Complete the following balance sheet for the Range Company using the following information: Debt to Assets = 60 percent Quick Ratio = 1.1 Asset Turnover = 5x Fixed Asset Turnover = 12.037x Current Ratio = 2 Average Collection Period = 16.837 days Cash Current Liabilities ______ Receivables ______
ClearDebt Inc., is a firm with all-equity financing. Its equity beta is .80. The Treasury bill rate is 4 percent, and the market risk premium is expected to be 10 percent. What is ClearDebt's asset beta? What is ClearDebt's weighted-average cost of capital? The firm is exempt from paying taxes. I have several problems like th
A share of stock with a beta of .75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 4 percent, and the market risk premium is 7 percent. If the stock is perceived to be fairly priced today, what must be investors' expectation of the price of the stock at the end of the year?
Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions): Net sales $68,222 Costs of products sold 33,125 Selling, general, and administrative expense 21
A) The after-tax weighted average cost of capital (WACC) is given by: b) If a firm borrows $50 million for one year at an interest rate of 9%, what is the present value of the interest tax shield? c) If a firm permanently borrows $100 million at an interest rate of 8%, what is the present value of the interest tax shield?
23a.The after-tax weighted average cost of capital (WACC) is given by: (Corporate tax rate = TC) A. WACC = (rD)(D/V) + (rE)(E/V) B. WACC = (rD)(D/V) + [(rE)(E/V)/(1 - TC)] C. WACC = [(rD)(D/V) + (rE)(E/V)]/(1 - TC) D. WACC = (rD)(1 - TC)(D/V) + (rE)(E/V) 23b. If a firm borrows $50 million for one year at an inte
Please help with the following problem. Provide step by step calculations. You own a 20-year, $10,000 par value bond paying 7% interest annually. The market price of the bond is $875, and your required rate of return is 10%. A) Compute the bond's expected rate of return B) Determine the value of the bond to you, given y
The real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, the market risk premium is 4.70%, and Asterisk Enterprises has a beta of 1.10. What is the required rate of return on Asterisk' stock?
An investment promises the following cash flow stream: $750 at Time 0; $2,450 at the end of Year 1 (or at t = 1); $3,175 at the end of Year 2; and $4,400 at the end of Year 3. At a discount rate of 8.0%, what is the present value of the cash flow stream?
Question 1.Rooney Inc. recently completed a 3-for-2 stock split. Prior to the split, its stock price was $90 per share. The firm's total market value was unchanged by the split. What was the price of the company's stock following the stock split? 2.Firms A and B are identical except for their level of debt and the interest
A start-up firm has zero revenues in year 1, but they expect to grow $15,000 per year over the next five years. The present worth of the revenues, assuming a 10% annual rate of interest, is most closely a. $75,000 b. $102,600 c. $33,300 d. $145,300
Consider a bond with a duration of 6 years having a yield to maturity of 8% with interest rates expected to increase by 50 basis points (1/2 of 1%). What is the estimated percentage change in the price of the bond if this were to occur?
Distinguish between the accrual basis and the cash basis of accounting.
Need help in preparing a 5 slide power point presentation with speaker notes at the bottom of each slide; outlining how much an individual would save in taxes by contributing to a 401K plan. Assuming that the individual's current income is $45,000 per year and is in a 15% tax bracket and is investing 7% of their income into the
I need your help to review the Comprehensive Annual Financial Report. http://www.sjredevelopment.org/Finance/CAFR2008.pdf 1. Select one of the more recently established (and larger) capital projects funds (a major fund, if there is one). a. From where did the fund receive most of its resources? b. Did the city acq
Schedule the following activities using the CPM. Draw the network. What is the critical path? How many weeks will it take to complete this project? Which activities have slack and how much?
Schedule the following activities using the CPM. Activity Intermediate Predecessor Time (weeks) A - 1 B A 4 C A 3 D
Review the financial statements of Southwest Airlines in its latest annual report. (http://www.southwest.com/investor_relations/annual_reports.html). Then answer questions as follow. ***Please provide with each answer which documents you used so I can review them to absorb the information *** 1) What important informatio
Please help with the following problem. Provide the answer in an Excel sheet. Designing a shaft support has two options: using a pair of single row ball (SRB) bearing with a purchasing cost of $25, or using a pair of cylindrical roller bearing (CRB) with a purchasing cost $70. If selecting SRB, it will fail (within a specifi
Becker Brothers is the managing underwriter for a 1-million-share issue by Jay's Hamburger Heaven. Becker Brothers is "handling" 10 percent of the issue. Its price is $25 per share and the price to the public is $26.40. Becker also provides the market stabilization function. During the issuance, the market for the stock turns s
In the simple economic model with no government or foreign sectors, the value of the multiplier is defined as: 1/MPC. 1/(1-MPC). 1/(MPC-1) 1/(MPC+1). None of the above.
A US Importer owes a Belgian Company ? 500,000 payable 30 days from today, expects that the US $ will weaken during this period.
A US Importer owes a Belgian Company ? 500,000 payable 30 days from today, expects that the US $ will weaken during this period. a‐ What would you advise the importer to do? b‐ What would happen to the profits of the US company if the $ were to strengthen during this period? Can anyone help with this problem?
Read the following newswire on the US Treasury Secretary's proposed sweeping changes in the US financial institutions of the Wall Street as its first significant overhaul since the Great Depression of 1930s
4) Read the following newswire on the US Treasury Secretary's proposed sweeping changes in the US financial institutions of the Wall Street as its first significant overhaul since the Great Depression of 1930s. http://money.cnn.com/2008/03/31/news/economy/paulson_regulation/index.htm?postversion=2008033115 As a part of the
Consider a project with the following data: accounting break-even quantity = 30,000 units; cash break-even quantity = 16,500 units;life = 6 years; fixed costs = $210,000; variable costs = $29 per unit; required return = 14 percent. Ignoring the effect of taxes, the financial break-even quantity is units. (Round your answer to
A. What is a trial balance? What is its purpose? B. Describe the three important guidelines for revenue recognition.
A. A firm has $1.2 million in current assets and $1.0 million in current liabilities. If it uses $.5 million of cash to pay off some of its accounts payable, what will happen to the current ratio? What happens to net working capital? B. A firm uses cash on hand to pay for additional inventories. What will happen to the c
Compare and contrast the balance sheet treatment of a car purchased by cash and a car purchased on credit. How is equilibrium of the basic accounting equation maintained in both instances? Clarify why the two different methods of purchase might be treated differently?
Calculate the net present value (NPV) for the following 20-year projects. Comment on the acceptability of each. Assume that the firm has an Opportunity cost of 14%. 1. Initial investment is $10,000: cash inflows are $2,000 per year 2. Initial investment is $25,000: cash inflows are $3,000 per year 3. Initial investment is $
Excel formula for loan: -Loan amount : $20000 -APR 8% -monthly payment over 24months (payment starts one month after receiving the loan proceeds) 1) Use Excel's PMT function to determine how much each monthly payment will be. 2) Create an Amortization Schedule with the following column headings: Month Number, Principal at beginning of month, Payment at end of month, Interest portion of payment, Principal portion of payment. The rows will contain the data generated by the formulas (first column will simply contain the numbers 1 through 24). 3) Tell me how to calculate the EAR of this loan.
**Amortization Schedule ** Please attach excel WITH FORMULA (PLEASE DO NOT USE TEMPLATE AS I NEED TO KNOW WHAT FORMULA SHOULD BE USED FOR EACH COLUMN, AND I NEED TO BE ABLE TO EDIT THEM) -Loan amount : $20000 -APR 8% -monthly payment over 24months (payment starts one month after receiving the loan proceeds) 1) Use Exc
Please see the attached file. Page 77, 20. The Lancaster Corp's income statement is given on page 78. a) What is the times-interest-earned ratio? b) What would be the fixed-charge-coverage ratio? Sales 200,000 Cost of goods sold 116,000 Gross profit 84,000 Fixed charges (other than interest) 24,000 Income befo
Amigo Software, Inc has total assets of $800,000 current liabilities of $150,000, and long-term liabilities of $120,000. There is $65,000 in preferred stock outstanding. Thirty thousand shares of common stock have been issued. a) Compare book value (net worth) per share b) If there is $48,000 in earnings available to co
The difference between financial risk and business risk is implied.