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Cisco Systems has totalassets of $35.594 billion, total debt of $9.678 billion, and netsales of $22.045 billion. Their net profit margin for the year was 20 percent, while the operating profit margi
Breckenridge Ski Company hastotal assets of $422,235,811 and a debt ratio of 29.5 percent.Calculate the company's debt-to-equity ratio and the equity multiplier.
Assume the discount rate is equal to theaftertax cost of new debt rounded up to the nearest wholenumber. Should Sunbelt Corp. refund the old issue?
Its profitmargin is forecasted to be 5%, and the forecasted retention ratiois 30%. Use the AFN equation to forecast the additional fundsCarter will need for the coming year.
Your non-debt liabilities such asaccounts payable are forecasted to increase by $10,000. What is your net new financing needed for next year?
What level of sales could Walter Industries have obtained if it had been operating at full capacity?
Suppose Lucent Technologies has an equity costof capital of 10%, market capitalization of $10.8 billion, and anenterprise value of $14.4 billion. Suppose Lucent's debt cost of capital is 6.1% and it
The firm has a 36 percent tax rate and a 9 percent cost of capital. Should the new equipment be purchased to replace the old?
Calculate the annual rate of return for each of the last five years (Sep 1st of each year) since the bonds wereissued.
Calculate the firm's new receivables balance if the company toughened up on its collection policy, with the result that all non-discount customers paid on the30th day.
Construct a pro forma balance sheet that indicates the firm's optimal capital structure. Compare this balance sheet with the firm's current balance sheet. What course of action should the firm take?
As a result, Marpor's expected free cashflows with debt will be only $15 million per year. SupposeMarpor's tax rate is 35%, and the beta of Marpor's freecash flows is 1.10 (with or without leverage)
If cost of equitey is 14%, what is pretax cost of debt?
The current yield to maturity on similar bonds is 12 percent. Compute the new price of the bond and comment on whether you think it is overpriced in the market place.
Now suppose that with leverage, Kohwe's expectedfree cash flows will decline to $9 million per year due to reducedsales and other financial distress costs. Assume that theappropriate discount rate f
A company bonds have 4 years left to maturity. interestis pain annually and the bonds have a $1000 par value and a couponrate of 9%.
It's operating costs are $7,000 the first year and increases by 5% for each of the following years. If the MARR = 12%, what was the annual equivalent cost of the machine?
A company's perpetual preferred stockcurrently trades at $80 per share and pays a $6.00 annual dividendper share. If the company were to sell a new preferred issue,it would incur a flotation cost of
Chris and Karen have a combined take-home income of$5,000. Their total monthly payments on consumer debt are$875. What is their debt safety ratio?
Lindsay has a job with monthly take-home pay of$3,500. Using the suggested maximum debt safety ratio, what maximum debt burden per month can she assume?
Mimi and Jason have a home valued at $96,000 and an outstandingmortgage of $60,000. If their lender is willing to provide ahome equity loan of up to 75% of market value, how much could they borrow u
If you deposit $45,000 in a savings account that pays 10% interest compounded monthly, for 5 years. What is the future value at the end of five years.
Explain the rational and value of an audit of a publicly-heldcompany to investors, creditors, and to the broader community as awhole.
What willearnings per share be? What would it be higher or lower than theearnings per share computed for the most aggressive plan computedin part d?
Determine the total two-year interest cost undereach plan. Which plan is less costly?