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An investment offers to pay you $10,000 a year for five years. If it costs $33,520, what will be your rate of return on the investment?
Gardner Electric has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-bond rate is 5.25%.
If you wish to purchase a $100,000 yacht to celebrate your 30th birthday, what compound annual rate of return must you earn?
Net income of $3.60 million, ROA of 10%, and interest expense of $1.00 million. Its tax rate is 40%. What is its basic earning power (BEP) ratio? Give your answer as a number significant to 2 decima
A firm has a profit margin of 5.5% and an equity multiplier of 2.4. Its sales are $140 million and it has total assets of $84 million. What is its ROE?
Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6.20%, based on semiannual compounding. What is the bond's
Consider a second alternative for accumulating funds to buy the new billing system. What type of annuity is this?
What was the return on the company's stock for the period? What was the 'current yield' on the stock for that period?
You invest $1000 in a certificate of deposit that matures after 10 years and pays 5 percent interest. How much interest will the saver earn if the interest is left to accumulate?
Multicolor Corp. had an annual coupon of $60.00, a face value of $1,000, and a market value of $840. Calculate the coupon yield and the current yield.
The Oakland Mills Company has disclosed the following financial information in its annual reports for the period ending March 31, 2011:
The lifetime of the project will be 13 years with a cashflow stream of 2,000 per year and an interest rate of 3. Compute the Savings/investment ratio.
Prepare an amortization schedule for a five-year loan of $63,000.The interest rate is 8 percent per year, and the loan calls for equal annual payments.
James wants to purchase a bond with face value of 5,000. He would like to have 7.8 percent yield on his investment. What should the purchase price be?
A preferred stock pay a 5 percent annual dividend per share and provides investors with a 12 percent rate of return. What is the current price per share?
Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $879,000. The current cost of equity is 18.3 percent and the tax rate is 34 percent. The c
What ratios measure a corporation's liquidity? What are some problems associated with using such ratios? How would the DuPont analysis overcome these problems?
Should that be a one on onemeeting, or should the CFO be present? why? If you feel the CFO should be there, what should be his or her role in the meeting?
If all the current assets were liquidated today, the company would receive $2.6 million cash. What is the book value of Klingon's assets today? What is the market value?
Calculate the dividend amounts, Betty and John Martinez unknown 220 shares of Exxon Mobil common stock, Exxon Mobil's quarterly dividends is $1.40 per share.
Is this project worth pursuing if the discount rate is 6%? How high can the discount rate be before you would reject the project?
The sausage system will save the firm $194,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $52,000. Required: If the tax rate is 40 pe
The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
Suppose that the change in the log return of a portfolio over a one-day time period is normal with a mean of zero and a standard deviation of 1%. What is: the one-day 97.5% VaR?
Lifeline, Inc., has sales of $603,000, costs of $255,000, depreciation expense of $62,000, interest expense of $29,000, and a tax rate of 30 percent. What is the net income for this firm?