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At the end of March, 40,000 additional units were in process in the production department and were 100% complete with respect to materials and 40% complete with respect to labor. Compute the number
Compute the cost of retained earnings (Ke). Using this formula: Ke(Cost of common equity in the form of retained earnings).
Ontario Wine just paid a dividend of $1.50 on its stock, which currently sells for $50 per share. What required return must investors be demanding on Ontario Wine stock?
You have checked with your FX dealer and the 90 day forward on the Euro is $1.40. Do you have an arbitrage opportunity? Should you buy or sell Euros?
You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 9.8 percent. Stock A has an expected return of 11.4 percent while stock B is expected to return
Fitz's 25-year bond pays 11% interest annually on a $1,000 par value. If bonds sell at $845, what is the bond's yield to maturity? What would be the yield to maturity if the bond paid interest semia
The firm has a tax rate of 30 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $57,000 at the beginning of the project. What will be the net c
Assume a tax rate of 30% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?
The tax rate is 34 percent and the required return on the project is 11 percent. What change in NWC occurs at the end of year 1?
If they receive an A rating, the yield to maturity on similar A bonds is 10.5%. What will be the price of the bond if it receives and AA rating? An A rating? (Show would as well as answers)
Calculate the value of a bond that matures in 12 years and has a $1,000 par value. The annual coupon interest rate is 13% and the yield to maturity on a comparable risk bond is 11%. (show work as we
If a company increases the ammount of debt financing in the company's capital structure, how would the required return for equity holders change? Expain why in more than 2 sentences.
If Mitchem expands its receivables and inventories using its short-term line of credit, how much additional short-term funding can it borrow befor its current ratio standard is reached?
Cash conversion cycle: Northern Manufacturing Company found that during the last year, it took an average of 47 days to pay its suppliers, while it took 63 days to collect its receivables. The compa
What impact would the new capital structure have on the firm's net income, total dollar return to investors, and ROE?
What is the incremental cash flow related to working capital when the store is opened?
How large are an equal annual end - of - year deposit must be made into an account paying an annual rate of interest of 13% in order to buy the ski chalet upon retirement?
You have four stocks that have each decreased $2500 in value. If you sell two of them and take the full allowable deduction this year, how much can you carry over to next year?
The stock is now worth $32, and the total return to Julio for owning the stock was 37 percent. What is the dollar amount of dividends that he received for owning the stock during the year?
What is the interest rate should fall to 4.5%? Rise to 8.5%? Why does the price go up when interest rates fall? Why does the price go down when interest rates rise?
With each company, multiply the degree of financial leverage times the degree of operating leverage to determine the degree of combined leverage for the two periods.
Using the payback method, what will the decision be.
The preferred stock is now selling for $75. What is the current ield of cost of preferred stock? (Disregard floatation costs).
Later in the year, the firm turns down an opportunity to buy a new machine that would yield a 15% return but would cost 17% t finance through common equity. Assume debt and common equity each repres
Mrs. John, told him it was impractical because it would require the issuance of common stock at a cost of 16% to finance the purchase of equipment to produce the compound. Is the company following a