Adley & Isaac General Hospital is thinking about purchasing a new machine. The new machine would cost $200,000 with an additional $25,000 for installation of the machine. The machine will have a life of 5 years and will be depreciated using the strai..
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Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 180 units have been made by customers requesting credit. The variable cost is $11,400 per unit, and the credit price is $14,000 each. Calc..
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You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 10 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are 1.47, 0.85, 0.63, and 1.14, respectively. What is the portfolio beta?
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Three alternative machine models are being considered for an ongoing operation. The three alternatives will be used in the production of the same product. Therefore, the selection among the three will be based on total costs.
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Dominic takes out a 30-year mortgage of 140000 dollars at a nominal rate of interest of 7.32 percent convertible monthly, with the first payment due in one month. How much does he owe on the loan immediately after the 110th payment?
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A company currently pays a dividend of $1.5 per share (D0 = $1.5). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.6, ..
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You have a portfolio with a beta of 1.35. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 0.78? Paccar’s current stock price is $48.20 and it is likely to pay a $0..
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Revenue recognition. Read the notes to the financial statements. For each company, what is the company's revenue recognition policy? Is the company aggressive in revenue recognition? What is the level of receivables compared to sales? Analyze the all..
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The Morris Corporation has $600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris’s annual sales are $3 million, its average tax rate is 40%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ..
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You have medical insurance for your family with a $250 deductible, 20% coinsurance, and $1,500 OOP maximum for each individual and $3,000 family OOP maximum. Calculate your OOP costs if three people in your family each incur $6,000 in medical costs.
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If the selling price were $15,000 per item, and company incurred an average direct cost of $4,000 per item, with a debt-to-asset ratio of 10%, an inventory-turnover ratio of 2, what would be the breakeven point for units sold for an annual operating ..
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Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 109 percent of face value. What is the company's pretax cost of debt? If the tax rate is 35 percent, what is the..
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