Gamma Limited is contemplating using a certain amount of its profits to either pay cash dividend of $4 per share or to repurchase some of its ordinary shares. For current year the enterprise has distributable profits of $8,000,000 and 1,000,000 ordin..
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Suppose that a firm has, as of this year, an Earnings Before Interest and Taxes of $117 million, Depreciation of $10 million, has bought $25 million in machinery, has sold $12 million in old machinery for cash, has had an increase in Accounts Receiva..
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High electricity costs have made Farmer Corporation’s chicken-plucking machine economically worthless. Only two machines are available to replace it. The International Plucking Machine (IPM) model is available only on a lease basis. How much debt is ..
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Suppose you purchase 1,100 shares of stock at $49 per share with an initial cash investment of $18,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Calculate your return on investment one year later if t..
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A six-year project for Little Egypt, Inc. results in additional accounts receivable of $150,000, additional inventory of $50,000, and additional accounts payable of $80,000 today. What is the change in the NPV of a project solely due to the additiona..
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What kind of risk associated with mutual fund & how u can manage those risks? Explain the types of mutual fund? Explain the difference between Exchange trade fund & Index fund.
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Prepare a statement of cash flows for 2014 using the direct method in the Operating Activities section. Prepare another statement of cash flows for 2014 using the indirect method in the Operating Activities section.
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Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,300,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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You are planning your retirement in 10 years. You currently have $167,000 in a bond account and $607,000 in a stock account. You plan to add $7,300 per year at the end of each of the next 10 years to your bond account. Additionally, when you retire y..
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Binomial pricing: assume that the stock of malcolms muffler inc is currently trading for $43 and will either rise to $55 or fall to $17 in one year. The risk free rate for one year is 8 percent. What is the value of a call option with a strike price ..
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You are considering the following information: Sales price per abalone = $34.70 Variable costs per abalone = $5.80 Fixed costs per year = $372,000 Depreciation per year = $117,000 Tax rate = 40%. What is the financial break-even level for the project..
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A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,155.00. The bond sells for $970.50. (Assume that the bond has just been issued.). What is it’s yield to maturity?
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