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what is the maximum amount of dividends the firm could pay? Please show work.
Assume a tax rate of 35% and a discount rate of 14%. What is the depreciation tax shield for this project in year 3?
The tax rate is 35% and the WACC is 16%. Calculate the risk-free rate.
What is your effective annual interest rate on the lending arrangement if you borrow $37 million immediately and repay it in one year? (Do not round intermediate calculations.
If demand falls to 89,500 units and the company wants to continue to earn a 0.49 return, what price should the company charge?
Find the prevailing yield on the 10-year Treasury bond from Yahoo Finance. Is the expected return of this fund greater than the yield on the 10-year Treasury bond?
The company is in the process of issuing $2 million of bonds at par that carry a 5% annual coupon. What is the unlevered value of the firm (in millions)?
A firm has 110,000 shares of stock outstanding. The firm is considering borrowing $1.5 million at 7.5% interest and using the loan proceeds to repurchase 30,000 shares of stock. What is the value of
If demand falls to 86,900 units and the company wants to continue to earn a 0.40 return, what price should the company charge?
Normally, Sweet Treats has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would be the impact on profits if Sweet Treats were to
During the period, the Far East sales office generated 669 orders for a total of 6,190 items. These orders were shipped in 1,450 boxes. What amount of shipping department costs should be allocated t
If these keyboards are upgraded at a cost of $7,400, they could be sold for $20,000. Alternatively, the keyboards could be sold "as is" for $7,800. What is the net advantage or disadvantage of re-wo
The only capital investment required for a small project is investment in inventory. Profits this year were $11,800, and inventory increased from $4,900 to $6,800. What was the cash flow from the pr
A 6-year Circular File bond pays interest of $40 annually and sells for $974. What are its coupon rate and yield to maturity?
at which time the owners are planning on selling the company. What are the projected sales for the last year before the sale?
What is the stock price today assuming a required return of 12 percent on this stock?
Ocean Fun is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Ocean Fun's variable costs are $18 per unit. Fixed costs are $88,700. Ocean Fun expects sales of $289,4
Mario's tireland makes a product that sells for $65 per unit and has $50 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss woul
Kobe's Furniture has a contribution margin ratio of 0.14. If fixed costs are $170,300, how many dollars of revenue must the company generate in order to reach the break-even point?
What is Richard's incremental profit if he chooses option 3 over option 2?
Each macaroni dinner sells for $13.80 each. How much would Laury's profit increase if 10 more dinners were sold?
Which of these costs are variable? Which of these costs are variable?
What is the variance of returns if over the past three years an investment returned 8.0 percent, -12.0 percent and 15.0 percent?
A company has outstanding $100 million worth of common stock on which investors require a return of 15%. In addition, the firm has outstanding $50 million in bonds that offer 9% return.
Suppose a stock had an initial price of $80 per share, paid a dividend of $1.35 per share during the year, and had an ending share price of $87. What was the capital gains yield?