3) Global Pistons has common stock with a market value of $200 million and debt with value of $100 million. Investors expect a 15% return on the stock and a 6% return on the debt. Assume perfect capital markets. a) Suppose GP issues $100 million of new stock to buy back the debt. What is the expected return of the stock af
California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm's dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock. 1. What is the stock's value? 2. Suppose the riskiness of the stock d
Kohler Corporation reports the following components of stockholders' equity on December 31, 2008. Common stock-$20 par value, 200,000 shares authorized, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stoc
See attached files. Compare current (& past two years) financial statements for CVS & Walgreens Industry Drug Stores in accordance to the instructions below. An example is attached. Assignment: You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the fol
Using the latest 2008, 2009 Annual Cash Flow Statements for Nike analyze the following: Operating Cash Flows: Investment Cash Flows: Financing Cash Flows: Overall Analysis of the Cash Flow Statement: Using the 2008,2009 Income and Balance Sheet Statements analyze the following: Sales and Accounts Receivable:
Attached is the Statement of Cash Flows I am working with, which is for Harley Davidson. Assistance is need with the financing activities. I need to prepare an interpretation of their cash flow for the last three years, but only the financing activities section. I need to identify the basic cash position and primary sources and
Information on Coach Inc., the leading American designer and maker of luxury lifestyle handbags and accessories. From a financial perspective, global expansion, from a customer perspective and Corporate Governance. Information should be from a financial perspective.
Please type one page for the question below by MS Word: Summarize the concept of mutual fund investing. Include an explanation of the types of mutual funds, sales loans, open-end vs. closed-end funds, and the reasons why investors choose mutual fund investing over other alternatives. Be sure to mention expense ratios and includ
1. Krell Industries has a share price of $22 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield and equity cost of capital? 2. Dorpac Corporation has a dividend yield of 1.5%. Dorpac's equity cost of capital
See the attached files. Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A & B, especially the Consolidated Statements of Income and the Balance Sheets on pp. A4, A6, B1, & B2 of Financial Accounting. Write a paper in APA format with citations and references that provides a financial com
Write a 3-5 page essay based "The Customer Is Boss," in Lafley and Charan's The Game-changer. In this chapter, Lafley explains how he effected a positive turn-around at Proctor and Gamble (P&G), by changing the culture when he took over as CEO. A fundamental element of P&G's innovative process was emphasis on developing a deepe
Please help figure out the ratio analysis for the last 5 years and the financial ratio analysis capital structure, average weighted cost of capital, risk premium, debt to equity and the current assets of genuine parts company (GPC) for the most recent 5 years.
Please help locate the financial statements of a company on-line. Provide detailing of the various topics below as they relate to the company. Assets Inventory method used (note your company must have inventory) Accounts Receivable including method of calculating bad debt expense Fixed assets including depreciation m
The firm is considering taking on $1 billion in debt over five years to accelerate the stock buyback program. Over a 11 year period the following trends were observed: Compounded annual growth rates: Sales 9% Earnings 11% Cash Flows 12% The company maintained: Average gross profit 77% EBITDA 53% EBIT 50% Net margin 31%
Dallas Instruments has a large bond issue whose covenants require: (1) that DI's interest coverage ratio exceeds 4.0; (2) that DI's ratio of tangible assets to long-term debt exceeds 1.50; and (3) that cumulative dividends and share repurchases not exceed 60% of cumulative earnings since the date of the issuance of the bonds. DI
Pick at least one of the following companies and do the calculations that lead you to a result for beta, in a fashion similar to that which I used to compute 3M's beta in the Excel file included in this posting. Here is the list of the thirty companies that make up the Dow Jones Industrial 30 (with their ticker code): 3M (MM
Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsam's board has decided to pay out this cash as a one-time dividend. a. What is the ex-dividend price of a share in a perfect capital market? b. If the board inst
Compare a regular cash dividend with a periodic share repurchase. Which has greater appeal to you? Explain. Explain a stock dividend and further explain if you would prefer it to a cash dividend. What are stock splits and how desirable are they?
A consultant has collected the following information regarding Gannette Publishing: Total Assets: 6,000 million Operating income (EBIT): 400 million Interest Expense: 0 million Net income: 280 million Share Price: 32 Tax Rate: 40 percent Debt Ratio: 0 percent Market/Book ratio: 1.00x EPS = DPS $3.20 The company ha
Saturn Inc. expects to have net income of $20,000,000 during the next year. Saturn's target capital structure is 35 percent debt and 65 percent equity. The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $24,000,000. If Saturn follows a residual dividend policy to det
Saturn Inc. expects to have net income of $20,000,000 during the next year. Saturn's target capital structure is 35 percent debt and 65 percent equity. The company's director of capital budgeting has has determined that the optimal capital budget for the coming year is $24,000,000. If Saturn follows a residual dividend policy to
12. Suppose Cisco Systems pays no dividends but spent $5billion on share repurchases last year. If Cisco's equity cost of capital is 12%, and if the amount spent on repurchases is expected to grow by 8% per year, estimate Cisco's market capitalization. If Cisco has 6billion shares outstanding, what stock price does this corre
PLEASE SOLVE FINANCIAL MANAGEMENT PROBLEM AS PER ATTACHED FILE
2. Banerjee Inc. wants to maintain a target capital structure with 30% debt and 70% equity. Its forecasted net income is $550,000, and its board of directors has decreed that no new stock can be issued during the coming year. If the firm follows the residual dividend policy, what is the maximum capital budget that is consisten
1. Trenton Publishing follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase in the firm's dividend per share? a. The firm's net income increases. b. The company increases the percentage of equity in its target capital structure. c.
1. If a firm adheres strictly to the residual dividend policy, then if its optimal capital budget requires the use of all earnings for a given year (along with new debt according to the optimal debt/total assets ratio), then the firm should pay a. no dividends except out of past retained earnings. b. no dividends to commo
Why is the cash position of a company important, when deciding to create a dividend policy?
1. The key input to the short-run financial planning process is 1. 1. the cash budget. 2. 2. the pro forma income statement. 3. 3. the cash forecast. 4. 4. the sales forecast. 2.________ forecast is based on a buildup, or consensus, of sales forecasts through the firm's own sales channels, adjusted for addit
In 2008 the Keenan Company paid dividends $3.6 million on net income of $10.8 million. The year was normal, and for the past 10 years, earnings have grown at a constant rate of 10%. However, in 2009, earnings are expected to jump to $14.4 million, and the firm expects to have profitable investments opportunities of $8.4 million.
PART I ? NORMAL BALANCES Instructions: Place a "D" (Debit) or "C" (Credit) in the space provided to indicate whether the account has a normal debit balance (D) or normal credit balance (C). 1. Retained Earnings 6. Common Stock 2. Equipment 7. Unearned Service Revenue 3. Depreciation Expense 8. Accumulate