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SDJ, Inc., has net working capital of $1,370, current liabilities of $3,720, and inventory of $1,950. What is the current ratio?
Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%, what is the current stock price?
With interest at 8% compounded annually, how much money is required today to provide a perpetual income of $14,316 per year?
The company's depreciation expense is $285,000. Moore's 100% equity financed, and it faces a 35 percent tax rate. What is the net income and the net cash flows?
Pharmecology is about to pay a dividend of $1.35 per share. It's a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 2.75% per year.
Suppose that you hold a share of stock and a put option on that share. What is the payoff when the option expires if (a) the stock price is below the exercise price?
What is the present value of $1,000 to be received at the end of two years? Three years? What can you conclude about the effect of time until receipt on the present value of future cash inflows?
What can you conclude about the effect of the rate of return on the present value of cash to be received in the future?
If you borrow $3,000 at 6% simple interest per year for 7 years, how much will you have to repay at the end of 7 years?
Your company's offer is for $3,000,000 in cash upon signing the agreement followed by 10 annual payments of $300,000 starting 1 year later. The time value of money is 10%. What is the
A firm's bonds have amaturity of 10 years with a $1,000 face value. What are their nominal yield to maturity and their nominal yield to call?
The market anticipates that 1 year from now, 1-year Treasury securities willyield 6%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities?
The maturity risk preuim is estimated to be 0.05 x(t-1)%, where t=number of years to marturty. What is the yield on a 7 year Treasury note?
Explain the relationship between time and the rate of interest if you require $2,000 in the future but only have$1,500 today.
An individual wishes to deposit a certain quantity of money now so that he will have $500 at the end of 5 years. With interest at 4% per year, compounded semi-annually, what is the amout of
What is the present value of an investment that pays $80 at the end of each year for 10 years and pays an additional $1,000 at the end of the tenth year if the required rate of return is 7%? 8%? 9%?
An investment is expected to pay a return of $100 per year. The interest rate for the investment is 6%. What will the price of the investment be if it has a life of 5 years?
Nolan Inc has sales of $1,000,000 and an inventory turnover of 10.0. The firm's current ratio is 3.0, while its quick ratio is 2.5. What are Nolan's current assets?
What are your nominal and real rates of return? Assume the inflation rate is 4 percent.
The interest rate is 4 percent. Prove to yourself that it does not matter the point in lime at which you compare the prizes" cash flows: the better prize has both the bigger present value and future
The market anticipates that 1 year fromnow, 1-year Treasury securities will yield 6%. If the pureexpectations theory is correct, what is the yield today for 2-year Treasury securities?
The investment will cost $85,000 and produce cash inflows of $20,000 a year for 5 years. Should you accept this project based on its internal rate of return? Why or why not?
Frank, age 28, wants to calculate his resources in real (inflation-adjusted) terms. Calculate the amount of resources made available by age 65 retirement if $18,000 a year is saved.
What are the most critical concepts involved with successful capital structure patterns. Can certain steps be overlooked? Why orwhy not?
What is the risk on different financial assets and what is affecting their risk? How many different bonds and stocks exist in our financial markets?