Finance

All new and solved questions in Finance category

1 answer
Part I: Problem solving - Show your work to receive partial credit 1. Suppose one-year Treasury...
Part I: Problem solving - Show your work to receive partial credit 1. Suppose one-year Treasury bonds are yielding 6.5% and two-year Treasury bonds are yielding 5.2%. What is the implied one-year forward interest rate for next year? 2. HT Inc. stock pays no dividend. EPS for the most recent year (EP...
1 answer
Holdup Bank has an issue of preferred stock with a $1.4 stated dividend that just sold...
Holdup Bank has an issue of preferred stock with a $1.4 stated dividend that just sold for $44.86 per share. What is the bank's cost of preferred stock? Enter the answer with 4 decimals (e.g. 0.1234)....
1 answer
Problem 16-11 WACC and Optimal Capital Structure F. Pierce Products Inc. is considering changing its capital...
Problem 16-11 WACC and Optimal Capital Structure F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indica...
1 answer
1-Does international trade promote or hurt civilization?
1-Does international trade promote or hurt civilization?...
1 answer
6) e evaluating a project that requires an initial investm provide the following stream of cash...
6) e evaluating a project that requires an initial investm provide the following stream of cash flows. Your cost of es an initial investment of $100.000 and will Your cost of capital is 12%. Year Amount $(10,000) 10,000 (10,000) 40,000 60,000 100,000 (5 pts) Calculate the Modified Internal Rate of R...
1 answer
Benjamin Graham, the father of value investing, once said, "In the short run, the market is...
Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long run, the market is a weighing machine." In this quote, Benjamin Graham was referring to the key difference between the "price" and the "value" of a se...
1 answer
You are considering opening a new plant. The plant will cost $97.7 million up front and...
You are considering opening a new plant. The plant will cost $97.7 million up front and will take one year to build. After that it is expected to produce profits of $28.7 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment...
1 answer
RECEIVABLES INVESTMENT McEwan Industries sells on terms of 3/10, net 40. Total sales for the year...
RECEIVABLES INVESTMENT McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,444,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 82 days after their purchases. Assume 365 days in year for your calculations. What is t...
1 answer
I am getting my NPV as a percentage! Not sure why this is happening as it...
I am getting my NPV as a percentage! Not sure why this is happening as it never happened before. Any ideas on why this is happening?...
1 answer
What is MER,PODS, Disversification ,portpholio , long term performance of stocks.
what is MER,PODS, Disversification ,portpholio , long term performance of stocks....
no answer
Finance
Last year Godinho Corp. had $250 million of sales, and it had $75 million of fixed assets that were being operated at 80% of capacity. In millions, how large couldsales have been if the company had operated at full capacity?...
1 answer
D 2. After a FOMC meeting, the Federal Reserve Bank concludes that they need to increase...
D 2. After a FOMC meeting, the Federal Reserve Bank concludes that they need to increase the monetary base by $120 million. In this case, the Fed can accomplish this goal by purchasing less than $120 million in securities purchasing exactly $120 million worth of securities selling exactly $120 milli...
1 answer
The nominal accounts of Boston Clinic for the year ended December 2018 are listed below in...
The nominal accounts of Boston Clinic for the year ended December 2018 are listed below in alphabetical order: Depreciation expense $90,000 General/administrative expenses 70,000 Interest expense 20,000 Investment income 40,000 Net income 30,000 Net operating revenu...
1 answer
Which of the following is not true regarding cash management? a. An important objective of cash...
Which of the following is not true regarding cash management? a. An important objective of cash management is to lengthen the collection float. b. Many companies use lockboxes to speed up the delivery of the check at their bank. Electronic funds transfer (EFT) substantially reduces the collection fl...
1 answer
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.6% rate...
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.6% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 6%. Mudd has a beta of 1.5, and its realized rate of return has averaged 8.5% over the past 5 years...
1 answer
You are planning to make monthly deposits of $170 into a retirement account that pays 12...
You are planning to make monthly deposits of $170 into a retirement account that pays 12 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 14 years?...
1 answer
The Golden Eagle Corporation has the following items on their income and balance sheets (values in...
The Golden Eagle Corporation has the following items on their income and balance sheets (values in tables are in thousands: Balance Sheet Items (Assets) Last Year Two Years Ago Cash 480 420 Accounts Receivable 580 470 Inventory 280 279 Total Current Assets Fixed Assets 4800 4620 De...
1 answer
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent....
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: −$1,200 $430 $1,680 &mi...
1 answer
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $12,000 face value that matures...
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $12,000 face value that matures in one year. The current market value of the firm’s assets is $13,800. The standard deviation of the return on the firm’s assets is 34 percent per year, and the annual risk-free rate is 6 pe...
1 answer
18 is 54% of what number?
18 is 54% of what number?...

-- 0.041775--