• Q : Reported as amortization expense....
    Finance Basics :

    Its unamortized cost on Stype's books was $400,000. In Spencer's 2007 income statement, what amount should be reported as amortization expense?

  • Q : Manufacture specialty spark plugs....
    Finance Basics :

    SAC is considering the purchase of new equipment to manufacture specialty spark plugs. The new equipment would allow the firm to manufacture 100,000 additional spark plugs per year and is expected t

  • Q : Valuing business opportunities for future acquisitions....
    Finance Basics :

    Problem 1. How might the finance department help you to successful complete the duties of your job? Problem 2. What role does a finance department play in valuing business opportunities for future acq

  • Q : What is the portfolio beta....
    Finance Basics :

    You own a stock portfolio invested 25% in stock Q, 20% in stock R, 15% in stock S, and 40% in stock T. The betas for these stocks are .84, 1.17, 1.11, and 1.36 respectively. What is the portfolio be

  • Q : Calculating the dso....
    Finance Basics :

    On average, how many days late do customers pay? Base your answer on this equation: DSO - Allowed credit period = Average days late, and use a 365-day year when calculating the DSO.

  • Q : Compute the before-tax npv....
    Finance Basics :

    Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a p

  • Q : Create a portfolio equally risky....
    Finance Basics :

    I want to create a portfolio equally risky as the market, and I have $1,000,000 to invest. So Given the info below, I need to fill the table below:

  • Q : Cash dividends without impairing capital....
    Finance Basics :

    In states where the firm's legal capital is defined as the total of par value and paid-in-capital of common stock, the firm could pay out ________ in cash dividends without impairing its capital.

  • Q : Monthly mortgage payment....
    Finance Basics :

    How much will your dream house cost by the time you are ready to buy it, and what will be your monthly mortgage payment.

  • Q : Conduct a risk assessment of a organization....
    Finance Basics :

    Problem: Conduct a risk assessment of a organization one with which you are familiar with, to show how risk management contributes to stakeholder wealth maximization.

  • Q : What is sorensons expected stock price....
    Finance Basics :

    Sorenson Corp.'s expected year-end dividend is D1 = $1.50, its required return is rS = 12.00%, its dividend yield is 8.00%, and its growth rate is expected to be constant in the future. What is Sore

  • Q : Sensitivity analysis and scenario analysis....
    Finance Basics :

    Sensitivity analysis and Scenario analysis- What is the essential difference between sensitivity analysis and scenario analysis?

  • Q : What is the maturity risk premium....
    Finance Basics :

    The real risk-free rate is r* = 2.5%, the default risk premium for Kelly's bonds is DRP = 0.40%, the liquidity premium on Kelly's bonds is LP = 1.3% versus zero on T-bonds, and the inflation premium

  • Q : Find break-even sales in units....
    Finance Basics :

    1) Given: Selling price per unit, $20; total fixed expenses, $5,000; variable x expenses per unit, $15. Find break-even sales in units.

  • Q : What are the requried rates of return on stocks....
    Finance Basics :

    If the risk free rate is 9% and the expected rate of return on an average stock is 13%, what are the requried rates of return on stocks c and d?

  • Q : Expected impact from the transation or issuane cost....
    Finance Basics :

    There are currently 20,000,000 shares outstanding. Once the annoucement is made public, what might be the expected impact from the transation or issuane cost on each share you own.

  • Q : What is the equilibrium expected growth rate....
    Finance Basics :

    The stock sells for $34.50 per share, and its required rate of return is 11.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

  • Q : Consequences of high leverage....
    Finance Basics :

    The risk of high leverage is captured in a lower price of the stock (return = (CG + Div)/Price) because investors demand a higher return for the higher risk. What are some of the consequences of hig

  • Q : What is the stocks value per share....
    Finance Basics :

    Smith has no debt or preferred stock, and its WACC is 10%. If Smith has 50 million shares of stock outstanding, what is the stock's value per share.

  • Q : Sunk costs and externalities....
    Finance Basics :

    Why is a sunk cost excluded (I think they are sunk because the manager is in the process of sinking the company) while opportunity cost (opportunity for what?) is included?

  • Q : What is the length of the inventory period....
    Finance Basics :

    The Corner Market has sales of 898,000 and a cost of goods sold equal to 70% of sales. The beginning inventory is 64,000 and the ending inventory is 71,000. What's the length of the inventory period

  • Q : Component cost of debt....
    Finance Basics :

    This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 40%, what is the component cost of debt for use in the WACC

  • Q : What is the current price of xyz common stock....
    Finance Basics :

    Problem: The last dividend paid by xyz company was 1.00. XYZ growth rate is expected to be a constant 5%. XYZ's required rate of return on equity(ks) is 10%. What is the current price of XYZ's Commo

  • Q : Calculate hughes basic earnings per share....
    Finance Basics :

    The conversion ration is 20. The firm is in a 30 percent tax bracket. (a) Calculate Hughes's basic earnings per share. (b) Calculate Hughes's diluted earnings per share.

  • Q : What is poison pill....
    Finance Basics :

    I would like to know what are the strategies that a corporate use to anti takeover? How does it work? By the way, what is Poison Pill?

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