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The Treasury bill rate is 4 percent, and the market risk premium is expected to be 10 percent. What is Nodebt's asset beta? What is Nodebt's weighted-average cost of capital?
The internal rate of return is 20 percent. The NPV, assuming a 20 percent opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year.
The Modern Language Division earned $1.6 million on net assets of $20 million. The cost of capital is 11.5 percent. Calculate the net percentage return on investment and EVA.
Suppose the euro is quoted at 0.7064-80 in London and the pound sterling is quoted at 1.6244-59 in Frankfurt. Compute the percetage bid-ask spreads on the pound and euro.
How does the payment of dividends on preferred stock affect the EPS computation?
In the 1st quarter of 2001 Merck paid a regular quarterly dividend of $.34 a share.
What effective interest rate per month, compounded continuously, would be required for a single deposit to triple in value in 5 years?
Two acceptable accounting methods for reporting purposes. How each of the two acceptable accounting methods identified affect current period income.
Describe the accounting treatment for discontinued operations. How should an analyst treat discontinued operations?
What conditions are necessary for an item to qualify as a prior period adjustment?
What does it mean when it is said the U.S. is running a trade deficit? What impact do you think a trade deficit could have on interest rates?
Evaluate a project that costs $200,000 is expeced to last for10 years and produce after-tax cash flows including depreciaton of$44,503 per year.
Which of the following items are classified as assets on a typical balance sheet?
Their yeild to maturity is 9% based on semiannual compunding and the current market price is $853.61. The bonds have apar value of $1000. What is the bonds annual coupon interest rate?
During a period of rising inventory costs and stable output prices, describe how net income and total assets would differ depending upon whether LIFO or FIFO is applied.
Describe at least two assets not recorded on the balance sheet. Explain how an analyst evaluates unrecorded assets.
Company (A) has 100,000 shares of common stock outstanding its net income is $750,000 and it s P/E is 8. What is the company's stock price?
Compare and contrast the effects of LIFO and FIFO inventory costing methods on earnings in an inflationary period.
Identify the main concerns in analysis of accounts receivable.
An alternative for producing apesticide will have a first cost of $150,000 and annual costs of$75,000. Income is expected to be $90,000 per year. What is the payback period at 8% per year interest?
What is meant by the factoring or securitization of receivables? What does selling receivables with recourse mean? What does it mean to sell them without recourse?
Evaluate the following statement from an analysis viewpoint: "A parent company is not responsible for the liabilities of its subsidiaries nor does it own the assets of its subsidiaries. As such, co
Describe how you determine the valuation of assets acquired in a purchase when:
Describe the accounting treatment for speculative derivatives.
What is the present cost in the following scenario: Initial cost 75,000 Annual revenue 50,000-annual expense 60,000 salvage value in 3 years 15,000 Use interest rate of 8%.