Norton, Inc. has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2008, and December 31, 2009. The board of directors declared and paid a $50,000 dividend in 2008. In 2009, $100,000 of dividends are declared and paid. What are the divid
The probability distribution of a less risky return is more peaked than that on a riskier return. What shape would the probability distribution have for (a) completely certain returns and (b) completely uncertain returns?
Famer Frank's produces items from local farm products and distributes them to supermarkets. Over the years, price competition has become increasingly important, so Susan Kramer, the company's controller, is planning to implement a standard cost system for Famer Frank's. She asked her cost accountant, Margaret Chang, to gather co
Formula 51 Corp. just paid a dividend of $1.45 per share. The dividends are expected to grow at 30 percent for the next eight years and then level off to a 7 percent growth rate indefinitely. If the required return is 13 percent, what is the price of the stock today?
Listen Close Co. is expected to maintain a constant 6.5 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 3.6 percent, what is the required on the company's stock?
It has to be done on an Excel files (journal, ledger, trial balance, financial statements) JUST NEED HELP WITH THIS Details: Using the information provided below, journalize and post the adjusting and closing entries for Chris and Mary Jane's first month of business. Prepare a post-closing trial balance. * On
13. Consider an economy with two types of firms, S and I. S firms all move together. I firms move independently. For both types of firms, there is a 60% probability that the firms will have 15% return and a 40% probability that the firms will have a -10% return. What is the volatility (standard deviation) of a portfolio that consists of an equal investment in 20 a. Type S firms? b. Type I firms
13. Consider an economy with two types of firms, S and I. S firms all move together. I firms move independently. For both types of firms, there is a 60% probability that the firms will have 15% return and a 40% probability that the firms will have a -10% return. What is the volatility (standard deviation) of a portfolio tha
Nancy Tai has recently opened a revolving charge account with MasterCard. Her credit limit is $1000, but she has not charged that much since opening the account. Nancy hasn't had the time to review her monthly statements as promptly as she should, but over the upcoming weekend, she plans to catch up on her work. In reviewing
Please help with the following questions. Provide step by step calculations for each problem. 1) Jason processes and bottles jams. His fixed costs are 250 per month and the variable cost per jar is 1.20. He sells the jam to local grocery stores for 3.20 each. How man jars must he sell per year to break even and what will be
Last dividend was $1.00, dividend growth rate is expected to be constant at 15% for 2 years after which the dividends are expected to grow at a rate of 10%, forever. The required return (rs) is 12%. What is the current stock price?
Target capital structure 40% debt, 10% preferred, 50% common equity, interest rate on new debt 7.5%, yield on preferred is 7.0%, cost of retained earning is 11.50%, tax rate is 40%, no new stock. What is the WACC?
5 year bond yield 6.50%, and 5 year T bond yield 4.40%, real risk-free rate is r*=2.5%, default risk premium bonds DRP = 0.40%, liquidity premium is LP 1.7%, versus 0 on T bond, inflation premium is 1.5%, What is the maturity risk premium on a 5 year bond?
Jose, Paul, and Dan went fishing. It was a good day, and all three caught a fish. Dan's fish weighed four times as much as Paul's fish, and Jose's fish weighed half as much as Dan's fish. Altogether, the three fish weighed 21 pounds. How much did each fish weigh? What is the future value of an ordinary annuity of $23,000 per
Fletcher Corp. has a capital budget of $1,000,000, but wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts this years net income to be $600,000. If the company does follow a residual dividend policy, what will be its dividend paid? What will be its dividend payout ratio?
Firms A and B are identical except for their level of debt and the interest rates they pay on debt. Each has $2 million in assets, $4000 of EBIT, and has a 40% tax rate. Firm A has a debt-to-assets ratio of 50% and pays 12% interest on its debt, while Firm B has a 30% debt ration and pays only 10% interest on its debt. What i
Question 12 The stockholders' equity section of the balance sheet of the XYZ Corp. is as follows: Common Stock ($5 par) $ 20,000,000 Retained Earnings $176,000,000 Total $196,000,000 Assume that the company now splits its stock 5-for-1, show the resulting stockholder's equity section.
Need steps to work out problem. Zoro Sword Company bonds pay an annual coupon of 9 1/2%. They have 8 years to maturity and face value or par of $1000. Compute the present value of Zoro bonds if investors' required rate of return is 10%.
Can you help me get started with this? State the importance of identifying risks and categorizing them as high, medium or low probability. Explain why risks associated with the critical path of the project need special attention.
On December 31, 2007, $490,000of 9% bonds were issued. The market interest rate at the time of issuance was 6%. The bonds pay interest on June 30 and December 31 and mature in 12 years. Compute the selling price of a single $1000 bond on December, 31 2007. What is the "present value of 1 factor"?
Karla Harby Communications, a small company of science writers, found that its rate of profit (in thousands of dollars) after t years of operation is given by the function: P'(t)=(3t + 3) cuberoot(t^2 +2t +2) a) Find the total profit in the first three years. b) Find the profit in the fourth year of operation c) What
A retail outlet receives radios from three electrical appliance companies. The outlet receives 20% of its radios from A, 40% from B, and 40% from C. The probability of receiving a defective radio from A is .01; from .02; and from C .08. A. Develop a probability tree showing all marginal, conditional and joint probabilities.
The following relation describes the monthly demand and supply for a computer support service, catering to small businesses: Qd = 3,000 - 10P Qs = -1000 + 10P 2a) At what average monthly fee would demand equal zero? 2b) At what average monthly fee would supply equal zero? 2c) What are the equilibrium price and equ
The following dtables provide information about the top women-owned businesses in the U.S. The first table gives year 2000 revenue in millions of dollars and number of employees for Pennsylvania women-owned companies with year 2000 revenues of $70 million or higher. The second table gibes the same information for Michigan women-
ABC Company Income Statement for 1998 1. Sales.........................................................3,000,000 2. Cost of Goods Sold....................................2,100,000 3. Gross Profits..............................................900,000 4. Selling and admin expense......................450,000 5. D
Application Practice: Answer the following questions to the problem. 1. In this problem, we will analyze the profit found for sales of decorative tiles. A demand equation (sometimes called a demand curve) shows how much money people would pay for a product depending on how much of that product is available on the open market
Mike Macinski Leasing Company leases a new machine that has a cost and fair value of $95,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residu
Provide calculations, Excel solutions, and step by step instructions for the following problems: 1. At the end of January, a parts firm had an inventory of 825 units, which cost $12 per unit to produce. During February, the company produced 750 units at a cost of $16 per unit. If the firm sold 1,050 units in February, what w
Supply and Demand Decision Several companies use warehouse inventory to stock company stores to serve the buyers. Shipping fees are a significant cost to the company. Ample Computers has warehouses in Chicago, New York, and San Diego. The firm owns company-owned, retail stores in Houston, Indianapolis, and Miami. Each wareh
Please help with the following business math problem. Include at least one reference as part of the solution. Using quantitative tools is one way to manage data. What kind of solutions may be derived using various statistical process controls (SPC)? Why is SPC training important to both company employees and managers?
Scenario: You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly three months time. Questions: a. If the stock is trading at $55 in three months, what will be the payoff of the call? b. If the stock is trading at $35 in three months, what will be the payoff of the call? c. Draw