• Q : Find the rate of return on the security....
    Finance Basics :

    A preferred stock is currently valued at $49 a share and pays an annual dividend of $4. The par value is $100 per share. What is the rate of return on this security?

  • Q : Find value of t-bills promised at delivery based on price....
    Finance Basics :

    The newspaper price for a T-Bill futures contract is 93.33. What is the value of the T-Bills promised at delivery based on this price?

  • Q : How much to invest to bring balance in the cd....
    Finance Basics :

    How much do you have to invest to bring the balance in the CD account to $8,500 in five years? Need the exact amount in dollars and cents.

  • Q : Compute the annual worth....
    Finance Basics :

    At the end of the life of the project, the equipment can be sold for a profit with salvage value of 18,000. The MARR is 9.7 percent. Compute the annual worth.

  • Q : Find amount balance sheet total for equity at end-of-period....
    Finance Basics :

    Net income for the period totals $75,000 and dividends declared during the period total $15,000. The balance sheet total for equity at end-of-period will be what amount?

  • Q : What rate of return to earn if expected to pay dividend....
    Finance Basics :

    The stock of the Health Corporation is currently selling for $20 a share and is expected to pay a $1 dividend at the end of the year. What rate of return would you earn?

  • Q : Computing the forward exchange rate....
    Finance Basics :

    Six-month T-bills have a nominal rate of 7%, while default free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In the spot exchange market, 1 yen equals $0.009. If interest rate

  • Q : Spot exchange rate between euro and dollar....
    Finance Basics :

    A television set costs $500 in the United States. The same set costs 550 euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar?

  • Q : How much money afford to borrow to buy a boat....
    Finance Basics :

    You would like to buy a boat and know you can afford boat payments of $225 a month for 5 years. The interest rate is 7.65 percent, compounded monthly.

  • Q : Calculate the amount of the monthly payment....
    Finance Basics :

    The dealer will lend you the entire amount at 3.9 percent interest, compounded monthly, for 48 months. What is the amount of the monthly payment?

  • Q : Determining the return on assets....
    Finance Basics :

    Nagel. Inc. has sales of $330,600, total assets of $252,100, and a profit margin of 7.5 percent. What is the return on assets?

  • Q : Total amount of additional earnings....
    Finance Basics :

    What would be the total amount of these additional earnings? $6,000 x 40 = $240,000

  • Q : What is cost of new common equity....
    Finance Basics :

    Its growth rate is 6.68%; its common stock now sells for $35.86. New stock can be sold to net $32.24 per share. What is Evanec's cost of new common equity?

  • Q : Determine the length of the annuity time period....
    Finance Basics :

    The annuity pays $18,126 a year at an annual interest rate of 7.50 percent. What is the length of the annuity time period?

  • Q : Computing future values....
    Finance Basics :

    Computing future values, the future value of retirement account in which you deposit 2000 year for 30 years with an annual interest rate of 8%.

  • Q : Short term notes with a cost....
    Finance Basics :

    What is the weighted average cost of capital if 40% comes from equity with a cost of 10%, 30% comes from bonds with a cost of 8%, and 30% comes from short term notes with a cost of 2%?

  • Q : Implied interest rate on a treasury bond....
    Finance Basics :

    What is the implied interest rate on a Treasury bond ($100,000) futures contract that settled at 100'16? If interest rates increased by 1%, what would be the contract's new value?

  • Q : Determining the company interest expense....
    Finance Basics :

    Little Books Inc. recently reported net income of $3 million. Its operating income (EBIT) was $6 million, and the company pays a 40 percent tax rate. What was the company's interest expense for the

  • Q : Which stock is riskier-standard deviation of future returns....
    Finance Basics :

    Common stock B has an expected return of 12%, a standard deviation of future returns of 15%, and a beta of 1.50. Which stock is riskier? Explain.

  • Q : Find difference in present value to receive payments....
    Finance Basics :

    The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

  • Q : Terminal value account for a substantial fraction....
    Finance Basics :

    For what kinds of investments would terminal value account for a substantial fraction of the total project NPV, and for what kinds of investments would terminal value be relatively unimportant? Plea

  • Q : Find firm-s flotation cost for new common equity....
    Finance Basics :

    The higher the firm's flotation cost for new common equity, the more likely the firm is to use preferred stock, which has no flotation cost, and retained earning.

  • Q : Determining the cost-efficient capital market....
    Finance Basics :

    How does a cost-efficient capital market help reduce the prices of goods and services?

  • Q : Stock rate of return income....
    Finance Basics :

    Gwen purchased a stock one year ago for $25, and it is now worth $31. The stock paid a dividend of $1.50 during the year. What was the stock's rate of return income during the year? (Round your answ

  • Q : Net income of ebersoll mining....
    Finance Basics :

    Ebersoll Mining has $7 million in sales; its ROE is 13%; and its total assets turnover is 3.5x. The company is 75% equity financed. What is its net income? Round your answer to two decimal places

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