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Describe the general relationship between net income and net cash flows from operating activitys for the firm, teh crosby firm.
$11000 in an account earning 9.7% simple interest. After 5 years, he moves the balance into a compounded account offering 8.7% APY for an additional 8 years. The compounding is annual. Find the acc
What is the present value of an offer of $15,000 one year from now if the opportunity cost of capital (discount rate) is 12% per year nominal annual rate compounded monthly?
What is the present value of all future benefits if a discount rate of 11 percent is applied? (Round all values to two places to the right of the decimal point.)
A firm pays a $4.90 dividend at the end of year one (D1), has a stock price of $70, and a constant growth rate (g) of 6 percent. Compute the required rate of return.
The total interest and amortization on foreign loans for both countries are $1 and $2 billion, respectively. What is the debt service ratio (DSR) for each country?
Determine the (a) net cash flow from operating activities, (b) net cash flow from investing activities, and (c) net cash flow from financing activities.
Assume that Stocks return 10 percent with a standard deviation of 10 percent and Bonds return 6 percent with a standard deviation of 6 percent. The risk of a 50/50 portfolio is closest to?
Your portfolio is 180 shares of Sunny Morning, Inc. The stock currently sells for $88 per share. Assuming no taxes, how much will your stock be worth on April 19?
The market index has a standard deviation of 22% and the risk free rate is 8%. What are the standard deviations of stocks of Acme and Bundu.
What is the division's margin? What is the division's turnover? What is the division's return on investment (ROI)?
The risk-free rate (rRF) is 6 percent and the market risk premium (rM - rRF) is also 6 percent. What is the stock's beta?
What is the fair value of the stock for which no dividend will be paid for next four years, but $2.00 dividend per share will be paid 5 years from now and then will grow at 2% every year?
What is the annual yield to maturity of a 10 percent, semi-annual coupon bond with 8 years left to maturity? Its current market price is $1,096.52. The par value of the bond is $1,000.
Gentlemen gym just paid it annual dividend of $3 per share and, and it is widely expected that the dividend will increase by 5% per year indefinitely
A company issued a bond having a par value of $1,000, a 15 year life and a 10% coupon rate. If interest is paid semiannually and the discount rate for the bond is 11.2%, what is the present value o
Abbot Enterprises issued a bond having a par value of $1,000, a 7 year life and a 12% coupon rate. If interest is paid annually and the discount rate is 14%, what is the value of the bond?
Assume that you have the following information on project A: (i) it will yield cash flows of $935 per year forever; (ii) the IRR is 12%; (iii) the required rate of return is 10.35%. What is the NP
Sensitivity analysis and scenario analysis are somewhat similar. Describe which is a more realistic method of analyzing the impact of different scenarios on a project.
What net investment is required to acquire the ICX system and replace the old system? Compute the annual net cash flows associated with the purchase of the ICX system.
NPV and the Profitability Index If we define the NPV index as the ratio of NPV to cost, what is the relationship between this index and the profitability index?
Donaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company's total assets turnover? What is the firms equity multiplier?
The firm's marginal tax rate is 40 percent. If the firm liquidates the asset for its current market value, compute the after tax proceeds from the sale of the asset.
What is the essential difference between sensitivity analysis and scenario analysis?
A 6-month put option on Smith Corp.'s stock has a strike price of $45 and sells in the market for $8.90. Smith's current stock price is $41. What is the option premium?