• Q : Calculate net operating income and operating cash flow....
    Finance Basics :

    During the 1998, the Senbet Discount Tire Company had gross sales of 1 million dollar. The firm’s cost of goods sold and selling expenses were $300,000 & $200,000, respectively.

  • Q : Calculate earnings before interest and taxes....
    Finance Basics :

    The Can-Do Co. is examining a proposed project. The company expects to sell 12,000 units, give or take 4 percent. The expected variable cost per unit is $7 & the expected fixed cost is $36,000.

  • Q : Identify the impact of the transactions....
    Finance Basics :

    Identify the impact [increase or decrease] of given transactions on Cash & Net working capital

  • Q : Market valuations for acquisition of firms....
    Finance Basics :

    Shefrin's Chapter 10 (pp 162-163) mentions AT&T's gaining of NCR. In the 5 months that followed AT&T's announcement that it planned to acquire NCR, the cumulative abnormal return over the nego

  • Q : Determine the share price....
    Finance Basics :

    Describe the major differences in the governance and control structures among the United State, Japanese, & German corporations. 

  • Q : Calculate the share price....
    Finance Basics :

    If Blue Mountain acquires Red River for 3 million dollar in cash, how will the shareholders of each make out on the deal?

  • Q : Calculate the termination fees....
    Finance Basics :

    “Prior to entering into the EPL Merger Agreement, Stone terminated its merger contract with Plains Exploration and Production Company [Plains] & Plains Acquisition Corp.

  • Q : Taxes, & the time value of money....
    Finance Basics :

    the lesser can claim the tax deductions associated with asset ownership & realize the leased asset's residual value. In return, the lesser must pay tax on the rental profits.

  • Q : Calculate the future worth....
    Finance Basics :

    Calculate the future worth for the following cash flows:

  • Q : Objective questions on capital structure and leverages....
    Finance Basics :

    Volga Publishing is considering a proposed rise in its debt ratio, which will also increase the company's interest expense. The plan would involve the company issuing new bonds and using the proceeds

  • Q : Calculate the financial, operating and combined levarage....
    Finance Basics :

    Faston Inc expects sales of silicon chips to be 60 million dollar this year. Because this is a very capital intensive business, fixed operating costs are 20 million dollar.

  • Q : Calculate the new level of annual interest charges....
    Finance Basics :

    A company has sales of 10 million dollar, variable costs of $5 million, EBIT of $2 million, & a degree of combined leverage of 3.0. If the company wishes to lower its degree of combined

  • Q : Calculate operating, financial and combined leverage....
    Finance Basics :

    Albatross Airline's fixed operating costs are 5.8 million dollar, and its variable cost ratio .20. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent.

  • Q : Objective questions on leverage analysis....
    Finance Basics :

    Ames Drilling Corp. reported that its sales and EBIT increased by 10%, but its EPS increased by 30%. The much larger change in earnings per share could be the result of

  • Q : Objective questions based on leverage analysis....
    Finance Basics :

    A corporation with very high growth prospects and many positive NPV projects to fund may want to increase its dividend based on

  • Q : Dividend decisions objective questions....
    Finance Basics :

    JBC Corp. declared a dividend of dollar 2 per share, which was an increase of 25% from the prior year, yet JBC Corp. stock declined by 3 percent the day of the announcement. RBG Corp.

  • Q : Objective questions based on dividend decisions....
    Finance Basics :

    High dividends increase stock value because capital markets are inefficient and dividends are the only sure way to get money from an equity investment

  • Q : Determione the dividend decisions....
    Finance Basics :

    Suppose that a firm has a regular record of paying high dividends for years. A new management team decided to cut the current year's dividend in half without disclosing the reason.

  • Q : Finding the stock market reaction....
    Finance Basics :

    Suppose that a firm has a steady record of paying stable dividends for years. Market analysts had expected management to increase the dividend by 7.5 percent in the latest quarter.

  • Q : Calculate the equipment npv....
    Finance Basics :

    Creighton Industries is considering the buy of new strapping equipment, which will rate $120,000, plus an additional $7,500 to ship & install. The new equipment will have a five year useful life a

  • Q : Ddecision making questions on dividends....
    Finance Basics :

    Elton and Future (1970) test for the existence of dividend clienteles by measuring the average decline in stock value when the stock goes ex-dividend.

  • Q : Calculate expected stock price and required rate of return....
    Finance Basics :

    Regular growth valuation Harrison Clothiers' stock currently sells for dollar 20 a share. It just paid a dividend of $1.00 a share [that is, Do=$1.00]. The dividend is expected to rise at a constant r

  • Q : Determination of earnings per share....
    Finance Basics :

    Mc Frugal, Inc. has expected sales of 20 million dollar. Fixed operating costs are 2.5 million dollar, & the variable cost ratio is 65 percent. Mc Frugal has outstanding a $12 million, 8% bank loa

  • Q : Calculate dividend payout ratio....
    Finance Basics :

    Ronaldo Inc. has a capital budget of $1,000,000, but it wants to maintain a target capital structure of 60 percent debt and 40 percent equity.

  • Q : Calculate the securities market price....
    Finance Basics :

    If the expected cash flow from this security in one year is 60 dollar with nothing afterwards, calculate the security's market price?

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