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A company has a return on equity of 20 percent, a debt ratio of 53 percent, and a profit margin (PM) of 12 percent. The company's total assets equal $550 million.
What is the maximum debt ratio the firm can use so as to meet its TIE ratio of 5.5x? Please provide all calculation and formulas.
What was the original return on equity (ROE) for this company? Assuming the president of the firm allows the CFO to increase the debt ratio to 56%, what will be the new ROE'? Show your calculation a
Suppose you deposit $2,600 into a bank account at the beginning of every year with the first deposit made today (on 1/21/2015). The bank account has a nominal annual interest rate of 6 percent and i
What is the corporate bond's default-risk premium? Please provide all calculation and formulas.
Voluntary settlement for a firm with outstanding debt of $125,000, classify each of the following voluntary settlements as compensation, or a combination of the two.
1. Why is market research important? 2. Do a search on epic market research failures. Pick your favorite failure and explain why it failed.
Kara George received a $10,000 gift for graduation for her uncle. If she deposits this in an account paying 3 percent find out.
Brenda plans to reduce her spending by $50 a month. What would be the future value of this reduced saving over the next 10 years? (Assume an annual deposit to her savings account, and an annual inte
What about possible national security implications? Please provide explanation no word limit count.
On your post-graduation celebratory trip you decide to travel from Cancun, Mexico to Wuhan, China. You leave Cancun with 7,500 pesos in your wallet. Planning to exchange all of them for Chinese Yuan
Assuming that you will continue to manage the portfolio from now to eternity, what is the present value of the management contract? (Do not round intermediate calculations. Enter your answer in mill
Calculate the arithmetic and geometric average returns for these investments, and determine what the investor's actual dollar-weighted average return was for his five-year period.
Your firm has net income of $312 on total sales of $1,320. Costs are $730 and depreciation is $110. The tax rate is 35 percent. The firm does not have interest expenses.
Ivan's, Inc. paid $464 in dividends and $577 in interest this past year. Common stock increased by $187 and retained earnings decreased by $113. What is the net income for the year? Please show work
What is the net cash flow of the project for the following years? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in dollars, not mi
Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $135,000 for a marketing survey to determine the viability of the product.
What was Senbet's net income? (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars.) Net income $
Consider an asset that costs $786,400 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can
Your firm has net income of $247 on total sales of $1,140. Costs are $640 and depreciation is $120. The tax rate is 35 percent. The firm does not have interest expenses. Question: What is the operat
One year from today, investors anticipate that Groningen Distillers Inc. stock will pay a dividend of $3.25 per share. After that, investors believe that the dividend will grow at 20% per year for t
You are thinking of investing in Nikki T's, Inc. You have only the following information on the firm at year-end 2015: net income is $290,000, total debt is $2.29m, and debt ratio is 50 percent. Qu
Leonatti Labs' year-end price on its common stock is $25.50. The firm has total assets of $25.00 million, debt ratio of 60 percent, no preferred stock, and 2 million shares of common stock outstand
Last year, Stumble-on-Inn, Inc., reported an ROE of 19 percent. The firm's debt ratio was 60 percent, sales were $34 million, and the capital intensity was 1.30 times. Question: Calculate the net in
A deposit of X is made into a fund which pays an annual effective interest rate 6% for 10years. At the same time, X/2 is deposited into another fund which pays an annual effective rate of discount o