• Q : Asset management ratios....
    Accounting Basics :

    Caps Corp. reported sales for 2008 of $45 million. Caps listed $9 million of inventory on its balance sheet. Using a 365-day year, how many days did Caps' inventory stay on the premises? How many ti

  • Q : Price of three bonds in dollars....
    Accounting Basics :

    Question: If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars?

  • Q : Debt management ratios....
    Accounting Basics :

    Will's Wheels, Inc. reported a debt-to-equity ratio of .65 times at the end of 2008. If the firm's total debt at year-end was $5 million, how much equity does Will's Wheels have?

  • Q : Statement of retained earnings....
    Accounting Basics :

    Question: What is the year-end 2008 balance in retained earnings for Triplette?

  • Q : Future value of an annuity....
    Accounting Basics :

    Question: What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8 percent

  • Q : Credit risk and yield....
    Accounting Basics :

    Rank the following bonds in order from lowest credit risk to highest risk, all with the same time to maturity, by their yield to maturity: JM Corporate bond with yield of 12.25 percent, IB Corporate

  • Q : Book value per share and earnings per share....
    Accounting Basics :

    Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common stock is currently selling at $100 per share, what is the book value per

  • Q : Present value of the same annuity due....
    Accounting Basics :

    If the present value of an ordinary, 10-year annuity is $5,000 and interest rates are 7 percent, what's the present value of the same annuity due?

  • Q : International portfolio diversification....
    Accounting Basics :

    Question 1: Discuss the merits and disadvantages of international portfolio diversification? Question 2: How do we deal with flotation costs in relation to the cost of capital?

  • Q : Firm to collect its receivables....
    Accounting Basics :

    The Bear Rug has sales of $822,500. The cost of goods sold is equal to 63 percent of sales. The beginning accounts receivable balance is $41,000 and the ending accounts receivable balance is $38,000

  • Q : Calculating the effective interest rate....
    Accounting Basics :

    Question: What is the effective interest rate if the firm borrows $91,800 on the line of credit for one year?

  • Q : Situations when using a wacc is not appropriate....
    Accounting Basics :

    Question: Describe the situations when using a WACC is not appropriate and how these incorrect decisions may be made. Note: Please show how to work it out.

  • Q : Compute the internal rate of return....
    Accounting Basics :

    Question: Compute the internal rate of return for this project. Note: Provide support for your rationale.

  • Q : Determining the sustainable growth rate....
    Accounting Basics :

    Question: What is the sustainable growth rate? Note: Please show how you came up with the solution.

  • Q : Break-even future spot price on the option contract....
    Accounting Basics :

    Question 1: Calculate what Artman would gain or lose on the option and futures positions if the yen settled at its most likely value. Question 2: What is Artman's break-even future spot price on the

  • Q : Finding the current share price....
    Accounting Basics :

    Question: If the required return on this stock is 14 percent, what is the current share price? Note: Be sure to show how you arrived at your answer.

  • Q : Calculate the rate of return on equity....
    Accounting Basics :

    Question: Calculate the rate of return on equity for each firm. Note: Please show how to work it out.

  • Q : What is the dividend yield....
    Accounting Basics :

    Question 1: What is the dividend yield? Question 2: What is the expected capital gains yield? Note: Provide support for your rationale.

  • Q : Determining the net present value of the project....
    Accounting Basics :

    Question 1: What is the net present value of the project? Question 2: What is the initial outlay for this project? Note: Please provide reasons to support your answer.

  • Q : Price of bond today....
    Accounting Basics :

    Question 1: What is the price of each bond today? Question 2: If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 5 years? In 10 years? In 12 ye

  • Q : Current price of bond m and bond n....
    Accounting Basics :

    Question: What is the current price of Bond M and Bond N? Note: Please explain comprehensively and give step by step solution.

  • Q : Moment after the firm announces....
    Accounting Basics :

    Question 1: What will the firm's stock price be the moment after the firm announces its refinancing plan? Question 2: Calculate the total market value of the firm's (i) debt and (ii) equity immediat

  • Q : Effective personal tax rate on equity income....
    Accounting Basics :

    If the corporate tax rate is 40%, the effective personal tax rate on equity income (TE) is equal to 0, and the tax rate on interest income (TD) is equal to 40%, what will the value of the firm be af

  • Q : Calculate the book value of equity....
    Accounting Basics :

    Question 1: Calculate the book value of equity. Question 2: Now the company sells 25,000 newly issued shares at a price of $4 per share. Par value of the shares is $5. What will be the book value

  • Q : Considering a new project....
    Accounting Basics :

    Sydney Industries, Inc., is considering a new project that costs $30 million. The project will generate after-tax (year-end) cash flows of $8 million for five years.

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