Finance Questions

I'm not sure what to do?? Thanks 1. Suppose your expected incomes in years 1 and 2 are $60,000 and $70,000 respectively. You have 40,000 in cash in year 0. Market interest rates for one-year loans are 8% in year 0 and 14% in year 1. a) If your minimum consumption level today is 20,000 and it is growing at 10% for the next two years, what will be your consumption potential in years 1 and 2? Consumption potential is defined as the amount you can consume in a given year if your consumption in the other two periods is at (respective) minimal levels b) Suppose a bank offers an account that pays a fixed yearly rate of interest but allows no withdrawal until the end of the second year.... click for more

Business evaluation

Andre has asked you to evaluate his business, Andre's Hair Stylling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Assume that the only service performed is the giving of haircuts, the unit price of which is $12. Andre has asked you to find the following information. Find the contribution margin per haircut. Assume that the barbers compensation is a fixed cost. Determine the annual break-even point, in number of haircuts. What will be the operating income if 20,000 haircuts are performed? ... click for more

Case Study: Warren E. Buffett: A Would the GEICO acquisition serve the long term goals of Berkshire Hathaway? B Was the bid price appropriate? C What might account for the share price increase for Berkshie Hataway at the annoucement?

Questions: A Would the GEICO acquisition serve the long term goals of Berkshire Hathaway? B Was the bid price appropriate? C What might account for the share price increase for Berkshie Hataway at the annoucement? No complex calculations, but simple mathematical analysis to support answers. Case Study and data attached.

Current/noncurrent method : traslation gain(loss)

Ajax Manufacturing's German subsidiary has the following balance sheet(in DM): Cash, marketable securities: 250,000 Accounts receivable 1,000,000 Inventory ( at market) 2,700,000 Fixed assets: 5,100,000 Total assets DM 9,050,000 Current liabilities DM 750,000 Long-term debt 3,400,000 Equity 4,900,000 Total liabilities plus equity: DM 9,050,000. Suppose the DM appreciates from $0.70 to $0.76 during the period. Under the current/noncurrent method what is Ajax's traslation gain(loss)?

Currency translation methods: temporal method to calculate Ajax's traslation gain(loss)

Ajax Manufacturing's German subsidiary has the following balance sheet(in DM): Cash, marketable securities: 250,000 Accounts receivable 1,000,000 Inventory ( at market) 2,700,000 Fixed assets: 5,100,000 Total assets DM 9,050,000 Current liabilities DM 750,000 Long-term debt 3,400,000 Equity 4,900,000 Total liabilities plus equity: DM 9,050,000. Suppose the DM appreciates from $0.70 to $0.76 during the period. Under the temporal method what is Ajax's traslation gain(loss)?