spreadsheet
Download to a spreadsheet from finance.yahoo.com for the last three years of monthly adjusted stock prices for Coca-Cola (KO), Citigroup (C),
and Pfizer (PFE).
a. Calculate the monthly returns.
b. Calculate the monthly standard deviation of those returns (see Section 7-2). Use the Excel function STDEVP to check your answer. Find the annualized standard deviation by multiplying by the square root of 12.
c. Use the Excel function CORREL to calculate the correlation coefficient between the monthly returns for each pair of stocks. Which pair provides the greatest gain from diversification?
d. Calculate the standard deviation of returns for a portfolio with equal investments in the three stocks.
cost of capital
A preferred stock paying a 9 percent dividend on a $150 par value. If a new issue is offered, flotation costs will be 12 percent of the current price of $175. What is the cost of capital for the company?
capital structure
If the government were to lower the corporate tax rate, all other factors held constant, how would this affect a firm’s capital structure?
expense audit
Scenario:
As the account manager for ABC Services, you are in charge of all company purchases. Recently, your company conducted an expense audit and determined that the company’s current cell phone plan is insufficient and expensive. Your task is to shop around for a new cell phone plan that will meet the needs of all your employees while also being cost-effective. Things to consider: your employees travel provincially, nationally and internationally and need service everywhere they go. Likewise, some employees work in remote locations and may also need data on the road.
the first job is to establish criteria – the evaluating factors you will measure the cell phone plans against. For example, cost is a criteria. It would include things like cost of the phone, monthly rate, cost of data overages, etc.
List and explain 3 other criteria that you would use to select a suitable phone plan for your company
Partnership
Lonnie Davis has been a general partner in the Highland Partnership for many years and is also a sole proprietor in a separate business. To spend more time focusing on his sole proprietorship, he plans to leave Highland and will receive a liquidating distribution of $66,500 in cash and land with a fair market value of $132,500 (tax basis of $176,000). Immediately before the distribution, Lonnie’s basis in his partnership interest is $392,000, which includes his $85,500 share of partnership debt. The Highland Partnership does not hold any hot assets.
b. What is Lonnie’s basis in the land?
sole trader
1. Define a sole trader. Explain the advantages and disadvantages of operating as a sole trader business.
2. Define partnership. Explain the advantages and disadvantages of operating a partnership.
3. Are sole traders ever required to be licensed?
4. Why is it important for the partners in a partnership entity to have an agreement? What would happen if the partners did not sign an agreement during the formation of their business and one partner take the others to the court due to some disagreement in terms of sharing the profit?
5. Define “Partnership Agreement” and list all information it includes.
6. Explain the taxation aspect of partnerships?
7. What is the “profit share ratio”?
8. Differentiate between a sole trader and partnership business.
free-market national economy
Select any one of the following starter bullet point sections. Review the important themes within the sub questions of each bullet point. The sub questions are designed to get you thinking about some of the important issues. Your response should provide a succinct synthesis of the key themes in a way that articulates a clear point, position, or conclusion supported by research. Select a different bullet point section than what your classmates have already posted so that we can engage several discussions on relevant topics. If all of the bullet points have been addressed, then you may begin to reuse the bullet points with the expectation that varied responses continue.
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****A free-market national economy is experiencing a recession with no apparent end in sight. Determine what two pricing objectives you would recommend for producers of goods and services in the country. Explain why you would recommend these two pricing objectives.
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****Explain the way pricing strategy changes over the course of the four stages of the product (category) life cycle: introduction, growth, maturity, and decline. Provide reasoning to support your answer.
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****Identify three internal and three external factors influencing the setting of prices. Discuss how each of these factors influences the price of a service.
APA format, 700-800 words.
rate of return
Two mutually exclusive projects have an initial cost of €47,500 each. Project A produces cash inflows of €25,300, €37,100, and €22,000 for Years 1 through 3, respectively. Project B produces cash inflows of €43,600, €19,800 and €10,400 for Years 1 through 3, respectively. The required rate of return is 14.7 percent for Project A and 14.9 percent for Project B. Which project(s) should be accepted and why?
business requirements document and a project plan
This assignment consists of two (2) sections: a business requirements document and a project plan. You must submit both sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is written for. Additionally, you may create and / or assume all necessary assumptions needed for the completion of this assignment.
