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Given this, what is the maximum growth rate for the firm if it has net income of $12,100, total equity of $94,000, total assets of $156,000, and a 40 percent dividend payout ratio?
How much external equity will the company require if it pays the same dividend as last year?
An investor enters into a short forward contract to sell 100,000 British pounds for US dollars at an exchange rate of 1.4000 US dollars per pound. How much does the investor gain or lose if the exch
Assume a retention ratio of 0.45 and a historical return on equity (ROE) of 0.18. Using these two additional pieces of information, calculate an alternative estimate of dividend growth rate, g.
What is the debt/net worth ratio and the debt to total assets ratio for a firm with total debt of $600,000 and equity of $400,000?
Under what circumstances should Photosynthesis take on the project?
You have $90000 saved today and want to purchase a new yacht when your money grows to $300000. If you can earn 10 percent on your investments, how long do you have to wait to buy your yacht?
You have invested in 4 stocks: X, Y, Z, and Fred. Each stock's beta and the dollars you invested in each are given below. What is the beta of this 4-stock portfolio?
What would the approximate price of a stock be if an average investor requires a return of 14% for an average stock, junk bonds are yielding 22% and 3 month T-Bills are yielding just 4.5%.
A friend promises to pay you $1,000 two years from now if you lend hime $800 today. What annual rate of interest is your friend offering?
If I want to accumulate $15,000 in 6 years by making equal end-of-year deposits into an account paying 7% interest, how large should those deposits be?
Lockheed Martin and CACI International want to sell me a bond that will pay me $100,000 in one year.
Consider a firm that had a taxable income of $110,000, and total gross revenues of $340,000 in the current tax year. Based on this information, how much federal income tax was paid for the tax year.
The state income tax rate is 3%, and the federal income tax rate is 34%. State income taxes are deductible from federal taxable income. What is this firm's after-tax MARR? (Enter your answer as a pe
Half-year convention does not apply to this asset. After 4 years, the rig is sold for $65,000. If the effective income tax rate is 40%, what is the after-tax net cash flow for the year of the sale.
You deposit $600 today, $600 one year from now, and $1000 five years from now into an account that earns 4% compounded annually. How much money will you have 11 years from now?
The market prices of the options are $2.75 and $1.50, respectively. The options have the same maturity date. Describe the investor's position.
Suppose that you write a put contract with a strike price of $40 and an expiration date in 3 months. The current stock price is $41 and the contract is on 100 shares.
Assume a company pays a fixed dividend on its 4%, $100 par value preferred stock. If your required rate of return is 8%, what is your intrinsic value of one share of stock?
You want to have $120,000 for your daughter's education 18 years from now. If you can earn 4 percent, compounded annually, on your savings, how much do you need to deposit today to reach your goal?
Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual rate of 3% in the United States and a nominal annual rate of 35% in the United Kingdom. In the spot
Marie owns shares of Deltona Productions preferred stock which she says provides her with a constant 14.3 percent rate of return. The stock is currently priced at $45.45 a share. What is the amount
Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01. At this price, the bonds yield 7.5 percent. What is the coupon rate?