• Q : Calculate yield to maturity on the bond....
    Finance Basics :

    Vertex bonds have a maturity value of $1,200. The bonds carry a coupon rate of 14%. Interest is paid semiannually. The bonds will mature in 7 years.

  • Q : Calculate bonds yield to maturity....
    Finance Basics :

    A corporate bond matures in 14 years. The bond has an 8% semiannual coupon and a par value of $1,500. The price of the bond today is $1,275.

  • Q : Find the future value....
    Finance Basics :

    Jeff Coleman just graduated. He plans to work for five (5) years & then leave for the Australian country. He figures that he can save dollar 3,500 a year for the first three years and $5,000 a yea

  • Q : Calculate the investment price....
    Finance Basics :

    I have an investment of $1000 which accumulates 20 percent per year but on a DAILY basis. That means that every day the capital is rising by an additional $2.7777 [1000/360 = 2.7777].

  • Q : Determine expected return of portfolio....
    Finance Basics :

    If a portfolio of the two assets has a beta of 1.60, determine the portfolio weights? How do you interpret the weights for the two assets in this case? Explain your reasoning.

  • Q : Determine average flow time from the cycle inventory....
    Finance Basics :

    A beer distributor determines that it sells on average 100 cases a week of regular 12-oz. Budweiser. For this problem suppose that demand occurs at a constant rate over a fifty (50) week year.

  • Q : Calculate price of the bond....
    Finance Basics :

    You intend to buy a ten (10) year, $1,000 face value bond that pays interest of dollar 60 every six months. Its yield to maturity is ten percent with semiannual compounding.

  • Q : Objective questions on standard deviation, and swot analysis....
    Finance Basics :

    Concept test of products, testing of marketing campaigns, sneak previews, and awareness tests are all examples of:

  • Q : Calculate cost of the equipment....
    Finance Basics :

    On August 1, 2007, Jarret Corporation purchased new equipment on a deferred payment basis. A down payment of $1,500 was made & 4 monthly installment of $2,000 each are to be made beginning on Sept

  • Q : Acquisition mode and market value accounting....
    Finance Basics :

    If a corporation buys a lot & building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the expenses of the building would depend

  • Q : Changes in capital structure....
    Finance Basics :

    Assume Big Oil is excused from paying taxes. How would its weighted-average cost of capital change? Now assume Big Oil makes a large stock issue & uses the proceeds to pay off all its debt.

  • Q : Capital asset pricing model....
    Finance Basics :

    Central to the theory of agency is the notion that company will use optimal levels of contracting, monitoring & bonding to reduce agency costs. However, there are other ways by which agency value

  • Q : Capital asset pricing model and expected return....
    Finance Basics :

    A share of stock with a beta of 0.75 now sells for 50 dollar. Investors expect the stock to pay a year-end dividend of 2 dollar. The Treasury bill rate is 4%, and the market risk premium is 7%.

  • Q : Bond valuation and ratio analysis....
    Finance Basics :

    Style Corp. preferred stock pays dollar 3.15. What is the value of the stock if your required rate of return is 8.5 percent rounded to the nearest $1?

  • Q : Debt equity ratio question....
    Finance Basics :

    Which of the following would raise the likelihood that a company would raise its debt ratio in its capital structure?

  • Q : Calculate the ratios....
    Finance Basics :

    Given the balance sheet & income statement for Simmons Maintenance Company, calculate the ratios requested below & indicate whether each is better or worse than the industry average.

  • Q : Ratio analysis....
    Finance Basics :

    You have been provided with the financial statements for Grannis Closet for the last three (3) years. Grannie is anxious that her net income has been decreasing,

  • Q : Calculate the stocks beta....
    Finance Basics :

    Beta and required rate of return X stock has a required return of eleven percent; the risk free rate is seven percent; & the market risk premium is 4%.

  • Q : Find which company has higher profit margin....
    Finance Basics :

    You are given the following information on two (2) companies, M & N [figures are millions]: Find which company has the higher profit margin?

  • Q : Calculate the financial ratios....
    Finance Basics :

    Calculate the following 10 financial ratios & provide a one sentence explanation of the analytic use of each ratio test. Demonstrate your formulas and input. Accuracy to two (2) decimal points is

  • Q : Compute the indicated ratios for barry....
    Finance Basics :

    Ratio analysis Data for Barry Computer Co. & its industry averages follow; Compute the indicated ratios for Barry.

  • Q : Revenue from sales....
    Finance Basics :

    Suppose that operating costs [excluding depreciation & amortization] are 55% of sales and depreciation and amortization and interest expenses will increase by 10%.

  • Q : Incremental cash flows....
    Finance Basics :

    You are thinking adding a micro brewery on to one of your company’s existing restaurants. This will entail an increase in inventory of $8,000, and rise in accounts payables of $2,500, & an i

  • Q : Make an income statement....
    Finance Basics :

    Customers still more operates a private investigating agency called still more investigations. Some customers pay in advance for services;

  • Q : Calculate net income for the past year....
    Finance Basics :

    Except for net income, an investment of dollar 3,000 by the owner, and a withdrawal of dollar 11,000 by the owner, no other items affected the owner's capital account.

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