Finance Answers

What is a better measure of risk if assets have different expected returns:
(1) the standard deviation or
(2) the coefficient of variation? Why?

2. Knickerdoodles, Inc.
Sales COGS Interest Dividends Depreciation Cash Accounts receivables Current
liabilities
2004 $ 740 430 33 16 250 70 563 390
2005 $ 785 460 35 17 210 75 502 405
Inventory Long-term debt Net fixed assets Common stock Tax rate
2004 662 340 1,680 700 35%
2005 640 410 1,413 235 35%
What is the operating cash flow (NOPAT + depreciation) for 2005?

a) $143 b)$285 c)$325 d) $353 e)$365

1. Knickerdoodles, Inc.

Sales COGS Interest Dividends Depreciation Cash Accounts receivables Current liabilities

2004 $ 740 430 33 16 250 70 563 390

2005 $ 785 460 35 17 210 75 502 405

Inventory Long-term debt Net fixed assets Common stock Tax rate
2004 662 340 1,680 700 35%
2005 640 410 1,413 235 35%


What is the free cash flow (FCF) for 2005?
a) $50 b) $245 c) $295 d) $435 e) $515

Here are two questions about an economy that has six states,a through f, and six securities, G through L. The securities payoff matrix is X. Some securities may have negative payoffs in some states, you can think of these as forward contracts

G H I J K L
a 18 21 28 5 9 10
b 14 19 8 23 5 -5
Payoff(matrix) X c 8 11 14 -3 27 20
d 6 23 19 -1 26 14
e 19 -4 25 25 20 -10
f 1 -10 22 18 -1 7

1) Is the market complete?
Yes or No?
2)Sam wants a guaranteed income of 25$.Can you create a portfolio from the six securities to do that? If so how many units of securities H must you include in the portfolio?
a) -0.498 b) 0.200 c)4.39 d)4.57207

Is it good for the US economy that the price of the American dollar goes up in other countries?

BGE takes out a loan at j1=.12 (=12%) on which BGE makes semiannual payments of $4500 with the first payment starting six months after taking the loan. If the loan is repaid at the end of ten years, what was the amount of the loan?

Bae Inc. has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?

Sales
$2,000.00
Costs
1,200.00
Depreciation
100.00
EBIT
$ 700.00
Interest expense
200.00
EBT
$ 500.00
Taxes (35%)
175.00
Net income
$ 325.00

Ans. a) $370.60 b) $390.11 c)$410.64 d)$432.25 e)$455.00

an estimate of the demand function for household furniture produced the following results: F= 0.0036Y1.08RR0.16p-0.48 r(2)=0.996 where

Prepare a report to be presented by the vice-president at the board of directors’ meeting to be held in April 2011. The report must include the following:

a.An explanation of THREE (3) ways in which ratios may be used to interpret the financial statements of an organisation.

b.A caution statement containing the limitations of using ratios to evaluate the performance of an organisation

Find the total amount that must be repaid on the following note described.
$8,563 borrowed at 15.5% simple interest
What is the total amount to be repaid 3 years, 125 days later? (Round your answer to the nearest cent.)