part (a Fixed Costs = Rate + Advertising + Maintenance + Salaries & wages + Heat & Light + Administration + depreciation of hotel andrenovation per year
= 400,000 + 300,000 + 59,000+ 1,500,000 + 250,000 + 291,000 + 2,800,000
= '5,600,000 annual or '15,385 per day
Number of Estimated Sales = (100 rooms * 70%) = 70 rooms
Contribution Margin per unit = Fixed costs/number of estimated sales
= 15,385/70
= '219.785
Variable Costs per guest per night = Breakfast + Evening Meal
= 2 + 6
= '8
The price charged by hotel per guest night should be = 219.785 + 8
= '228
Part (b):
Suppose the sales of the consortium at breakeven is = (228 * 70)*364 = '5,809,440... Part (a Fixed...

4 Pages(1000 words)Math Problem

... Review your tax return for last year and answer the following questions: Let's assume that the tax rate in my is 9% and my incomeis roughly $50,000 a year.
Could any income have been deferred to this year If so, how much tax could have been saved Multiply the amount deferred by 15% or 28%, depending on your tax bracket.
Yes, about $5000 could have been deferred. The amount of tax saved thus could have been
450 dollars multiplied by 15% according to my tax bracket.
(45000*.09=4050 4500-4050=450 450+(450*.15)=517.5)
Could you have reduced taxes on dividend income by moving part of your investments to tax-free municipal bonds If so, how much tax could you have saved
If I had moved $5000 of my investments to tax... Review...

2 Pages(500 words)Math Problem

...industry, operations, as well as management policies that affect the profitability of the business. Therefore, the risk that is inherent in the company is unique to it and can be minimized by diversifying investments to some other companies. Unsystematic risk is also known as diversifiable risk as it can be minimized by scattering the investments in many different companies.
iv Standard deviation (5 marks)
According to Brealey, Myers and Marcus in the book "Fundamentals of **Corporate** **Finance**" standard deviation is the square root of variance, where variance is the average squared variation around the average from the expected returns (2004, 276-277). Standard deviation measures the dispersion of the...

8 Pages(2000 words)Math Problem

... Hedging and Arbitrage Hedging is an investment strategy employed by investors to avoid certain potential business risk. It is basically a position taken by an investor in one market to neutralize the risk related to a contrasting position taken in another market. In incomplete markets, perfect risk cannot be transferred. As a result, investors cannot come up with a perfect hedging portfolio that does away with all the associated risks (Mishken et al. 2009). Some of the causes of incomplete markets are transactional costs, market resistances and portfolio constraints. Due to these reasons, investors are forced to take up cross-hedging in this market. This normally involves hedging a position in one asset by taking a balancing... Hedging and...

1 Pages(250 words)Math Problem

...January 30 **Finance** Foundations Question1 Table Rectangle Computation The above table shows how to maximize the rectangular courtyard. The above table shows how the perimeter of the rectangular lawn’s perimeter is computed. Six alternatives were chosen. All alternatives generated to a 200 sq. meter rectangle area (Adler, 2012). Of the different alternatives, Alternative B, 100 meters length by 2 meters wide, generates the largest rectangular lawn perimeter, 198.5 meters, contributing to the largest surface area. All the other alternatives generated lesser rectangular lawn perimeters. Alternative B is the best solution. The perimeter formula is:
Perimeter = L +L +W W. The formula for Area is: L x W.
The above...

2 Pages(500 words)Math Problem

... that constantly changes depending on economic trends. This will result into fluctuation on value of the firm making it risky to potential investors.
References
Brigham, E F, & Ehrhardt, m 2010, Financial management Theory and practice , Mason, Ohio, South-Western.
Top of Form
Gilbertson, C, B & Lehman, M,W, (2013). Century 21 accounting. Mason,Ohio: South-Western.
Graham, J,R, Smart, S, B, & Megginson, W, L, (2012). Introduction to **corporate** **finance**. Australia: South-Western/Cengage Learning.Bottom of Form
Warren, C, S, Reeve, J,M , & Duchac, J (2012). Financial accounting. Mason, OH: South-Western Cengage Learning.... **Finance** and accounting al affiliation Question SUMMARY OUTPUT Regression Statistics Multiple R 0.988679R...

3 Pages(750 words)Math Problem