An entrepreneur considering two sites for a men and boys' shop determines that he needs sales of $158 per square foot to be profitable. Site #1 has 13,500 potential customers who spend an average of $160.20 per year on men and boys' wear.
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Advantage First corporation has sales of $4,236,510; income tax of $408,406; the selling, general and administrative expenses of $295,502; depreciation o f$314,079; cost of goods sold of $2,770.190; and interest expense of $193,151.What is the amount..
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Sims Computing has $1,625,000 in current assets and $636,000 in current liabilities. They wish to increase their inventory levels from the current level of $400,000. They will borrow on a short term note payable to acquire the additional inventory. w..
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Micro Spinoffs, Inc., issued 20-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,120. If the firm’s tax bracket is 30%, what is its after-tax cost of debt? (Do not round intermediate calculat..
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You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.28 and the total portfolio is equally as risky as the market. Required: What must the beta be for the other stock in your portfolio?
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In early 1990, Boeing Co. decided to gamble $4 billion to build a new long-distance, 350-seat wide-body airplane called the Boeing 777. The price tag for the 777, scheduled for delivery beginning in 1995, is about $120 million apiece. what is the bre..
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What are the amounts due from the borrower and due to the seller at closing?- What would be the disclosed annual percentage rate as required under the Truth-in-Lending Act?
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Triangle bonds' par value is $1,000. The bonds pay $60 in interest every six months and will mature in 10 years. Calculate the price if the yield to maturity on the bonds is 14 percent. Explain the impact on price if the required rate of return decre..
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One issue of these bonds, the 8 1⁄4 percent coupon bonds due in 1996, was selling at 109 percent of par value, or for approximately $1,090. Why would someone pay $1,090 for the bonds of a bankrupt firm?
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Consider the production cost information for Mama Italiano Sauce given below: Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient cost (variable) $16,000 Labor cost (variable) 9,000 Rent (fixed) 4,000 Dep..
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You have been hired to value a new 10-year callable, convertible bond. The bond has a 5,6 per cent coupon rate, payable annually. The bond is callable at 1100 dollars but based on prior experience it will not be called unless the conversion value is ..
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An extra tractor will lead to an increase in revenue for a farmer in successive years of £500, £4000, £3,000, £3,000 and £1,000, after which the tractor is sold for £1,000. Assuming that the first revenue is treated as current and the interest rate i..
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