Caballos, Inc., has a debt to capital ratio of 27%, a beta of 1.26 and a pre-tax cost of debt of 6.8%. The firm had earnings before interest and taxes of $ 515 million for the last fiscal year, after depreciation charges of $ 292 million. Assume that..
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Consider the existing economic conditions, including inflation and economic growth. Do you think the Fed should increase interest rates, reduce interest rates, or leave interest rates at their present levels
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CellU, the company CompU is looking at purchasing, expected their dividend to grow at a rate of 35 percent for the next four years, then to drop to a growth rate of 15 percent for 2 more years, and then settle down to a 10 percent growth rate thereaf..
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Icy Treats Inc. is a seasonal business that sells frozen desserts. At the peak of its summer selling season, the firm has $35,000 in cash, $125,000 in inventory, $70,000 in accounts recieveable, and $65,000 in accounts payable. During the slow winter..
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Suppose a ten-year, 1,000 bond with an 8.8% coupon rate and semi annual coupons is trading for 1,034.65. What is the bond's yield to maturity (expressed as an APR with semi annual compounding)? If the bond's yield to maturity changes to 9.5% APR, wha..
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The risk-free rate is 6%. The expected rate of return on the stock market is 10%. - What is the appropriate cost of capital for a project that has a beta of -2?- Does this make economic sense?
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Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Because both forklifts perform the same function, the firm will choose only one.
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You are to write a 3-5 page summary to me as VP for Production, stating your observations of XYZ Manufacturing. In this memo, you will include: Make-Buy decisions on widgets and support your decision with made-up numbers.
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You are given the following information for Smashville, Inc. Cost of goods sold: $ 259,000 , Investment income: $ 3,100 , Net sales: $ 402,000 , Operating expense: $ 94,000, Long-term debt: $ 7,000 ,Other assets: $ 39,000 ,Fixed assets: $ 134,000 ,Ot..
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Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $1.25 yesterday. Bahnsen's dividend is expected to grow at 6% per year for the next 3 years. Find the expected dividend for each of the next 3 years; tha..
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Draw a time line to show the cash flows of the project and compute the project's payback period, net present value (NPV), profitability index (PI), and internal rate of return (IRR).
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What is the market capitalization (the market value of the common stock = number of shares outstanding x the closing price per share you provided in the question above) of UAL's stock ( comapny name is united airlines) (on the date you gave in Octobe..
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