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Assume the expected inflation rate to be 4 percent. If the current real rate of interest is 6 percent, what ought the nominal rate of interest be?
What is the difference between an internal economy of scale and an external economy of scale? Give examples as part of your answer.
How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by Riverside?
Discuss how SSC's stockholders will view each of these actions, and how they will affect the stock price.
Suppose your stock portfolio's beta is 1.40 and it's currently valued at $1 million. The S&P 500 index is currently at 2,000. The riskfree rate is 4% per annum and the dividend yield on
What is AOL's enterprise value? What is AOL's enterprise value?
What is the optimal combination of risky assets that a risk-averse investor should hold? (Remember that there is also a risk-free asset available - no calculations, just describe)
2.High Flyer, Inc., wishes to maintain a growth rate of 17.75 percent per year and a debt-equity ratio of 1.25. The profit margin is 4.1 percent, and total asset turnover is constant at 1.01.
Discuss the various types of bonds and how they are used to raise funds by public and private institutions and why is each type of security used, and what are the risks and rewards associated with a
AirJet Best Parts, Inc. is concerned regarding recent changes in its stock prices for the company and would like to determine the stock prices for key competitors. Key competitors include Raytheon,
Sorenson Corp.'s expected year-end dividend is D1 = $1.60, its required return is rs = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Sore
The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?
A firm wishes to maintain an internal growth rate of 7% and a dividend payout ratio of 25%. The current profit margin is 5% and the firm uses no external financing sources. What must total asset tur
Final earnings estimates for Chilean Health Spa & Fitness Center have been prepared for the CFO of the company and are shown in the following table. The firm has 7,500,000 shares of common stock
How should environmental effects be considered when evaluating this, or any other project? How might these affects change your decision in Part b?
Based on the price changes in response to the changes in yield to maturity, how is interest-rate risk a function of a bond's maturity? That is, is interest-rate risk the same for all four bonds, or
What is the WACC prior to the expansion? After the expansion? Why would leverage cause the increase in the cost of debt.
Construct two financing plans-one conservative, with 80% of assets financed by long-term sources, and the other aggressive, with only 60% of assets financed by long-term sources.
Manufacturing Corp. expects to sell the following number of prefabricated buildings. The probability of each state is indicated. What is the expected value of the total sales projected?
Royal Mediterranean cruise Line's common stock is selling for $22 per share. The last dividend was $1.20 and dividends are expected to grow at 6% annual rate. Fotation costs on new stock sales are 5
Rocky Mount Metals Company manufactures an assortment of wood-burning stoves. The average selling price for the various units is $500. The associated variable cost is $350 per unit. Fixed costs for
Find the future value of an ordinary annuity of $8000 paid semiannually for six years at 6% annual interest compounded semiannually. How much was invested? How much interest was earned?
Find the amount that should be set aside today to yield the desired future amount.
Revenue projections for the coming year are $47,500 for January and $50,000 for February. Cash receipts of $50,600 are expected in March. What revenues are projected for March?
If Fleming expects to have $305,100 available from next years retained earnings, what percent increase is it forecasting in revenues?