• Q : Single investment....
    Finance Basics :

    You want to have $1,000,000 in retirement funds in 30 years. What would it take as a single investment today if you could earn 14% on your investment?

  • Q : Rate of return on the sale....
    Finance Basics :

    Lauren purchased ratchets rotator one year ago for $6,500. During the year it generated $4,000 in cash flow. If Lauren sells the rotator, she could receive $6,100. What is the rate of return on the

  • Q : Current capital structure....
    Finance Basics :

    Gray has a current capital structure consisting of $400,000 of 12% annual interest debt and 50,000 shares of common stock. The firm's tax rate is 40% on ordinary income. If the EBIT is expected to b

  • Q : What is the price of bond and promised rate of return....
    Finance Basics :

    The risk-free rate is 3% per annum, the risk-premium is 5% per annum. What is the price of this bond, and its promised rate of return?

  • Q : Amount of dividend paid out....
    Finance Basics :

    At the beginning of the year Sump and Lane Corporation has retained earnings of $230M and at the end of the year, has retained earnings of $255M. If the net profits after taxes for the year is $70M,

  • Q : Question regarding firm earnings per share....
    Finance Basics :

    Gray has a current capital structure consisting of $400,000 of 12% annual interest debt and 50,000 shares of common stock. The firm's tax rate is 40% on ordinary income. If the EBIT is expected to b

  • Q : Find unlevered p-e ratio of underlying business....
    Finance Basics :

    A firm has a P/E ratio of 12 and a debt-equity ratio of 66%. What would its unlevered P/E ratio (i.e., the P/E ratio of its underlying business) approximately be?

  • Q : Determining the opportunity cost....
    Finance Basics :

    The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is: $______ . (Please calculate the arithmetic solution and show your work)

  • Q : Determine the p-e ratio of the merged firm....
    Finance Basics :

    A firm with a P/E ratio of 20 wants to take over a firm half its size with a P/E ratio of 50. What will be the P/E ratio of the merged firm?

  • Q : What price-earnings ratio be if it grow by seven percent....
    Finance Basics :

    A firm has earnings of $230 this year. What would its price-earnings ratio be if it could grow by 7% each year instead? How much would its value increase?

  • Q : Decision to expand by firm using larger staff....
    Finance Basics :

    However, the expansion requires a larger staff, bringing costs up to $180,000 per year. If the cost of capital r = 10%, should the firm expand?

  • Q : Decision to purchase new punch press for given interest rate....
    Finance Basics :

    However, the punch press will displace several screw machines that produce $1,500 in profits per year. If the interest rate is 10%, should the new punch press be purchased?

  • Q : Determining the financial statements....
    Finance Basics :

    Given the following statement, please indicate whether it is true or false, and why: "In ratio analysis, the financial statements being used for comparison should be dated at the same point in time

  • Q : Decision division da move if the discount rate is given....
    Finance Basics :

    This enables DB to increase its profitability by $3,000 per year forever. If the discount rate is 10%, should division DA move?

  • Q : Foreign exchange rates and flexible exchange rates....
    Finance Basics :

    One of the major complaints regarding foreign exchange rates and flexible exchange rates is that the exchange rates are too volatile when they float.

  • Q : Break even lease....
    Finance Basics :

    If the leasing company can get a superior discount and buy the machine for USD 70,000 and depreciate it over 5 years to zero terminal value with maintenance and administration costs of $13,500 p.a.

  • Q : Decision to take the project on the basis rate of return....
    Finance Basics :

    The project costs $1,000 and returns a rate of return of 8%. If you have $900 to invest, should you take the project?

  • Q : Explaining debt and equity financing....
    Finance Basics :

    The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital.

  • Q : Calculate the issuance price....
    Finance Basics :

    On January 1, 20D, A Company issued $5 million of 10-year bonds at a 10% stated interest rate to be paid semiannually. The following present value factors have been provided to answer the subsequent

  • Q : Determine the ytm of the given zero-bond....
    Finance Basics :

    What is the YTM of the following zero-bond? For example, take a 5-year bond that costs $1,000 and promises to pay $1,611?

  • Q : What is the fifo and lifo cost of good sold for the attached....
    Finance Basics :

    What is the FIFO and LIFO Cost of Good Sold for the attached. Beginning inventory 1,000 @ $20 Purchase No. 1 7,000 @ 22 Purchase No. 2 2,000 @ 23 Sales - 7,000 units at $38 per unit=$266,000

  • Q : Cost of debt and equity....
    Finance Basics :

    The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital.

  • Q : Determine the ytm of a level-coupon bond....
    Finance Basics :

    What is the YTM of a level-coupon bond whose price is equal to the principal paid at maturity? For example, take a 5-year bond that costs $1,000, pays 5% coupon ($50 per year) for 4 years.

  • Q : Explain annualized five-year rate of return....
    Finance Basics :

    If the annualized 5-year rate of return is 10%, and if the first year"s rate of return is 15%, and if the returns in all other years are equal, what are they?

  • Q : Basic legal-social and economic environments....
    Finance Basics :

    You are required to submit a research project that describes an organization (assigned or approved by the instructor), including the following criteria: basic legal, social, and economic environment

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