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If a firm extends 3/10, net 45-day terms of sale. What is the cost in terms of nominal APR? Assume a 360-day year.
Again, Inc. is proposing a rights offering. Presently, there are 450,000 shares outstanding at $90 each. There will be 80,000 new shares offered at $84 each.
Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoic
What are the reasons that caused a decline in the shares of depository institutions and increased in the shares of investment companies?
Projected sales for October, November, and December are 27,000 units, 29,500 units, and 32,500 units, respectively. How many units must be ordered in November?
Calculate Touring Enterprises' weighted average cost of capital (WACC). Work as follows: first, compute the after-tax cost of debt, then compute the cost of equity. Cite both formulas, and show all
Buggy Whip Manufacturing Company is issuing preferred stock yielding 10%. Selten Corporation is considering buying the stock. Buggy's tax rate is 0% due to continuing heavy tax losses, and Selten's
On January 1, 2005, this bond was sold for 110,000 dollars. What interest rate per six months was earned by the company on the BMI bond?
If the installed cost of the motor is $3,500, what is the present worth of the motor over a 10 year period when the MARR is 15% per year?
A U.S. government bond matures in 10 years. Its quoted price is now 97.8, which means the buyer will pay $97.80 per $100 of the bond's face value. The bond pays 5% interest on its face value each ye
An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company ca
Assume that the car will be driven 120,000 miles over its lifetime of 10 years. The motorist can earn 6% per year on investment.
It had sales of $6,000,000 and a net income of $1,080,000. The company's total assets as of Dec. 31, 2009 were $14,000,000 and its total assets as of Dec. 31, 2010 were $18,000,000. What is B&M
determine the after-tax cash flow from the unamortized discount associated with the retirement now of each of these bonds, using the values developed in part (D)
If WRC's cost of capital is 12% per year, is this a profitable agreement for WRC?
Size of Accounts Receivable- Tidwell, Inc., has weekly credit sales of $19,400, and the average collection period is 34 days. The cost of product is 75 percent of the selling price. What is the aver
Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion.
At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places.
Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 16 pe
Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons.
Optical Supply Company offers credit terms of 2/10, net 60. If Optical Supply is considering a change in its credit terms to one of those indicated, explain whether the change should increase or dec
The inventory in Britain is still valued at 240,000 pounds. What is the gain or loss in inventory value in U.S. dollars as a result of the change in exchange rates? Show your work.
Eastern has 4 million shares outstanding and no debt. Eastern's current price is $16.25. What is the maximum price per share that Dunbar should offer? Show your work.
Wintoki Company writes checks averaging $15,000 a day, and it takes 5 days for these checks to clear. The firm also receives checks in the amount of $17,000 per day, and it takes 3 days for these ch
Construct a cash budget for a typical month and calculate the average cash gain or loss during the month. Show your work.