Assume that you open a savings account that accrues 3% nominal annual interest that is compounded monthly. Initially, your account has no funds in it. Starting next month, you add $50 / month for 6 months. Then, you increase your monthly deposit by $..
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A firm decides to use debt to raise its return on equity. It currently has sales of $2 million, total assets of $1 million and a debt ratio of 20%. It's net profit margin has been 10% and it expects it to stay there into the future. If it borrows an ..
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Suppose Bob holds a 10-year bond issued by company XYZ with a par value of $1,000 and a coupon interest amount of $100 each year. Fearful that XYZ will default on its bond obligations, what are the cash flows to bob for years 0 through 4 from the cds..
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Rabie, Inc., has an issue of preferred stock outstanding that pays a $5.00 dividend every year, in perpetuity. If this issue currently sells for $80.10 per share, what is the required return?
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Provide a detailed description of the firms- Describe their primary activities and markets - Provide a three year ratio analysis with the financial statement - balance sheets, income statement, cash flow.
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Internal rate of return Peace of Mind, Inc. (PMI), sells extended warranties for durable consumer goods such as washing machines and refrigerators. When PMI sells an extended warranty, it receives cash up front from the customer, but later PMI must c..
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To calculate the number of years until maturity, assume that it is currently January 15, 2013. Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s) Xenon, Inc. (XIC) 5.500 Jan 15, 2021 94.193 ? 57,363 Kenny Corp. (KCC) 7.130 Jan 1..
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Zach’s senior design project had a total purchased equipment cost of $3,487,000. The heat exchangers cost $178,000, the field fabricated vessels cost $676,600, pumps plus drivers cost $28,000, and the column shells cost $295,000. Purchased equipment ..
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Assume that Mainline Homecare, a for-profit corporation, had exactly the same situation as reported earlier (Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. What were Mainlines' net income, total profit margin, an..
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Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 7% pe..
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ProCor, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. The company then expects to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.54 last week. ..
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Prepare a schedule of cash collections for May through July and compute the materials price variance and the materials quantity variance.
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