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Guns and Hoses Corp - Financial Management

1) The prices for the Guns and Hoses Corporation for the first quarter of 2005 are given below. Find the holding period return for February.

Month End Price
January $135.28
February 119.40
March 141.57

2) If a corporation has operating income of $10,500,000 and it receives $245,000 in interest income and $312,000 in dividend income, what is the firm's taxable income?
A)$11,057,000 B) $9,838,600
C)$10,812,000 D) $10,838,600

3)If you want to have $2,500 in 54 months, how much money must you put in a savings account today? Assume that the savings account pays 3.8% and it is compounded quarterly (round to nearest $10).
A)$330 B) $1,500 C) $2,110 D) $2,080

4)
A corporation has annual sales of $10 million, total assets of $5 million, a debt ratio of 40%, depreciation expense of $200,000, and a tax rate of 30%. The corporation's total stockholders' equity is equal to:
A)$3,000,000 B) $3,560,000
C)$12,000,000 D) $2,100,000

Solution Preview

1) The prices for the Guns and Hoses Corporation for the first quarter of 2005 are given below. Find the holding period return for February.

Month End Price
January $135.28
February 119.40
March 141.57

Answer: 18.57%

(141.57 - 119.40)/119.40

2) If a corporation ...

Solution Summary

This solution is comprised of a detailed explanation to answer the financial management problems.

$2.19