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You want to purchase a business with the following cash flows:
You are given the following information: Stockholder's Equity = $1,250; Price/Earnings Ratio = 5; Share Outstanding = 25; Market/Book Ratio = 1.5. Calculate the market price of a share of the com
Ryngard Corp's sales last year were $38,000, and its total assets were $16,000. What was its total assets turnover ratio (TATO)?
Assume that the risk-free rate is 6 percent and the expected return on the market is 13 percent. What is the required rate of return on a stock with a beta of .7?
Which of the following is NOT a key element in strategic planning as it is described in the text?
The expected rate of return on a average stock is 13 percent, and the risk free rate of return is 7 percent. By how much does the required return on the riskier stock exceed the required return o
The plant and equipment are currently valued at $125,000,000 and Silver King generated sales of $90,000,000. What is the full capacity sales of Silver King with their current assets?
Dyl Pickle Inc. had credit sales of $3,500,000 last year and its days sales outstanding was DSO = 35 days. What was its average receivables balance, based on a 365-day year?
Western Beef stock is valued at $62.10 a share. The company pays a constant annual dividend of $4.40 per share. What is the total return on this stock?
You expect a share of stock to pay dividends of $1.90, $2.35, and $3.00 in each of the next 3 years. You believe the stock will sell for $26 at the end of the third year. What is the stock price if
The company has 490,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ?
Considered alone, which of the following would increase a company's current ratio?
Your firm's cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 50% of its monthly COGS on hand at all times. Using a 365-day year, what is its inventory conversi
Today, the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?
Which of the following items cannot be found on a firm's balance sheet under current liabilities?
Hayes Inc has current assets of $7500, net fixed assets of $28,900, current liabilities of $5,900 and long term debt of $18,700. What is the value of the shareholders equity account for this firm? H
A bond has a yield to maturity of 12.11 percent, an 11.5 percent annual coupon, a $1,000 face value, and a maturity date 8 years from today. What is the current yield?
Compute the corporate income tax or tax refund in each year, assuming the graduated tax rates listed below.
Confu Inc. expects to have the following data during the coming year. What is the firm's expected ROE?
Explain the interactions among market efficiency, capital budgeting, and the cost of capital.
You are analyzing a project and have developed the following estimates. The depreciation is $72,000 a year and the tax rate is 35 percent. What is the operating cash flow?
Growth is expected to be constant after 2011. The weighted average cost of capital is 111%. What is the horizon, or continuing value at 2011?
Cass & Company has the following data. What is the firm's cash conversion cycle?
What will the price be if investors expect that the bond will be called after two years and there will be a call penalty of one year's interest?
The company expects the project to generate $30,000 per year of cash for the next 5 years. The company's WACC is 12%, the project's NPV is $8144.00 and its IRR is 15.24%. What is the Payback perio