Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
Explain the difference between business risk and financial risk.
What effect do stock dividends or stock splits have on the computation of the weighted-average number of shares outstanding?
What constitutes significant influence when an investor's financial interest is below the 50% level?
What are the computational guidelines for determining whether a convertible security is to be reported as part of diluted earnings per share?
What are the arguments for giving separate accounting recognition to the conversion feature of debentures?
Compute basic EPS amounts for 2011 under each of the following assumptions (consider each assumption separately): The company has only one class of common stock with 20,000 shares outstanding.
Explain briefly the dividend irrelevance theory that was put forward by Modigliani and Miller. What were the key assumptions underlying their theory?
If a company's outstanding shares are increased through a stock dividend or a stock split, how would that alter the presentation of its EPS data?
Compute the net interest expense to be reported for this note and related swap transaction as of December 31, 2010.
Explain the treasury-stock method as it applies to options and warrants in computing dilutive earnings per share data.
Distinguish between the accounting treatment for available- for-sale equity securities and trading equity securities.
Describe the procedures a company follows when it make a distribution through dividend payments.
Counts Accounting has a beta of 1.15. The tax rate is 40%, and Counts is financed with 20% debt. What is Counts's unlevered beta?
Discuss why options and warrants may be considered potentially dilutive common shares for the computation of diluted earnings per share.
Convertible debt that is dilutive requires an adjustment to income. What is the nature of the adjustment?
Companies U and L are identical in every respect except that U is unlevered while L has $10 million of 5% bonds outstanding. Assume that (1) all of the MM assumptions are met,
It also knows that the company has days' sales in inventory of 64 days and days' sales outstanding of 32 days. How does Wolfgang's cash conversion cycle compare with the industry average of 75 days?
At what amount should trading, available-for-sale, and held-to-maturity securities be reported on the balance sheet.
Winegartner Cosmetics is setting up a line of credit at its bank for $5 million for up to two years. The interest rate is 5.875 percent and the loan agreement calls for an annual fee of 40 basis po
The debt-to-equity and times interest earned ratios. Which is a better indicator of a company's ability to meet its required interest payment? Explain.
In what section of the statement of cash flows would you find cash paid to retire bonds? In what section would you find cash paid for interest?
Explain the basic difference between the straight-line and the effective-interest methods of amortizing a bond discount or premium.
Why is the commercial paper market available only to the most creditworthy companies?
Why is financial flexibility important in the choice of a capital structure?
Why do companies use so many different types of instruments to raise capital? Why not just use debt and common stock?