Corporate Finance

A friend has opened a new business named SMALL POTATO based on an invention of a potato chip that tastes like a french fry. There has been a phenomenal market response to this product. Earnings were $2 per share this past year and are expected to grow at a rate of 20% per year until the end of year four.

A friend has opened a new business named SMALL POTATO based on an invention of a potato chip that tastes like a french fry. There has been a phenomenal market response to this product. Earnings were $2 per share this past year and are expected to grow at a rate of 20% per year until the end of year four.

WILD WELDING is a small manufacturing company. The owner produces backyard and garden decorations using scrap metal. The owner’s designs are in demand throughout the region, and the hope is to expand to nationwide marketing and shipping.

WILD WELDING is a small manufacturing company. The owner produces backyard and garden decorations using scrap metal. The owner’s designs are in demand throughout the region, and the hope is to expand to nationwide marketing and shipping.

Your investment group has been looking at CONROY’S CANDIES for a while to determine a buy-in time. You feel now might be that time, but you must convince your partner. You will explain the different methods used to analyze capital investments (e.g., payback period, discounted breakeven, net present value, accounting rate of return, internal rate of return).

Your investment group has been looking at CONROY’S CANDIES for a while to determine a buy-in time. You feel now might be that time, but you must convince your partner. You will explain the different methods used to analyze capital investments (e.g., payback period, discounted breakeven, net present value, accounting rate of return, internal rate of return).

You are the CFO for RENO-PLACE INC. At the most recent shareholder meeting, the CEO was asked a question by a shareholder regarding the sale of one of RENO-PLACE’S holding companies, ACME COMPANY. The question eluded to the fact that RENO-PLACE sold its stake in ACME CO. at a loss during a time when the holding company was very profitable and making money.

You are the CFO for RENO-PLACE INC. At the most recent shareholder meeting, the CEO was asked a question by a shareholder regarding the sale of one of RENO-PLACE’S holding companies, ACME COMPANY. The question eluded to the fact that RENO-PLACE sold its stake in ACME CO. at a loss during a time when the holding company was very profitable and making money.