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Flint Fruits Cash flows

Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows: Year Project A Project B 0 -$100,000 -$100,000 1 40,000 30,000 2 25,000 15,000 3 70,000 80,000 4 40,000 55,00

Margin Call

You purchased 100 shares of KLM at $40 a share by depositing the minimum amount of margin. If the initial margin requirement was 50% and the maintenance margin requirement is 30% you will get a margin call if KLM's price falls to: $12 $20 $29 $32

Bond price

Moerdyk Corporation's bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 4.75%, based on semiannual compounding. What is the bond's price?

Present value

Rita Gonzales won the $60 million lottery. She is to receive $1 million a year for the next 50 years plus an additional lump sum payment of $10 million after 50 years. The discount rate is 10%.What is the current value of her winnings?

Macroeconomic metrics and micreconomic basics for corporate expansion

While at lunch, you and the company's chief financial officer (CFO) begin to discuss opportunities to expand in the U.S. Discuss the opportunities to expand in the U.S., what it would take, and the potential hurdles the firm would have to overcome. Be sure to identify specific retail companies that could potentially sell CPI's p

Earnings per share of common stock

Farah Snack Co. has earnings after taxes of $128,750. Interest expense for the year was $20,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. Taxes were $15,000. The firm has 100,000 shares of common stock outstanding. What are the earnings per share on the common stock?

Pickard and Associates

Please provide answers to the following: The following selected information is taken from the records of Pickard and Associates: Accounts payable = $143,000 Accounts receivable = 95,000 Advertising expense = 14,500 Cash = 63,000 Supplies expense = 31,500 Rent expense = 12,000 Utilities expense = 2,500 Income taxes (

Call options

The book we are using does not explain short and long positions at all. Could someone explain what these mean and how to answer this question? Which one of the following statements about the value of a call option at expiration is false? a. A short position in a call option will result in a loss if the stock price exceeds t

Risk assets

Suppose there are 2 risky assets. One offers a higher return than the other, but it also has a higher standard deviation. Will one of these assets always lie on the efficient frontier? Will one of them always be inefficient if held alone?

standard deviation formula

Returns for the Shields Company over the last 3 years are shown below. What's the standard deviation of Shields' returns? (Hint: This is a sample, not a complete population, so the sample standard deviation formula should be used.) Year Return 2006 2

Annual financing cost of this commercial paper financing

Walters Manufacturing Company has been approached by a commercial paper dealer offering to sell an issue of commercial paper for the firm. The dealer indicates that Walters could sell a $5 million issue maturing in 182 days at an interest rate of 6 percent per annum (deducted in advance). The fee to the dealer for selling the is

Cash Collections Calculations

The L. Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales: $800 $760 $940 $870 A. Accounts receivable at the beginning of the year are $300. L. Company has a 45-day collection period. Calculate cash collection

Size of Account Receivable

Vitale, Baby!, Inc., has weekly credit sales of $18,000, and the average collection period is 29 days. The cost of production is 80% of the selling price. What is Vitale's average accounts receivable figure?


A. What is the ratio of Chapter 7 to Chapter 11 filings for businesses? b. What is the typical time span for filing for chapter 11, confirmation, and successful completion of the reorganization plan? c. What are the most common reasons that force an individual to file for bankruptcy? d. What kind of individual debts may

Number of shares to be sold

The St. Anger Corporation needs to raise $25 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. a. If the offer price is $35 per share and he company's underwriters charge an 8% spread, how many shares need to be sold? b. If the

Payback, Net present value, and depreciation tax shield

1)Calculate the payback for a project that costs $1,000 and is expected to provide cash inflows of $400 per year for the next three years. If the required payback is 3 years, should the firm accept the project? 2)Calculate the net present value for a project that costs $1,000 and is expected to provide cash inflows of $400 p

Debtor-Creditor Relationships

Debtor-Creditor Relationships. Using the Internet, locate an article specifically related to debtor-creditor relationships. Prepare 400-650-Word review of the article. Be sure to properly cite and reference the article in your review. Be sure to properly cite and reference the article in your review. Be prepared to discus

Calculating WACC - Weston Industries

Calculating WACC Weston Industries has a debt-equity ratio of 1.5. Its WACC is 12%, and its cost of debt is 12%. The corporate tax rate is 35%. a. What is Weston's cost of equity capital? b.What is Weston's unlevered cost of equity capital? c. What would the cost of equity be if the debt-equity ratio were 2? What if it

Kerch Manufacturing Equity Accounts

Equity Accounts Following are the equity accounts for Kerch Manufacturing: Common stock,$0.50 par value $ 165,320 Capital surplus 2,876,145 Retained earnings 2,370,025 Total $5,411,490 a. How many shares are outstanding? b. At what average price

Firm Value and Financial Leverage

1) Firm value is calculated by adding expected cash flow to the firm's cost of capital under each capital structure. True or False. 2) The degree of financial leverage measures the sensitivity of_______ to changes in ________. a) net sale, EBIT. b) EBIT, net sales c) EBIT, EPS. d) EPS,EBIT. 3) Explain how div

Internal Rate of Return

1) What is the internal rate of return (IRR) for a project whose intitial after tax cost is $5,000,000 and it is expected to provide after tax operating cash flows of ($1,800,000) in year 1, $2,900,000 in year 2, $2,700,000 in year 3, and $2,300,000 in year 4 ? 2) A firm is evaluating a proposal that has an initial investment

Return on assets using Dupont Equation

Please help with the following problems. 1) What would be the return on total assets of a firm if net income is $50,000 , total sales are $100,000 , and total assets are $175,000 ? 2) If the total assets turnover of firm is 1.5 , total assets are $500,000 , and net income is $50,000 , what is the margin ? 3) Assu

Personal financial planning

In what areas of personal financial planning are the concepts of (a)future value (b) present value (c) ordinary annuities useful . Kindly explain and give a few examples if possible.

Article Review - e-business and intellectual property

Using the Internet, locate an article specifically related to e-business and intellectual property. And prepare a 350-400-word review of the article. Your review should assess the different types of and legal protections for intellectual property. Be sure to analyze the legal issues of e-business to include intellectual property

Present Value - Mixed streams and Comparison

Consider the mixed streams of cash flows shown in the following table. YEAR A B 1 $50,000 $10,000 2 $40,000 $20,000 3 $30,000 $30,000 4 $20,000 $40,000 5 $10,000 $50,000 Totals