• Q : Operating cash flow-cash flow to creditors....
    Finance Basics :

    What is the operating cash flow during 2014? What is the cash flow to creditors during 2014? What is the cash flow to stockholders during 2014?

  • Q : What rate should the shop report....
    Finance Basics :

    Big Dom's Pawn Shop charges an interest rate of 14 percent per annum on loans to its customers. What rate should the shop report?

  • Q : What is the maximum internal growth rate consistent....
    Finance Basics :

    What is the maximum internal growth rate consistent with not requiring external funding for a firm reporting net income of $500,000, a dividend payout ratio of 40%.

  • Q : Calculate the pre- and post-tax....
    Finance Basics :

    Calculate the pre- and post-tax WACC for the firm with $12,000,000 of debt at a pre-tax cost of 10% and $28,000,000 of equity at a cost of 14%. The firm's tax liability rate is 40%.

  • Q : Determining the company days sales in receivables....
    Finance Basics :

    A company has net income of $180,000, a profit margin of 8.0%, and an accounts receivable balance of $140,000. Assuming 75% of sales are on credit, what are the company's days' sales in receivables

  • Q : What measure of risk is relevant when finding project risk....
    Finance Basics :

    If bankruptcy costs and/or shareholder under diversification are an issue what measure of risk is relevant when evaluating project risk in capital budgeting?

  • Q : What is the ytm for bond....
    Finance Basics :

    A company has a bond outstanding that sells for $870. The bond has coupon payments of $53 paid annually and matures in 18 years. What is the YTM for this bond?

  • Q : Question regarding the holding period return....
    Finance Basics :

    You buy an eight-year bond that has a 6% current yield and a 6% coupon (paid annually). In one year, promised yields to maturity have risen to 7%. What is your holding period return?

  • Q : Ccc new required return....
    Finance Basics :

    Now the required return on an average stock increases by 30.0% (not percentage points). Neither betas nor the risk-free rate change. What would CCC's new required return be?

  • Q : What is the nonmaturing perpetual preferred stock worth....
    Finance Basics :

    Suppose jc penneys has a nonmaturing perpetual preferred stock outstanding that pays 1.56 quarterly dividend and has a required return of 12% APR - 3% quarterly. what is the stock worth?

  • Q : Calculate the number of shares outstanding....
    Finance Basics :

    Company X has 100 shares outstanding. It earns $1,000 per year and announces that it will use all $1,000 to repurchase its shares in the open market instead of paying dividends. Calculate the number

  • Q : What is the current stock price....
    Finance Basics :

    After that, investors believe that the dividend will grow at 20% per year for three years before settling down to a long-run growth rate of 4%. The required rate of return on Groningen stock is 15%.

  • Q : Find the amount of annual depreciation tax shield for a firm....
    Finance Basics :

    What is the amount of annual depreciation tax shield for a firm with $200,000 in net income, $75,000 in depreciation expense and a 35% marginal tax rate?

  • Q : What is the required return on preferred stock....
    Finance Basics :

    Required return for a preferred stock) James River $3.38 preferred is selling for $45.25. The preferred dividend is nongrowing. What is the required return on James River preferred stock?

  • Q : Attractiveness of stock....
    Finance Basics :

    WaterCo is a manufacturer of boat parts and has been in business only a few years. Its board of directors decided to start paying a dividend to help boost the attractiveness of its stock.

  • Q : Find the firms after tax cost of debt on the bond....
    Finance Basics :

    Issue costs will be 11% of the market value. The company pays 18% in taxes. What will be the firms after tax cost of debt on the bond?

  • Q : How much in dividends was paid to shareholders during year....
    Finance Basics :

    The pervious retained earnings were $ 780 million. How much in dividends was paid to shareholders during the year?

  • Q : Change in net working capital....
    Finance Basics :

    This will entail an increase in inventory of $8000, an increase in accounts payable of $2500, and an increase in property, plant, and equipment of $40,000. All other accounts will remain unchanged.

  • Q : What is the corporate tax paid by firm with taxable income....
    Finance Basics :

    What is the corporate tax paid by a firm with taxable income of $300,000, given the following tax tables. $0 - $50,000 15%$50,000.

  • Q : Compute current price of the bond....
    Finance Basics :

    ABC Corp. issued a 12%, 20-year coupon rate bond 5 years ago. Interest rates are now 8%. Based on semi-annual analysis what is the current price of the bond?

  • Q : Determining the beta of portfolio....
    Finance Basics :

    You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17 percent. Stock X has an expected return of 14.8 percen

  • Q : What is the required rate of return on stock....
    Finance Basics :

    The dividend is expected tp grow forever at a constant rate of 10% a year. What is the required rate of return on Woidtke's stock?

  • Q : How much set aside each year to have two million in account....
    Finance Basics :

    If the interest rate is 5%, how must you set aside each year to make sure that you will have 2 million in the account.

  • Q : Question-total real return on investment....
    Finance Basics :

    If the inflation rate was 4.4 percent over the past year, what would be your total real return on investment?

  • Q : Question-red bud co....
    Finance Basics :

    The Red Bud Co. pays a constant dividend of $3.00 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends pe

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