• Q : Calculate future value of an annual annuity....
    Finance Basics :

    Calculate the future value of an annual annuity of $5000 beginning today and continuing for 10 years, assuming an earnings rate of 9%.

  • Q : Breakeven point-changing costs-revenues....
    Finance Basics :

    JWG Company publishes Creative Crosswords. Last year the book of puzzles sold for $10 with variable operating cost per book of $8 and fixed operating costs of $40,000.

  • Q : Social security with payroll taxes regressive....
    Finance Basics :

    A regressive tax is a tax that represents a greater proportion of income or earnings for lower income people than for higher income people. Is the financing of social security with payroll taxes reg

  • Q : Apr on loan....
    Finance Basics :

    Assume that interest is the only finance charge. Use financial calculator to answer the questions.

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

    The price of preferred stock is $75. It pays an annual divivdend of $10 a share. What is the expected rate of return on the preferred stock?

  • Q : Source of financing....
    Finance Basics :

    The company can either take out a 90-day unsecured loan for $2 million at 1% per month or establish a line of credit, costing 1% per month on the amount borrowed plus a commitment fee of $20,000. If

  • Q : Expected net present value of the project....
    Finance Basics :

    Calculate the expected net present value of the project. Discuss 2-3 other factors that the company should consider in making a decision to go ahead with the project now or wait for one year.

  • Q : Contrast google and walmart....
    Finance Basics :

    Contrast Google and Walmart. Which agency biases, problems, or conflicts are likely to impact Google worse than Walmart, and vice versa? Substantiate your response.

  • Q : Value of foreign stocks in investment portfolio....
    Finance Basics :

    Discuss the value of foreign stocks in an investment portfolio. Do you want them? If so, which ones?

  • Q : Potential benefits of stock repurchases....
    Finance Basics :

    All of the following are potential benefits of stock repurchases except:  

  • Q : Examining projected dividend....
    Finance Basics :

    The required return on this stock is 11 percent, and the stock currently sells for $82 per share. What is the projected dividend for the coming year?

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

    Optimum capital structure maximizes value for the shareholders. When the WACC of a firm is _________, the value of the firm is ________ and the stock price of the firm is ________.

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

    Optimum capital structure maximizes value for the shareholders. When the WACC of a firm is _________, the value of the firm is ________ and the stock price of the firm is ________.

  • Q : Entrepreneur and a small business owner....
    Finance Basics :

    What are the differences between an entrepreneur and a small business owner? (You must identify at least two differences and support for these from specific sources.)

  • Q : Forward and the futures markets....
    Finance Basics :

    What is the difference between the forward and the futures markets? What are the pros and cons associated with using each one?

  • Q : Expected dividend per share....
    Finance Basics :

    Thress Industries just paid a dividend of $1.50 a share. (i.e D0 = 1.50) the dividend is expected to grow 5% the year for the next three years and then 10% a year thereafter. What is the expected di

  • Q : Current price of the bonds....
    Finance Basics :

    Renfro Rentals has issued bonds that have a 10% coupon rate, payable semi annually. The bonds mature in 8 years have a face value of $1000 and a yield to maturity of 8.5%. What is the current price

  • Q : Value of the fund....
    Finance Basics :

    Dennis has been dollar cost averaging in a mutual fund by investing $1,000 at the beginning of every quarter for the past 5 years. He has been earning an average annual compound return of 11% compo

  • Q : Examining current price of common stock....
    Finance Basics :

    Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0.

  • Q : Percent annual compounding....
    Finance Basics :

    Suppose you deposited the $1,000 in 4 payments of $250 each at Year 1, Year 4, Year 3 and Year 4. How much would you have in your account at Year 4, based on 8 percent annual compounding?

  • Q : Examining initial cost of the project....
    Finance Basics :

    The cost of the conversion would be $95,000 and could be started next month when the existing lease on the building expires. When analyzing the bulk goods option, what value should PK assign as the

  • Q : Weighted average cost of capital-npv....
    Finance Basics :

    What is Mistletoe's weighted average cost of capital? What is the net present value (NPV) of this project? Should you accept the project? Explain why.  

  • Q : Required rate return on the stock....
    Finance Basics :

    Woidtke Manufacturing's stock a firm sells for $20.00 a share. A stock just paid a dividend of $1.00 a share (i.e. D0 = $1.00) and the dividend is expected to grow for ever at a constant rate of 10%

  • Q : Determining value per share of stock....
    Finance Basics :

    Boehm Inc. Is expected to pay a $1.50 per share dividend at the end of this year (i.e. D1 = $1.50). The dividend is expected to grow at a constant 87 percent the year. The required rate of return on

  • Q : Quoted default premium....
    Finance Basics :

    What is the quoted default premium? Compute the expected default premium?

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