What is true about the Accounts Receivable Turnover Ratio? a. Generally, higher is better. b. Generally, lower is better. c. It equals accounts receivable divided by credit sales. d. Companies offering a discount to customers for fast payment will likely see a decrease in their accounts receivable turnover ratio. e. A low accounts receivable turnover ratio likely means that a company is denying credit to otherwise worthy customers.

Working capital accounts to help mitigate expected shorfall : You are the CFO of a small startup company. You have just completed a six-month cash flow forecast and determined that the company will incur a one month negative cash flow two months from now. What specific policy actions can you undertake with your.. |

What was the closing price for this stock : You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper. 52-WEEK YLD VOL NET HI LO STOCK (DIV) % PE 100s CLOSE CHG 130.25 88.38 RJW 2.50 2.0 15 17,907 ? − .73 What was the closing price for this.. |

Paying fixed rate dollar and receiving fixed rate euro : In a currency swap, a dealer is paying fixed rate dollar and receiving fixed rate euro. Suppose that he enters into the swap and immediately thereafter dollar becomes weaker against euro (that is, euro appreciates against dollar) while interest rates.. |

Firms effective borrowing cost with the interest rate swap : ABC Corp. has a floating rate debt for which the firm pays an interest rate of LIBOR + 1%. The firm enters into an interest rate swap on the same notional principal as the floating rate debt. In the swap, the firm receives LIBOR and pays 6.5%. What i.. |

What is true about the accounts receivable turnover ratio? : What is true about the Accounts Receivable Turnover Ratio? Generally, higher is better. b. Generally, lower is better. c. It equals accounts receivable divided by credit sales. A low accounts receivable turnover ratio likely means that a company is d.. |

Bank account to cover college expenses over next three years : Beginning three months from now, you want to be able to withdraw $2,100 each quarter from your bank account to cover college expenses over the next three years. If the account pays .43 percent interest per quarter, how much do you need to have in you.. |

At what price should the annual payment bond sell : McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 5.75% coupon paid semiannually, and those bonds sell at their par value. McCurdy's Class P bonds have the same risk, maturity, and par value, but the P bonds pay a 5.75% ann.. |

Find the budget to be allocated now for this improvement : Recently Scott spent $200,000 for landscaping on his home. Every 10 years, it need to be improved with the cost of $100,000. Find the budget (P) to be allocated now for this improvement every 10 years, forever (n=infinity) if i=10%/year. |

Face value bond with coupons convertible semiannually : Marge has a five year $1,000,000 face value bond with 6% coupons convertible semiannually. fiona buys a 10-year bond with face amount $X, 6% coupons convertible semiannually. both bonds are redeemable at par. Marge and Fiona buy their bonds priced to.. |

## Calculate the cost of common equity financingPaul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 2.27. Paul estimated that the market return is 9.78%. The current rate for 10-year Treasury Bonds is 4.85%. Calculate th.. |

## Dividends are expected to grow at constant rateThe Jackson–Timberlake Wardrobe Co. just paid a dividend of $2.10 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 14 percent on the company's stock. What .. |

## What is the difference in the current prices of these bondsYou are considering two bonds. Both have semi-annual, 8 percent coupons, $1,000 face values, and yields to maturity of 7.5 percent. Bond S matures in 4 years and Bond L matures in 8 years. What is the difference in the current prices of these bonds? |

## What is the value of this project in todays dollarsYou have found a project that will produce an annual income of $125,000 at the end of first year. This annual income will increase by 5 percent annually for 7 years. What is the value of this project in today's dollars if you can earn 12% on your inv.. |

## Financial consulting businessSuzy Sunshine, age 31, is single and has one child that lives with her, Johnny, age 17. She opened a financial consulting business in January of 2014. She rented office space initially, but then purchased an office building for the business at 1234 N.. |

## Stock has returns-what is the probability rangeA stock has returns of 3%, 18%, -24%, and 16% for the past four years. Based on this information, what is the 95% probability range for any one given year? |

## Further assume that the returns are normally distributedSuppose the average return on an asset is 11.5 percent and the standard deviation is 20 percent. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to determine the probability that in any given year you will.. |

## A company needs certain type of machineA company needs a certain type of machine for the next 5 years. They presently own such a machine, which is now worth $6,000 but will lose $2,000 in value in each of the next 3 years, after which it will be worthless and unusable. |

## Why does the binomial model converge to a specific valueWhy does the binomial model converge to a specific value of the option as the number or time periods increase? To what value does the option converge? When "n" approaches infinity, to what famous model does the binomial model converge? |

## What is the present value of his inheritanceHis recently departed dear Aunt Annie, may she rest in peace, has left Tom a 6-year annuity paying $4,500 per year. He will receive the first payment 4 years from today. If he is discounting at 7% (EAR), what is the present value of his inheritance? |

## Explain how to use the security market line to select stocksExplain how to use the Security Market Line to select stocks. Explain the significance of the risk-free rate and the market risk premium. |

## What is the current stock pricePasqually Mineral Water, Inc., will pay a quarterly dividend per share of $.80 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1 percent, forever. The appropriate rate of return on the stock is 10.. |

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