• Q : Beginning of the project....
    Finance Basics :

    The firm has a tax rate of 35 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $300,000 at the beginning of the project. What will be the net

  • Q : Current carrying cost-order cost....
    Finance Basics :

    Redan Manufacturing uses 2,400 switch assemblies per week and then reorders another 2,400. The relevant carrying cost per switch assembly is $9.50, and the fixed order cost is $1,200. What is the c

  • Q : Accounting break even level of production....
    Finance Basics :

    You are considering a new project. The project has projected depreciation of $720, fixed costs of $6,000, and total sales of $11,760. The variable cost per unit is $4.20. What is the accounting brea

  • Q : Payback period-npv for project....
    Finance Basics :

    The cost of the project will be 7,125,00. It will result in additional cash flows of 1,875,00 for the next eight years. the discount rate is 12 percent. What is the payback period? What is the npv f

  • Q : Client equivalent stock position....
    Finance Basics :

    The equivalent stock position (ESP) represents the number of shares of the underlying stock if all option positions were converted into stock at their current values and added to the shares of stoc

  • Q : Assessing credit risk of large firms....
    Finance Basics :

    Why is bank lending to large corporations more difficult than making loans to small or mid-size firms? What additional factors are involved? Do banks have some additional tools to help in assessing

  • Q : Determining the general approach to capital budgeting....
    Finance Basics :

    List the three steps that make up the general approach to capital budgeting.

  • Q : Free cash approach to value the firm equity....
    Finance Basics :

    The appropriate market capitalization rate for unleveraged cash flow is 10% per year, and the firm currently has debt of $3 million outstanding. Use the free cash approach to value the firm s equity

  • Q : Computing the coefficient of variation....
    Finance Basics :

    Calculate the coefficient of variation for each alternative. If the firm wishes to minimize risk , which alternative do you recommend? why?

  • Q : Default risk premium....
    Finance Basics :

    Consider how economic conditions affect the default risk premium. Do you think the default risk premium will likely increase or decrease during the next 6 months?

  • Q : Value of dustvac s equity to magiclean....
    Finance Basics :

    What Dustvac s pre-merger WACC? What discount rate should you use to discount Dustvac s free cash flows and interest tax savings? What is the value of Dustvac s equity to Magiclean?

  • Q : Result of overuse or by over mining....
    Finance Basics :

    Identify a problem in our natural world that is the result of overuse or by over mining of one or more natural resources to advance a corporation.

  • Q : Dollar exchange value on profitability....
    Finance Basics :

    What means does it use to hedge against exchange rate risk? Using this information, what do you think would be effect of increases/decreases in dollar's exchange value on 's profitability? Be sure t

  • Q : Strategies that multinational corporations can undertake....
    Finance Basics :

    Evaluate the change in consumer demand trends after the crash for each of the tech stock companies you researched. Provide examples with your evaluation and use graphics such as charts, when applic

  • Q : No-arbitrage risk free rate....
    Finance Basics :

    What would be the no-arbitrage risk free rate if with a probability of 50% the price increases and with a probability of 50% it decreases, keeping all other values constant? Explain

  • Q : Exchange gold currency for silver currency....
    Finance Basics :

    If new silver mines open and flood the market with silver, the two metals will circulate as before in the US since citizens could exchange their gold currency for silver currency at any time.

  • Q : Determining the original equity....
    Finance Basics :

    You purchase 200 shares of XYZ on margin at $80 per share. You also short sell 100 shares of ABC at $30 per share. With an initial margin requirement of 70%, find your original equity

  • Q : Projects and the tax-refund alternative....
    Finance Basics :

    Make a choice between the projects and the tax-refund alternative. Why did you choose the alternative you did?

  • Q : Describe modigliani and miller proposition....
    Finance Basics :

    Briefly describe Modigliani and Miller Proposition I and discuss the important conditions that are required to prove it to be true. Are they realistic?

  • Q : Determining the cost of preferred stock....
    Finance Basics :

    Preston Industries has a WACC of 12.38 percent. The capital structure consists of 61.3 percent equity and 36.3 percent debt. The aftertax cost of debt is 6.8 percent and the cost of equity is 15.50

  • Q : Fair value of consideration transferred....
    Finance Basics :

    Under the terms of the deal, a company, whose brands include well known brands, said it was offering $51.75 in cash and 0.1822 of a share in company (70,951,932 commom stock) for each share in anot

  • Q : Appropriate use of short-term debt....
    Finance Basics :

    Explain the appropriate use of short-term debt (such as notes payable) and of spontaneously generated capital (such as accruals and accounts payable) for determining the company's capital structure.

  • Q : Determining the market price per bond....
    Finance Basics :

    Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is

  • Q : What is the yield to maturity....
    Finance Basics :

    The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to

  • Q : Ytm at the time of purchase....
    Finance Basics :

    Three years ago in 2005 an investor purchased a 10.7 semi-annual coupon bond at part value. THe bond will mature in 2025. What is the YTM at the time of purchase?

©TutorsGlobe All rights reserved 2022-2023.