• Q : Parent corporation loaned money....
    Finance Basics :

    Parent Corporation loaned money to its subsidiary with a six-year note at the market interest rate.

  • Q : Nelson short-term debt....
    Finance Basics :

    How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.9? Please provide step by step solution and show all work.

  • Q : Aftertax return....
    Finance Basics :

    Now suppose that dividends are taxed at 15 percent and long-term capital gains (over 11 months) are taxed at 30 percent. What is your aftertax return for the year? Please provide step by step soluti

  • Q : Stock of flop industries....
    Finance Basics :

    The stock of Flop Industries is trading at $49. You feel the stock price will decline, so you short 250 shares at an initial margin of 80 percent. If the maintenance margin is 30 percent, at what sh

  • Q : Market value ratios....
    Finance Basics :

    You are considering an investment in Rivers Ringtone Corp. During the last year the firm's income statement listed addition to retained earnings = $2.5 million and common stock dividends = $1.2 mill

  • Q : Cost of new equity....
    Finance Basics :

    Question: What would be the cost of new equity? Explain in detail and also provide all computation.

  • Q : Explain the difference between the price....
    Finance Basics :

    How do you explain the difference between the price implied by PPP and the actual price? Please provide step by step solution and show all work.

  • Q : What is their present value to you....
    Finance Basics :

    You must calculate the value of the securities to decide whether they are a good investment. Question: What is their present value to you? Show all work.

  • Q : Unbiased expectations theory....
    Finance Basics :

    Suppose we observe the following rates: 1R1 = 4.6%, 1R2 = 6.8%. If the unbiased expectations theory of the term structure of interest rates holds,

  • Q : Current rate for a two-year treasury security....
    Finance Basics :

    The current one-year T-bill rate is .48 percent and the expected one-year rate 12 months from now is 1.08 percent. According to the unbiased expectations theory, what should be the current rate for

  • Q : How large must the deposit be....
    Finance Basics :

    How large must the deposit be? Please provide step by step solution and show all work.

  • Q : Ounce of gold....
    Finance Basics :

    If an ounce of gold, valued at $640, increases at a rate of 6.9 percent per year, how long will it take to be valued at $1,000? Please provide step by step solution and show all work.

  • Q : Semiannual compounding....
    Finance Basics :

    Find the present value of $525 due in the future under each of the following conditions. Please provide step by step solution and show all work. 10% nominal rate, semiannual compounding, discounted

  • Q : Ebit indifference level....
    Finance Basics :

    Home Depot, Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008; whereas Lowes Companies, Inc. (LOW) had 1.46 billion shares outstanding.

  • Q : Maintain an internal growth rate....
    Finance Basics :

    A firm wishes to maintain an internal growth rate of 9.25 percent and a dividend payout ratio of 41 percent. The current profit margin is 6.3 percent and the firm uses no external financing sources.

  • Q : Range of opportunity costs of capital....
    Finance Basics :

    Use the IRR rule to calculate the (approximate) range of opportunity costs of capital at which the company should work the extra shift. Show all work.

  • Q : Assignment....
    Finance Basics :

    Assignment, i have problem with the payment please help me and i need my homework by tomorrow asap please ? how i can pay the money and i have debt cared

  • Q : What is called a tax bubble....
    Finance Basics :

    The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000

  • Q : Tax deduction for a single taxpayer....
    Finance Basics :

    Demonstrate the differences resulting from a $1,000 tax credit versus a $1,000 tax deduction for a single taxpayer in the 25% tax bracket with $40,000 of adjusted gross income (AGI). (Please show yo

  • Q : Income taxes by participating in the program....
    Finance Basics :

    How much will he save in income taxes by participating in the program this year in the amount of $3000?

  • Q : Investment that earns....
    Finance Basics :

    A person invests $50,000 in an investment that earns 6 percent. If $6000 is withdrawn each year, how many years will it take for the fund to run out? Please explain in detail and provide step by ste

  • Q : What is the return on equity....
    Finance Basics :

    Samuelson's has a debt-equity ratio of 23 percent, sales of $6,500, net income of $1,500, and total debt of $7,700. What is the return on equity? Show your all work and please provide step by step sol

  • Q : What is the price-earnings ratio....
    Finance Basics :

    Jupiter Explorers has $10,600 in sales. The profit margin is 5 percent. There are 5,600 shares of stock outstanding. The market price per share is $2.00. What is the price-earnings ratio? Show your

  • Q : Percentage of the company capital structure....
    Finance Basics :

    What percentage of the company's capital structure consists of debt? Please explain in detail and show your work.

  • Q : Remit the following to the bondholders....
    Finance Basics :

    If a bond with a par value of $500 and a call premium of 6% is called in before its maturity date, the firm would have to remit the following to the bondholders:

©TutorsGlobe All rights reserved 2022-2023.