• 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.

  • Q : Creating two income statements....
    Finance Basics :

    Create two income statements & the Retained Earnings Statement. Use the single-step format and multiple-step income formats.

  • Q : Review of the yearly report....
    Finance Basics :

    Overall, based on the data & interpretation of it, what do the numbers indicate about the overall financial condition of the company? 

  • Q : Utilize the wsj....
    Finance Basics :

    What did you find to be the most valuable information regularly covered in The WSJ and why?

  • Q : Computations of ratios....
    Finance Basics :

    If income for 2007 was dollar150,000, provide the following data of December 31, 2007: [Do not forget the articulation of statements discussed during Week 2 and 3- including retained earnings].

  • Q : Question - ratio analysis, assets & liability classification....
    Finance Basics :

    Expense should be included in the income statement in the period in which (hint: the matching principle applies here)

  • Q : Calculate current ratio, working capital and acid-test ratio....
    Finance Basics :

    Doyle Corporation had the following comparative current assets & current liabilities calculate Current ratio,  Receivables turnover, Inventory turnover, Working capital and Acid-test ratio

  • Q : Determine break even point....
    Finance Basics :

    Tigress Books sells paperback books for $7 each. The variable cost per book is $5. At current year sales of 200,000 books, the publisher is just breaking even.

  • Q : Objective questions related to return on equity....
    Finance Basics :

    During the latest year James Corp. had sales of $300,000 & a net income of $20,000, & its year-end asserts were dollar 200,000. The firm’s total debt to total assets ratio was 40 percent

  • Q : Multiple choice questions....
    Finance Basics :

    Short-term investments are securities that are readily marketable and intended to be converted into cash within the next

  • Q : Journal entry to record the conversion....
    Finance Basics :

    If twenty (20) $1,000 convertible bonds with a carrying rate of dollar 25,000 are converted into 3,000 shares of dollar 5 par value common stock,

  • Q : Cumulative dividends, income accounting and cash dividends....
    Finance Basics :

    Which one of the following events would not require a formal journal entry on a corporation’s books?

  • Q : Profitability ratios and variance analysis....
    Finance Basics :

    A favorable material variance coupled with and unfavorable material usage variance would most likely be the result of:

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