JBC Corp. declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet JBC Corp. stock declined by 3% the day of the announcement. RBG Corp. declared a dividend of $2 per share, which was the same as the prior year, and ..
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The Carrier Air Conditioning plant in Indiana has agreed not to move off shore and is considering an enhanced assembly line, to be installed this coming January 1, which will bring increased sales of $500,000 and costs of $250,000 at the end of 2017...
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Tapley Inc. currently has total capital equal to $5 million, has zero debt is in the 40% federal-plus-state tax bracket, has a net income of $1 million and pays out 40% of its earnings as dividends. What is the stock's current price per share (before..
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The Lanoi Company has EBIT of $30,000 and market value debt of $150,000 outstanding with an 8% coupon rate. The cost of equity for an all equity firm would be 12%. Aggie has a 30% corporate tax rate. Investors face a 20% tax rate on debt receipts and..
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Company currently has one bond issue outstanding. This bond pays a coupon rate of 10% ($100 per year) and matures in five years, and has a par value of $1,000. If you require a 14% rate of return. What is the capital gain yield of this bond in the fi..
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When preparing for a business trip to China, Kaylee Putbrese determined she needed to bring $4,300. How much must she borrow for a simple discount note at 4% for 50 days? (Round your answer to the nearest cent)
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During 2007, Belyk Paving Co. had sales of $3,100,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $1,940,000, $475,000 and $530,000, respectively. What is Belyk’s net income for 2007? What is the operating..
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Several years ago, a Texas bank offered a thirty-year CD with an annual return indexed to inflation. The rate offered was the annual percentage increase in the CPI plus 4 percent. Show the after-tax real return you would earn, assuming that the infla..
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Suppose there are two assets, a risk-free asset, and a market portfolio. The market portfolio has an expected return of mu m = E[Rm] = 15% and a standard deviation of sigma m = 15%. The return on the risk-free asset is Rf = 5%. After thinking about t..
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Rory McIlroy, professional golfer from Northern Ireland, just won the 2016 FedEx Cup which paid him $10 million. Suppose Rory wanted to establish a scholarship fund 10 years from now, which would pay annual scholarships totalling $1,000,000 per year ..
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an investor buys a stock and the price declines over the holding period. No divs. o the investor earned a negative nominal return? the investor earned a negative real rate of return? an investor buys a stock and the price increases over the holding p..
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Sabina Bookstores is thinking about expanding its facilities. In considering the expansion, Sabina's finance staff has obtained the following information; the expansion will require the company to purchase initially (t=0) $5 million of equipment (thi..
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