Ask Question, Ask an Expert


Ask Basic Finance Expert

problem1. Your firm has $45.0 million invested in an accounts receivable, which is 90 days of net revenues. When this value could be reduced to 50 days, what annual raise in income would your firm realize if the raise in cash could be invested at 7.5 percent?

problem2. Your firm’s strategic plan calls for a net raise in total assets of $100 million throughout the next five years, which represents the annual compounded growth rate of 15 percent. Equity growth is also projected to be 15 percent per year. Suppose that the firm’s Total Asset Turnover will average 1.0 in each of the 5 years and Equity Financing percentages will remain stable at 50 percent. The firm projects Reported Income Index values to be 0.85 each year. What is required Total Margin that will make this plan financially feasible?

Use the following information to answer problems 3, 4, and 5: You have been asked to set up a pricing structure for radiology on the per-procedure basis. Present budgetary data is presented below: Budgeted Procedures $10,000 Budgeted Cost $400,000 Desired Profit $80,000 It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below: Payer Volume % Discount % Blue Cross 20 4 Unity 15 10 Kaiser 10 10 Self-Pay 5 40 50%

problem3. What rate should be set to generate the required $80,000 in profit in preceding ex?

problem4. If the forecasted volume increased to 12,000 procedures and budgeted costs rose to $440,000, while all other variables remained constant, what price must be established?

problem5. Suppose that the only change in the original ex data is that Blue Cross increases their discount to 20 percent. What price should be set?

problem6. You wish to retire a $10,000,000 bond that can be called in five years for 110 percent of par value, or $11,000,000. You also require making year-end interest payments of $700,000 per year in each of the upcoming five years. If you can invest money at 8 percent, how much money must you set aside today to meet these kinds of obligations?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M94291

Have any Question? 

Related Questions in Basic Finance

Describe the meaning of a state of nature and explain how

Describe the meaning of a "state of nature" and explain how this concept is used to provide expected measures of return and risk.

Securitization has spread from mortgages to student loans

Securitization has spread from mortgages to student loans and credit card debt. However, few loans to businesses have been securitized. Explain why.

Consider the example in given figure with asymmetric

Consider the example in given Figure with asymmetric information: the two firms know which one is risky and which is safe, but savers do not. Keep the example the same as in the figure, except for the earnings of the ris ...

Stocksin 2-3 pages write a recommendation to your friend

Stocks In 2-3 pages, write a recommendation to your friend outlying the ten stocks you would suggest they pick to create a diversified portfolio with the goal of eliminating unsystematic risk. Explain how this group of s ...

Program a has a profit of 5000 and an investment of 100000

Program A has a profit of $5,000 and an investment of $100,000, while program B has a profit of $10,000 and an investment of $220,000. Which program has the better ROI?

Explain how a recessionary output gap would emerge in an

Explain how a recessionary output gap would emerge in an economy where the long-run aggregate supply curve is persistently shifting to the right.

Managementsecond testthis test consists of four essay

MANAGEMENT SECOND TEST This test consists of four essay questions. They have equal weight. Answer any three of the four. Answer each question completely, using an example to illustrate the point discussed. You are writin ...

Which statement is falsea if pa 05 then the odds against

Which statement is false? A. If P(A) = .05, then the odds against event A's occurrence are 19 to 1. B. If A and B are mutually exclusive events, then P(A or B) = 0. C. The number of permutations of five things taken two ...

Principles of financial analysisspreadsheet assignment

PRINCIPLES OF FINANCIAL ANALYSIS SPREADSHEET ASSIGNMENT: Eastland Products, Inc. Amexicorp, Inc. 1. Retrieve the file CFM0318P.XLS. Boldface cell A1 and enter the appropriate values in cells C7 and C17. 2. Enter the appr ...

Fe 570 course project- 1 select security stock index or a

FE 570 Course Project- 1. Select security (stock, index, or a mutual fund), time period (2 - 5 years) and download relevant daily closing prices from 2. Find technical strategy that yields positive ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate