Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,235,540, accounts payables worth $4,160,490, inventory of $7,121,930, accounts receivables of $3,488,740, notes pay..
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Suppose that TipsNToes, Inc.'s capital structure features 75 percent equity, 25 percent debt, and its cost of equity is 12 percent, while its before-tax cost of debt is 8 percent. If the appropriate weighted average tax rate is 40 percent, what will ..
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Two years ago, Trans-Atlantic Airlines sold $250 million worth of bonds at $1,000 each. These semi-annual bonds had a maturity of 12 years and a coupon rate of 12.5%. Today these bonds are selling for $1,000. Determine the yield-to-maturity. A semi-a..
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California issued debt (general obligation bonds) to fund the state budget and must now repay what it borrowed. Given the facts above, please indicate if you think that California’s debt is more likely to be internal or external. How do you know? Fur..
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You are planning to save for retirement over the next 25 years. To do this, you will invest $880 a month in a stock account and $480 a month in a bond account. The return of the stock account is expected to be 10.8 percent, and the bond account will ..
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Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250 pounds of gold and 63,100 pounds of copper. The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $..
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Your firm needs a machine which costs $130,000, and requires $28,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% ..
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What was the real rate of return over the past year (from one year ago to today) for a stock if the inflation rate over the past year was 2.88 percent, the risk-free return over the past year was 4.54 percent, the stock is currently priced at 58.66 d..
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Organizations that are exposed to high leverage will probably act aggressively to cover their large fixed costs. Can someone give an example of an organization that has recently done this and explain why they do this in the first place?
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What is the value of firm L according to MM's proposition 1 with corporate taxes and micky is the holder of $30,000 worth of L's stock. What rate of return can he expect, assuming a dividend payout of 100%.
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Bring to mind a healthcare organization with which you are familiar with, and think through the various challenges it might face in managing its working capital. What techniques or policies can it implement to effectively manage their working capital..
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The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years..
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