A Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60. What is the YTM for this Microsoft, Inc. Corporate Bond? What is the current yield for the first year on this bond? What is the expected percentage ..
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With a tax rate of 40% and a total capital structure of $10,000,000. We need to calculate the WACC for the following two scenarios. Composition of capital structure. Which is the best for option for the company? Explain.
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A condominium is purchased for $80,000 with a down payment of $12,000 at an annual interest rate of 9% for 15 years. Calculate the unpaid balance after 10 years of making payments. What would be the market value of the condominium in Exercise 21 afte..
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Suppose that over the long run, the risk premium on stocks relative to Treasury bills has been 7.6% in the U.S. Suppose also that the current Treasury bill yield is 1.5%, but the historical average return on Treasury bills is 4.1%. Estimate the expec..
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A preferred stock investment will pay you an annual $8 dividend on the same day each year. The dividends will begin 9 years from today and go on forever. How much is this investment worth today if the required rate is 10%?
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a. A firm has fixed cost of $100,000. It charges a price of $25 per unit, has variable cost per unit of $15, and seeks to make $50,000 in profit. What output must the firm produce and sell to achieve this profit? 150,000/10 = 15,000 units output b. B..
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A firm's sustainable growth rate represents the: What was the sales volume in the current quarter if beginning accounts receivable, at $5,300, was $1,000 higher than ending, and $23,000 was collected? What is the sustainable growth rate for a firm wi..
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A corporation is selling an existing asset for $21,000. The asset, when purchased, cost $10,000, was being depreciated under MACRS using a five-year recovery period, and has been depreciated for four full years. If the assumed tax rate is 40 percent ..
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Which of the following would be classified as a financing activity on the statement of cash flows?
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FDICIA imposes increasingly severe operating restrictions on under capitalized banks (those in Zones 3, 4, and 5). Explain why these restrictions are appropriate. Describe how managers should respond to these restrictions if they manage an under capi..
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Maggie’s Muffins, Inc., generated $5,000,000 in sales during 2013, and its year-end total assets were $2,500,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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