• Q : What is the required return if company has beta coefficient....
    Finance Basics :

    Jersey Jewel mining has a beta coefficient of 1.2. currently the risk free rate is 5 percent What is the required return for JJM?

  • Q : Are there any patterns in common size financial statements....
    Finance Basics :

    Are there any patterns in the common size financial statements (common size balance sheet and common size income statement) that would indicate significant changes in efficiency or profitability?

  • Q : Calculate the equity ratio....
    Finance Basics :

    An emerging airline has ROA of 8%, and ROE of 20%. What percentage of the airline's assets is financed with debt? To do this problem, first calculate the Equity Multiplier. Then use the EM to calcu

  • Q : Determining the coupon rate of a two-year....
    Finance Basics :

    What is the coupon rate of a two-year, $10,000 bond with semiannual coupons and a price of $9543.45, if it has a yield to maturity of 6.8%?  

  • Q : What is the bond-s expected rate of return....
    Finance Basics :

    ExxonMobil 20-year bonds pay 9% interest annually on a $1000 par value. If the bonds sell at $945, what is the bonds' expected rate of return?

  • Q : What is the current beta on bloom-s common stock....
    Finance Basics :

    What is the current beta on Bloom's common stock? What would Bloom's beta be if the company had no debt in its capital structure?

  • Q : Report to potential borrowers....
    Finance Basics :

    First Century Bank wants to earn an effective annual return on its consumer loans of 10 percent per year. The bank uses daily compounding on its loans. By law, what interest rate is the bank requir

  • Q : Estimate the market value of one share....
    Finance Basics :

    A similar firm which is publicly traded had a price/earnings ratio of 5.0. Using only the information given, estimate the market value of one share of Charleston's stock.

  • Q : Standard deviation of the stock fund....
    Finance Basics :

    Scenario Probability Stock Return (%) Bond return (%) Severe recession 0.05 -40 -9 Mild recession 0.25 -14 15 Normal growth 0.40 17 8 Boom 0.30 33 -5 what is the standard deviation of the stock fund

  • Q : How company-s current dividend payout policy is appropriate....
    Finance Basics :

    Analyze the factors that led to this decision. Do you think the company's current dividend payout policy is appropriate? Why or why not?

  • Q : Current share price for carleton stock....
    Finance Basics :

    The Carleton Company has just paid a dividend of $2 per share, which is expected to grow at 8 percent per year for the next three years, and then at 4 percent per year forever.

  • Q : Compute auto liberty lane coverage if two people are awarded....
    Finance Basics :

    Calculate auto liberty Lane coverage, Becky Fenton has 25/50/10 automobile insurance coverage, if two other people are awarded 35,000 each for injuries.

  • Q : What is the stock worth for preferred stock outstanding....
    Finance Basics :

    (Stock valuation) Suppose Toyota has nonmaturing (perpetual) preferred stock outstanding that pays a $1.00 quarterly dividend and has a required return of 12% APR (3% per quarter). What is the stoc

  • Q : Determining the present value of the savings....
    Finance Basics :

    Your company will generate $68,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.5 percent, what is the present value o

  • Q : Find expected payment if opportunity cost of funds is given....
    Finance Basics :

    This customer normally pays at the net date. If your opportunity cost of funds is 9% the expected payment is worth how much today?

  • Q : Compute the initial purchase price....
    Finance Basics :

    Compute the initial purchase price for an asset with book value of $34,800 and total accumulated depreciation of $85,200.

  • Q : What function do financial markets perform....
    Finance Basics :

    What are financial markets? What function do they perform? How would an economy be worse off without them?

  • Q : Calculating annuity payment....
    Finance Basics :

    John Harper has borrowed $17,400 to pay for his new truck. The annual interest rate on the loan is 9.4 percent, and the loan needs to be repaid in four payments.

  • Q : Which is the correct term for exchange rate....
    Finance Basics :

    If you are an importer of goods and you need to make payment for the purchase of inventory before the close of business today, which of the below is the correct term for the exchange rate that you w

  • Q : Determining the price-sales ratio....
    Finance Basics :

    A firm has sales of $311,000 and net income of $21,600. Currently, there are 18,000 shares outstanding at a market price of $36 per share. What is the price-sales ratio?

  • Q : Determine the market rate of return....
    Finance Basics :

    This dividend increases at an average rate of 3.5% per year. The stock is currently selling for $62.10 a share. What is the market rate of return?

  • Q : Calculating operating cash flow....
    Finance Basics :

    Your firm has net income of $245 on total sales of $1,080. Costs are $610 and depreciation is $120. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash

  • Q : Find portfolio-s beta if only two investment in portfolio....
    Finance Basics :

    An individual has $40,000 invested in a stock with a beta of 0.4. If these are the only two investments in her portfolio, what is her portfolio's beta?

  • Q : Degree of financial leverage....
    Finance Basics :

    A firm has EBIT of $375,000, interest expense of $75,000, preferred dividends of $6,000 and a tax rate of 40 percent. The firm's degree of financial leverage at a base EBIT level of $375,000 is?

  • Q : Compute amount of the shareholders equity....
    Finance Basics :

    A firm has common stock of $84, paid-in surplus of $200, total liabilities of $380, current assets of $330, and fixed assets of $540. What is the amount of the shareholders' equity?

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