Allen Lumber Company had EACS (earnings available to common shareholders) of $580,000 in the year 2010 with 400,000 common shares outstanding. On January 1, 2011, the firm issued 35,000 new shares.
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Calculating OCF. Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and interest expense of $1,750. If the tax rate is 35 percent, what is the operating cash flow, or OCF?
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Suppose that the Treasury bill rate were 6% rather than 4%. Assume that the expected return on the market stays at 10%. Use the betas in Table.
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Toyota has exposed assets of ¥7 billion and exposed liabilities of ¥5 billion. During the year, the yen appreciates from ¥110/$ to ¥80/$. What is Toyota's net translation exposure at the beginning of the year in yen? In dollars? What is Toyota's tran..
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Crackle and Pop Telephone Company is considering an upgrade to their current call-waiting equipment. Their existing hardware was purchased 3 years ago for $150,000, has been depreciated straight line over a 5-year useful life (so, two years of deprec..
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The Fuller Toy Company has been a family run business for the last 25 years. It is well recognized in the state of Michigan for selling educational related toys specifically for children, ages 4 through 8. Colleen, Kasey, Elvira June, Market Experts ..
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Dahlia Enterprises needs someone to supply it with 117,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $840,000 to install the equipment n..
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A stock has an expected return of 11 percent, its beta is 1.20, and the risk-free rate is 4.4 percent. What must the expected return on the market be?
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Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 7.6%. Now, with 8 years left until the maturity of the bonds, the company has run into hard times and the yield to maturity on the bonds has in..
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Suppose you buy a 7 percent annual coupon bond today for $960. The bond has 6 years to maturity. The face value of the bond is $1,000. What is the YTM of the bond? Assume that your investment horizon is equal to the duration of the bond. Assume that ..
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An initial investment of $27,775 followed by a single cash flow of $45,590 in year 6. (Round intermediate calculations to 0 decimal places, e.g. 1,251 and final answer to 2 decimal places, e.g. 15.25%.) IRR _______ %. An initial investment of $833,32..
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A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. Calculate the NPV and IRR with mitigation. Calculate the NPV and IRR without mit..
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