• Q : Computing the total dividend payment....
    Finance Basics :

    The company forecasts that its net income this year will be $1,800,000. If the company follows a residual dividend policy, what will be its total dividend payment?

  • Q : Determining the percentage of the portfolio....
    Finance Basics :

    A stock has a beta of 1.2 and an expected return of 17 percent. A risk-free asset currently earns 5.1 percent. The beta of a portfolio comprised of these two assets is 0.85. What percentage of the p

  • Q : What is return on invested capital....
    Finance Basics :

    Further it has $10,000 of operating long term assets and an EBIT of $3000 with a 25% tax rate. What is MYG's ROIC (return on invested capital)?

  • Q : Determining the value of one share....
    Finance Basics :

    The company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. Your requi

  • Q : What are the capital costs of the investment....
    Finance Basics :

    Capital Costs are generally defined as investment costs minus salvage value account for at time zero (with the time value of money). What are the capital costs of this investment?

  • Q : Share cash dividend for the holders....
    Finance Basics :

    At a firm's quarterly dividend meeting held April 9, the directors declared a $0.50 per share cash dividend for the holders of record on Monday, May 1. The firm's stock will sell ex-dividends on

  • Q : Find firm-s tax liability if corporate tax rate is given....
    Finance Basics :

    Total operating expense are 700,000. The firm interest expense is $230,000, and the corporate tax rate is 40%. What is PDQ's tax liability?

  • Q : Explain choice of a risk free government bond....
    Finance Basics :

    Further assume that the expected return is the same for both. According to one of the axioms of finance which investment would be chosen?

  • Q : Case study of texas roks company....
    Finance Basics :

    Texas Roks, Inc. is considering a new quarry machine. The costs and revenues associated with the machine have been provided to you for analysis:

  • Q : How large can capital budget be before common stock sold....
    Finance Basics :

    If the firm expects to earn $20 million in net income and retain 40% of it, how large can the capital budget be before common stock must be sold?

  • Q : Average amount of receivables....
    Finance Basics :

    What is the days sales outstanding? What is the average amount of receivables?

  • Q : Question-storico company....
    Finance Basics :

    Storico Co. just paid a dividend of $2.05 per share. The company will increase its dividend by 24 percent next year and will then reduce its dividend growth rate

  • Q : Question-tricki corp....
    Finance Basics :

    Tricki Corp stock sells for $45 rights-on, and the subscription price is $35. Ten rights are required to purchase one share. Tomorrow the stock of Tricki will go ex-rights. What is the price of Tric

  • Q : What is the stock-s expected price three years from today....
    Finance Basics :

    Reddick Enterprises' stock currently sells for $40.50 per share. The required rate of return on the stock, r , is 9.00%. What is the stock's expected price 3 years from today?

  • Q : Find last dividend if dividend grow at constant rate....
    Finance Basics :

    Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $18.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D?

  • Q : How much dividends paid to shareholders during given year....
    Finance Basics :

    The previous retained earning were $780 million. How much in dividends was paid to shareholders during the year?

  • Q : Forecast accruals for the fiscal year....
    Finance Basics :

    Apple Two Enterprises expects to generate sales of $5,950,000 for fiscal 2002; sales were $3,450,000 in fiscal 2001. Assume the following figures for the fiscal year ending 2001:

  • Q : Question-rust bucket motor credit corporation....
    Finance Basics :

    Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor, offered some securities for sale to the public on March 28, 2008.

  • Q : Determining the value of retirement plan....
    Finance Basics :

    Assume that you contribute $240 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $480 per month for another 25 years. Given a 6 percent interest rate,

  • Q : Find price of bond if yield to maturity is at current rate....
    Finance Basics :

    The bond currently sells for $900. If the yield to maturity remains at its current rate, what will the price be 5 years from now?

  • Q : Length of the annuity time period....
    Finance Basics :

    You are considering an annuity which costs $74,100 today. The annuity pays $6,000 a year. The rate of return is 5 percent. What is the length of the annuity time period?

  • Q : Estate worth in today dollars....
    Finance Basics :

    A wealthy woman just died and left her pet cats the following estate: $50,000 per year for the next 15 years with the first cash flow today. At a discount rate of 3.2%, what is the feline estate wor

  • Q : Explain risk premium on high-beta stock increase....
    Finance Basics :

    If investors aversion to risk increased, would the risk premium on a high-beta stock increase by more or less than that on a low beta stock? Explain.

  • Q : Determining the total debt ratio....
    Finance Basics :

    The Fruit Co. has total assets of $7,800, fixed assets of $7,100, current liabilities of $1,500, and long-term liabilities of $4,600. What is the total debt ratio?

  • Q : Find the stock-s expected capital gains yield for the year....
    Finance Basics :

    If D = $1.50, g (which is constant) = 5.3%, and P = $56, what is the stock's expected capital gains yield for the coming year?

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