• Q : Implied value of the warrants....
    Finance Basics :

    The second issue consisted of 20-year bonds with a 6% coupon paid annually and attached warrants. Both issues sold at their $1000 par values. What is the implied value of the warrants attached to ea

  • Q : Current yield on a bond paying....
    Finance Basics :

    What is the current yield on a bond paying $1000 this year with an initial interest rate of 5% and a current price of $18000.

  • Q : Difference between systematic and non-systematic risk....
    Finance Basics :

    What is the difference between systematic and non-systematic risk? What are some examples of each?

  • Q : Calculate projected dividends....
    Finance Basics :

    It will earn at least $32.50 per share this year and each year in the foreseeable future. Calculate projected dividends (D1) for the current year PLUS the next four (D2-D5).

  • Q : Positive net capital spending-negative net capital spending....
    Finance Basics :

    What is the difference between a positive net capital spending and a negative net capital spending

  • Q : What is the price-earnings ratio....
    Finance Basics :

    Ratzell's Place has a market-to-book ratio of 2.7, net income of $68,400, a book value per share of $37, and 45,000 shares of stock outstanding. What is the price-earnings ratio?

  • Q : Statistical measures of risk....
    Finance Basics :

    What are some statistical measures of risk and what type of risk do they measure?

  • Q : Firm cash flow to creditors....
    Finance Basics :

    The 2008 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $3 million, and the 2009 balance sheet showed long-term debt of $4.05 million. The 2009 income statement showed an inter

  • Q : Determining the bond conversion value....
    Finance Basics :

    The following data applies to Saunders Corporation's convertible bonds:

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

    A stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the stock's expected rate of return?

  • Q : Concept of time value of money fit in with bond....
    Finance Basics :

    How does the concept of time value of money fit in with bond calculations? What are we doing when we price a bond's current yield?

  • Q : Exceed free cash flow....
    Finance Basics :

    In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net op

  • Q : Balance of receivables....
    Finance Basics :

    Ellis Sport Shop projects sales of $75,000 in April, $95,000 in May, and $100,000 in June. Seventy percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after t

  • Q : Most important corporate governance issues....
    Finance Basics :

    Identify and discuss the most important corporate governance issues to you, and how would they affect your choice of which stocks to purchase or avoid?

  • Q : Develop an acceptance sampling plan....
    Finance Basics :

    Develop an acceptance sampling plan for Joshua that meets the stated criteria

  • Q : Primary types of spontaneous financing....
    Finance Basics :

    Discuss some of the primary types of spontaneous financing available to organizations?

  • Q : Ratios that are used for evaluating the cash cycle....
    Finance Basics :

    Choose some aspect of the Cash Conversion Cycle and discuss a key point you found to be important. You could take a variety of approaches. For example, you could discuss the ratios that are used for

  • Q : Expected rate of return of a security....
    Finance Basics :

    Which of these factors do you believe affect the expected rate of return of a security?

  • Q : Bond price of morrissey company....
    Finance Basics :

    The Morrissey Company's bonds mature in seven years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price?

  • Q : Determining the target debt ratio....
    Finance Basics :

    Beranek Corp. has $410,000 of assets, and it uses no debt-it is financed only with common equity. The new CFO wants to employ enough debt to bring the debt/assets ratio to 40%, using the proceeds fr

  • Q : Some economic conditions....
    Finance Basics :

    What are the some economic conditions (including international aspects) that affect the cost of money?

  • Q : New-project analysis....
    Finance Basics :

    You have been asked by the president of your company to evaluate the proposed acquisition of a new spectrometer for the firm's R&D department. The equipment's basic price is $70,000, and it woul

  • Q : Issuance price of bonds....
    Finance Basics :

    LaFluer Corporation issued $400,000 of 15-year bonds on January 1. The bonds pay interest on January 1 and July 1 with a stated rate of 8 percent. If the market rate of interest at the time the bond

  • Q : Difference valuations for stock....
    Finance Basics :

    Dependent upon the type of evaluation method used, investors may arrive at difference valuations for stock. When using the Price Earnings (PE) method, explain why investors may arrive at different s

  • Q : Total percentage return on investment....
    Finance Basics :

    Eight months ago, you purchased 400 shares of Winston, Inc. stock at a price of $54.90 a share. The company pays quarterly dividends of $.50 a share. Today, you sold all of your shares for $49.30 a

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