• Q : Company dollar dividend payment per share....
    Finance Basics :

    If the company has 40 million shares outstanding and pays dividends quarterly, what is the company's dollar dividend payment per share each quarter? Note: Please provide reasons to support your answ

  • Q : Put option of gm at a strike price....
    Finance Basics :

    You are buying a put option of GM at a strike price of $75 and maturity of 1 month. The current trading price is $75. The price of the option is $2. What would the major motive to buy the put option

  • Q : Periodic current yield of the bond....
    Finance Basics :

    What is the periodic current yield of the bond in Period 20 (20 periods to maturity). Note: Please provide reasons to support your answer.

  • Q : Payback period for the project....
    Finance Basics :

    Question: What is the payback period for this project? Note: Please show how to work it out.

  • Q : Present value of the stream of cash flow....
    Finance Basics :

    What is the present value of the following stream of cash flow to be received at the end of each year assuming a discount rate of 20%? What is the future value at the end of year 3 assuming an annua

  • Q : Pertinent unit of measure....
    Finance Basics :

    The Net Present Value decision technique may not be the only pertinent unit of measure if the firm is facing

  • Q : Calculate the forward rate for a one-year zero....
    Finance Basics :

    Question 1: Calculate the forward rate for a one-year zero in one year, f (1,1). Question 2: Calculate the forward rate for a one-year zero in two years, f (2,1).

  • Q : Determine the yearly after-tax cash outflows....
    Finance Basics :

    Given the lease payments and terms shown in the following table, determine the yearly after-tax cash outflows for each firm.

  • Q : Lump-sum equivalent cost of project....
    Finance Basics :

    If the interest rate is 10% per year, what is the lump-sum equivalent cost of this project at the present time? Note: Provide support for your rationale.

  • Q : Blue book value of her vehicle in used-car marketplace....
    Finance Basics :

    A friend of yours just bought a new sports car with a $4,000 down payment, and her $25,000 car loan is financed at an interest rate of 0.25% per month for 48 months. After 2 years, the "Blue Book" v

  • Q : Probability that the test indicates that a woman....
    Finance Basics :

    What is the probability that the test indicates that a woman is not pregnant? What is the probability that a woman is pregnant if the test yields a not pregnant result?

  • Q : Value of the firm be if the company takes on debt....
    Finance Basics :

    What will the value of the firm be if the company takes on debt equal to 50% of its levered value? What will the value of the firm be if the company takes on debt equal to 100% of its levered value?

  • Q : Calculate the present value of the project....
    Finance Basics :

    If the company requires a return of 8 percent for such an investment, calculate the present value of the project. Note: Provide support for your rationale.

  • Q : Determine the deposit in an account....
    Finance Basics :

    How much money must you deposit in an account each year to fund your children's education? Note: Please show how to work it out.

  • Q : Present value of the technology....
    Finance Basics :

    What is the present value of the technology if the discount rate is 9 percent? Note: Provide support for your rationale.

  • Q : Price of the security if the stated annual interest....
    Finance Basics :

    Question: What is the price of the security if the stated annual interest rate is 8.5 percent, compounded quarterly? Note: Please provide equation and explain comprehensively and give step by step sol

  • Q : Present value of the offer....
    Finance Basics :

    Question: What is the present value of the offer if the discount rate is 10 percent? Note: Please show how to work it out.

  • Q : Determining the beta of the overall firm....
    Finance Basics :

    A firm is valued at $8 million and has debt of $2 million outstanding. The firm has an equity beta of 1.5 and a debt beta of .60. The beta of the overall firm is:

  • Q : Determining the present value of the cash flows....
    Finance Basics :

    What is the present value of the cash flows from your lottery winnings? Note: Please show how to work it out.

  • Q : Determine the return of the stock account....
    Finance Basics :

    You are planning to save for retirement over the next 25 years. To do this, you will invest $790 a month in a stock account and $390 a month in a bond account. The return of the stock account is exp

  • Q : Choice of two investment accounts....
    Finance Basics :

    You have your choice of two investment accounts. Investment A is a 12-year annuity that features end-of-month $1,750 payments and has an interest rate of 8.0 percent compounded monthly. Investment B

  • Q : Find out the required rate of return on the stock....
    Finance Basics :

    If the firm's stock price is $28.64 based on the constant growth model, what is the required rate of return on the stock? Note: Be sure to show how you arrived at your answer.

  • Q : Determine current bond price....
    Finance Basics :

    If the YTM on these bonds is 5.4 percent, what is the current bond price? Note: Provide support for your rationale.

  • Q : Future value of investment cash flows....
    Finance Basics :

    If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? Note: Please provide equation and explain comprehensively

  • Q : Initial investment in net working capital....
    Finance Basics :

    Kolby's Korndogs is looking at a new sausage system with an installed cost of $506,000. This cost will be depreciated straight-line to zero over the project's four-year life, at the end of which the

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