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Suppose next year the Baldwin Company generates $20,000 in net profit, pays $10,000 in dividends, assets change to $151,000, and common stock remains unchanged. What must their total liabilities be
What is the price(expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating?
What is the Linear Regression and Standard Error Forumla as a Stock Market Indicator, meaning for a trading platform?
If the interest rate on the loan is 7%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?
A permanent working capital investment of $60,000 is expected to produce an annual after-tax cash inflow of $18,000 for many years and has a cost of capital of 12%. Calculate the net annual benefit
What is the estimated annual change to Year 1-n cash flow due to depreciation from a capital budgeting investment costing $100,000 with a useful life of 12 years and a salvage value of $28,000? Assu
Once the patent expires, other pharmaeutical companies will be able to produce the same drug and competiton will likely drive profits to zero. What is the present value of the new drug if the intere
What is the projected incremental operating cash flow of the machine in each of years 1 to 5?
If bond C is considered identical to bond B except for the conversion privilege, what is the value of the conversion privilege? Does the conversion privilege benefit the issuer of the bond or the pu
you are about to invest in a 10 yr 8% semiannual bond. The bond is selling at $980.What is annual yield to maturity.
Amistad Inc manufacturers custom golf clubs and orders 250,000 graphite shafts per year from its manufacturer. The CEO at Amistad wishes to know the optimal EOQ. The carrying cost is $.45 per shaft
The firms marginal tax rate is 34 percent. Calculate the cost of (a) internal common equity and (b) external common equity. Please show your work.
Assume an 8 percent coupon rate. What effect does changing the coupon rate have on the firm's after-tax cost of capital?
Calculate present value if the discount rate is 12%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Decribe the information that should be disclosed in financial statements, or notes thereto, that are prepared when stock warrants are outstanding in the hands of three groups listed above.
Describe the principal-agent relationship. In your answer, give an example of how a principal-agent problem arises in the corporate world. Can such a problem become costly? Please explain.
The Easton manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will result in cost savings of $220,000 in the first year, followed by savings o
If dividends are expected to decline at 8 percent per year, what is a share of the stock worth today?
Project XYZ, requires an investment in equipment of $500,000 to replace existing equipment. The existing equipment will produce after-tax salvage value of $50,000. Net working capital requirements a
Suppose you borrowed $12,000 at a rate of 9% and must repay it in 4 equal installments at the end of each of the next 4 years. How much interest would you have to pay in the first year?
You earned 10.3 percent nominal rate over the past year, but find that your purchasing power in terms of real stuff you can buy with your money has increased only by 5.2 percent. What was the rate o
What your marginal federal tax rate? (What percent of your next dollar earned is lost via taxes?)
What is your average federal tax rate? (What percent of your gross income is lost via taxes?)
Imagine that your total gross income for the year is 103.6 thousand. After all the deductions and exemptions, you find that your taxable income is 84.4 thousand.
Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own a