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Assume the appropriate discount rate is 9.6 percent. What are the present values of the relevant investment cash flows?
If the discount rate is 6 %, what is the present value of the furniture payments.
The money has not been touched since a first deposit was made exactly six years ago. If the most recent deposit was made today, how much money is currently in the account?
At the end of the year, net fixed assets were $21,140, current assets were $3,440, and current liabilities were $2,080. The tax rate for 2014 was 35 percent.
Graffiti Advertising, Inc., reported the following financial statements for the last two years. (Enter your answer as directed, but do not round intermediate calculations.)
In addition, the company had an interest expense of $215,300 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions.) What is Belyk's net income?What is Belyk's oper
You plan to place a $40,000 down payment on a lake cabin in Northern Minnesota in ten years. If you invest in a long-term CD earning an annual rate of 5.50%, how much would you need to invest today
Why are firms even allowed to do it under GAAP? Is it ethical? What are the implications for cash flow an shareholder wealth?
What is meant by saying debt is tax-favored? What is the benefit to the firm? What are the risks?
A firm has sales of $1,140, net income of $218, net fixed assets of $528, and current assets of $284. The firm has $93 in inventory. What is the common-size statement value of inventory?
Some companies debt-equity targets are expressed not as a debt ratio, but as a target debt rating on a firm outstanding bonds. What are the pros and cons of setting a target rating, rather than a ta
Briefly describe the cost allocation process (use the direct method) and explain why it is critical for financial decision making.
For each of the following expiration date values for the unhedged equity position, calculate the terminal values (net of initial expense) for a protective put strategy. 35, 40, 45, 50, 55, 60, 65, 7
The initial outlay or cost for a four-year project is $1,000,000. The respective cash inflows for years 1, 2, 3 and 4 are: $500,000, $200,000, $300,000, $300,000. What is the discounted payback peri
Ivan's, Inc. paid $486 in dividends and $588 in interest this past year. Common stock increased by $198 and retained earnings decreased by $124. What is the net income for the year?
At the beginning of the year, long-term debt of a firm is $278 and total debt is $324. At the end of the year, long-term debt is $254 and total debt is $334. The interest paid is $20. What is the am
Assume you are given the following information: Sales/Total Assets = 1.5, ROA =2% abd ROE = 9%; calculate liabilities to assets ratio and debt to assets ratio.
Consider a 8.80 percent coupon bond with five years to maturity and a current price of $956.20. Suppose the yield on the bond suddenly increases by 2 percent.
What is the Macaulay duration of a 8.6 percent coupon bond with twelve years to maturity and a current price of $953.90? What is the modified duration?
Assume that the investment banker's required return on such arrangements is 18%, and ignore taxes.
The book value of this debt issue is $108 million. In addition, the company has a second debt issue, a zero coupon bond with 9 years left to maturity; the book value of this issue is $67 million, an
what is the company's cost of equity? 8.81 percent 9.94 percent 9.37 percent 10.04 percent 10.46 percent
Your portfolio has a beta of 1.78. The portfolio consists of 18 percent U.S. Treasury bills, 32 percent stock A, and 50 percent stock B. Stock A has a risk level equivalent to that of the overall ma
What should the firm set as the required rate of return for the project? 15.39 percent 13.92 percent 12.54 percent 17.33 percent 17.06 percent
What was the capital gains yield? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 3