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Happy Valley Homecare Suppliers, Inc. (HVHS), had $20 million in sales in 2010. Calculate the average number of days inventory outstanding ratios for HVHS.
A tax rate of 34 percent. It paid dividends of $1,025,000 to its stockholders. Find the firm's dividend payout ratio and retention ratio.
Explain the difference between NOPAT and net income. Which is a better measure of the performance of a company's operations?
EOQ Derivation prove that when carrying costs and restocking costs, the EOQ must occur at the point where the carrying costs and restocking costs are equal.
Differentiate between net income, EPS, EBITDA, net cash flow, NOPAT, free cash flow, MVA, and EVA. What is the primary purpose of each item; that is, when and how is it used?
Define internal growth rate (IGR). Identify the characteristics of a high-growth firm that has no external funds needed.
Corporate Ethics is it ethical for large firms to unilaterally lengthen their payables periods, particularly when dealing with smaller suppliers?
Cash management what options are available to a firm if r believes it has too much cash? How about too little?
Calculating Float in a typical month, the Timemons Corporation receives 90 checks totaling $ 135,000. These are delayed five days on average. What is the average daily float?
Cash management versus liquidity management what is the difference between cash management and liquidity management?
Assume the credit terms offered to your firm by your suppliers are 3/5, net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Assume that Rex Corp. is operating at a capital intensity ratio of 63.5 percent and is able to generate net sales of $3,123,443. What is the book value of the firm's assets?
Should a financial plan be considered an unbiased forecast of future cash flows, earnings, and other financial variables? Why or why not?
A three-month Treasury bill and a six-month bill both sell at a discount of 10 percent. Which offers the higher annual yield?
Suppose that the rate of inflation accelerates from 5 to 10 percent per year. Would firms' cash balances go up or down relative to sales? Explain.
Why do firms grant cofee credit? Would it be more efficient if all sales were for cash and late payers were charged interest?
If you were a credit manager, to which financial ratios would you pay most attention? Which do you think would be the least informative?
What is the expected variance of a portfolio of 5, 10, 20, 50 and 100 securities. How many securities need to be held before the risk of a portfolio is only 10% more than the minimum?
What proportion of the following investor's wealth would you suggest investing in the market portfolio and what proportion in the riskless asset?
We obtain the following values (approximately) for d1 and d2. d1 = - 0.15 d2 = - 0.90 Estimate the default spread (over and above the riskfree rate) that you would charge for the debt in this fir
Gold Stock Market Average return 8% 20% Standard deviation 25% 22% Correlation -0.4 a. If you were constrained to pick just one, which one would you choose?
Estimate the return on equity, using beginning book value of equity. c. Estimate the return on equity, using the average book value of equity.
Answer true or false to the following statements, with a short explanation. A. A stock that sells for less than book value is undervalued.
Under this view, what would be the appropriate proxy to use for risk in the following types of real estate investments
You replicate the regression using weekly returns over the same period and arrive at a beta estimate of 1.60. How would you reconcile the two estimates?