Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem 1: {Ethical Issues} Suppose that you have just ‘run out of money’ and are not capable to move your ‘idea’ from its development phase to production and the start up phase. Though, you remain convinced that with a reasonable amount of additional financial capital you will be a successful entrepreneur. While your expectations are low, you are meeting up with a loan officer of the local bank in the hope that you can get a personal loan in order to carry on your venture.

A) As you are about to enter the bank, you see a bank money bag lying on street. No one is around to claim the bag. What would you do?

B) Now let’s suppose that what you found lying on the street was a $100 bill. The thought crosses your mind that it would be pleasant to take your significant other out for a nice dinner- something that you have not had for some months. What would you do?

C) Now rather than $100 you find a $1 bill on the street. The thought crosses your mind that you could purchase a lottery ticket with the dollar. Winning the lottery would certainly resolve all your financing requirements to start and run your venture. What would you do?

problem 2: {Ratio Calculations from financial statements} Ricardo Martinez has made the given financial statement projections as part of his business plan for beginning the Martinez Products Corporation. The venture is to manufacture and sell electronic components which make standard overhead projectors ‘smart’. In essence via voice commands a projector can be turned on, off, and the brightness of the projection altered. This will permit the user to avoid audience annoyances related with a bright projection light throughout periods when no overhead transparency is being used. Venture investors generally screen prospective venture opportunities in terms of projected profitability and financial performance.

A) Use the given projected financial statement for Martinez Products to compute financial ratios showing the ventures projected (i) gross profit margin, (ii) net profit margin, (iii) asset intensity, and (iv) ROA.

problem 3: {Ratio Calculations} Ricardo Martinez, the founder of Martinez Products Corporations (see problem above), projects sales to double to $400,000 in the second year of operation.

A) If the financial rations computed for year 1 in problem above remain the same in Year 2, what would be the Martinez dollar amount projections in his business plan for (i) gross profit, (ii) net profit or income and (iii) total assets?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9628

Have any Question? 


Related Questions in Basic Finance

Bull how is consumer debt different today than in the

• How is consumer debt different today than in the past? • What role do interest rates play in mounting consumer debt? • What are the typical interest rates applied to credit cards, mortgages, and other debt? • Many of t ...

Discuss the ways a firm could increase its cash balances eg

Discuss the ways a firm could increase its cash balances (e.g. float, etc.), why it may want to do so and where it could invest the funds.

1 a 75000 mortgage is obtained at 9 it should be paid in 20

1. A $75,000 mortgage is obtained at 9%. It should be paid in 20 years. Find the payment at the start of each month. 2. Herb is a self-employed agent who is setting his own retirement fund. He is depositing $17,000 a yea ...

1 what does assignment mean and why would a lender want to

1. What does "assignment" mean and why would a lender want to assign a mortgage loan? 2. What is meant by a "purchase-money" mortgage loan? When could a loan not be a purchasemoney mortgage loan? 3. What does default mea ...

A biology instructor believes that the average quiz score

A Biology instructor believes that the average quiz score is a good predictor of final exam score. A random sample of 10 students produced the following data where x is the average quiz score and y is the final exam scor ...

Nme at least three ways to reduce the possibility of scc

Name at least three ways to reduce the possibility of SCC? Which is better, a relatively small anode or a large one and why? Is coating a fastener always helpful in fighting corrosion resistance, even if there are minor ...

Change your cover letter to an email messagechange a cover

Change your cover letter to an email message. Change a cover letter you wrote previously (or the one you wrote for Exercise 4) to a version you'll send as an email. What changes will you make in the salutation and format ...

1 what would cause the rate of return for an investor that

1. What would cause the rate of return for an investor that purchases real estate and leases it to the corporation to differ from the rate of return earned by the corporation on the incremental investment in owning versu ...

Imagine that your town or city has increased its nighttime

Imagine that your town or city has increased its nighttime police patrols to reduce crime. Design two quasi-experiments to determine whether this intervention has been effective, one that uses some variation of a nonequi ...

1 what is behavioral research what are its fundamental

1. What is behavioral research? What are its fundamental goals and limitations? Why is learning about behavioral research important? 2. In what ways is behavioral research similar to and different from research in the na ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro