• Q : Computing the after-tax cash flow....
    Finance Basics :

    The year-end balance sheets shows an increase in deferred taxes of $2.6 million to a total of $14.2 million. What is Curative Technologies' after-tax cash flow for last year? Assume a marginal tax r

  • Q : Expected rate of return on the company stock....
    Finance Basics :

    Waterworks has a dividend yield of 8%. If its dividend is expected to grow at a constant rate of 5%, what must be the expected rate of return on the company's stock?

  • Q : Company new required rate of return....
    Finance Basics :

    Mikkelson Corporation's stock had a required return of 13.50% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused th

  • Q : Inherent in the futures contract....
    Finance Basics :

    Suppose the September CBOT Treasury bond futures contract has a quoted price of 89-09. What is the annual interest rate inherent in the futures contract?

  • Q : Lowest overall return over the past eighty years....
    Finance Basics :

    Which of the following investments offered the lowest overall return over the past eighty years?

  • Q : Related risk with mutual fund investments....
    Finance Basics :

    Identify the related risk with mutual fund investments. What methods can you use as an investor to reduce your risk level while maintaining a good rate of return on your portfolio?

  • Q : Compare intrinsic and market risk....
    Finance Basics :

    Identify the factors that determine the values of finance companies. Compare intrinsic and market risk factors and their effects on investment companies' performance.

  • Q : Retailers operating cycle....
    Finance Basics :

    ABC Wholesalers sells products exclusively to XYZ Retailer. XYZ Retailer buys exclusively from ABC Wholesalers. ABC Wholesalers has a receivables period of 44 days, an inventory period of 8 days, an

  • Q : What is the net float....
    Finance Basics :

    Net float is equal to a firm's available balance minus its book balance. 16.

  • Q : Shares of common stock outstanding....
    Finance Basics :

    Westlake Industries has total assets of $42.5 million, total debt of $29.3 million, and $2.4 million of 6% preferred stock outstanding. If the company has 250,000 shares of common stock outstanding,

  • Q : Ratio of initial investment to ownership....
    Finance Basics :

    What is the ownership structure at the time of the IPO (who are the primary owners)? Why do the ownership shares not correspond to the initial investments (the ratio of initial investment to ownersh

  • Q : Ratio of initial investment to ownership....
    Finance Basics :

    What is the ownership structure at the time of the IPO (who are the primary owners)? Why do the ownership shares not correspond to the initial investments (the ratio of initial investment to ownersh

  • Q : Determining the rate of price appreciation....
    Finance Basics :

    Electronics, Inc. common stock returned a nifty 22.68% rate of return last year. The dividend amount was $0.25 a share which equated to a dividend yield of 0.84%. What was the rate of price apprecia

  • Q : Not-for-profit firm cost of capital....
    Finance Basics :

    Which of the following statements about a not-for-profit firm's cost of capital estimate is most correct?

  • Q : Not-for-profit firm ownership....
    Finance Basics :

    Which of the following statements about a not-for-profit firm's ownership is most correct?

  • Q : Duration of liabilities-market value....
    Finance Basics :

    A financial institution can hedge its interest rate risk by: A. matching the duration of its assets to the duration of its liabilities. B. setting the duration of its assets equal to half that of th

  • Q : Computing the current share price....
    Finance Basics :

    Marcel Co. is growing quickly. Dividends are expected to grow at a 25 percent rate for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return i

  • Q : Book value per share of bookv....
    Finance Basics :

    BOOKV has $750,000,000 in total assets, no preferred stock, and total liabilities of $300,000,000. There are 300,000,000 shares of common stock outstanding. What is the book value per share?

  • Q : What is the dividend ratio....
    Finance Basics :

    West Coast Utilities had a net profit of $900 million. It has 900 million shares outstanding and paid annual dividends of $0.90 per share. What is the dividend ratio?

  • Q : Calculating the firm earnings per share....
    Finance Basics :

    The MedTech Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million per year.

  • Q : Military method for granting pay raises....
    Finance Basics :

    Critique military's method(s) for granting pay raises. Describe the methods and make recommendations for improvement. Be realistic and consider if and how the difficult economy is impacting your emp

  • Q : After-tax weighted average cost of capital....
    Finance Basics :

    The appropriate discount rate for valuing a financial lease is: A. the firm's after-tax weighted average cost of capital. B. the after-tax required return on assets of risks similar to the leased as

  • Q : What is the annual tax shield....
    Finance Basics :

    What is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million, if the average interest rate on debt is 8.5% and the marginal tax rate is 35%?

  • Q : What is the price of perpetuity....
    Finance Basics :

    What is the price of perpetuity that has a coupon of $50 per year and a yield to maturity of 2.5%? If the yield to maturity doubles to 5%, what will happen to its price?

  • Q : Computing equilibrium stock price....
    Finance Basics :

    The risk-free rate of return, rRF, is 11%; the required rate of return on the market, rM, is 14%; and Schuler Company's stock has a beta coefficient of 1.5.

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