Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
XYZ's balance sheet and income statement are given below: Balance Sheet: Cash $ 50 Accounts payable $ 100 A/R 150 Notes payable 0 Inventories 300 Long-term debt (10%) 700 Fixed assets 500 Common equity (20 shares) 200 Total assets $1,000 Total liabilities and equity $1,000 Income Statement: Sales $1,000 Cost of goods sold 855 EBIT $ 145 Interest 70 EBT $ 75 Taxes (33.333%) 25 Net income $ 50 The industry average inventory turnover is 5, the interest rate on the firm's long-term debt is 10%, 20 shares are outstanding, and the stock's P/E is 8.0. If XYZ increased its inventory turnover to the industry average, if it used freed-up funds to buy back common stock at the current market price and thus to reduce common equity, and if sales, the cost of goods sold, and the P/E ratio remained constant, by what dollar amount would its stock price increase?
$ 3.33
$ 6.67
$ 8.75
$10.00
$12.50
Indirect Effects on Project Cash Flow, Provide an example of an Opportunity Cost that would arise in your firm when considering a new project.
Using either your current or past employer or research you’ve done about another organization, write about the company’s “Organizational Culture”. Culture is a critical component for any organization. Your paper needs to address the Seven Dimensions ..
Charge backs: Your local fast food chain with two dozen stores uses the company's internal corporate marketed department to produce signage, print ads, in-store displays, and so forth. What does this indicate about the charge back rates?
Which of the following investment evaluation tools is considered to be the best capital budgeting decision tool? Gordon’s Bird-in-the-hand” argument suggests that _____. According to the residual theory of dividends, if a a firm’s equity need is less..
Davison Toaster Corp. sells its products for $100 per unit. It has the following costs: not enough information has been provided to determine the break-even point.
Page Enterprises has bonds on the market making annual payments, with twelve years to maturity, and selling for $960. At this price, the bonds yield 6.50 percent. What must the coupon rate be on the bonds?
A call option is currently selling for $4.70. It has a strike price of $115 and four months to maturity. The current stock price is $117, and the risk-free rate is 3 percent. The stock will pay a dividend of $2.15 in two months. What is the price of ..
Cookie Dough Manufacturing has a target debt-equity ratio of .6. Its cost of equity is 16 percent, and its pretax cost of debt is 9 percent. What is the firm's WACC given a tax rate of 34 percent? 12.23 percent 12.78 percent 13.11 percent 13.48 perce..
Which of the following is false regarding the estimate of a firms cost of equity capital
standard cost is a predetermined amount that-Should be incurred under relatively efficient operating conditions-Will be incurred for an operation or a specific objective-Must occur for an operation or a specific objective
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 49,000 units per year, an ordering cost of $2 per order, and carrying costs of $1.60 per unit. Wha..
A firm is expected to pay a dividend of $2.00 next year and $2.14 the following year. Financial analysts believe the stock will be at their target price of $75.00 in two years. Compute the value of this stock with a required return of 10 percent.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd