• Q : Value of an investment....
    Finance Basics :

    What is the value of an investment that pays $54,000 every other year forever, if the first payment occurs one year from today and the discount rate is 18 percent compounded daily?

  • Q : Federal-plus-state income tax rate....
    Finance Basics :

    It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)?

  • Q : Effective cost of the bank loan....
    Finance Basics :

    What would be the effective cost of the bank loan if the company could get the funds from a bank at a rate of 8% and if the interest was paid monthly? All of this should be based on 365 day year.

  • Q : Simple bond valuation problem....
    Finance Basics :

    Create your own simple bond valuation problem- with respective values for: Coupon, Face value, Years to maturity, and Yield to maturity (interest rate).

  • Q : Calculate the forward premium....
    Finance Basics :

    Calculate the forward premium/discount on the dollar (which is your home currency) as well as the premium/discount on the euro if the spot rate is €0.73/$ and the three-month forward rate is &e

  • Q : Equilibrium prices of the currencies....
    Finance Basics :

    Assume that over the course of 30 days, the following changes occur in the equilibrium prices of the currencies: the dollar appreciates 7% against the euro and 9% against the British pound, but fall

  • Q : Light of the aforementioned redundancies....
    Finance Basics :

    Is SOX relevant, in light of the aforementioned redundancies, because it relies too heavily on enhancing criminal penalties? Describe in detail.

  • Q : Proportion of debt ratio indicates....
    Finance Basics :

    Give an example of how a cash flow ratio might differ from a proportion of debt ratio. Assuming these ratios differ for a firm (e.g., the cash flow ratios indicate high financial risk, while the pro

  • Q : Enough funds for retirement....
    Finance Basics :

    How much must you deposit in an account today (lump sum), so that you have enough funds for retirement? If you cannot afford to make a single deposit, today, to support your retirement. How much must

  • Q : Four trends or developments....
    Finance Basics :

    How do you view the future of social media- and social media marketing? Write a description citing three or four trends or developments you think may evolve over the next decade. Please explain in d

  • Q : Future of social media and social media marketing....
    Finance Basics :

    How do you view the future of social media- and social media marketing? Write a description citing three or four trends or developments you think may evolve over the next decade.

  • Q : Receive annual raises....
    Finance Basics :

    You anticipate that you will need $4,000,000 when you retire 40 years from now. You plan to make 40 deposits, beginning today, in a bank account that will pay 7% interest, compounded annually.

  • Q : What would happen to the break-even....
    Finance Basics :

    How is this analysis significant? If the selling price was raised to $25 but variable costs rose to $13 per unit, what would happen to the break-even point? Please explain in detail and also provide

  • Q : Net working capital investment....
    Finance Basics :

    Suppose you also know that the firm's net capital spending for 2014 was $1,500,000, and that the firm reduced its net working capital investment by $95,000.

  • Q : Company net working capital....
    Finance Basics :

    What is the company's net working capital?

  • Q : Profit or loss from purchasing the stock....
    Finance Basics :

    What is the profit or loss from purchasing the stock if the price of the stock is $30, $35, or $40?

  • Q : Profit be after three months....
    Finance Basics :

    A particular put is the option to sell stock at $40. It expires after three months and currently sells for $2 when the price of the stock is $42.

  • Q : Determine compounded annually....
    Finance Basics :

    On your ninth birthday, you received $300 which you invested at 4.5 percent interest, compounded annually. Your investment is now worth $757. How old are you today?

  • Q : Intrinsic value of the call....
    Finance Basics :

    What is the intrinsic value of the call? What is the time premium paid for the call? What will the value of this call be after six months if the price is $20, $25, $30, $40?

  • Q : Limitations of financial statement ratio analysis....
    Finance Basics :

    What are 3 uses and 3 limitations of financial statement ratio analysis? What are 3 factors which could impact a firm's PE ratio?

  • Q : Investor plans to hold the stock....
    Finance Basics :

    If the investor plans to hold the stock for two years and requires a rate of return of 20 percent on the investor, what value would he place on the stock today? Please show your all work.

  • Q : Determine the range of the rates of return....
    Finance Basics :

    Determine the range of the rates of return for each of the two projects. Which project is less risky? Why?

  • Q : Capital budgeting purposes....
    Finance Basics :

    For capital budgeting purposes, what is the initial investment outlay for the machine? That is, what is the Year 0 project cash flow?

  • Q : Required rate of return on the stock....
    Finance Basics :

    A stock you are holding has a beta of 2.0 and the stock is currently in equilibrium. The required rate of return on the stock is 15% versus a required return on an average stock of 10%. Now the requ

  • Q : Market requires an interest rate....
    Finance Basics :

    Consider a bond which pays 8% semiannually and has 8 years to maturity. The market requires an interest rate of 10% on bonds of this risk.

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