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Predict the impact of each state's population increase on the four highest discretionary spending accounts.
Discuss at least two challenges the budget analyst should consider when preparing a trend analysis over a five-year period. Justify your response.
The applicable tax rate is 32 percent. What is the operating cash flow for this project?
Will has been purchasing $25,000 worth of New Tek stock annually for the past 11 years. His holdings are now worth $598,100. What is the annual rate of return on this stock?
Project A has an internal rate of return (IRR) of 15.3 percent and Project B has an IRR of 16.5 percent. Given this information, which one of the following statements is correct?
The project will require $26,000 in extra inventory for spare parts and accessories. Should this project be implemented if its requires a rate of return of 14 percent? Why or why not?
Assume that retained earnings increased by $400,000 from December 31, 2011, to December 31, 2012, for Jarvie Distribution Corporation. During the year, a cash dividend of $135,000 was paid.
How is financial leverage created? Describe how the degree of financial leverage is calculated.
Using the information in the previous question, consider a proposal to price the exports to Mexico in U.S. dollars and use the U. S. source for raw materials. Would this proposal eliminate the excha
An 8-month forward contract on a stock is currently priced at $84. The stock currently sells for $80. Assume that the risk-free rate of interest (with continuous compounding) is 10% per annum. Assum
For what range of six-month forward prices of gold does the trader have no arbitrage opportunities? Assume there is no bid-offer spread for forward prices.
How does your answer change if storage costs of 2% per annum are incurred? What is the profit (per ounce)?
A company is 30% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company's common stock is 0.69.
Why does the tax rate for a comprehensive consumption tax that is designed to replace an equal-yield comprehensive income tax have to be higher than the income tax rate? What is the impact on saving
In 2009, a $5 certificate from 1896 was sold for $10,500. What was the annual increase in the value of the certificate?
In 1985 U.S. Open winner won $150. In 2009, the winner won $1,350,000. What is the annual percentage increase in the winners prize money over this time period. If the winners prize increases at the
On the other hand, the 3 month LIBOR rate 2 months ago (when the last cash exchange occurred) was 4.00% per annum with quarterly compounding.
During the year, investment X generated cash flow of $1,500 and investment Y generated cash flow of $6,800. The current market values of investments X and Y are $21,000 and $55,000, respectively.
Currently, Warren Industries can sell 15-year, $1,000-par-value bonds paying annual interest at a 12% coupon rate. As a result of current interest rates, the bonds can be sold for $1,010 each; flota
DebtThe firm can sell for $980 a 10-year, $1,000-par-value bond paying annual interest at a 10% coupon rate. A flotation cost of 3% of the par value is required in addition to the discount of $20 pe
If you would be index funds, which ones? How about foreign investments?
You are given the following information for Calvani Pizza Co.: sales = $38,000; costs = $21,000; addition to retained earnings = $5,000; dividends paid = $1,500; interest expense = $5,000; tax rate
Scott is considering a project that will produce cash inflows of $2,100 a year for 4 years. The project has a 12 percent required rate of return and an initial cost of $6,000. What is the discounted
A project has an initial cost of $6,500. The cash inflows are $900, $2,200, $3,600, and $4,100 over the next four years, respectively. What is the payback period?
How may transactions costs and capital gains taxes affect your choices?