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Two bond rating agencies, Moody's and Standard and Poor's lowered the ratings on Appleton Industries' bonds from triple-A to double-A in response to operating trends revealed by the financial report
Given the fair prices at the various yields to maturity, can you assume interest-rate risk the same, higher, or lower for longer- versus shorter-maturity bonds?
Electro Tool Co., a manufacturer of diamond drilling, cutting, and grinding tools, has $1 million of its 8 percent debenture issue maturing on September 1, 20X1.
The Conner Company has the following capital structure: Mortgage bonds of similar quality could be sold at a net of 95 to yield 6½ percent. Their common stock has been selling for $100 per sha
McEnro wishes to decide between two projects, X and Y. By using probability estimates, he has determined the following statistics
A firm is considering replacing an old machine with another. The new machine costs $90,000 plus $10,000 to install. For each of the four cases given in Problem 8.1, calculate the initial investment
A company in your portfolio, Sears, has a perpetual preferred stock (non-maturing) currently outstanding that pays a $2.00 quarterly dividend.
The present value of $500 due in 1 year at a discount rate of 4%.$ The present value of $500 due in 2 years at a discount rate of 4%.
An individual has $15,000 invested in a stock with a beta of 0.6 and another $45,000 invested in a stock with a beta of 1.2. If these are the only two investments in her portfolio, what is her po
Swan Supply Company has net income of $1,212,335, assets of $12,522,788, and retains 70 percent of its income every year. What is the company's internal growth rate?
Sources and Uses for the year just ended, you have gathered the following information about the Holly Corporation. Label each as a source or use of cash and describe its effect on the firm's cash bala
Short-tern investments why is referred stock with a dividend tied to short-tern interest rates an attractive short-term investment for corporations with excess cash?
Payables Period why don't all firms simply increase their payables periods to shorten their cash cycles?
Describe some of the ways that the choice of accounting technique can temporarily depress or inflate earnings.
Motivations for holding cash in the chapter opening, we have discussed the enormous cash position of several companies. Why would firms such as these hold such large quantities of cash?
McDonald Metal Works has been able to generate net sales of $13,445,196 on assets of $9,145,633. What is the firm's capital intensity ratio?
List two useful tools to help an entrepreneur to understand the cash requirements of a business and to estimate the financing needs of his or her business.
List some common forms of business organization, and discuss how access to capital differs across these forms of organization.
How would rapid inflation affect the accuracy and relevance of a manufacturing company's balance sheet and income statement?
Inventory Types what are the different inventory types? How do the types differ? Why are some types said to have dependent demand whereas other types are said to have independent demand?
In a typical month, the Any Day Corporation receives 100 checks totaling $67,000. These are delayed three days on average. What is the average daily float?
If Newell Corp. has a ROE of 13.7 percent and a dividend payout ratio of 32 percent, what is its sustainable growth rate?
How could (accurate) balance sheet and income statement information be used, along with other information, to make a statement of cash flows?
Interest rates on bank loans exceed rates on commercial paper. Why don't all firms issue commercial paper rather than borrow from banks?
Homer Boats has accounts payable days of 20, inventory days of 50, and accounts receivable days of 30. What is its operating cycle?