Reference no: EM131341962
Comparative data at the end of this past year for three firms following aggressive, moderate, and conservative approaches to working capital policy follow (in thousands of dollars):
Aggressive Moderate Conservative
Temporary Current Assets $75 $75 $75
Permanent Current Assets $100 $100 $100
Fixed Assets $500 $500 $500
Total Assets $675 $675 $675
Current Liabilities $160 $75 $50
Long Term Debt $90 $150 $150
Stockholders Equity $425 $450 $475
Net Income $70 $70 $70
Calculate, compare, and comment on the current ratios, total debt to asset ratios, and returns on equity of the three firms.
Greenplanet Recycling Company is considering buying an additional facility at a cost of $500,000. The facility will have an economic life of five years. The company’s financial officer, Karen Holmes, can finance the project by:
a. A five-year loan at an annual interest rate of 13 percent
b. A one-year loan rolled over each year for five years
Compare the total interest expenses for both the preceding alternatives under the following assumptions, and calculate the savings in the interest expenses by choosing one of two alternatives:
1. The one-year loan has a constant interest rate of 11 percent per year over the next five years.
2. The one-year loan has an annual interest rate of 11 percent in the first two years, 14 percent in the third and fourth years, and 16 percent in the fifth year.
|
What is the company market value debt–equity ratio
: Frusciante, Inc. has 310,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 6.5 percent paid semiannually, and 11 years to maturity. The current YTM on the bonds is 6.1 percent. The company also has 11.5 million shares of s..
|
|
How changing the flow rates affect the level of the water
: Build a simple model of water dynamics using the systems dynamics modeler. Assume a flow-rate in and a flow-rate out. Compare how changing the flow rates affect the level of the water.
|
|
Find the best product mix of bathtubs
: To maintain an adequate supply of both models, the manufacturer would like the number of model A tubs made to be no more than 5 times the number of model B tubs. Find the best product mix of bathtubs.
|
|
Construct a stem and leaf diagram with the last digit
: Construct a stem and leaf diagram with the last digit being a leaf and the first digit a stem. Repeat stem values twice.
|
|
Comment on the current ratios-total debt to asset ratios
: Comparative data at the end of this past year for three firms following aggressive, moderate, and conservative approaches to working capital policy follow (in thousands of dollars): Calculate, compare, and comment on the current ratios, total debt to..
|
|
Construct a frequency distribution of grouped scores
: Construct a frequency distribution of grouped scores with approximately 10 intervals.- Construct a histogram of the frequency distribution constructed in part a.
|
|
Which is the most effective for introducing a new product
: Of the major consumer promotion tools, which is the most effective for introducing a new product or creating excitement for an existing one
|
|
Write a research paper about china and the property laws
: Write a research paper about china and the property laws and anything else you want to add about china to make the research easier.use mla 7, summarize sources ,5 sources alphabetically.
|
|
What is the price of the option today using six-month steps
: You are in discussions to purchase an option on an office building with a strike price of $63 million. The building is currently valued at $60 million. The option will allow you to purchase the building either six months from today or one year from t..
|