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The company is seeking $20 million in additional funds with per-share subscription price equal to $40. How many shares are there currently, before the offering? (Assume that the increment to the mar
During 2009, Raines Corp has sales of $850,000. Cost of goods sold, administrative expenses, and depreciation expenses were $630,000, $120,000, and $130,000, respectively. In addition, the company h
A 6-month call option on Romer Technologies's stock has a strike price of $45 and sells in the market for $8.25. Romer's current stock price is $48.75. What is the exercise value of the option?
Its profit margin is forecasted to be 5%, and the forecasted retention ratio of 30%. Use the AFN equation to forecast the additional funds Carter will need for the coming year.
Determine the effective price at which you purchased your coffee. How do you account for the difference in the amounts for the spot and hedge positions?
What was the amount of disposable personal income last year? What was the amount of personal saving last year? Calculate personal saving as a percentage of disposable personal income.
A high home inflation rate relative to other countries would ____ the home country's current account balance, other things equal. A high growth in the home income level relative to other countries w
Suppose that the firms cost of carrying receivables was 8 percent annually. How much would the toughened credit policy save the firm in annual receivables carrying expense?
If you exercise your put in one year, what will be the payoff? What is the present value of this payoff? If you exercise your put now, what will be your payoff? What is the present value of this payof
Assume the probability of the high payoff is 0.25 and the probability of the low payoff is 0.75. What is the expected NPV of the investment? What is the expected value of the firm?
Is the FI exposed to an appreciation or depreciation of the U.S. dollar relative to the Brazillian real? What will be the percentage cost to the FI on this CD if the dollar appreciates relative to th
The tax rate is 32 percent. The sales price is estimated at $64 a unit, plus or minus 3 percent. What is the earnings before interest and taxes under the base case scenario?
What is the new yield to maturity on the bond? What is your rate of return over the year?
A 6 percent coupon bond has a face value of $1,000, pays interest semi-annually, has 12 years to maturity, and is currently selling for $1,018. What is the yield-to-maturity?
Samuel Johnson invested in gold U.S. coins ten years ago, paying $216.53 for one-ounce gold "double eagle" coins. He could sell these coins for $734 today. What was his annual rate of return for thi
If EBIT is $750,000, which plan will result in the high EPS? If the EBIT is 1,500,000, which plan will result in higher EPS? What is the break-even EBIT?
In addition, accounts payable are expected to increase from $65,000 to $80,000. This project will also produce $300,000 of depreciation per year and Spartan Stores is in the 34 percent marginal tax
Given that PepsiCo's investment in Brazil was entirely in dollars, describe its exposure to exchange rate risk resulting from the project. Explain how the size of the parent's initial investment an
The R.M. Smithers Corporation earn an operating profit margin of 10% based on sales of 10 million dollars and total assets of $5million last year. a. What was Smithers' total asset turnover ratio?
A bond has a $1000 par value (face value) and a contract or coupon rate of 11.2%. The Bonds have a current market value of $1128 and will mature in 10 years. The firms marginal tax rate is 34%.
You have just purchased a share of preferred stock for $50.00. The preferred stock pays an annual dividend of $5.50 per share (forever). What is the rate of return on your investment?
Marcel Co. is growing quickly. Dividends are expected to grow at a 18 percent rate for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter. If the required return i
Which one of the following practices will reduce a firm's collection float?
This will entail an increase in inventory of $8000, an increase in accounts payables of $2500, and an increase in property, plant, and equipment of $40,000. All other accounts will remain unchanged.
The cash prices of six-month and one-year Treasury bills are 99.5 and 99.0, respectively. Assume a face value of $100. What is the six-month spot rate?