• Q : Groups in evaluating ratios....
    Finance Basics :

    Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?

  • Q : Quick ratio or acid-test ratio....
    Finance Basics :

    Explain why the quick ratio or acid-test ratio is a better measure of a firm's liquidity than the current ratio.

  • Q : How many home runs is expected to hit in given year....
    Finance Basics :

    If his home-run-hitting ability is expected to grow by 12 percent every year for the following five years, how many home runs is he expected to hit in 2017?

  • Q : Du pont identity....
    Finance Basics :

    Braam Fire Prevention Corp. has a profit margin of 8.70 percent. Total asset turnover of 1.45, and ROE of 18.67 percent. What is this firm's debt-equity ratio?

  • Q : Company days sales in receivables....
    Finance Basics :

    Days' Sales in Receivables a company has net income of $195,000, a profit margin of 9.40 percent, and an accounts receivable balance of $106,851. Assuming 75 percent of sales are on credit, what ar

  • Q : How much contributed each year to give fund enough to retire....
    Finance Basics :

    How much must be contributed each year by Jesper Parnevik to provide a fund sufficient to retire the debt on March 1, 2016?

  • Q : Computing earnings per share for company....
    Finance Basics :

    Cisco Systems had net income of $4.401 billion and, at year end, 6.735 billion shares outstanding. Calculate the earnings per share for the company.

  • Q : Cost of goods sold and operating profit margin....
    Finance Basics :

    Centennial Chemical Corp. has a gross profit margin of 31.4 percent on revenues of $13,144,680 and EBIT of $2,586,150. What are the company's cost of goods sold and operating profit margin?

  • Q : Calculating liquidity ratios....
    Finance Basics :

    SDJ, Inc., has net working capital of $l,570 current liabilities of $4,380, and inventory of $1,875. What is the current ratio? What is the quick ratio?

  • Q : What annual interest rate to earn....
    Finance Basics :

    Janet Jackson will invest $30,000 today. She needs $222,000 in 21 years. What annual interest rate must she earn?

  • Q : Question regarding the inventory turnover ratio....
    Finance Basics :

    Bummel and Strand Corp. has a gross profit margin of 33.7 percent, sales of $47,112,365, and inventory of $14,595,435. What is its inventory turnover ratio?

  • Q : Find general level of compensation for bearing systematic....
    Finance Basics :

    If the expected rate of return for the market is not much greater than the risk-free rate of return, what is the general level of compensation for bearing systematic risk?

  • Q : Company debt-to-equity ratio-equity multiplier....
    Finance Basics :

    Breckenridge SkiCompany has total assets of $422,235,811 and a debt ratio of 29.5 percent. Calculate the company's debt-to-equity ratio and equity multiplier.

  • Q : Determining the firm roa....
    Finance Basics :

    Bartlett's Pears has a profit margin of 7.5 percent on sales of $26,000,000. If the firm has debt of $9,500,000 and total assets of $19,000,000, what is the firm's ROA?

  • Q : Question regarding the company tax liability....
    Finance Basics :

    Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company's tax liability?

  • Q : Low price-earnings ratios....
    Finance Basics :

    It is sometimes suggested that stocks with low price-earnings ratios tend to be under priced. Describe a possible test of this view. Be as precise as possible.

  • Q : Price of a mature firm stock....
    Finance Basics :

    You might expect the price of a mature firm's stock to decline if it announces a stock offering. Would you expect the same reaction if the issuing firm were a young, rapidly growing company?

  • Q : Relevant concept for evaluating investment projects....
    Finance Basics :

    Why is the marginal cost of capital the relevant concept for evaluating investment projects, rather than a firm's actual, historic cost of capital?

  • Q : Government long-term debt....
    Finance Basics :

    Why is corporate long-term debt riskier than government long-term debt?

  • Q : Bond rating and cost of debt....
    Finance Basics :

    Why does CD's bond rating and cost of debt depend on the amount of money borrowed?

  • Q : High-dividend-paying stocks....
    Finance Basics :

    Why do some investors prefer high-dividend-paying stocks, while other investors prefer stocks that pay low or nonexistent dividends?

  • Q : Determining the capital structures....
    Finance Basics :

    Why do public utilities typically have capital structures with about 50 percent debt, whereas major oil companies average about 25 percent debt in their capital structures?

  • Q : How much would account be worth after twenty years....
    Finance Basics :

    If I made seven, $1000 payments into a 401(k) account, how much would my account be worth after 20 years if I made 13% a year during that investment?

  • Q : What annual rate of interest will earn on investment....
    Finance Basics :

    If Colleen Mooney invests $4,765.50 now and she will receive $12,000 at the end of 12 years, what annual rate of interest will Colleen earn on her investment?

  • Q : How much will one have to repay on given date....
    Finance Basics :

    This amount plus accrued interest at 9% compounded annually is to be repaid on July 1, 2017. How much will Hugh have to repay on July 1, 2017?

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