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What is the maximum initial cost the company would be willing to pay for the project?
Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?
The current prime rate is 6.75 percent, the 30-year Treasury bond yield is 4.41 percent, the three-month Treasury bill yield is 3.50 percent, and the 10-year Treasury note yield is 4.25 percent. Wha
Management expect the dividends to grow at a constant rate of 10% per year. If the required rate of return on the companys stock is 14%, how much would the stock be worth at the end of three years f
Swamp & Sand's current dividend is $1.6 per share. Analysts expect the firm's growth rate of 2% per year to continue indefinitely. The current stock price is 12.5 . Calculate the required return
Webster Global Services has a Debt-to-Equity Ratio of 1.3. What is the percentage of capital that is equity?
Orlando Pixie Dust is considering an option to buy some land in Brazil 9 years into the future. The acquisitions department discounts future projects at 2%. Calculate the discount factor that will b
Free cash flow in year 5 is expected to be $145 million. MiCasa, S.A. is expected to be sold at its terminal value. Calculate the terminal value using the multiple method.
What is the NPV of accepting the lockbox agreement?
The new stock has an estimated flotation cost of $3 per share. What is the company's cost of equity capital?
Find the number of units sold where the pretax operating cash flow is the same whether the firm chooses the large or small factory.
The Belgium Bike Company just paid an annual dividend of $1.12. If you expect a constant growth rate of 4% and have a reqquired rate of return of 13%, what is the current stock price according to th
If the current price of Two-Stage's common stock is $28.98, what is the cost of common equity capital for the firm?
Industrial Products has total assets of $627,000 and total liabilities of $328,400. The firm has 24,000 shares of stock outstanding and a market-to-book ratio of 5.1. What is the market value per sh
Winston Consulting has a return on assets of 16 percent, an equity multiplier of 1.75, and a dividend payout ratio of 60 percent. What is the firm's internal rate of growth?
Dexter's. has net income of $11,000, interest of $480, cost of goods sold of $31,500, and depreciation of $900. What is the times interest earned ratio if the tax rate is 35 percent?
West Coast Sports has total sales of $318,000, cost of goods sold of $241,000, and an average receivables balance of $38,200. How long on average does it take to collect payment from a customer?
A firm has a current ratio of 1.8, a quick ratio of 0.7, and current liabilities of $1,200. What is the value of the inventory account?
The firm paid a dividend of $1.00 yesterday, and dividends are expected to grow at 10 percent for two years and then at 5 percent thereafter. What is the implied cost of common equity capital for De
Calculate the exercise value of the firm's warrants if the common sells at each of the following prices: (1) $20, (2) $25, (3) $30, (4) $100. (Hint: A warrant's exercise value is the difference betw
Telecraft Enterprises carries 45 days of inventory in its stores. Last year Telecraft reported net sales of $1,302,300 and had receivables of $322,000 at the end of the year. What is the operating c
Neubert also has outstanding $1,000 par value 15-year straight debt with a 7% coupon paid annually, also trading for $1,000. What is the implied value of the warrants attached to each bond?
what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent.
Assuming a stock price and volume chart that also contains a 50-day and a 200-day MA line, describe a bearish pattern with the two MA lines and discuss why it is bearish.
What is the purpose of computing a moving-average line for a stock? Describe a bullish pattern using a 50-day moving-average line and the stock volume of trading. Discuss why this pattern is conside