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Last year Montero Corporation had $850 million of sales, and it had $425 million of fixed assets that were used at only 60% of capacity. What is the maximum sales growth rate the company could achi
A $1000 face value and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value. (call price = $1090). what is the yeild to maturity?
A new machine will cost $65000 today and generate after-tax cash inflows of $156000 for six years. Find the NPV if the firm uses a 10% opportunity cost of Capital.
Project K costs $40,000, its expected cash inflows are $9,000 per year for 8 years, and its WACC is 10%. What is the project's NPV?
A firm has 10 million shares outstanding, with a $20 per share market price. The firm has $25 million in extra cash that it plans to use in a stock repurchase; the firm has no other financial inves
Short term interest rates are more volatile than long term interest rates, so short term bond prices are more sensitive to interest rate changes, Is this statement true or false? Explain?
If you can invest money elsewhere at 8% compounded semi-annually, what should be the market value (present value) for a 20-year $1,000 bond that pays 7% annual interest (with payments received every
Suppose you read in the Wall Street Journal that a bond with face value $1000 has an annual coupon rate of 9.05% and a price of $857.66. What is the bond's current yield?
A Nissan Leaf (all electric vehicle). Does inflation in gasoline prices increase or decrease the NPV of replacing the guzzler with the Leaf?
The treasurer at ABC Laboratories is trying to determine the expected return on equity for the firm. The stock's beta is 1.053, the current T-bill rate is 5.47%, and the expected market return is 1
Jeff Conway wants to receive $25,000 in perpetuity and will invest his money in an investment that will earn a return of 13.5 percent annually. What is the value of the investment that he needs to
Evaluate how purchasers of financial futures contracts can offset their position and how their gain or loss is determined.
Assume that you have $165,00 invested in stock that is returning 11.50%,$85,000 invested in a stock is returning 22.75% and $235,000 invested in a stock that is returning 10.25%. What is the expecte
The H.R. picket corp has 500,000 of debt outstanding, and it pays an annual interest rate of 10%. Its annual sales are 2 million, its average tax rate is 30% and its profit margin is 5%. what is th
Brammer Corp.'s projected capital budget is $1,000,000, its target capital structure is 60 percent debt and 40 percent equity, and its forecasted net income is $550,000. If the company follows a re
Orient Airlines' common stock currently sells for $33, and its eight percent convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 25 shares of commo
Deeble Construction Co.'s stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price of $25 and some with a strike price of $35. Both options
Your firm has debt worth $200,000, with a yield of 10 percent, and equity worth $400,000. It is growing at a seven percent rate, and faces a 40 percent tax rate. A similar firm with no debt has a c
A preferred stock pays a $7 dividend, and the required rate of return that investors have for this sotck is 9%. Given these conditions, what is today's value of the stock?
Thames Inc.'s most recent dividend was $2.40 per share (i.e., D0 = $2.40). The dividend is expected to grow at a rate of 6 percent per year. The risk-free rate is 5 percent and the return on the mar
For the year ending 31st March 2009, Johnson Matthey plc had revenues of £7.848 billion, costs of £7.323 billion, depreciation expense of £109 million, interest expense of £4
John was the batsman in a cricket match. He hit the ball so hard that it went overthe brick wall that surrounded the cricket ground over the road outside and hit MrSmith, who had just opened the front
Three neoclassical criminology theories
The early foundations of criminological theories based upon biological explanations can be traced back to the early 1800s when the concept of phrenology was introduced
Write the footnote for Danerys' year-end financial statements (assume 12/31/13 year-end) related to goodwill and other intangible assets - Determine the appropriate acquisition-date journal entry for