The interest rate is 9 percent. What is the present value of $10 million to be received in 30 years?
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You place an order for 400 units of inventory at a unit price of $50. The supplier offers terms of 2/10, net 40. a. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit? b. What is the discount being offered? How quickly must you pay to get the discount? If you
You have $125,000.00 on deposit with no outstanding checks or uncleared deposits. If you deposit a check for $110,000.00 does this create a disbursement float or a collection float? What is your available balance? Book balance?
Prob 7 Consider the following financial statement information for the Acme Corporation: Item Beginning Ending Inventory $120,000,000 $105,000,000 Accounts receivable 80,000,000
A portfolio is invested 40% in stock R, 35% in Stock S, and 25% in Stock T. State of Probability of Rate of Return if state occurs Economy State of Economy Stock R Stock S Stock T Boom 0.25 0.3 0.4 0.25 Good 0.4 0.1 0.15 0.1 Poor 0.25 0 -0.05 -0.1 Bust 0.1 -0.25 -0.15 -0.2 What is the expected return of the por
Acme Corporation has no debt outstanding and a total market value of $12,000,000. Earnings before interest and taxes (EBIT) are projected to be $1,100,000 if economic conditions are normal. If there is a strong expansion in the economy then EBIT will be 25 percent higher. If there is a recession, then EBIT will be 75 percent
You are required to complete a comprehensive tax return. You are required to fill out the forms 1040 4562 4684 2106 and schedules A B C D E. You are required to show a small loss on schedule C and you are required to show a loss between 5000 and 7000 on schedule E. The property is classified as 100% rental. On schedule E a de
Which form of business organization might best suit the following? a. A consulting firm with several senior consultants and support staff. b. A house painting company owned and operated by a college student who hires some friends for occasional help. c. A paper goods company with sales of $100 million and 2000 employees
Duval Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Duval would have 400,000 shares of stock outstanding. Under Plan II, there would be 200,000 shares of stock outstanding and $5 million in debt outstanding. The interest rate on the debt is 1
Year: 1994 Norminal Wage: 12.07 Price Level: 148.2 Calculate the real wage.
What is meant by the term "agency costs"?
What is meant by the term "agency problem"? Why is this important for corporate governance?
Roulette Enterprises expects to pay a perpetual annual dividend of 65c. The beta of their stock has been calculated ex-post to be 0.8. If the market-risk premium and risk free rate were 8% p.a. and 7% p.a. respectively, what is the highest price an investor would pay for their shares?
Lancelot Fund Management has found the Holy Grail; a mean-variant efficient portfolio of stocks with an expected return of 25% p.a., a beta of 1.5 and a standard deviation of expected returns of 20% p.a. If the risk free rate is 7% p.a., deduce the expected market return and standard deviation.
Expected return and standard deviation of two stocks with returns stated for different states of economy- Recession, Normal, Boom
Based on the attached information, calculate the expected return and standard deviation for the two stocks. Probability of State of Economy Stock P Rate of Return Stock Q Rate of Return State of Economy Recession 0.15 0.04
Consider the information on the attached spreadsheet. a. Your portfolio is invested 35% each in A and C, and 30% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation? Problem 11-10 Rate of Return, if State Occurs Probability of St
Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. See attached spreadsheet for the data. Prob #7 RETURNS Year X Y 1 10% 26% 2 18 -4 3 -8 -10 4 12 42 5 6 21
You can sell widgets for $50/Y, where Y is the number of widgets you sell. In other words, the more widgets you sell, the lower the price. It costs $1.5Y to make Y widgets. Using Excel, how many widgets do you make to maximize your profits?