Finance, cash flow, and financial statement analysis
Please answer questions from each chapter (professor will assign the # of which one you will do) each question must be 100+ words.
1(3) – What is the primary disadvantage of the corporate form of the organization? Name at least two advantages of the corporate organization?
2(11) – Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on the short-term profits at the expense of the long-term profits
3(9) – The 2014 balance sheet of Steelo, Inc., showed current assets of $4,630 and current liabilities of $2,190. The 2015 balance sheet showed current assets of $5,180 and current liabilities of $2,830. What was the company’s 2015 change in net working capital, or NWC?
4(4) – An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The discount rate is 14 percent. What is the discounted payback period for these cash flows if the initial cost is $5,200? What if the initial cost is $5,400? What if it is $10,400?
5(7) A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?
6(1) Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a deposit of $9,000 in each bank, how much more money would you earn from your Second City Bank account at the end of seven years?