What is net income

Assignment Help Financial Accounting
Reference no: EM13858257

Problem 1: Likeline Inc., has sales $445,000, costs $173,000, depreciation expense of $72,000, interest expense of $36,000, and a tax rate of 35 percent. What is their net income?

Problem 2: Hamble, Inc., has sales of $19,070, costs of $10,460, depreciation expense of $2,530, and interest expense of $1,600. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

Problem 3: Bey Co, issued 20-year, $1,000 bonds at a coupon at a coupon rate of 7 percent. The bonds make annual payments. If the YTM on these bonds is 5 percent, what is the current bond price?

Problem 4: Fifteen Bank has an issue of 7% preferred with a $100.00 par value that just sold for $109 per share. What is the bank's cost of preferred stock?

Problem 5: You own a portfolio that has $2,600 invested in Stock A and $3,400 invested in Stock B. If the expected returns on these stocks are 11 percent and 17 percent, respectively, what is the expected return on the portfolio?

Problem 6: Suppose Tom, Ltd, just issued a dividend of $2.00 per share on its common stock. The company's dividend has been growing at a rate of 7%. If the stock currently sells for $50.00, what is your best estimate of the company's cost of equity?

Problem 7: A stock has a beta of 1.25, the expected return on the market is 12 percent, and the risk-free rate is 2 percent. What must the expected return on this stock be?

Reference no: EM13858257

Questions Cloud

Identify and summarize the purpose of your interview : Identify and summarize the purpose of your interview. How will the information you gather be used? Explain how you will structure the interview and your reasoning behind the structuring of the interview
Evaluate the ability of the book or show to apply the method : Evaluate the ability of the book or show to apply the methods within the presented material to the target population. Describe any efforts on the part of the author(s) or host(s) to apply ethical principles and professional standards of psychology..
Revamping the sarbanes-oxley act : Create an argument supporting three items in the act that you would not change - identify and discuss at least three changes that should be made to the act, indicating why these changes are necessary.
Create an argument supporting three items : Create an argument supporting three items in the act that you would not change - identify and discuss at least three changes that should be made to the act, indicating why these changes are necessary.
What is net income : Problem 1: Likeline Inc., has sales $445,000, costs $173,000, depreciation expense of $72,000, interest expense of $36,000, and a tax rate of 35 percent. What is their net income?
Develop plan to protect its accounting and financial systems : Develop a plan to protect its accounting and financial systems at a reasonable cost. Suggest a high-level plan for the CFO. Provide support for your suggestion.
Common forms of vulnerable adult and elderly neglect : Develop a PowerPoint presentation of 15-18 slides, addressing neglect and abuse of dependent adults and the elderly. Create speaker notes for each of the slides. Include the following in your presentation: Common forms of vulnerable adult and e..
Important concerns for safety and security of the network : most important concerns for safety and security of the network
Feel about your own body weight, size, and shape : 1.  How do you feel about your own body weight, size, and shape? Do you have strong feelings about what an ideal male body should look like? How do you think you developed these ideals? Are they realistic?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Cross rate between japanese yen and canadian dollar

You can exchange $1 for either C$1.2138 or ¥127.75. What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for ¥ per C$.

  Investment analysis and calculation of return on equity

By how much must the assets be reduced to bring the TATO to the industry average - Investment analysis and calculation of Return on Equity.

  Explain how would auditor interpret negative information

the company's stock price is in a downward trend. Explain how would an auditor interpret this negative information with regard to a potential audit client? Explain how would your answer be different if this was a continuing client?

  The cash flows from operating activities section

On the statement of cash flows, the cash flows from operating activities section would include

  1 economic entity assumption2 going concern

1. economic entity assumption2. going concern assumptionnbspnbspnbspnbsp3. monetary unit assumptionnbspnbspnbspnbsp4.

  What action is required if the error is not discovered

What action is required? Ignore taxes. What action is required if the error is not discovered until 4 years after it occurred?

  Goal of the process value analysis

A goal of the process value analysis (PVA) is to reduce non value-adding activities. Outline a procedure a company could use to accomplish this goal.

  Characteristics of both variable costs and fixed costs

Prepare income statement format, the accounting department collected data from the past 12 months. This data included actual utility costs as compared to each month's business volume

  The finished product needs 3 pounds of raw material and 10

the finished product needs 3 pounds of raw material and 10 hours of direct labor. gerrad tries to maintain a finished

  Calculate hills projected net income for 2012

Hill's policy is to acquire new equipment when the present value of future cash flows is higher with new equipment than the present value of future cash flows with old equipment. Based on Hill's policy, do you recommend that Hill purchase the new..

  Accounting methods and measurements impact lean practices

How do accounting methods and measurements impact lean practices? What can accounting personnel do to encourage or to discourage lean processes.

  A explain the federal gift and estate taxes what is the

a. explain the federal gift and estate taxes. what is the purpose of the federal gift tax? what is the reason of the

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd