Explain each of the values-New York Exchange Bonds Bonds / Rowan Drilling, Cur Yld / 11 7/8s19, Vol / 10.7, Close / 137, Net Change / 111 3/8 5/8
05 Sep 2020Your firm is considering an expansion project in Brazil that will result in annual operating cash flows of BRL 35 million for 10 years. The initial cost of the project is USD 60 million. The project has no expected Salvage Value. Your company plans to fund the project with a comb...
05 Sep 2020What is meant if the price of a Corporate Bond trades for 103 Â½ and 87 Â¾ ?
05 Sep 2020Last year American Airlines had $500,000,000 in after tax earnings. It also had 60,000,000 in common shares outstanding and the price of AMA was $66.00 per share and its pay out 20% of its earnings in dividends. What are the Earnings per Share, PE $ Dividends?
05 Sep 2020Many companies have financing credits needs due to:The seasonality of salesRefinancing of debtMergers and acquisitionsDelays in customer payments
05 Sep 2020Compute the payback period, Internal Rate of Return and Net. Present Value. Assume a Discount Rate of 8%, Ivt. in Project is $1,500,000 Year Return ($) 1 300k 2 500k 3 400k 4 300k 5 200k 6 100k
05 Sep 2020During fiscal 2011, Mass Inc. had sales of $10,000 Cost of merchandise sold of $5,000 and all operating expenses, interest, and taxes amounting to $2,000. What was net income for 2011? ($ in millions)
05 Sep 2020In its fiscal year ended 2011 balance sheet, Mass Inc. reported cash of $10,000 million at the beginning of the year. The statement of cash flows reports the following (in millions):Net cash flow from operating activities$3,000Net cash from investing activities(1,000Change in cas...
05 Sep 2020A.Provide information to banks about credit lossesB.Identify credit opportunitiesC.Determine a companys optimal capital structureD.Quantify potential credit losses
05 Sep 2020The primary purpose of credit risk analysis is to:A.Provide information to banks about credit lossesB.Identify credit opportunitiesC.Determine a companys optimal capital structureD.Quantify potential credit losses
05 Sep 2020If you were evaluating an investment opportunity, which technique would you use and why?
05 Sep 2020On December 31, 2012, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The companys accountants provide the follow...
05 Sep 2020Which fund would you choose based on Sharpe Ratio?10-Year Annual ReturnStandard DeviationBledsoe S&P 500 Index Fund9.28%20.56%Bledsoe Small-Cap Fund14.12%25.13%Bledsoe Large-Company Stock Fund8.58%23.82%Bledsoe Bond Fund7.12%8.87%Risk-free rate0.03a.Bledsoe S&P 500 Index Fundb.Bl...
05 Sep 2020Use following information to calculate Return on Net Operating Profit Margin (NOPM) for Walmart for 2011:
05 Sep 2020Keynesian Economics is an economic theory that states, when in a recession, lower taxes, raise spending, and when in a growth period do the opposite. So when we hit a recession we accumulate debt, but THEORETICALLY when we get in a boom, we would raise taxes and pay off the debtâ...
04 Sep 2020Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.91 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estim...
04 Sep 2020Storm Weather Industries manufactures weather equipment. Selected financial data for Storm Weather is presented below.As ofDec. 31, 2012Dec. 31, 2011Current AssetsCash and cash equivalents$ 376,843$ 205,088Marketable Securities166,106187,064Accounts Receivable (net)258,387289,100...
04 Sep 2020You recently purchased a stock that is expected to earn 11 percent in a booming economy, 9 percent in a normal economy and lose 6 percent in a recessionary economy. There is a 15 percent probability of a boom, a 74 percent chance of a normal economy. What is your expected rate of...
04 Sep 2020Discuss the important of Transparency with relation to debt. Is it important?
04 Sep 2020Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,950, $2,250, $2,250, and $2,350. (Do not round intermediate calculations and round your final answer to 2 decimal places.Future value $_________________
04 Sep 2020A perpetuity pays $220 per year and interest rates are 8.3 percent. How much would its value change if interest rates decreased to 6.8 percent? (Round your answer to 2 decimal places.Change in value $_____________Did the value increase or decrease?ODecreaseOIncrease
04 Sep 2020Recently, Carlo University undertook a building project which required $6.5 million of capital. The university had endowment funds of more than $15 million and a triple A bond rating. After careful consideration, the Board and Management decided to finance the project through ope...
04 Sep 2020Consider a $4,200 deposit earning 10 percent interest per year for 10 years.What is the future value? (Do not round intermediate calculations and round your final answer to 2 decimal places.)Future value $________________How much total interest is earned on the original deposit? ...
04 Sep 2020What is the weighted average cost of capital for SKYE Corporation given the following information?Equity Shares Outstanding....... 1millionStock price per share....... $30.00yield to maturity on debt...... 7.68%book value of interest bearing debt....... $10 millionCoupon interest...
04 Sep 2020What is the value in year 5 of a $660 cash flow made in year 7 if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)Value in year 5 __________________________
04 Sep 2020Sprint Shoes Inc. had a beginning inventory of 10,250 units on January 1, 2013. The costs associated with the inventory were:Material$ 15.00 per unitLabor8.00 per unitOverhead7.10 per unitDuring 2013, the firm produced 45,000 units with the following costs:Material$ 13.50 per uni...
04 Sep 2020Given a 5 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. (Do not round intermediate calculations and round your final answer to 2 decimal places.Future value _______________________
04 Sep 2020Give me 4 ways a company can raise its stock price?
04 Sep 2020Which of the following is not related to the responsibilities principle?A. Firm-wide policies to evaluate the financial and professional relationships of its professionalsB. Specific auditing procedures designed to determine the effectiveness of the entitys internal control over ...
04 Sep 2020Which of the following is an example of the appropriate implementation of a system of quality control?a. The firm requires all documents obtained during the audit to be destroyed immediately following the engagement to ensure the clients information remains confidential.b. The fi...
04 Sep 2020All companies use a registrar to keep track of stock certificates issued and outstanding. True or False
04 Sep 2020Which one of the following will increase the cash flow from assets, all else equal?a. Decrease in cash flow to stockholders.b. Decrease in operating cash flow.c. Decrease in the change in net working capital.d. Decrease in cash flow to creditors.e. Increase in net capital spendin...
04 Sep 2020Neptune Biometrics, despite its promising technology, is having difficulty generating profits. Having raised $85 million in an initial public offering of its stock early in the year, the company is poised to introduce a new product, an inexpensive fingerprint doorlock. If Neptune...
04 Sep 2020Investment transactions list on the monthly statement from the broker should be vouched to the brokers advice, proper authorization, and the cash accounts.True or False
04 Sep 2020The most significant inherent risk in the finance and investment cycle is the proper presentation of items on the balance sheet. True or False
04 Sep 20209. A derivative instrument is designed to remove risk of adverse price movements from a transaction. True or False
04 Sep 2020Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 5.4 percent and a standard deviation of 10.4 percent.Requirement 1:What is the probability that your return on these bonds will be less than â5 pe...
04 Sep 2020If a firm produces a 13 percent return on assets and also a 13 percent return on equity, then the firm:a. May have short-term, but not long-term debt.b. Is using its assets as efficiently as possible.c. Has no net working capital.d. Has a debt-equity ratio of 1.0.e. Has an equity...
04 Sep 2020Epona wants to create a $25,000 portfolio that consists of three stocks and has an expected return of 13.87 percent. Currently, she owns $15,200 of stock A and $6,997 of stock B. The expected return for stock A is 15 percent, and for stock B it is 10.54 percent. What is the expec...
04 Sep 2020Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 16 percent and the standard deviation of those stocks for the period was 33.9 percent. Use the NORMDI...
04 Sep 2020Youâve observed the following returns on Doyscher Corporationâs stock over the past five years: â27.9 percent, 15.6 percent, 34.2 percent, 3.3 percent, and 22.3 percent. The average inflation rate over this period was 3.33 percent and the average T-bill rate over the period...
04 Sep 2020You find a certain stock that had returns of 13.4 percent, â21.7 percent, 27.7 percent, and 18.7 percent for four of the last five years. Assume the average return of the stock over this period was 11.40 percent.Requirement 1:What was the stockâs return for the missing year? ...
04 Sep 2020Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.50 yesterday. Bahnsens dividend is expected to grow at 8% per year for the next 3 years. If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate dis...
04 Sep 2020You are considering an investment in Justus Corporations stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D1 = $2.25) and has a beta of 0.9. The risk-free rate is 2.9%, and the market risk premium is 6.0%. Justus currently sells for $50.00 a sha...
04 Sep 2020The common stock of Modron Creations has an expected return of 13.7 percent and a beta of 1.4. The expected return on the market is 11.49 percent. What is the risk-free rate (in percents)
04 Sep 2020Which one of the following statements concerning net working capital is correct?a. Net working capital may be a negative value.b. Total assets must increase if net working capital increases.c. Net working capital excludes inventory.d. Net working capital is the amount of cash a f...
04 Sep 2020A stock is expected to pay a dividend of $2.25 at the end of the year (i.e., D1 = $2.25), and it should continue to grow at a constant rate of 6% a year. If its required return is 15%, what is the stocks expected price 3 years from today? Round your answer to two decimal places. ...
04 Sep 2020Santos Unlimited (SU) was originally unlevered with 4200 shares outstanding. However, after a major financial restructure, SU now has $38000 of debt, with an annual interest expense of 10 percent. The restructuring has reduced the number of shares to 3600. A group of shareholders...
04 Sep 2020A stock has an expected return of 15.4 percent and a beta of 1.2. The risk-free rate is 4.83 percent. What is the slope of the security market line
04 Sep 2020What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 12% of par, and a current market price of (a) $59.00, (b) $90.00, (c) $119.00, and (d) $145.00? Round your answers to two decimal places.
04 Sep 2020
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