• Q : Determination of payback period....
    Finance Basics :

    Determine the payback period for Tang Mining Company’s new project if its initial cost is 5,000,000 dollar & it is expected to provide cash inflows of 1,800,000 dollar.

  • Q : Determination the net present value....
    Finance Basics :

    Determine the net present value for the following project if its cost of capital is 15% & its initial after tax cost is 5,000,000 dollars.

  • Q : Determination of internal rate of return....
    Finance Basics :

     Determine the Internal rate of Return for the given project if its initial cost is 5,000,000 dollar & it is expected to provide cash flows of 1,800,000 dollar in year 1, $1,900,000 in y

  • Q : Determine the cost of the common stock equity....
    Finance Basics :

    A firm has common stock with a market price of 25 dollar per share & an expected dividend of 2 dollar per share, determine the cost of the firm's common stock equity?

  • Q : Determine the weighted average cost of capital....
    Finance Basics :

    A firm has estimated its cost of each source of capital & optimal capital structure, Determine the weighted average cost of capital of the firm.

  • Q : Calculate the yearly after tax cost of debt....
    Finance Basics :

    If a corporation has an average tax rate of forty percent, determine the yearly after tax cost of debt for a fifteen years.

  • Q : Objective questions on periodic inventory system....
    Finance Basics :

    Objective questions on periodic inventory system, The LIFO Conformity Rule states that if LIFO is used for

  • Q : Objective questions based on issue of dividend....
    Finance Basics :

    Objective questions based on issue of dividend, In order to enhance the wealth of stock holders & to send positive signals to the market,

  • Q : Objective questions based on leverages....
    Finance Basics :

    Objective questions based on leverages, As debt is substituted for equity in the capital structure and the debt ratio increase, the behavior of the overall cost of capital is partially explained,

  • Q : Objective questions based on financial dicisions....
    Finance Basics :

    A corporation borrows 1 million dollars at ten percent annual rate of interest. The firm has 40 percent tax rate. The yearly, after tax cost of this debt is, Objective questions based on financia

  • Q : Objective question on financial dicisions....
    Finance Basics :

    Objective question on financial dicisions, The Corporation has ten million dollars in 10 percent preferred stock outstanding and a 40 percent tax rate. The amount of earnings before interest and

  • Q : Objective questions based on liabilities and ratio....
    Finance Basics :

    Objective questions based on liabilities and ratio, Which of the following items can be found on a firm’s balance sheet under current liabilities.

  • Q : Objective questions based on current assets....
    Finance Basics :

    Objective questions based on current assets and liabilities Which of the following items is NOT included in current assets.

  • Q : Arithmetic average to find the real risk free rate of rate....
    Finance Basics :

    Assume the rate of return on a ten year T-bond is 5.00percent and that on a ten year Treasury Inflation Protected Security (TIP) is 2.10percent. determine the real risk free rate of return, r*? D

  • Q : Arithmetic average to find the expected rate of inflation....
    Finance Basics :

    Assume the rate of return on a ten year T-bond is currently 5.00 percent and that on a ten year Treasury Inflation Protected Security (TIP) is 2.10 percent. Determine the expected rate of inflation ov

  • Q : Objectives questions based on bond valuation....
    Finance Basics :

    Objectives questions based on bond valuation. Assumee the real risk-free rate is 3.50 percent, the average future inflation rate is 2.25 percent, and a maturity premium of 0.10 percent per year to mat

  • Q : Objectve questions on bond valuation....
    Finance Basics :

    Objectve questions on bond valuation. Suppose that all interest rates in the economy decline from 10 percent to 9 percent. Determine the largest percentage increase in price?

  • Q : Determine issue of debt and planned return on equity....
    Finance Basics :

    Einstein Company currently has 800,000 dollars owners’ equity and no long-term debt. Determine the Einstein’s planned return on equity?

  • Q : Longfellows legal capital....
    Finance Basics :

    Longfellow is authorized to issue 1,500,000 shares of its one dollar par value common stock & 400,000 dollar shares of 50 dollar par value preferred stock. How much capital will Longfellow ge

  • Q : Calculate the date of declaration....
    Finance Basics :

    The board of corporation of Rose Company is going to pay a dividend of 56,000 dollar to its common shareholders. Explain what will happen on each of the dates below in relation to this 56,000 dollars

  • Q : Calculate the cash received from bond....
    Finance Basics :

    Calculate the cash received from a 1,000,000 dollar bond issue if the bonds were issued at each of the given prices.

  • Q : Determine the carrying value of the note....
    Finance Basics :

    Klamm Company needs to borrow 100,000 dollars. It plans to sign an installment note with a seven percent interest rate and make monthly payments for the next ten years. Determine the carrying val

  • Q : Make journal entries to record the sale of the stock....
    Finance Basics :

    Fleishman Corporation issued 5,000 shares of its no-par common stock for 28 dollar per share & 510 shares of its 50 dollar par value preferred stock for 52.50 dollar per share. Make journal entrie

  • Q : Make an installment loan repayment schedule....
    Finance Basics :

    Make an installment loan repayment schedule for the first three months of the note and make entries for the three months.

  • Q : Estimating capital or revenue expenditure....
    Finance Basics :

    Purchased land and a building at a cost of 750,000 dollars by paying 200,000 dollars down and signing a two year note payable for the remainder. estimate whether it is capital [C] or revenue [R]

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