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

    A company has $100,000 invested in a 2 stock portfolio. $35,000 is invested in Stock A and the remaining is invested in Stock B. A's beta is 1.50 and B's beta is 0.07. what is the portfolios beta?

  • Q : What will be the tax consequences to robert....
    Finance Basics :

    Robert and Rebecca finalized their divorce last year. Under a Divorce Agreement entered by the Court as part of their final divorce, Rebecca was required to pay Robert $ 60,000 last year, $ 30,000 t

  • Q : What did you pay for the bond....
    Finance Basics :

    At the beginning of the year, you bought a $1,000 par value corporate bond with a 6 percent annual coupon rate and a 10-year maturity date.

  • Q : How would you compute a cost of capital for petrochemical....
    Finance Basics :

    Calculate Midland's corporate WACC. Be prepared to defend your specific assumptions about the various inputs to the calculations. Is Midland's choice of EMRP appropriate? If not, what recommendation

  • Q : Determine whether the firm should acquire the toad ranch....
    Finance Basics :

    Houma Bio-Control has hired you as a consultant to assess the economic feasibility of investing $2,500,000 to purchase a fully operational toad ranch.

  • Q : Determine the internal rate of return for the proposed sale....
    Finance Basics :

    The Board for Colton Industries is considering a proposal by the CEO to sell the firm's boat manufacturing division. An anonymous buyer has offered through a business broker to purchase the boat di

  • Q : How much new long-term debt financing will be needed....
    Finance Basics :

    At year-end 2013, Wallace Landscaping's total assets were $2.17 million and its accounts payable were $560,000. Sales, which in 2013 were $3.5 million, are expected to increase by 35% in 2014.

  • Q : What would be your one-period return on the investment....
    Finance Basics :

    At the beginning of the year, you bought a $1,000 par value corporate bond with a 6 percent annual coupon rate and a 10-year maturity date.

  • Q : How much additional funds will be needed....
    Finance Basics :

    A firm has the following balance sheet: Cash $ 200 Accounts payable $ 200 Accounts receivable 200 Notes payable 400 Inventory 200 Long-term debt 800 Fixed assets 1,800 Common stock 8

  • Q : How much should be paid in dividends this year....
    Finance Basics :

    Lat year the Bulls Business Bureau retained $400,000 of the 1 million net income it generated. This year BBB generated net income equal to $1.2 million.

  • Q : Should an investor buy this stock....
    Finance Basics :

    vA firm has dividends forecast to be $3.00 and $3.20 at the end of the next two years. Analysts also project its stock price in 2 years to be $55.

  • Q : What amount of american opportunity credit may she claim....
    Finance Basics :

    Pat's twins, Sherry and Katie, finished their first year of school at an accredited university in 2013. She paid $9,000 in qualified educational expenses for Sherry and $3,000 of qualifying expenses

  • Q : What is the expected return on tangiers stock....
    Finance Basics :

    Tangier Manufacturing's common stock has a beta of 1.8. If the expected risk free return is 5% and the expected return on the market is 16%, what is the expected return on Tangier's stock?

  • Q : What is the liquity premium on kays bonds....
    Finance Basics :

    Kay corporation 5-year bonds yield 6.20% and 5-year T-bond yield 4.40%. The real risk rate is r*=2.5% the inflation premium for 5-years bonds is IP= 1.50%, the default risk premium for Kay's bond

  • Q : What will its dividend payout ratio be this year....
    Finance Basics :

    Widgets world earned $187,500 this years. The company strictly follows the residual dividend policy when paying dividends. WW had determined that it needs a total of $250,000 for investment in capit

  • Q : How much cash will aarons sailboats receive....
    Finance Basics :

    The firm has hired an underwriter who arranges a full commitment underwriting and suggests an initial selling price of $25 a share with a 7 percent spread.

  • Q : What percentage of your salary must you save each year....
    Finance Basics :

    You have 36 years left until retirement and want to retire with $4.9 million. Your salary is paid annually, and you will receive $78,000 at the end of the current year. Your salary will increase at

  • Q : How to explain the present value of the annuity....
    Finance Basics :

    A 10-year annuity pays $1,250 per month, and payments are made at the end of each month. If the interest rate is 12 percent compounded monthly for the first five years, and 8 percent compounded mon

  • Q : What annual return has been earned....
    Finance Basics :

    A collector bought a painting by Henri Matisse for $100,000 in 1970 and sold it for $28 million in 2010. What annual return has been earned on this art investment?

  • Q : What is the change in nwc....
    Finance Basics :

    Given the following changes in Current Assets and Current Liabilities, what is the change in NWC? The change in Accounts Receivables was $3,005; the change in Inventory was $2,421;

  • Q : What is the firms wacc under each of the two assumptions....
    Finance Basics :

    Smaltz's capital structure is comprised of 75% equity (based on current market prices) and 25% debt on which the firm pays a yield of 5.125% before taxes at 25%.

  • Q : How large will your retirement account....
    Finance Basics :

    You are planning to make monthly deposits of $440 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will yo

  • Q : How much of her own money must robin provide to purchase....
    Finance Basics :

    Robin wants to purchase 1,000 shares of Anatop, Inc., which is selling for $5 per share. Anatop does not pay dividends because all earning are reinvested in the firm to maintain its successful R&

  • Q : What is the expected gain from the acquisition....
    Finance Basics :

    What is the net present value (NPV) of the acquisition to DM shareholders if it costs an average $30 per share to acquire all of the outstanding shares?

  • Q : How many times per year does negus ent turn over....
    Finance Basics :

    Negus Enerprises has aan inventory conversion period of 50 days, an average collection period of 35 days and a payable deferral period of 25 days. assume hat cost of goods sold is 80% of sales.

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