Question 1
For this week?s Application Assignment, open the Variance Analysis Case Study and read the description and questions provided on the first spreadsheet. Then, use the data provided in the ?Revenues? and ?Expenses? spreadsheets to perform a variance analysis. having a problem downloading the file...but here is the basic work...this is a health care finance class in week 5, using the book Healthcare finance by Louis C. Gapenski, Chapter 8. The subsequent two spreadsheets provide workload (expressed as relative weighted products (RWPs) for inpatient care:, revenue, and expense data for Schumpert Medical center covering their fiscal years 2010 and 2011. The data includes FY10 actual worlklod, revenues, and expenses: FY11 forecasted workload , revenues, and expenses: and FY11 year to date workload, revenues, and expenses. The inpatient product lines worksheet provides further details on the types of services provided within each major service line. Using the available data, perform a variance analysis on Schumpert Medical Center and answer the following Questions.1. What was the hopitals orginal profit forecast (assume away any issues with depreciation, taxes, etc.)? halfway through the fiscal year, what is the hospitals revised projection for FY11 profits? Answer: 2. Which inpatient service lines are overbudget? which product lines are overbudget after accounting for workload increases? Answer 3 What actions would you take at the mid year point if you were a free for service hospital? in other words, where are the problem areas on which you would focus your attention, and who might provide ideas for "best practices" based on their performance? Answer 4 What actions would you take at the mid year point if you were a capitated hospital? In this case, the revenue spreadsheet would be replaced with an overall budget of $50 million with which to operate (rather than being able to bill for each episode of patient care). Federal, State, county and city hospitals normally operate under a capped budget. Additionally, many HMOs also operate under a fixed per member, pe month (PMPM) capitated process.If you need any other help from me...Just let me know...Thanks this is a health care finance course...
Question 2
Faculty will provide two to three (2-3) companies for you to choose from for this assignment. Using the Internet and Strayer University databases, research the selected company from its inception to current-day operations. The three companies to choice from are: Microsoft just announced they are laying off 80,000 employees; Youtube was purchased by Google in 2006 and didn't turn a profit until 2010; and JC Penney changed CEOs and marketing strategies twice in a short span in the late 2000s. You need to choose one of these companies, research its management style from its inception until now, and answer the questions on it in the assignment. Make sure you reference where you get your information. Write a five to six (5-6) page paper in which you: 1. Evaluate two (2) key changes in the selected company's management style from the company's inception to the current day. Indicate whether or not you believe the company is properly managed today. Provide support for your position. 2. Explain senior management's role in preparing the organization for its most recent change. Provide evidence of whether the transition was seamless or problematic from a management perspective. Provide support for your rationale. 3. Evaluate management's decision on its use of vendors and spokespersons. Indicate the organizational impact of these decisions. 4. As a manager within the selected company, suggest one (1) innovative idea that could have a positive impact on both the employees and customers of the company. Indicate the approach you will take in implementing the new idea. Provide support for your suggestion. 5. Predict the selected company's ability to adapt to the changing needs of customers and the market environment. Indicate one (1) key change in the management structure that may be beneficial to ensuring such an adaptation to change. Provide support for your prediction. 6. Use at least three (3) quality academic resources. Note: Wikipedia and other Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: ? Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. ? Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: ? Analyze the activities and skills associated with the planning function of management. ? Analyze the activities and skills associated with the organizing function of management. ? Use technology and information resources to research issues in modern management. ? Write clearly and concisely about modern management using proper writing mechanics.
Question 3
2?1) Personal After-Tax Yield An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracket. What is the bond?s after-tax yield? 78 Part 1: Fundamental Concepts of Corporate Finance 9781133665007, Financial Management: Theory and Practice, Michael C. Ehrhardt - ? Cengage Learning. riigahtas renser v e dr. Nuo wi thkouot exhprdesse auntho ripzatiiohn (2?2) Personal After-Tax Yield Corporate bonds issued by Johnson Corporation currently yield 8%. Municipal bonds of equal risk currently yield 6%. At what tax rate would an investor be indifferent between these two bonds? (2?3) Income Statement Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3 million net income by 1 ? T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to work some of the other problems.) (2?5) Net Cash Flow Kendall Corners Inc. recently reported net income of $3.1 million and depreciation of $500,000. What was its net cash flow? Assume it had no amortization expense Chapter 2 at top problems 1, 2, 3, and 5 show all work please! Chapter 3 problems 7, 8, 9, 10 show all work please! (3?7) Current and Quick Ratios Ace Industries has current assets equal to $3 million. The company?s current ratio is 1.5, and its quick ratio is 1.0. What is the firm?s level of current liabilities? What is the firm?s level of inventories? Cash and marketable securities $ 100.00 Fixed assets $ 283.50 Sales $1,000.00 Net income $ 50.00 Quick ratio 2.0 Current ratio 3.0 DSO 40.55 days ROE 12% 112 Part 1: Fundamental Concepts of Corporate Finance 9781133665007, Financial Management: Theory and Practice, Michael C. Ehrhardt - ? Cengage Learning. righitls rvvedi. de wtitehoulta exppreuss (3?8) Profit Margin and Debt Ratio Assume you are given the following relationships for the Clayton Corporation: Sales/total assets 1.5 Return on assets (ROA) 3% Return on equity (ROE) 5% Calculate Clayton?s profit margin and debt ratio. (3?9) Current and Quick Ratios The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson?s short-term debt (notes payable) increase without pushing its current ratio below 2.0? What will be the firm?s quick ratio after Nelson has raised the maximum amount of short-term funds? (3?10) Times-Interest-Earned Ratio The Manor Corporation has $500,000 of debt outstanding, and it pays an interest rate of 10% annually: Manor?s annual sales are $2 million, its average tax rate is 30%, and its net profit margin on sales is 5%. If the company does not maintain a TIE ratio of at least 5 to 1, then its bank will refuse to renew the loan and bankruptcy will result. What is Manor?s TIE ratio
Question 4
Hello, Please prepare the answers for the following questions (case attached): 1. Prepare monthly income statements, balance sheets, cash budgets on sales increases of 500 units per month and 30-day advance production for January through September. When will the company need extra funds? How much will be needed? When can a short-term loan to cover the need be repaid? 2. How is it possible that a company starts with 250 000$ in capital and has profitable sales for a period of six months and still ends up with zero bank balance? Why did Medieval Adventures need money in April? How could this need have been avoided? 3. From your calculations and financial statements for Question 1 , derive cash flow statements for the months of March, May, and July from each month's beginning and ending balance sheets and income statement. Compare these derived cash flow statements with the cash budgets prepared directly in Question 1.,Hello, is it possible to get a comment on the homework you've answered? While going through the balance sheet, I wonder why assets part doesn't equal to Equities part? (Example: Cash 111250 Accounts Recievable 96250 Inventory 52500 260000 Equities Common Stock 250000 Retained Earnings -7500) Tank you in advance. Jelizaveta
Question 5
1 A company currently pays a dividend of $3.75 per share, D0 = 3.75. It is estimated that the company's dividend will grow at a rate of 17% percent per year for the next 2 years, then the dividend will grow at a constant rate of 5% thereafter. The company's stock has a beta equal to 1.8, the risk-free rate is 7.5 percent, and the market risk premium is 5 percent. What is your estimate is the stock's current price? Round your answer to the nearest cent. 2 The beta coefficient for Stock C is bC = 0.8, and that for Stock D is bD = - 0.5. (Stock D's beta is negative, indicating that its rate of return rises whenever returns on most other stocks fall. There are very few negative-beta stocks, although collection agency and gold mining stocks are sometimes cited as examples.) If the risk-free rate is 8%and the expected rate of return on an average stock is 14%, what are the required rates of return on Stocks C and D? Round the answers to two decimal places. rC = ?% rD = ?% For Stock C, suppose the current price, P0, is $25; the next expected dividend, D1, is $1.50; and the stock's expected constant growth rate is 4%. Is the stock in equilibrium? Explain, and describe what would happen if the stock is not in equilibrium. I. In this situation, the expected rate of return = 12.80%. However, the required rate of return is 10%. Investors will seek to sell the stock, dropping its price to $17.05. At this price, the stock will be in equilibrium. II. In this situation, the expected rate of return = 10%. However, the required rate of return is 12.80%. Investors will seek to buy the stock, dropping its price to $17.05. At this price, the stock will be in equilibrium. III. In this situation, the expected rate of return = 10%. However, the required rate of return is 12.80%. Investors will seek to sell the stock, dropping its price to $17.05. At this price, the stock will be in equilibrium. IV. In this situation, the expected rate of return = 12.80%. However, the required rate of return is 10%. Investors will seek to buy the stock, dropping its price to $17.05. At this price, the stock will be in equilibrium. V. In this situation, both the expected rate of return and the required rate of return are equal. Therefore, the stock is in equilibrium at its current price. 3 Brushy Mountain Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 7% per year. If D0 = $4 and rs = 12%, what is the value of Brushy Mountain Mining's stock? Round your answer to the nearest cent. 4 nvestors require a 15% rate of return on Brooks Sisters' stock (rs = 15%). What would the value of Brooks's stock be if the previous dividend was D0 = $3.75 and if investors expect dividends to grow at a constant compound annual rate of (1) - 2%, (2) 0%, (3) 3%, or (4) 10%? Round your answers to the nearest cent. $ $ $ $ Using data from part a, what is the Gordon (constant growth) model's value for Brooks Sisters's stock if the required rate of return is 15% and the expected growth rate is (1) 15% or (2) 20%? Are these reasonable results? Explain. Is it reasonable to expect that a constant growth stock would have g > rs? 5 The risk-free rate of return, rRF , is 9%; the required rate of return on the market, rM, 16%; and Schuler Company's stock has a beta coefficient of 1.4. If the dividend expected during the coming year, D1, is $2.75, and if g is a constant 1.75%, then at what price should Schuler's stock sell? Round your answer to the nearest cent. $ Now, suppose the Federal Reserve Board increases the money supply, causing a fall in the risk-free rate to 6% and rM to 12%. How would this affect the price of the stock? Round your answer to the nearest cent. $ In addition to the change in part b, suppose investors' risk aversion declines; this fact, combined with the decline in rRF, causes rM to fall to 10%. At what price would Schuler's stock sell? Round your answer to the nearest cent. $ Suppose Schuler has a change in management. The new group institutes policies that increase the expected constant growth rate to 8%. Also, the new management stabilizes sales and profits, and thus causes the beta coefficient to decline from 1.4 to 0.6. Assume that rRF and rM are equal to the values in part c. After all these changes, what is Schuler's new equilibrium price? (Note: D1 goes to $2.92.) Round your answer to the nearest cent. 6 Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1 = $1.50). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 16%. What is the value per share of the company's stock? Round your answer to the nearest cent.
