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What is the discounted payback period of the robot investment if the cost of capital is 5%?
What is the modified internal rate of return of the motorcycle investment if the cash flows are reinvested at 5%?
The Leontif Company's income is taxed at 37%. Leontif requires projects with similar risk to provide a return of 10%.
If the cost of capital for this project is 10%, should B. Bowden invest in the new stadium?
Should National Foods produce this new candy? What is the basis of your recommendation?
What should they consider in assessing the risk associated with the future cash flows of this new outlet?
Suppose you perform calculations and determine that the expected value of first year cash flows is $1,200 and the standard deviation is $500.
If Buffett is considering retiring both issues, should it buy the bonds in the open market or call the bonds? Explain.
If flotation costs are 2% of the new bond's face value and the existing bonds are priced to yield 8%, should Fiscke refund the 12% bonds if its tax rate is.
What is the role of the par value of a stock? If a stock has no par value, does this mean that it is worthless? Explain.
List the advantages of being a publicly-held corporation. List the advantages of being to privately-held corporation.
Describe the information provided in the board of director's declaration of a dividend. Who determines the ex-dividend date?
In a rights offering, the corporation gives shareholders the right to buy shares of the stock at a discount from the current market price.
What is a tax clientele? What role does a tax clientele play in explaining dividend policies?
From the perspective of a shareholder, would you rather receive a 5% stock dividend or a $2.00 per share cash dividend? Explain.
What is a dividend reinvestment plan? From the perspective of shareholders, what are the advantages and disadvantages of participating in such a plan?
If they decide to keep the total dividend payments the same, what would be their new dividend per share?
The Linen Corporation currently has a stock price of $100 per share. What would be the expected price of the Linen stock.
If they decide to use a stock split to reduce the share price, what would be the size of the stock split that would reduce the share price.
The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth.
What is the difference between a static budget and a flexible budget?
The static budget can be helpful in planning but as far as actually evaluating results and making improvements.
What are the advantages and disadvantages of owning common stock and preferred stock? Which seems more attractive to you and why?
Explain how the data breach occurred and what could have been done to prevent the breach/fraud from occurring.
What internal controls can be implemented using information systems to safeguard an organization's electronic assets?