Suppose Toyota has nonmaturing (perpetual) preferred stock outstanding that pays a $1.00 quarterly dividend and has a required return of 12% APR (3% per quarter). What is the stock worth?
Hello, I do not seem to find my notes on the years-of-service method in calculating and my book is not explaining it well enough. Can someone show me how to do this? On January 1, 2003, Sunny Incorporated amended its pension plan which caused an increase of $4,800,000 in its projected benefit obligation. The company has 40
Har Company sold 5,000 units for a prie of $50 per unit and had the following information: Variable expenses - $160,000 Fixed expenses - $125,000 Break-even point $347,222 If the sales price per unit were to increase by 10%, variable expenses were to increase by 12.5% and fixed expenses were to increase by 20%, what woul
I need assistance on completing this example. (Cash budget) The Sharpe Corporation's projected sales for the first eight months of 2004 are as follows: January $ 90,000 May $300,000 February 120,000 June 270,000 March 135,000 July 225,000 April 240,000 August 150,000 Of Sharpe's sales, 10 percent is for cash, another 60
Please provide your thoughts (one paragraph) on the following questions. 1. Do you think it is possible to separate the "personal interests" of the leadership from the "professional interests" of the organization? (especially when it comes to money?)
Describe the benefits and drawbacks of both traditional and Roth IRAs. Which is the better choice IRA for you? Why?
1. The U.S. Treasury issues bills, notes, and bonds. How do these three securities differ? 2. A call provision on a bond allows the issuer to redeem the bond at will. Investors do not like call provisions and so require higher interest on callable bonds. Why do issuers continue to issue callable bonds anyway? EBay went pub
Explore the Thrift Savings Plan (TSP) web site at http://www.tsp.gov . Let's say you'd like to enroll in the TSP-explain why and what funds will you choose?(8-11 sentences).
High-Low Method Manchester Foundry produced 45,000 tons of steel in March at a cost of £1,150,000. In April, the foundry produced 35,000 tons at a cost of £950,000. Using only these two data points, determine the cost function for Manchester. What is the slope?
The following are monthly percentage price changes for four market indexes MONTH DJIA S&P500 RUSSELL2000 NIKKEI 1 0.03 0.02 0.04 0.04 2 0.07 0.06 0.1 -0.02 3 -0.02 -0.01 -0.04 0.07 4 0.01 0.03 0.03 0.02 5 0.05 0.04 0.11 0.02 6 -0.06 -0.04 -0.08 0.0
1.Nico bought 100 shares of Cisco Systems stock for $24.00 per share on January 1, 2002. He received a dividend of $2.00 per share at the end of 2002 and $3.00 per share at the end of 2003. At the end of 2004, Nico collected a dividend of $4.00 per share and sold his stock for $18.00 per share. What was Nico's realized return du
1.The financial leverage multiplier is an indicator of a corporation utilizing 1.long-term debt. 2.total debt. 3.total assets. 4.operating leverage. 2.The analyst should be careful when conducting ratio analysis to ensure that 1.the same accounting procedures were used. 2.all of these 3.the d
Demonstrate to your colleagues how you would calculate the expected rate of return, also called r-hat, and Beta on a self-designed portfolio of four common stocks selected from the NASDAQ or NYSE stock exchanges. Assume the weighting of the portfolio to be 15%, 30%, 35%, 20%. No two portfolios presented by students can include t
I do a lot of work with smaller companies that are in severe financial difficulty. I constantly hear comments, from others, that bankruptcy is a "dodge" and it allows less than honest business owners to scam their creditors and emerge "clean". Do you think that the bankruptcy laws are necessary, are fair and are good for the
Why do most assets of the same type show positive variances of returns with each other? Would you expect positive covariance of returns between different types of assets such as return on treasury bills, General Electric common stock, and commercial real estate? Why or why not?
Lamb Golf Accessories Limited manufactures a range of specialized waterproof golf shoes, in four different quality specifications. Deluxe 600, Palmer 20, Nicholas 360, Standard 640. Prepare brief report to the company, advising them on the most profitable deployment of the additional direct labor hours.
Business Finance: A firm is considering the replacement of an existing machine with a newer model...
A firm is considering the replacement of an existing machine with a newer model. The old machine was purchased 5 years ago. At that time, its cost was $7,500 and it was expected to have a useful life of 15 years. Its current book value is $5,000 while its current market value is only $1,000 The new machine will have a ful
1.Managing the firm's liabilities includes all of the following EXCEPT 1. cash. 2. accounts payable. 3. notes payable. 4. accruals. 2.The wealth of the owners of a corporation is represented by 1.earnings per share. 2.cash flow. 3.share price. 4.profits. 3.The financial manager may be
1. The controller is commonly responsible for 1. managing cash. 2. financial accounting. 3. financial planning. 4. managing credit activities. 2. Included in the primary activities of the financial manager are 1. making financing decisions. 2. financial analysis and planning. 3. all of these.
1. Wealth maximization as the goal of the firm implies enhancing the wealth of 1. the Board of Directors. 2. the federal government. 3. the firm's employees. 4. the firm's stockholders. 2. The difference between the cost of funds used to finance an investment and its after-tax operating profits is calle
1.The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called 1. 1. present value interest factor. 2. 2. future value. 3. 3. present value. 4. 4. future value interest factor. 2.As the interest rate increases for any gi
1. Janice would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $15,000 and she has 5 years to accumulate this money. How much must Janice deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise? 1. $2,234
1.________ is an expense that is a legal obligation of the firm. 1. Labor expense 2. Interest expense 3. Salaries expense 4. Rent expense 2. Under MACRS, an asset which originally cost $10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3? 1. $1,200 2. $1,
1) Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are called2) Investors sell a security short when they expect the price of the security to
1) Mutual funds composed of stocks that have potential for very high growth, but may also be unproven, are called a.income funds. b capital appreciation funds c specialty funds d dividend funds 2) Investors sell a security short when they expect the price of the security to a. increase substantially b. decrease c
1) No load mutual funds are normally promoted by ______. Load funds are promoted by ______. a registered representatives of a brokerage firm; registered representatives of a brokerage firm b registered representatives of a brokerage firm; the mutual fund of concern c the mutual fund of concern; registered representatives
1) When investors buy stock with borrowed funds, this is sometimes referred to as 2) Exchange traded funds can be
1) When investors buy stock with borrowed funds, this is sometimes referred to as a use of proxy b purchasing stock on margin c a margin call d a margin residual claim 2) Exchange traded funds can be a traded throughout the day b purchased on margin c sold short d all of the above
1) The ______ is commonly used to determine what a stock's price should have been2) Technical analysis involves tracking the trend of ______ to make investment decisions
1) The ______ is commonly used to determine what a stock's price should have been a capital asset pricing model b Treynor Index c Sharpe Index d B and C 2) Technical analysis involves tracking the trend of ______ to make investment decisions a interest rates b inflationary expectations c industry conditions d r
Please see attached questions and provide spreadsheet to support. For the following question: "you would expect Swinton Mining dividend yield to Options: A Decrease B Stay the same C Increase Can you provide an explanation to that question
6. (1) If the fair value of a held-to-maturity investment declines for a reason that is viewed as "other than temporary", A. the investment is not written down to fair value. B. the investment is written down to fair value, and the impairment loss is recognized in net income. C. the investment is written down to fair
16. (1) Straight-line amortization of bond discount or premium: A. Can be used for amortization of discount or premium in all cases and circumstances. B. Provides the same amount of interest expense each period as does the effective interest method. C. Is appropriate for deep discount bonds. D. Provides the same