Finance Answers

The Pizza Company is considering entering the marketplace in your community. Use the information from “The Pizza Company Data” worksheet, located in Week 3 of your course shell, to complete this assignment. By conducting a demand analysis and forecast for pizza, you will be able to make a decision whether The Pizza Company should establish a presence in your community.
Write a three to five (3-5) page paper in which you:
1.Use Excel or other calculation software to input the data to calculate an estimated regression. Then, from the calculation provided, interpret the coefficient of determination, indicating how it will influence your decision to open the pizza business in your town or community. Explain any additional variables that may improve the coefficient of determination.
2.Test the statistical significance of the independent variables and the regression equation, indicating how it will impact your decision to open the pizza shop.
3.Forecast the demand for pizza for the next four (4) periods usiperi

Fabrice is looking to buy a new plug-in hybrid vehicle. The purchase price is $12,000 more than a similar conventional model. However, he will receive a $7,500 federal tax credit that he will realize at the end of the year. He estimates that he will save $1,200 per year in gas over the conventional model; these cash outflows can be assumed to occur at the end of the year. The cost of capital (or interest rate) for Fabrice is 6%. How long will Fabrice have to own the vehicle to justify the additional expense over the conventional model?( i.e, What is the DISCOUNTED payback period in years? Discount future cash flows before calculating payback and round to a whole year.)

Which of the following statements is CORRECT?
a. The statement of cash flows reflects cash flows from operations, but it does not reflect
the effects of buying or selling fixed assets.
b. The statement of cash flows shows where the firm’s cash is located; indeed, it provides a
listing of all banks and brokerage houses where cash is on deposit.
c. The statement of cash flows reflects cash flows from continuing operations, but it does
not reflect the effects of changes in working capital.
d. The statement of cash flows reflects cash flows from operations and from borrowings, but
it does not reflect cash obtained by selling new common stock.
e. The statement of cash flows shows how much the firm’s cash--the total of currency, bank
deposits, and short-term liquid securities (or cash equivalents)--increased or decreased
during a given year.

Rafael owned an apartment building that burned down. The empty lot is worth $70,000 and Rafael has received $200,000 from the insurance company. Rafael plans to build another apartment building that will cost $275,000. His real estate adviser estimates that the expected value of the finished building on the real estate market will be $385,000 next year. The discount/interest rate is 10%? What are the NPV and IRR of this decision?

Which of the following statements is CORRECT?
If expected inflation increases, interest rates are likely to increase.
If individuals in general increase the percentage of their income that they save, interest rates are likely to increase.
If companies have fewer good investment opportunities, interest rates are likely to increase.
Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy, hence the riskiness of all debt securities.
Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills.

Can I get answers on my finance lab homework and tests?

Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were:
Book Value Fair Value
current assets(net) $130,000 $125,000
Property, Plant, equip(Net) 600,000 750,000
Liabilities 150,000 175,000

Lake would record goodwill of
a. $445,000
B. $250,000
C. $75,000
D. $0

Which of the following statements is CORRECT?
a. If General Electric were to issue new stock this year it would be considered a secondary
market transaction since the company already has stock outstanding.
b. Capital market transactions only include preferred stock and common stock transactions.
c. The distinguishing feature between spot markets versus futures markets transactions is
the maturity of the investments. That is, spot market transactions involve securities that
have maturities of less than one year, whereas futures markets transactions involve
securities with maturities greater than one year.
d. Both Nasdaq "dealers" and NYSE “specialists” hold inventories of stocks.
e. An electronic communications network (ECN) is a physical location exchange.

what impact might a significant currency depreciation of the US dollar have in the short run on US current account position?

Sairah purchased an investment property for $350,000, 3 years ago. The after-tax cashfow of the property has been $35,000 per year to date, but market conditions have improved and Sairah expects the cashflow to improve to $42,000 per year for the next 25 years (assume these are year end cashflows). The annual cost of capital (or cap rate) for this area is 9%. What is the value of the property today?