Reference no: EM13971896
1) A company has total book value of common stock equal to $850,000, a par value of $3 per share, 50,000 shares issued and outstanding, and the market value of the common stock is $80 a share. What is the company's additional paid-in capital?
2) The personal tax rate on debt is 21% and the personal tax on equity is 10%. The corporate tax rate is 15%. There is a firm, initially with no debt and market value $3 billion. This firm decides to issue $200 million of perpetual risk-free debt paying the risk free interest rate of 3%. The proceeds from the sale of debt are used to buy back shares. What is the gain from such leverage, GL?
3) A company has total book value of common stock equal to $850,000, a par value of $3 per share, 50,000 shares issued and outstanding, and the market value of the common stock is $80 a share. What is the company's market capitalization?
4) You own a stock that will pay a dividend of $2.25. The stock currently sells for $21.61. You purchased this security 3 months ago for $19.90. If you sell this security on the ex-dividend date, tomorrow, what is your annualized after-tax return if you expect the stock price to drop by $1.17? Assume a capital gains tax of 20% and dividend tax rate of 32%
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What is the hedged dollar value of the invoice
: Suppose an agribusiness in Texas exports its crops. It expects an 18 million peso invoice for an export to Mexico to be paid in 90 days. The current spot and 90-day forward rates are $0.7502/Peso and $0.7422/Peso respectively. Calculate the company’s..
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Translation gain or loss from the change in the yen value
: Toyota has exposed assets of ¥7 billion and exposed liabilities of ¥5 billion. During the year, the yen appreciates from ¥110/$ 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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Calculate translation exposure using current/non-current
: Assume that General Electric (GE)’s current assets are $401 billion, fixed assets are $797 billion, current liabilities are $323 billion, and long-term liabilities are zero. Calculate GE’s translation exposure using current/non-current, monetary/non-..
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What are some indications that investors are risk averse
: What are some indications that investors are risk averse? How would you as a portfolio manager support these investors? What kind of recommendations would you make? What would you recommend as a portfolio manager to reduce the risk for a risk adverse..
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What is the company market capitalization
: A company has total book value of common stock equal to $850,000, a par value of $3 per share, 50,000 shares issued and outstanding, and the market value of the common stock is $80 a share. What is the company's market capitalization?
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How about consumer protection legislation
: Since the 2008-2011 financial crises, banks have become leery of lending to consumers. There has been much research completed on this subject and the blame has been a subject of much controversy. Fast-forward to 2013 and 2014. Has there been any new ..
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Pays provides the highest cash flow
: You are a New York state resident in the 25% federal marginal tax bracket and 6% marginal state marginal tax bracket, and are looking at 3 investments. You want to choose the bond investment that pays provides the highest cash flow.
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What will be the future worth of the money in your account
: 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. At the end of 1 year, what will be the prese..
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Return on your investments in retirement
: You want to know in which scenario you need to save the LEAST amount of money monthly. First plan is to have $1,250,000 in 25 years when you retire and your investments will earn 9%. The second option is to receive a monthly payment of $6,000 in reti..
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