• Q : What is the return on equity....
    Finance Basics :

    Samuelson's has a debt-equity ratio of 45 percent, sales of $11,000, net income of $2,300, and total debt of $11,700. What is the return on equity?

  • Q : Down payment in ten years....
    Finance Basics :

    Question: How much would you need to invest today to have enough for the down payment in ten years?

  • Q : What is the after-tax cost of debt....
    Finance Basics :

    Your firm has just issued a 20-year $1000 par value, 10% annual coupon bond for a net price of $984. Floatation costs are $15 per bond sold. Tax rate is 30%.

  • Q : What is the return on equity....
    Finance Basics :

    Lee Sun's has sales of $4,000, total assets of $3,700, and a profit margin of 7 percent. The firm has a total debt ratio of 30 percent. What is the return on equity?

  • Q : Common-size statement value of inventory....
    Finance Basics :

    A firm has sales of $1,140, net income of $218, net fixed assets of $528, and current assets of $284. The firm has $93 in inventory. What is the common-size statement value of inventory?

  • Q : What are the pros and cons of setting a target rating....
    Finance Basics :

    What are the pros and cons of setting a target rating, rather than a target ratio? Note: Please explain comprehensively and give step by step solution.

  • Q : Describe the cost allocation process....
    Finance Basics :

    Briefly describe the cost allocation process (use the direct method) and explain why it is critical for financial decision making.

  • Q : What is the net income for the year....
    Finance Basics :

    Ivan's, Inc. paid $486 in dividends and $588 in interest this past year. Common stock increased by $198 and retained earnings decreased by $124.

  • Q : Irr of the decision to purchase a new machine....
    Finance Basics :

    A firm is considering an investment in a new machine with a price of $18.18 million to replace its existing machine. The current machine has a book value of $6.18 million and a market value of $4.68

  • Q : What is the macaulay duration....
    Finance Basics :

    What is the Macaulay duration of a 8.6 percent coupon bond with twelve years to maturity and a current price of $953.90? What is the modified duration?

  • Q : What is the total book value of debt....
    Finance Basics :

    What is the total book value of debt? What is the total market value of debt? What is the aftertax cost of debt?

  • Q : What is the beta of stock b....
    Finance Basics :

    What is the beta of stock B? Note: Explain all calculation and formulas.

  • Q : Expected rate of return on stock....
    Finance Basics :

    What is your expected rate of return on this stock? Note: Please provide full description.

  • Q : Variance of the returns on rtf....
    Finance Basics :

    What is the variance of the returns on RTF, Inc. stock? Note: Please explain comprehensively and give step by step solution.

  • Q : Jack weighted average cost of capital....
    Finance Basics :

    What is Jack's weighted average cost of capital? Note: Please provide full description.

  • Q : Cost of debt is typically different....
    Finance Basics :

    Explain why the cost of debt is typically different than the cost of equity. Give examples and explain your answers.

  • Q : Ratio remained unchanged....
    Finance Basics :

    If this growth rate continues, what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio declined to 12 in four years?

  • Q : What is its value today....
    Finance Basics :

    Question: If an 11 percent discount rate is appropriate for this stock, what is its value today? Note: Explain all calculation and formulas.

  • Q : Ending value of the bond....
    Finance Basics :

    Question: What is the ending value of the bond when it is sold (to the nearest dollar)?

  • Q : Stock price change in dollars and percentage....
    Finance Basics :

    How much should the stock price change in dollars and percentage? Note: Please provide full description.

  • Q : Total return for the past year....
    Finance Basics :

    If the bond had 19 years to maturity when you originally purchased it, what was your total return for the past year? Note: Explain all calculation and formulas.

  • Q : What is the current value....
    Finance Basics :

    Question: If the required return for this stock is 14.50 percent, what is the current value?

  • Q : Determine the numerical grades....
    Finance Basics :

    Determine the numerical grades that conform to the curve Professor Moore wants to establish.

  • Q : Company economic value added....
    Finance Basics :

    What was the company's economic value added (EVA)? Note: Please provide full description.

  • Q : Construct the firm income statement....
    Finance Basics :

    Sales for 2012 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and L

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