• Q : Company financing activities....
    Finance Basics :

    The company's cash position at the end of the year was $50,000. What was the net cash provided by the company's financing activities?

  • Q : Firm investment in accounts receivable....
    Finance Basics :

    How many times per year does this company turn over inventory? What is the firm's investment in accounts receivable, assuming that all sales are on credit? What is the firm's investment in inventory?

  • Q : Advantages of matching maturities of assets and liabilities....
    Finance Basics :

    What are the advantages of matching maturities of assets and liabilities? what are the disadvantage?

  • Q : Determining the npv and eac for the machines....
    Finance Basics :

    Both machines will be depreciated on a straight-line basis. Assume that the company plans to replace the machine when it wears out on a perpetual basis. Compute the NPV and EAC for both the machines

  • Q : Ruble versus dollar exchange rate....
    Finance Basics :

    Suppose the rate of inflation in Russia will run about 3% higher than the U.S. inflation rate over the next several years. All other things being the same, what will happen to the ruble versus dolla

  • Q : Calculating efn....
    Finance Basics :

    Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $7,434. The external financing needed is $______.

  • Q : Estimate firm optimal capital budget....
    Finance Basics :

    The mangers of United Medtronics's are evaluating the following four projects for the coming budget period. The firm's corporate cost of capital is 14 percent. What is the firm's optimal capital bud

  • Q : Value of the investment-price of a share of stock....
    Finance Basics :

    What is the price of a share of stock if the firm does not undertake the new investment? What is the value of the investment? What is the per-share stock price if the firm undertakes the investment?

  • Q : Investor maximum possible gain and maximum loss....
    Finance Basics :

    What is the investor's maximum possible gain and maximum loss? What is the maximum gain and loss for the writer of the put?

  • Q : Calculating discount rate-capm....
    Finance Basics :

    You will also need to use the required rate of return as the alternative available rate in calculating the CAPM. Remember that you must first calculate the discount rate before calculating the CAPM.

  • Q : Unlevered beta of ang enterprises....
    Finance Basics :

    Ang Enterprises has a levered beta of 1.10, its capital structure consists of 40% debt and 60% equity, and its tax rate is 40%. What would Ang's beta be if it used no debt, i.e., what is its unlever

  • Q : Profitability index decision rule....
    Finance Basics :

    If the required return is 10 percent and the company applies the profitability index decision rule, which project should the firm accept? If the company applies the NPV decision rule, which project

  • Q : Evaluating replacement cost....
    Finance Basics :

    You have acquired a new CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-year life of the scanner.

  • Q : Determining the project net investment outlay....
    Finance Basics :

    What is the project's net investment outlay at Year 0? What are the project's operating cash flows in years 1, 2, and 3? What are the terminal cash flows at the end of year 3? If the project has avera

  • Q : Arithmetic and geometric average returns for a stock....
    Finance Basics :

    What are the arithmetic and geometric average returns for a stock with annual returns of 21%, 8%, -32%, 41%, and 5%?

  • Q : Describing points of financial impact on a company....
    Finance Basics :

    List and explain the points of financial impact on a company if it raises the credit standards required of its customers who utilized trade credit offered by the company.

  • Q : Present value of cash flow stream-level of interest rates....
    Finance Basics :

    Explain why the present value of a cash flow stream, and the asset associated therewith; fluctuate in value with the level of interest rates in the capital markets.

  • Q : Determining the portfolio expected reture-variance....
    Finance Basics :

    If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio expected return? The variance? The standard deviation?

  • Q : Calculating dividend yield-capital gains yield....
    Finance Basics :

    Suppose a stock had an initial price of $83 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $76. Compute the dividend yield, the capital gains yield a

  • Q : What is the hpy....
    Finance Basics :

    Suppose that today you buy a 12 percent annual coupon bond for $1,364.87. The bond has 17 years to maturity. You expect to earn a rate of 7.99 percent on your investment.two years from now, the YTM

  • Q : Determine expected rate of return on portfolio....
    Finance Basics :

    What is the expected rate of return on his portfolio, if the risk rate is 7 per cent and the expected return on the market portfolio is 16 per cent?

  • Q : Capital asset pricing model-stock value....
    Finance Basics :

    An investor is looking to buy stock in Company XYZ. The earnings in the last year were $9.50 a share and expected to grow 3% a year for the upcoming 5 years. The current return on benchmark investme

  • Q : Decision tree and derive optimal decision....
    Finance Basics :

    Draw the decision Tree and Derive Optimal decision. Compute Expected Value of Perfect Information. Compute expected Value of Sample Information

  • Q : Over-utilization of jointly-owned property....
    Finance Basics :

    Over-utilization of jointly-owned property is a common estate planning mistake for all of the following reasons except:

  • Q : Dividend payout ratio of axel teleommunications....
    Finance Basics :

    Axel Teleommunications has a target capital structure that consists of 70% debt and 30% equity. the company anticipates that its capital budget for the upcoming year will be $3000000.

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