A common stock currently has a beta of 1.3, the risk factor is an annual 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate per-share benefits of $5.20 during the coming period. A toxic spill results in a lawsuit and potential fines, and beta of the stock jumps 1.6. The new equ
Disco is developing a new hard drive for use in HAL-compatible PC's They estimate the demand schedule for the new product will be as follows: Price: 100 80 60 40 20 0 Quantity (000): 0 30 60 90 120 150 The fixed cost will be $ 1000 Unit variable cost will be $ 40.00 per un
Please answer the following problems and give detailed answers. 1-1) p.479 Ch 14 The Grass Ridge Company has the following current asset accounts. Cash $1,900,000 Accounts receivable $4,600,000 Inventory $5,500,000 Its current ratio is 2.5:1. The bank is willing to lend the company enough to finance its worki
Adjustable-rate preferred stocks are appealing to investors because _________ the fixed dividend is almost guaranteed, under the current tax laws, interest and dividends are taxed at the same rate, fluctuations in the market price of preferred stocks are minimal since the dividend payment is adjusted as market rates change,
Paymeny-in-kind preferred stock has been primarily used to finance _______ a) new high-risk ventures, b) expansion in foreign manufacturing, c) takeovers, d) privatization of corporations
Paymeny-in-kind preferred stock has been primarily used to finance _______ a) new high-risk ventures, b) expansion in foreign manufacturing, c) takeovers, d) privatization of corporations please advise answer & why!
Which one of the following is NOT a reason that financial control may be an ineffective scoreboard - it is oriented toward short-term profits, it focuses on financial measures while ignoring other important attributes of performance, it often focuses on long-term performance measures, or it is an aggregate rather than a det
The percentage of gross profit for a facility with a gross income of 330,000, fixed expenses of 200,000 and variable expense of 100,000 is approximately? Can you please explain how to do this?
How has Martha Stewart's conviction affected her company, Martha Stewart Living Omnimedia, Inc., in each of its four segments: Publishing, Television, Merchandising and Internet/Direct Commerce? Explain Please provide references
I need your help with my presentation we are comparing two business and I am doing ADP Automatic Data processing. It is an independent computing firm and it began as a manual processing service for business in northern new Jersey. This is all I know about the business, I nedd your help in doing my presentation, i have this qu
I need your help with this question its on Risk and Return and it is a True or False and I need your help explaining or qualifying the answer. a. The expected rate of return on an investment with a beta of 2 is twice as high as the expected rate of return of the market portfolio. If there are abreviations or formulas used
What are the primary weaknesses of sensitivity analysis? What are its primary advantages?
This question should be answered by someone expert in finances Please give a full and detailed answer to each question. Thanks
Question 4: Financial Measurements in manufacturing. The PQ Piston Plant makes two sizes of pistons for reciprocating engines. Their plant has four machines. Currently, the demand for their products is 100 'p" pistons per week:, and 50 "Q" pistons per week. The financial information for these products is as follows: Product P
This exercise involves small calcualtions on a business's finance situation and to answer short answer questions on business related terms.
Basically for this assignment you need to have knowledge of the following topics: •Capital budgeting techniques •Use of discounting tables •Types of risk – Business risk, break even and financial risk •Sources of finance •Portfolio theory •Portfolio standard deviation The actu
Can you help me with this problem: Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The seperate capital structures for Cain and Able are presented below: Cain Debt @10%...............$50,000 Common Stock, $10 par.....100,000 Total................................$150,000 C
Can you help me with the following problem: The Harding company manufactures skates. The company's income statement for 2001 is as follows: HARDING COMPANY Income statement For the Year Ended December 31, 2001 Sales (10,000 skates @$50 each).....................
I need help finding the answers to the questions attached, the class is Operating and Financial leverage
I need your help finding the answer to the folloing problems: Shock Electronics sells portable heaters for $25 per unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000. a.) How do I compute the break-even point in units? b.) How do I fill in the table below (in
Which of the following is not a direct result of a stock dividend? a. the number of shares outstanding is increased b. the market share of each outstanding share is increased c. the amounts shown in the firm's capital accounts are redistributed d. a and b
I need help finding the answers to the follwing: How do I describe the importance of internal control programs, and how do I identify effective internal control techniques? How can I Illustrate the relationship between ethics and internal control techniques, and how do I describe the importance of the Sarbanes-Oxley Act? I do
The stock of Robotic Atlanta Inc. is trading at $40 per share. In the past, the firm has paid a constant dividend of $5 per share and it has just paid an annual dividend. However, the company will announce today new investments that the market does not know about. It is expected that with these new investments, the dividends wil
You bought a new Lan Rover for $67,000 on October 31, 1999. The down payment was $15,000. A bank financed the remaining balance at 12 percent interest rate for 60 months with monthly payments. The first payment was made one month from the purchase date. If the interest on the loan is tax-deductible, you will need to figure out t
You will need to pay for your son's private school tuition (first grade through 12th grade) a sum of $8,000 per year for Years 1 through 6, $10,000 per year for years 7 through 12. Assume that all payments are made at the beginning of the year, that is, tuition for Year 1 is paid now. (i.e., at t=0), tuition for Year 2 is paid o
A decrease in the debt ratio will normally have no effect on a. Financial risk b. Total risk c. Business risk d. Systematic risk e. Firm-unique risk.
In theory the decision maker should view market risk as being of primary importance. However, within-firm, or corporate, risk is relevant to a firm's a. Well diversified stockholders, because it may affect debt capacity and operating income. b. Management, because it affects job stability. c. Creditors, because it a
You are considering the purchase of an investment that would pay you $5,000 per year for years 1-5, $3,000 per year for years 6-8, and $2,000 per year for years 9 and 10. If you require a 14 percent rate of return, and the cash flows occur at the end of each year, then how much should you be willing to pay for this investment?
Allegheny Publishing's stock is expected to pay a year-end dividend, D1, of $4.00. The dividend is expected to grow at a constant rate of 8 percent per year, and the stock's required rate of return is 12 percent. Given this information, what is the expected price of the stock, eight years from now? a. $200.00 b. $185.09
Stock X has a required return of 12 percent, a dividend yield of 5 percent, and its dividend will grow at a constant rate forever. Stock Y has a required return of 10 percent, a dividend yield of 3 percent, and its dividend will grow at a constant rate forever. Both stocks currently sell for $25 per share. Which of the following
The DMT Company is financed entirely with equity. DMT has a beta of 1.20 and the current risk-free rate of 9.5%. If the expected market return (Km)is 14%, what rate of return should DMT require on a project of average risk? [ke=krf + (km-krf)(B)] The following choices are one of the answers: a. 14.9% b. 15.4% c. 14.0% d.
What is the net investment for an extruder that costs $42,000, if shipping costs are $1,500 and installation is $4,800? Assume this efficient machine is replacing an older extruder with a book and market value of zero. The replacement investment will reduce operating costs by $6,600 a year. The following choice are: a. $48,
ABC Hospital laundry department cleans laboratory jackets for the housekeeping and laboratory departments. The budgeted volume of jackets was 100 for housekeeping and 200 for laboratory. Housekeeping actually used 100, but laboratory used only 150. Fixed costs for the laundry were budgeted at $150. Variable costs were budgete