Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Pelican paper inc and timberland forest

23/10/2021 Client: muhammad11 Deadline: 2 Day

Accounting

P2-20 The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of craft papers. Some financial statement values for each company follow. Use them in a ratio analysis that compares the firms’ financial leverage and profitability.

Item Pelican Paper, Inc. Timberland Forest, Inc.

Total assets $10,000,000 $10,000,000

Total equity (all common) 9,000,000 5,000,000

Total debt 1,000,000 5,000,000

Annual interest 100,000 500,000

Total sales $25,000,000 $25,000,000

EBIT 6,250,000 6,250,000

Earnings available for

Common stockholders 3,690,000 3,450,000

a. Calculate the following debt and coverage ratios for the two companies. Discuss their financial risk and ability to cover the costs in relation to each other.

b. Calculate the following profitability ratios for the two companies. Discuss their profitability relative to each other.

c. In what way has the larger debt of Timberland Forest made it more profitable than Pelican Paper? What are the risks that Timberland’s investors undertake when they choose to purchase its stock instead of Pelican’s?

P5–3 Risk preferences Sharon Smith, the financial manager for Barnett Corporation, wishes to evaluate three prospective investments: X, Y, and Z. Currently, the firm earns 12% on its investments, which have a risk index of 6%. The expected return and expected risk of the investments are as follows:

Expected Expected

Investment return risk index

X 14% 7%

Y 12 8

Z 10 9

a. If Sharon were risk-indifferent, which investments would she select? Explain why.

b. If she were risk-averse, which investments would she select? Why?

c. If she were risk-seeking, which investments would she select? Why?

d. Given the traditional risk preference behavior exhibited by financial managers, which investment would be preferred? Why?

P5–4 Risk analysis Solar Designs is considering an investment in an expanded product line. Two possible types of expansion are being considered. After investigating the possible outcomes, the company made the estimates shown in the following table:

Expansion A Expansion B

Initial investment $12,000 $12,000

Annual rate of return

Pessimistic 16% 10%

Most likely 20% 20%

Optimistic 24% 30%

a. Determine the range of the rates of return for each of the two projects.

b. Which project is less risky? Why?

c. If you were making the investment decision, which one would you choose? Why? What does this imply about your feelings toward risk?

d. Assume that expansion B’s most likely outcome is 21% per year and that all other facts remain the same. Does this change your answer to part c? Why?

P4-10 Basic scenario analysis Murdock Paints is in the process of evaluating two mutually exclusive additions to its processing capacity. The firm’s financial analysts have developed pessimistic, most likely, and optimistic estimates of the annual cash inflows associated with each project. These estimates are shown in the table on page 488.

Project A Project B

Initial investment (CF0) $8,000 $8,000

Outcome Annual cash inflows (CF)

Pessimistic $ 200 $ 900

Most likely 1,000 1,000

Optimistic 1,800 1,100

a. Determine the range of annual cash inflows for each of the two projects.

b. Assume that the firm’ s cost of capital is 10% and that both projects have 20-year lives. Construct a table similar to this for the NPVs for each project. Include the range of NPVs for each project.

c. Do parts a andb provide consistent views of the two projects? Explain.

d. Which project do you recommend? Why?

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Calculation Master
Top Grade Essay
Online Assignment Help
Top Class Results
Engineering Solutions
University Coursework Help
Writer Writer Name Offer Chat
Calculation Master

ONLINE

Calculation Master

I can assist you in plagiarism free writing as I have already done several related projects of writing. I have a master qualification with 5 years’ experience in; Essay Writing, Case Study Writing, Report Writing.

$21 Chat With Writer
Top Grade Essay

ONLINE

Top Grade Essay

I have read your project description carefully and you will get plagiarism free writing according to your requirements. Thank You

$36 Chat With Writer
Online Assignment Help

ONLINE

Online Assignment Help

I am a professional and experienced writer and I have written research reports, proposals, essays, thesis and dissertations on a variety of topics.

$19 Chat With Writer
Top Class Results

ONLINE

Top Class Results

After reading your project details, I feel myself as the best option for you to fulfill this project with 100 percent perfection.

$50 Chat With Writer
Engineering Solutions

ONLINE

Engineering Solutions

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$20 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

I have done dissertations, thesis, reports related to these topics, and I cover all the CHAPTERS accordingly and provide proper updates on the project.

$42 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

The education of a christian prince pdf - PD Cycle - Swerve ball argos - Straight from the horse's mouth brave new world - Hw11 - What are security threat groups - Libs 150 quiz 1.1 answers - Take my online statistics exam for me - 3 bit binary counter jk flip flop - Coaching centre near me - Power sonic ps-1270 f1 charger - Homework 7.38 - A spherical metal shell a of radius ra - Career Research - Jcb 80 1269 eec - Adventure consultants rob hall - Curtin special late withdrawal - Well woman exam soap note example - Persuasive techniques in advertising worksheet - Agilent site directed mutagenesis - General motors swot analysis - Underline the collective nouns - Forced choice preference assessment - Applying the ROPE Process - Quality management for organizational excellence introduction to total quality - Death Penalty in America - Operations Analysis - Nib core extras cover - Writing Project 4—Annotated Cover Letter - My homework lesson 1 factors and multiples page 489 - Vcaa physics advice for teachers - St martin's guide to writing 10th edition - Sin in exponential form - Millivolt drop test formula - 2912 amberhill way charleston sc - Compelled disclosure of individually identifiable information - Explain the fruit of the poisonous tree doctrine - Economy Quiz - A kind of hush line dance step sheet - Year 11 chemistry syllabus - 50 examples of gerunds - Routine Messages - Needs Assessments - Active maths 4 book 1 solutions - Situational leadership suggests that effective leaders base behavior upon - InfoTech in a Global Economy - Lack of social or emotional reciprocity - Accelerated reader quiz list reading practice - Variable expense ratio - Assignment - Plagiarism checker usf - Shirlene school of ballet - Amy fabbrini snopes - Ceb applications leadership council - Baking soda and citric acid equation - Is 2 8 greater than 1 2 - Fin 571 week 3 quiz - Consumer behaviour case study questions - In most spanish speaking countries married women legally __ - Probate form pa2 booklet - Main earth bonding sizes - Ib psychology command terms - Cumberland metal industries case study solution - Retail method of valuing inventory - Why did hoover hate einstein - Social psychology 10th edition pdf aronson - Kathmandu annual report 2020 - Logical Models and Logframes - Themes of the poisonwood bible - Saif khan yale immigration - Mycampus aiuonline - Human Biology - Forms of Nursing Inquiry: Quality improvement (QI), Research, and Evidence-Based Practice (EBP) - Boeing 737-300 fuel tank capacity - Experiment 1 neutralization of acids and bases data tables - During a fact finding interview an important guideline is - Poppy cottage druridge bay - Www eastanglianairambulance org uk - Download TikTok videos - Musical theatre powerpoint - Organizational Culture and Values - 3 Discussions and on line observations - Clinical skills development service - Does facebook promote loneliness - Types of urban processes - 3 what is the cannon bard theory of emotion - Www kidsastronomy com solar system htm - Week Four Study Guide - St joseph's catholic church chelsea - 107NR - Effective writing a handbook for accountants 11th edition pdf - Shadow health tina jones health history - Height of lamp post singapore - Map grid of australia definition - Geology Project 3 & 4 - Mount macedon walking tracks - Starbucks business ethics case study - Does ebony wood float - Cn polar or nonpolar - Wiseman's framework of strategy development