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what is the annual savings? (use a 360 day year and remember that first, you have to calculate the daily expenditure.)
You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly. What w
Explain why an options calculated price may not be the same as its actual market price?
The default premium is 1 percent. The maturity risk premium on four year bonds is 0.50%. What is the nominal interest rate on a four-year U.S. government bond?
The Green Giant Has a 5 perecnt profit margin and a 40 percent dividend payout ration the total assest turnover is 1.40 and the equilty militiplier is 1.50. What is the sustainable rate of growth?
Osbourne Corporation has bonds on the market with 16.0 years to maturity, a YTM of 10.5 percent, and a current price of $943. The bonds make semiannual payments. What must the coupon rate be on the
Calculate the best-case and worst-case NPV figures. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e
The net working capital will return to its original level when the project ends. The tax rate is 35 percent. What is the internal rate of return for this project?
An investment will pay $200 at the end of each of the next 3 years, $400 at the end of Year 4, $500 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 10% a
A Europeand Vanilla Put option on the underliner with stike price of $9 is trading in the market. What is the no-arbitrage value of the European vanilla Put option?
Explain why management should be concerned about priority systems in manufacturing and service organizations.
Consider a service provider that is in the delivery business, such as UPS or FedEx. How can the principles of MRP be useful to such a company?
If Ace's after-tax cost of borrowing is 16%, compute the after tax cost of leasing.
A firm has a cash conversion cycle of 60 days. Annual outlays are $12 million and the cost of negotiated financing is 12 percent. If the firm reduces its average age of inventory by 10 days, what is
The old press was purchased 2 years ago for an installed cost of $35,000 and can be sold for $20,000 net of any removal costs today. Both presses are depreciated under the MACRS 5-year recovery sche
Enter negative sign in front of the number or put parentheses around the number. The answer to this question is negative not positive.
Stock B has an expected rate of return of 12 percent, a standard deviation of 15 percent, and market beta of 1.5. Which investment is riskier? Why? (Hint: Remember that the risk of an investment dep
Estimate the weighted average cost of capital (WACC) assumingthe cost of debt is 14% (rd = 14%) and a tax rate of 40 percent.
A company is known to have a target debt-equity ratio of 0.60. Its WACC is 13.80 percent, and the tax rate is 35 percent.
A firm has a current ratio of 2.4, a quick ratio of .6, and current liabilities of $800. What is the value of the inventory account?
Wilson's Realty has total assets of $46,800, net fixed assets of $37,400, current liabilities of $6,100, and long-term liabilities of $24,600. What is the debt ratio?
What are the firm's adjusted tax liabilities for the years 2006 through 2010? (c) What total tax refund will the firm receive after the adjustment?
How many of the old shares must be given up for one new share to achieve the $25 price, assuming this transaction has no effect on total market value?
Napredna Tehnologijaestimates the following data for the coming year. If the firm follows the residual dividend model and also maintains its target capital structure, what will its dividend payout r
If the company follows the residual dividend model, how much net income must it earn to meet its capital budgeting requirements and pay the dividend, all while keeping its capital structure in balan