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The financial manager of New England Blissful Dairies, a distributor of milk, cream, and ice cream products, has finished the 12-month operating budget. For the month of June, the following projections were made:June 1 Cash Balance $90,000Cash Receipts $300,000Cash Disbursement $350,000Taking into account an amount of cash that the firm likes to maintain as a target (minimum cash balance) of $75,000, prepare the cash budget for June using the format below. Assume that, if necessary, the company will draw upon a pre-established line of credit with its bank to maintain the target cash balance. Will the company need short-term financing?

Below are account balances for Electra Engines Inc., a manufacturer. The accounts are shown in a random order.What is the amount of net working capital?

Complete the following statements by either filling in the missing word or selecting the correct option from the two choices given in parentheses (X/X or X/X/X):The ___________ analysis is a type of financial statement analysis which is most commonly used to create a baseline estimate for financial forecasts.The ___________ on the income statement is a key element, which is used to estimate several other key income statement lines.In the context of a firm’s financial statements, pro forma means historical/forward-looking/audited.The most common length of a forecast if the goal is to forecast cash and assess possible short-term growth, is ________.When completing a first pass at a forecasted income statement, variable/fixed costs are assumed to be tied directly to sales.In the cash forecast, if cash inflows exceed cash outflows, this creates a cash deficit/surplus.

Instructions: Questions 2 to 6 should be completed in Excel.ABC Company’s cost of goods sold last year was 60%. It is anticipated that this will remain the same in the coming year. Its sales returns and allowances are typically small, normally accounting for 1% of sales. Use the information from Questions 1–3 to estimate the company’s sales returns and allowances, net sales, and cost of goods sold, and calculate its gross margin. (HINT: Calculate the sales returns and allowances by multiplying the Gross Sales by 1%. Then deduct this from Gross Sales to give Net Sales. Then use the Net Sales to calculate Cost of Goods Sold and finally the Gross Margin.)

SodaFizz has a beta of 1.1. If the risk-free rate is 3% and the market risk premium is 11%, what is the cost of equity capital for SodaFizz according to the Capital Asset Pricing Model (CAPM)?

Optimist Company can sell common shares at $30 per share and obtain debt funding at 8 percent. It has a marginal income tax rate of 25 percent. The yield on US Treasury securities is 3 percent. The market risk premium is 6.0 percent, and the firm’s beta is 0.9. It has a targeted debt-to-equity ratio of 1:1. What is its after-tax cost of debt?

Watch NPV and IRR Real Life Example Using Solver.Then, conduct the same calculation using the attached spreadsheet, changing the Current House Price to $538,000 USD and leaving all other values unchanged. What is the yearly rate of return? Is this what you would expect the new yearly rate of return to be? Explain why. 

Complete the following statements by either filling in the missing word or selecting the correct option from the two/three choices given in parentheses (X/X or X/X/X):A disadvantage of the __________ method is that it ignores the time value of money. A company should accept a project if the NPV is positive/negative and reject a project if the NPV is positive/negative.The net present value of a project equals the present value/future value of the cash inflows minus the present value/future value of the cash outflows.The IRR of a project is the discount rate that makes the NPV greater than zero/ less than zero/equal to zero.The following is a method of adjustment used for comparing projects of different lives: IRR/Modified IRR/equal annuity.When a company can only fund some of its good projects, it should rank the projects by _________.When we say a company is considering two mutually exclusive projects, it means that the company is considering taking on one/both/none of the projects.

What is a random walk in the context of stock prices? Use a graph to illustrate your answer. Limit your response to 150 words.

Complete the following statements by either filling in the missing word or selecting the correct option from the two choices given in parentheses (X/X): One of the most important benefits of using comparative P/E ratios is that they can ________ stocks with different prices and various earnings levels. The P/B ratio does not work well for companies that primarily consist of ___________ assets such as __________. The two-stage DDM approach might be used to value a firm and its stock that experiences two stages of growth. These are periods of higher/lower growth and subsequently a period of higher/lower growth. A major shortcoming of the zero-growth DDM model is that the model assumes a constant/growing dividend. The required inputs for the discounted cash flow (DCF) model are: historical/future cash flow amounts for the period analyzed; an estimated historical/future value that will result from the sale of the stock or asset; and a discount rate to discount future cash flows to the present/future time. Features of preferred stock are a dividend paid out to stockholders before/after dividends are paid to common stockholders and a priority/subordinate claim to assets before common stockholders.  Operational efficiency refers to the _____  and _______ of processing a buy or sell order at the best available price.  Computerized trading systems such as the Universal Trading Platform used on the Nasdaq, are designed to facilitate high transaction ________ and __________. ___________ refers to how quickly a source reflects comprehensive information in the available trading prices. A price is efficient if the market has used all available information to set it, implying that the stock always trades at a fair/inflated/deflated value.