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How do you explain the higher P/E ratio enjoyed by firm B as compared to firm A.
Calculate the net present value and internal rate of return of replacing the existing machine.
If she takes the 90 days same as cash option and purchases the printer on December 20, using exact time, what is her deadline for paying no interest in a non-leap year? How about in a leap year?
A box of candy costs 28.80 Swiss francs in Switzerland and $17.5 in the United States. Assuming that purchasing power parity (PPP) holds, how many Swiss francs are required to purchase one U.S. doll
The Hamlin Corporation has an inventory conversion period of 60 days, a receivables collection period of 30 days, and a payables deferral period of 30 days. Its annual credit sales are $5,000,000, a
A 6-month put option on Makler Corp.'s stock has a strike price of $47.50 and sells in the market for $8.90. Makler's current stock price is $41.00. What is the exercise value of the option?
Suppose 144 yen could be purchased in the foreign exchange market for one U.S. dollar today. If the yen depreciates by 23.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?
In the 90-day forward market, 1 British pound equals $1.50. If interest rate parity holds, what is the spot exchange rate ($/£)?
Which one of these would be the optimal capital structure and can you tell me why?
Assume authors' royalties are reduced and sales remain constant; how much more money can the publisher put into advertising (a fixed Cost) and still break even?
The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today?
Suppose you just won the lottery, and you have the choice between receiving $2550000 today or a 20-year annuity of $250000, with the first payment coming a year from today. What rate of return is bu
The stock currently sells for $40.00 a share, has an expected dividend in the coming year of $2.00, and has an expected constant growth rate of 5.00%. What is the estimated floor price of the conver
The bonds mature in 6 years, have a face value of $1,000 and sell at 96% of par. What is the capital structure weight of the preferred stock?
Dochester Inc., has 7,500 shares of stock outstanding, at a market price of $32 each and earnings per share of $1.80. The first has decided to repuchase $64,000 worth of stock. What will the PE rati
A stock has a beta of 2.5 and an expected return of 11.8%. The risk-free rate is 2.8%. What is the slope of the security market line?
If Micro has 10 million shares outstanding, by how much should the merger increase its share price, assuming all of the synergy will go to its stockholders?
Looking at The Wall Street Journal you observe that the settlement price on a hypothetical 15-year, semiannual payment, 6% coupon bond is 81-21. If the bond has a $1,000 par value, what is the impli
Suppose the December CBT Treasury bond futures contract has a quoted price of 103-18. If annual interest rates go up by 3.00 percentage point, what is the gain or loss on the futures contract?
Assume the company issues a 10 percent stock dividend. How many shares will be outstanding after the dividend?
Teldar's post-merger beta is estimated to be 1.7, and its post-merger tax rate would be 35%. The risk-free rate is 6%, and the market risk premium is 5.5%. What is the value of Teldar to Gekko Prope
Suppose hockey skates sell in Canada for 165 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If purchasing power parity (PPP) holds, what is the price of hockey skates in the Unite
How much will the total taxes of western exploration corp. be reduced as a result of the tax loss carryforward?
If the exchange rate remains at 5.10 pesos per dollar through the end of the loan period, what effective annual interest rate will Blenman end up paying on the loan?
Today, at maturity, the exchange rate is 1.324 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor?