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What is the value of a share of Gamma Corporation common stock to an investor who requires a 20 percent return on her investment?
If investors in the common stock of American Airlines require a 16 percent rate of return, what is the seniority risk premium on American's common stock?
what is the effective annual interest rate on this lending arrangement?
You have estimated the following probability distributions of expected future returns for Stocks X and Y.
Lennox Furniture Company's 2005 balance sheet showed total current assets of $1,200,000. All of the current assets were required in operations, and its current liabilities consisted of $400,000 of
SBS Corp is considering restructuring its capital to increase its value. The company is a power utility provider. What in your opinion is the best capital structure for the company?
After a 5-for-1 stock split, the Strasburg Company paid a dividend of $0.75 per new share, which represents a 9% increase over last year's pre split dividend. What was last year's dividend per share
What is the terminal, or horizon, value of operation? (hint: find the value of all free cash flows beyond year 2 discounted back to year 2)
A company has capital of $200 million. It has an EROIC of 9%, forecasted constant growth of 5%, and a WACC of 10%. What is its value of operations? What is its intrinsic MVA?
Estimate the cost of the receiveables loan to Johnson when the firm borrows the $300k. The prime rate is 11%.
Ritter Company's stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is Ritter's required rate of return?
If the interest rate is 8% compounded annually, what is the worth of the contract at the time of signing?
The company's past annual growth rate in dividends and earnings has been 6%. However, a 5% annual growth in earnings and dividends is expected for the foreseeable future. The company's marginal tax
Orono Corp.'s sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times interest earned (TIE) ratio?
D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price
If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero l
J. Harper Inc.'s stock has a 50% chance of producing a 35% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% return. What is Harper's expected return?
In 2009, goodwill construction company purchased $130,000 worth of construction equipment. Goodwills's taxable income for 2006 without considering the new construction equipmemt would have been $400
The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,121,599, accounts receivables of $3,488,121, short term notes payable worth $1,15
United snack company sells 50 pound bags of peanuts to university dormitories for $10 a bag the fixed costs of this operation are 80 000 while the variable cost of peanuts are $.10 per round.
Any net operating working capital will be recovered at the end of the project as well as the manufacturing tool can be sold for $50,000. Miracle co. has a 10% WACC and a 40% tax rate. What is the NP
Cross Exchange Rate: Assume Poland's currency (the zloty) is worth $.17 and the Japanese yen is worth $.008. What is the cross rate of the zloty with respect to yen? That is, how many yen equal a zl
The current price per share is $46.00 and it is in the 40% corporate tax bracket. What will the value of operations be after the recapitalization?
The risk-free rate is 5% and the market risk premium is 6%. ABC estimates that if it had no debt its volatility would be the same as the stock market's as a whole. The company's tax rate is 40%. Wha
What are the strategic importance of Neodymium uses such as magnets, coloring of glass, and infrared radiation filtering?