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Firm A is acquiring Firm B by exchanging 100 of its shares for all the shares in B. What is the cost of the merger if the merged firm is worth $63,000? What will happen to Firm A's EPS? Its PE rat
Is the car wash industry an attractive industry for consolidation/roll-up? Why? Are there potential economies of scale in the car wash business? Why? What are the potential hurdles to a roll-up str
Firm A estimates that the value of the synergistic benefit from acquiring Firm B is $6,000. Firm B has indicated that it would accept a cash purchase offer of $35 per share. Should Firm A proceed?
Summit Systems has an equity cost of capital of 11%, will pay a dividend of $1.50 in one year & its dividends had been expected to grow by 6% per year. You read in the paper that Summit has revi
Please analyze the 10-K and other internet resource and provide a risk report for the Union Pacific Corporation (NYSE:UNP).
What is prepayment risk? How does prepayment risk affect the cash flow stream on a fully amortized mortgage loan? What are the two primary factors that cause early payment?
A put option and a call option with an exercise price of $80 and five months to expiration sell for $2.05 and $4.80, respectively.
The stock is currently priced at $67, and the risk-free rate is 3.6 percent per year, compounded continuously. What is the price of a call option with the same exercise price?
You own stock in the Lewis-Striden Drug Company. Suppose you had expected the following events to occur last month.
If the risk-free rate of interest is 2.6 percent per year, compounded continuously, what is the price of a put option with the same exercise price?
The Graham Corporation has annual sales of $90 million. The average collection period is 70 days. What is Graham’s average investment in accounts receivable as shown on the balance sheet?
List and briefly describe the three general areas of responsibility for a chief financial officer (CFO) of a selected non-financial company which is listed on Australian Stock Exchange (ASX).
The firm's net capital spending for 2014 was $1,030,000, and the firm reduced its net working capital investment by $132,000. What was the firm's operating cash flow during 2014?
The new policy would involve extending credit for one period. Based on the following information, determine if a switch is advisable. The interest rate is 2.0 percent per period.
Help your friend project the investment's worth at the end of four years under each investment strategy and explain the results to him.
Suppose Thiewes sells a total of 600 pairs of boots in a year. How many times per year does Thiewes restock? Suppose the restocking cost is $20 per order. What are total restocking costs?
In a typical month, the Bungee Jump Corporation receives 100 checks totaling $90,000. These are delayed six days on average. What is the average daily float?
Economies of scale is the advantage that a larger FI may have over an smaller financial firm due to a drop in the average costs of production as the output of an FI increases (Saunders & Cornett
The Habitat Corporation has a WACC of 16 percent. Its cost of debt is 13 percent. If Habitat's debt-equity ratio is 2, what is its cost of equity capital?
The market's required return suddenly rises to 7%. What are the new bonds' prices, and what is the percentage change in price for each bond?
What are the two reasons liquidity risk arises? How does liquidity risk arising from the liability side of the balance sheet differ from liquidity risk arising from the asset side of the balance sh
Discuss the differences between economies of scale and economies of scope.
If inflation exceeds 1.0% for the year, the rate of inflation would be added to the €3.5 million. Find out how inflation has been affected after the European Union trade agreement and introduct
Submit a 3 to 5 page summary of the subprime mortgage crisis of 2008.
The probabilities of their outcomes are 20%, 40%, and 40% respectively. What is the expected value of these outcomes.