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The appropriate real discount rate for Phillips is 11%. All net cash flows are received at year-end. What is the present value of the net cash flows from A+ operations?
Whichever plant is chosen, it will not be replaced when it wears out. If the tax rate is 34% and the discount rate is 11%, which plant should the company choose?
What type of industries would make the most use of short-range, medium-range, and long-range forecasts?
Assume that the profit per box of plain oatmeal is currently $0.50, the profit per box of Apples & Cinnamon is $0.30, and that purchasers buy twice as many Plain Oatmeal boxes as Apples & Ci
What are the key internal and external factors that must considered when designing a control system for organizations? How have control systems been changed by Sarbanes-Oxley requirements?
Looking ahead to 2005, the company estimates that its assets must increase by 75 cents for every $1 increase in sales. Pierces profit margin is 5 percent, and its payout ratio is 60 percent. How lar
Which of the following is an example of empire building?
Assume that the Financial Management Corporation's $1,000-par-value bond has a 5.700% coupon, matured on May 15, 2017, had a current price quote of 97.708, and had a yield to maturity (YTM) of 6.034
Firm X is considering a project and its analyst have projected the following outcomes and probabilities.
What are some of the advantages of the reciprocal method of cost allocation compared to others?
What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio? (the beta is 0.34)
You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan would have a 11% APR based on end-of-month payments.
Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 20% and a risk-free asset with an interest rate of 4%; calculate the expected re
If the correlation coefficient between stock C and stock D is +1.0% and the standard deviation of return for stock C is 15% and that for stock D is 30%, calculate the covariance between stock C and
What are some of the real costs a company must face in preparing quarterly earnings guidance? Please provide examples.
For the coming year, what is the expected capital gains yield? Round your answer to two decimal places.
Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.
For tax purposes, she needs to know the amount of interest paid during each year of the loan. Find the interest paid during the first year.
Interest rates have declined since it was issued, and it is now selling at 114.12% of par, or $1,141.2
Then how much should you be willing to pay for the bond? Round your answer to two decimal places.
To save for college, the Smiths open a fund in which they will deposit $2,000 per year for 18 years. Viewed as a continuous income stream and assuming an APR of 6 percent compounded continuously, ca
You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk.
Since diversification is desired by all investors, firms should try to diversify the products and services they produce and provide.
You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly paymen
The maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corpora