How much of the companys profits have been reinvested

Assignment Help Financial Management
Reference no: EM131016032

Consider the following balance sheet data for Lexi’s Computer Stores: Cash $ 52,000 Accounts payable $ 64,500 Receivables 204,500 Short-term bank note 122,000 Inventories 175,500 Accrued wages and taxes 52,500 Total current assets $ 432,000 Total current liabilities $ 239,000 Long-term bonds 389,500 Common stock 120,000 Net plant & equip. 453,000 Retained earnings 136,500 Total assets $ 885,000 Total liabilities & equity $ 885,000 How much of the company's profits have been reinvested over the years?

Reference no: EM131016032

Questions Cloud

Maximizes per-share stock price of stephensons equity : Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. Suppose Stephenson decides to issue equity to finance t..
Produced an arithmetic average return : You own a stock that has produced an arithmetic average return of 7.80% over the past five years. The annual returns for the first four years were 16%, 11%, -19%, and 3%, respectively. What was the return on the stock in year five? Also, compute the ..
Make a plot of balance vs time : Construct a graph of the data that you will generate yourself. You are asked to create a plot of bank account balance vs time in days, assuming that on Day 0 the balance is $1000 and on Day 1 5.0% of the balance is withdrawn. Make a plot of balance v..
Fixed assets and net operating working capital : Smith Corporation’s income statement for the year 2012 is given below: Sales $17,000,000 Operating costs excluding depreciation 9,000,000 EBITDA $ 8,000,000 Depreciation 1,000,000 EBIT $ 7,000,000 Interest 1,000,000 EBT $ 6,000,000 Taxes. Calculate S..
How much of the companys profits have been reinvested : Consider the following balance sheet data for Lexi’s Computer Stores: Cash $ 52,000 Accounts payable $ 64,500 Receivables 204,500 Short-term bank note 122,000 Inventories 175,500 Accrued wages and taxes 52,500. How much of the company's profits have ..
Contractual means must pay otherwise go bankrupt : Which of the following payments that a business makes is NOT “contractual” ("contractual" means must pay otherwise go bankrupt)?
Interest rate environment within that confidence interval : A portfolio contains equal investments in 6 different loans with durations of 1, 2, 2, 2, 4, and 5 years. You have estimated that it is 95% certain that interest rates won't change by more than 2% over the next year. Compute the maximum possible loss..
What is the current price of the t-bill : A $10,000 T-bill has a required return (stated as an EAR) of 2.5 percent and will mature in 130 days. What is the current price of the T-bill? What is the T-Bill Yield? What is the T-Bill Discount?
Using the semi-annual? convention : Vitmix Industries Inc. is issuing a zero−coupon bond that will have a maturity of fifty years. The?bond's par value is? $1,000, and the current yield on similar bonds is? 7.5%. What is the expected price of this?bond, using the semi-annual? conventio..

Reviews

Write a Review

Financial Management Questions & Answers

  Pre taxed and taxed-what is your after tax return

You purchased a stock at the end of the prior year at a price of $101. At the end of this year the stock pays a dividend of $1.80 and you sell the stock for $117. What is your return for the year? Now suppose that dividends are taxed at 15 percent an..

  What is the current ratio

A company has total assets of $120,000, current assets of $80,000, total liabilities of $50,000, and current liabilities of $25,000. What is the current ratio?

  What is price of bond immediately after makes first paymet

Suppose that General Motors issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7% (annual payments). The yield to maturity on this bond when it was issued was 6%. Assuming the yield to maturity remains constant, ..

  Optimal replacement life for equipment

Which of the following is not necessarily to be estimated for a "optimal replacement life for equipment" decision?

  What is the value per share of your firms stock

Assume that the average firm in your company's industry is expected to grow at a constant rate of 4% and that its dividend yield is 6%. Your company is about as risky as the average firm in the industry. what is the value per share of your firm's sto..

  What is the companys target debt and equity ratio

Fama’s Llamas has a weighted average cost of capital of 10.3 percent. The company’s cost of equity is 12 percent, and its pre-tax cost of debt is 8.3 percent. The tax rate is 38 percent. What is the company’s target debt and equity ratio?

  According to christian theism-what are deists missing

What are “Nones”? What do they believe? How do they characterize a growing trend in belief in the United States? Why do you think a majority of these individuals are coming from traditional religious backgrounds? 2. What is appealing about Deism to “..

  Each month into a savings account paying interest at rate

The Pirerras are planning to go to Europe 4 years from now and have agreed to set aside $170/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 5%/year compounded monthly, h..

  Call option on a non-dividend-paying stock

Consider a six-month European call option on a non-dividend-paying stock. The stock price is $30, the strike price is $29, and the continuously compounded risk-free interest rate is 6% per annum. The volatility of the stock is 20% per annum. Value th..

  Debt market for interest rate-credit risk transfer vehicles

Write a 2-page paper in which you assess the debt market for interest rate and credit risk transfer vehicles. You are required to use at least two journal articles and follow proper APA format.

  What is the estimated cost of common equity

Booher Book Stores has a beta of 1.1. The yield on a 3-month T-bill is 4.5% and the yield on a 10-year T-bond is 7%. The market risk premium is 5%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places

  True of net working capital

Which of the following is true of net working capital?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd