• Q : What is the present value or worth of the bond....
    Finance Basics :

    If investors are willing to accept a 10.25 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?

  • Q : Meaning of source of finance....
    Finance Basics :

    What is the meaning of source of finance? Explain the long term sources.(Equity Shares,Preference Shares,Debentures,term loans,leases,venture capital,seed capital and bonds)

  • Q : What is indifference level of ebit....
    Finance Basics :

    AQ&Q has EBIT of $2 million, total assets of $10 million, stockholders' equity of $4 million, and pretax interest expense of 10 percent.

  • Q : Approximate real rate of interest....
    Finance Basics :

    Calculating Real Rates of Return If Treasury bills are currently paying 8 percent and the inflation rate is 45 percent, what is the approximate real rate of interest the exact real rate?

  • Q : Computing the expected rate of return on stock....
    Finance Basics :

    You just purchased the common stock of Mary Flower Corporation for $25 per share. Suppose the stock has a 65% chance of being $35 and 35% chance of being $18 per share one year later. What is the e

  • Q : Computing the net working capital....
    Finance Basics :

    Prezas balance sheet showed total current assets of $2,750, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6%, short-term notes paya

  • Q : Calculate the discounted payback period....
    Finance Basics :

    A project has annual cashflows (including the initial year) of -90,000, 55,000, 65,000, 65,000, 50,000, and 50,000. Calculate the discounted payback period for this project if the discount rate is 11%

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

    If you buy a life insurance policy for $924,201.10, that pays you $36,000 a year indefinitely. What is the required rate of return?

  • Q : How much will have to pay for the policy....
    Finance Basics :

    If the required rate of return was 6.3%, how much will you have to pay for the policy? Not understanding with the indefinitely?

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

    Pam Gregg is expecting cash flows of $50,000, $75,000, $125,000, and $250,000 from an inheritance over the next four years. If she can earn 11 percent on any investment that she makes, what is the p

  • Q : Determining the average receivables balance....
    Finance Basics :

    Dyl Pickle Inc. had credit sales of $3,600,000 last year and its days sales outstanding was DSO = 35 days. What was its average receivables balance, based on a 365-day year.

  • Q : How long wait for savings if interest compounded annually....
    Finance Basics :

    How long must you wait for your savings to be worth $4,000 if you are earning 2.1 percent interest, compounded annually?

  • Q : Determining the unlevered beta....
    Finance Basics :

    El Capitan Foods has a capital structure of 40% debt and 60% equity, its tax rate is 35%, and its beta (leveraged) is 1.15. Based on the Hamada equation, what would the firm's beta be if it used no

  • Q : Stock price-split....
    Finance Basics :

    Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $85 per share. If the firm's total market value is unchanged by the split, what will the stock price

  • Q : How to calculate operating margin for organization....
    Finance Basics :

    What does operating margin tell you about the organization and how would you calculate this ratio?

  • Q : At what discount rate be indifferent between projects....
    Finance Basics :

    NPV versus IRR. Framing Hanley, LLC, has identified the following two mutually exclusive projects. At what discount rate would you be indifferent between these two projects?

  • Q : What is the npv for each of the given projects....
    Finance Basics :

    NPV versus IRR. Framing Hanley, LLC, has identified the following two mutually exclusive projects. If the required return is 11 percent, what is the NPV for each of these projects?

  • Q : Nominal annual percentage cost of atlanta cement....
    Finance Basics :

    Atlanta Cement, Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically pays 115 days after the invoice date. Net purchases amount to $720,000 per year. What is the nominal

  • Q : Role in financial planning....
    Finance Basics :

    Describe risk and explain its' role in financial planning. Discuss the various types of insurance.

  • Q : Bond yield to maturity and current yield....
    Finance Basics :

    If a 7-year bonds with a 9% coupon rate ($1000 par value) is currently selling at $923.62. What is the bond's yield to maturity (YTM) and current yield?

  • Q : Nominal annual percentage cost of non-free trade credit....
    Finance Basics :

    A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 75 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day

  • Q : Stand-alone principle....
    Finance Basics :

    What does it means when a manager says "Our firm uses the stand-alone principle. Because we treat projects like mini firms in our evaluation process, we include financing costs because they are rele

  • Q : Determining the risk-free rate of return....
    Finance Basics :

    The expected return on JK stock is 15.78 percent while the expected return on the market is 11.34 percent. The stock's beta is 1.62. What is the risk-free rate of return?

  • Q : Investment planning process....
    Finance Basics :

    Discuss The Investment Planning Process. What role does asset allocation play in Investment Planning?

  • Q : What is the most should pay for the annuity....
    Finance Basics :

    You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

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