Barry packs books for a bookstore. A new edition of a dictionary is ready to be boxed for shipment. Each dictionary measures 11inches x 8.5in. x 4in. The carton for these books is 1/8 inch thick. What are the dimensions of the cartons if the books are laid flat, in 2 stacks of 6 dictionaries? a.17x11x24 b.32x11x8 c.18x10x12 d
Vedio Inc. produces training videos. The fixed costs total $3,748,500.The selling price per video is $24.95. The variable cost per video is $8.46.What is the break-even point rounded to the nearest number of videos? a.227,320 b.458,211 c.250,345 d.312,323 e.not given
9. Medco Corporation can sell preferred stock for $80 with an estimated flotation cost of $3. It is anticipated that the preferred stock will pay $6 per share in dividends. a. Compute the cost of preferred stock for Medco Corp. b. Do we need to make a tax adjustment for the issuing firm?
2. Calculate the aftertax cost of debt under each of the following conditions. Please see attached for table.
Discussion Question 1: What impact do changing interest rates have on the price of long-term vs. short –terms bonds? What do you think is happening in the bonds market today? What impact, if any does, does the stock market have on the bond market?
You are considering the purchase of a Treasury bond in the secondary market. Bonds with five years to maturity, paying a half-yearly coupon of 12 per cent per annum, are currently yielding 10 per cent per annum. You wish to purchase a bond with a face value, at maturity, of $1000. A) what price should you pay fro the bond tod
Consider the following information about a five stock portfolio: Stock Percent of Portfolio Beta A) 20% 1.6 B) 25% 1.2 C) 10% 1.0 D) 30% 0.9 E) 15% 0.8 a. Determine the portfolio beta for the above portfolio. Show all work. b. Determine the expected return on the portfolio based on a Treasury bill yield of 4%
Subject: Mangement Science Details: 1. The owner of Chips, etc. produces 2 kinds of chips: Lime (L) and Vinegar (V). He has a limited amount of the 3 ingredients used to produce these chips available for his next production run: 4800 ounces of salt, 9600 ounces of flour, and 200 ounces of herbs. A bag of Lime chips requires 2
5. You have decided to purchase a home. Congratulations! The home is valued at $200,000 and you seek a mortgage in the amount of $150,000. If you can get a 6% mortgage for 30 years what would be your monthly payment (assume monthly compounding)? What is the formula for this question?
4. I'm thinking that I will need $100,000 for my sons college education (I can dream can't I). If I have 15 years until he enters college, can get a 10% return on my investment and the return is compounded semi-annually (2 times per year), how much do I need to invest EVERY 6 MONTHS? What is the formula for this question?
2. Many economists view a 3% annual inflation rate as "acceptable". Assuming a 3% annual increase in the price of automobiles, how much will a new Saab 93 convertible cost you in 5 years if today's price is $38,000? What is the formula for this answer? a. $32,779 b. $36,110 c. $40,575 d. $42,813 e. $44,052.
1. How much would you need to invest today at 8% compounded annually to have $25,000 available to purchase a new car four years from now? What is the formula for this answer? a. $18,267.26 b. $18,375.75 c. $19,147.25 d. $21,370.10 e. $22,149.57
Please see attached.
1. Suppose a stock had an initial price of $84 per share, paid a dividend of $2.25 per share during the year, and had an ending share price of $92. What was the dividend yield? What was the capital gains yield? What was the total return? 2. You bought one of Acme Corporation's 8 percent coupon bonds one year ago for $960.00. T
Walk me through this problem: A bank has as issue of preferred stock with a $6.50 stated dividend that just sold for $90.00 per share. What is the banks cost of preferred stock?
(ii) OZEN Inc plans to borrow £6 million in 180 days. The loan will be taken out at the appropriate LIBOR rate on the day the loan commence and will be repaid in full 90 days later. OZEN Inc would like to lock in the rate it pays by entering into a forward rate agreement with Bank-ZQ. Bank-ZQ agrees to lock in a rate of 11 p
1. 1. Which of the following would be the best investment based on present value? Assume an annual discount rate of 16% a. An investment that pays $5,000 at the end of each year for 6 years, assuming annual compounding. b. An investment that pays $1,225 at the end of each quarter for 6 years, assuming quarterly compounding
27. Hunter Petroleum Corporation paid a $2 dividend last year. The dividend is expected to grow at a constant rate of 5 percent over the next three years. The required rate of return is 12 percent (this will also serve as the discount rate in this problem). Round all values to three places to the right of the decimal point wher
1. Maggie's Mufflers manufactures three different product lines, Model X, Model Y and Model Z. Considerable market demand exists for all models. The following per unit data apply: MODEL X MODEL Y MODEL Z Selling Price $80 $90 $100 Direct Materials $30 $30 $30 Direct Labor ($10/hour) $15 $15 $20 Variable Support Costs (
22. Ecology Labs, Inc., will pay a dividend of $3 per share in the next 12 months(D1). The required rate of return (Ke) is 10 percent and the constant growth rate is 5 percent. a. Compute Pn. (In the remaining questions for problem 22 all variables remain the same except the one specifically changed. Each question is independ
19. Your grandfather has offered you a choice of one of the three following alternatives: $5,000 now; $1,000 a year for eight years; or $12,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually, would you still choose the same alter
4. How much would you have to invest today to receive: a. $12,000 in 6 years at 12 percent? b. $15,000 in 15 years at 8 percent? c. $5,000 each year for 10 years at 8 percent? d. $40,000 each year for 40 years at 5 percent?
Leslie earns $2000 a month and rents an apartment for $600 a month (utilities included), and also has a credit card with an annual interest rate of 7% and a balance of $1500. She currently has no savings. Design a monthly budget for Leslie so that at the end of two years, the credit card balance is as low as possible and Leslie
Consider two investment alternatives with the following projected cash flows. -Investment #1 (Year 1 is $10,000, Year 2 is $10,000, Year 3 is $10,000). -Investment #2 (Year 1 is $0, Year 2 is $10,000, Year 3 is $25,000). Can we assume that Investment 2 is preferable because its total cash flow over the three-year period i
10. What two components make up the required rate of return on common stock?
Discussion Question 2: When a person gets a mortgage on their home, they usually also get an amortization schedule showing (for a 30 year mortgage) each of 360 payments listed with the amount of principle being paid and the amount of interest. The surprise to the homeowner is usually how small an amount of principle is being pa
Exercises 18-1 1. Allocating resources in the most efficient manner maximizes the wealth of any country. It is generally acknowledge that financial information plays an important role in efficient resource information Question: Given that both of the preceding statements are correct, why are the financial reporting rules in
Subject: Finance Details: Completely describe how ?Agency Problems? may keep managers from achieving the primary goal of financial management and how these problems could be overcome. Agency Problems represent the conflict of interest between management and owners.
Create a spreadsheet to address the following problem: A. A hospital has an average accounts receivable balance of $20,000,000 and a collection period of 60 days. B. 60% of receivables are not collected on time. The bills for those receivables must be reworked by the patient billing department and resubmit
With the given calculation as follows what is the estimate of required financing needs for each month during the budget period and how much if any will the company need outside financing base on this assumption? Month Sales Collections Costs incurred Payments(raw material) Administrative+lease Depreciation One time investment I