• Q : Cash coverage ratio for company....
    Finance Basics :

    Nimitz Rental Company had depreciation expenses of $108,905, interest expenses of $78,112, and an EBIT of $1,254,338 for the year ended June 30, 2011. What is the cash coverage ratio for this compa

  • Q : Calculate company after-tax weighted-average cost of capital....
    Finance Basics :

    Calculate the company's after-tax weighted-average cost of capital (WACC) and determine which of the three projects the company should accept. The relevant tax rate is 30%.

  • Q : What amount will be in the fund in twenty years....
    Finance Basics :

    If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years?

  • Q : Pay the loan in full at the due date....
    Finance Basics :

    Your need to repay a loan with a future value of $304,071.00 in 18.5 years. If you can make annual year-end deposits of $11,000 into an account, what annual rate of return would you require to earn

  • Q : How much will pay for the contract today....
    Finance Basics :

    If you require an effective annual return of 13 percent on this investment, how much will you pay for the contract today?

  • Q : How many loan payments must make before loan is paid in full....
    Finance Basics :

    Today, you signed loan papers agreeing to borrow $4,954.85 at 9% compounded monthly. The loan payment is $143.84 a month. How many loan payments must you make before the loan is pa

  • Q : At what interest rate must investment compound annually....
    Finance Basics :

    Assume that Elvira Lehman desires to accumulate $1 million in 15 years using her money market fund balance of $239,392. At what interest rate must Elvira's investment compound annually?

  • Q : New three-year expansion project....
    Finance Basics :

    Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.64 million. The fixed asset falls into the three-year MACRS class.

  • Q : Financial statements of bendax enterprises....
    Finance Basics :

    The following data were taken from the financial statements of Bendax Enterprises Inc. for the current fiscal year. Assuming that long-term investments totaled $240,000 throughout the year and that

  • Q : Find whether each stock is undervalued or fairly valued....
    Finance Basics :

    Calculate the required rate of return for Furhman Labs stock and for Garten Testing stock. Indicate whether each stock is undervalued, fairly valued, or overvalued.

  • Q : Determine the earnings per share....
    Finance Basics :

    The net income was $450,000, and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $20 per share. For the common stock, determine

  • Q : Find market capitalization rate and intrinsic value of stock....
    Finance Basics :

    Miltmar Corporation will pay a year-end dividend of $4. Calculate the market capitalization rate. Market capitalization rate % ___? b. What is the intrinsic value of the stock?

  • Q : Balance sheet for chaney resources....
    Finance Basics :

    The balance sheet for Chaney Resources Inc. at the end of the current fiscal year indicated the following:

  • Q : Comparative financial statements of triad images....
    Finance Basics :

    The comparative financial statements of Triad Images Inc. are as follows. The market price of Triad Images Inc. common stock was $55 on December 31, 2008.

  • Q : Explain legally obliged to keep promise and legal remedies....
    Finance Basics :

    You prom­ise to adjust their pay as requested. Once the day is finished, you sit down and consider the ramifications. Are you legally obliged to keep your promise? What are the legal remedies?

  • Q : Total liabilities and stockholders equity....
    Finance Basics :

    Prepare a comparative balance sheet for 2008 and 2007, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stoc

  • Q : Straub company balance sheet....
    Finance Basics :

    The following information was taken from Straub Company's balance sheet: Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity

  • Q : Firm international competitiveness....
    Finance Basics :

    Assume the dollar's exchange value appreciates by 50 percent against the peso. Compared to your answer in study question 8, what impact will the dollar appreciation have on the firm's international

  • Q : Explain characteristics of annual-pay bonds from same issuer....
    Finance Basics :

    The tables below show, respectively, the characteristics of two annual-pay bonds from the same issuer with the same priority in the event of default, and spot interest rates.

  • Q : Price elasticity of demand for us imports....
    Finance Basics :

    Suppose the dollar's exchange value depreciates by 10 percent. Assuming that the price elasticity of demand for U.S. exports equals 3.0 and the price elasticity of demand for U.S. imports equals 2.0

  • Q : Estimating the spot rate of the pound....
    Finance Basics :

    Suppose the spot rate of the pound today is $1.70 and the three-month forward rate is $1.75. How can a U.S. importer who has to pay 20,000 pounds in three months hedge her foreign- exchange risk?

  • Q : Spot rate of the franc in three months....
    Finance Basics :

    Assume a speculator anticipates that the spot rate of the franc in three months will be lower than today's three-month forward rate of the franc, $0.50 ¼ 1 franc.

  • Q : What factors could account for decline in the forward rate....
    Finance Basics :

    Assume that a few months earlier, the forward 1-year rate of interest for that year had been significantly higher than it is now. What factors could account for the decline in the forward rate?

  • Q : Determining the horizontal and vertical analysis....
    Finance Basics :

    Income statements for Sennett Company for 2008 and 2009 follow.

  • Q : Explain when revenue should be recognized by each company....
    Finance Basics :

    Describe when revenue should be recognized by each company. If revenue should not be recognized at the time of sale, indicate what method should be used to recognize the revenue. Justify your dec

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