Reference no: EM13890168
The ABC Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. ABC has beginning cash on hand of $20,000 and wants to maintain this minimum cash level throughout the next year.
Cash Cash
Month Receipts Disbursements
January $100,000 $100,000
February $90,000 $110,000
March $80,000 $110,000
April $100,000 $150,000
May $120,000 $180,000
June $160,000 $180,000
July $200,000 $180,000
August $250,000 $180,000
September $250,000 $150,000
October $200,000 $110,000
November $140,000 $100,000
December $100,000 $100,000
A. Determine whether or not ABC will have a cash need during the next year.
B. If the company does need cash, in which month will it need the cash?
C. What is the most cash the company will need to borrow during the year?
D. Will the company have paid back all of its borrowings by the end of the year?
Submit your calculations and answers in an Excel spreadsheet please.
|
Certainty to investors in the floating rate note
: Consider the auction of 2-year Floating Rate Notes in April 2014. As we saw in class, the notes are priced at par and investors receive face value at maturity. Coupon interest payments are indexed to the 13-week T-bill and are made quarterly (July, O..
|
|
Mortgage lender-the current mortgage rate
: You are a mortgage lender. The current mortgage rate for a 30-year fixed loan is 3.875%. For the sake of this assignment, let's assume this is an extreme balloon loan and no prinicpal payments are made until maturity, so annual interest is based off ..
|
|
Calculate portfolio beta
: Calculate Laurel’s portfolio beta for last year and for this year. Assume that the changes in investment (value) come from changing stock prices rather than buying and selling shares. What has happened to the riskiness of Laurel’s portfolio? Should s..
|
|
Determine the total monthly mortgage payment for covington
: Ben Covington is buying a condo. They will obtain a $220,000, 30 yr. mortgage at 5 percent. Their annual property taxes are expected to be $1,800. Property insurance is $480 a year, & the condo association fee is $220 a month. Based on these items, d..
|
|
Cash disbursements when preparing cash budgets
: The ABC Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. ABC has beginning cash on hand of $20,000 and wants to maintain this minimum cash level throughou..
|
|
Compute the expected share price
: Suppose the dividends for the Seger Corporation over the past six years were $1.49, $1.57, $1.66, $1.74, $1.84, and $1.89, respectively. Compute the expected share price at the end of 2014 using the perpetual growth method. Assume the market risk pre..
|
|
Capital expenditures and increased net working capital
: You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.4, a debt-to-equity ratio of .6, and a tax rate of 40 percent. Lauryn made $7 million in capital expe..
|
|
What is the price and expected rate of return of the bond
: Calculate price of a bond with a par value of $1,000 with a $50 coupon (paid annually) and matures in 5 years. What is the price and Expected rate of return of the bond after the first coupon payment is made?
|
|
Dividends are expected to grow-what is the value of stock
: Could I Industries just paid a dividend of $1.92 per share. The dividends are expected to grow at a 19 percent rate for the next 3 years and then level off to a 6 percent growth rate indefinitely. If the required return is 11 percent, what is the val..
|