Blue Moon Corporation has one million shares of common stock outstanding. In a typical annual election for the board of directors, shareholders representing 70 percent of the shares outstanding exersize their right to vote. The company has nine members on its board of directors, all of whom are elected annually. a. If the co
Kenney Corporation reported the following income statement for the most recent year(numbers are in millions of dollars): Sales $7,000 Total operating costs 3,000 EBIT $4,000 Interest 200 Earnings before tax (EBT) $3,800 Taxes (40%) 1,520 Net income available to common shareholders $2,280 The company foreca
CALCULATE THE ARITHMETIC AND GEOMETRIC RETURNS OF THESE NUMBERS: year price dividend 1 $ 44.97 --- 2 47.37 $0.55 3 52.24
13) The Corporation has 1,000,000 of 8% bonds outstanding. Interest is payable each July and January 1 and the maturity date is 10 years from today. If the current market rate of interest is 10%, what is the current market value of the bonds? 14) The Corporation has just borrowed $100,000 from the bank. The term of the loan
See attached files. Consider the performance (in thousands of dollars) of Economy Airlines for a given year in the table below. The static (master) budget had been based on a budget of $.20 per revenue passenger kilometer. An average passenger kilometer is one paying passenger who has flown one kilometer. An average airf
Parks Canada prepared the following budget for one of its national parks for 2002: Revenue from fees $5,000,000 Variable costs (miscellaneous) 500,000 Contribution margin $4,500,000 Fixed costs (miscellaneous) 4,500,000 Operating income $ 0 The
Use a spreadsheet software (for example, MS Excel), construct an amortization table for the following mortgage. In the amortization table, provide all the information listed below. (Assuming interest is compounded monthly and payments are due at the end of the month). For a 15-year variable-rate-level-payment mortgage (VRM) o
TIME VALUE OF MONEY Please show all work, or inputs on the financial or graphing calculator, to receive credit for your answers. No credit will be given for answers without calculations or inputs. You must include a timeline with each problem 1. You would like to buy a house, and have researched the mortgage market. Your
17. You are in the business of selling widgets. You retail these fine looking widgets for $25.00 a piece and you have 1,000 of them in inventory. If your total fixed costs are $150,000 and your total variable costs are $10,000 what is: Your breakeven in units________________________
An investment is expected to generate $2,000,000 each year for four years. If the firm's cost of funds is 5%, what is the maximum amount the firm should pay for the investment? Please respond in Excel.
1) Calculate the average returns, variances, & the standard deviations for X and Y. For average return and s.d. (Input answers rounded to 2 decimal places. For variance round answers to 4 decimal places). Returns Year X Y 1 20 % 21 %
A company issued 10%, 10-year, $10,000,000 par value bonds that pay interest semiannually on April 1 and October 1. The bonds are dated April 1, 2004 and are issued on that date. The market rate of interest for such bonds on April 1, 2004 is 8%. The company uses the effective interest rate method of amortization. 1. Prepar
Search for three public companies that you may want to invest in. You may want to consider three companies in the same industry. Make sure they provide their financial information online. You could go to each company's website and look in the investor relations area. A better way is to research Yahoo Finance [http://finance.yaho
51. Pick the statement that is most correct. 1. The SML relates required returns to firm's systematic or market risk. The slope and intercept of this line cannot be controlled by the financial manager. 2. The slope of the SML is determined by the value of the beta. 3. If you plotted the returns of a given stock agai
Most correct Statement. 1. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all the market risk from the portfolio 2. If you formed a portfolio which included a large number of low beta stocks (less than 1.0 but greater than -1.0), the portfolio would itself have a beta coefficient
Using the income statement for Paste Management Company compute the following ratios: a. The interest coverage. b. The fixed charge coverage. The total assets for this company equal $80,000. Set up the equation for the Du Pont system of ratio analysis, and compute c, d, and e. c. Profit margin. d. Total asset turnover.
Jan-05 Jan-04 Jan-03 Jan-02 Jan-01 Current Ratio Current Assets 1.69 1.55 1.59 1.37 1.16 Current Liabilities Quick (Acid-Test) Ratio Current Assets-Inventory 1.04 0.91 0.95 0.74 0.49 Current Liabilities Inventory Turnover Cost of Goods Sold
To accumulate $8,000 by the end of 5 years by making equal annual end-of-year deposits for the next 5 years. If earning 7% on the investments, how much must be deposited at the end of each year to meet the goal?
You have contracted to purchase a $10,000,000 multi-family property with $2,000,000 cash down payment as equity and an $8,000,000 mortgage loan. Assume mortgage rates for this type of investment property are 8.50% fixed rate, fully amortized over 30 years, with monthly payments of interest and principal. (1) Construct an
Suppose a firm used a debt to leverage up its ROE, and in the process its EPS also was boosted. Would this lead to an increase in the price of the firm's stock?
Ensco Lighting Company has fixed costs of $100,000, sells its units for $28, and has variable costs of $15.50 per unit. a. Compute the break-even point. b. Ms. Watts comes up with a new plan to cut fixed costs to $75,000. However, more labor will now be required, which will increase variable costs per unit to $17. The sales
80. Crasler Company's net income last year was $100,000. The company paid preferred dividends of $20,000 and its average common stockholders' equity was $580,000. The company's return on common stockholders' equity for the year was closest to: A) 13.8%. C) 20.7%. B) 3.4%. D) 17.2%. 83. Grave Company had $150,000
60. (Ignore income taxes in this problem.) In order to receive $12,000 at the end of three years and $10,000 at the end of five years, how much must be invested now if you can earn 14% rate of return? A) $12,978. C) $13,290. B) $8,100. D) $32,054. 61.Lusk Company produces and sells 15,000 units of Product A each mont
But what is our liability? Ditka engineering company has signed a third party loan guarantee for liberty company . The loan is fro the national bank of illinois for $500,000. Liberty has recnetly filed for bankruptcy , and it is estimated by the companys auditors that creditors can expect to receive no more than 40% of their c
Assume you are looking at many companies with equal risk; which ones will have the highest stock prices?
I need help with the attached questions. Work does not need to be shown. --- 10. You will receive a $100,000 inheritance in 20 years. You can invest that money today at 6% compounded annually. What is the present value of your inheritance? a. $27,491.25 b. $29,767.15 c. $31,180.47 d. $35,492.34 e. $100,000 11.
I need help with question 3 and question 15. (See attached file for full problem description)
Chapter 6 5. Procter Micro-Computers, Inc., requires $1,200,000 in financing over the next two years. The firm can borrow the funds for two years at 9.5 percent interest per year. Mr. Procter decides to do economic forecasting and determines that if he utilizes short-term financing instead, he will pay 6.55 percent interest i
1. A company has two items in stock which require to be repaired before sale Cost Selling price Repair costs item1 5260 7600 880 item2 2360 2450 190 What is the total stock value of these items? A$6550 B$7520 C$7620 D$8980 2. The following information is given for a business at 31 December 2004.
1. Gomez Electrics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan in which interest must be paid monthly, and the quoted rate is 8%. Bank B will charge 9%, with interest due at the end of the year. What is the difference in the effective annual rates charged by