A stock sells for $20. The next dividend will be $3 per share. If the return on equity ROE is a constant 10% and the company reinvests 30% of earnings in the firm, what must be the opportunity cost of capital?

Line of credit which charges an annual percentage rate : You have a $22,500 line of credit which charges an annual percentage rate of prime rate plus 5%. Your starting balance on April 1 was $6,750. On April 5, you made a payment of $2,500. On April 14, you borrowed $5,100, and on April 17, you borrowed $3.. |

Consider the cash flows : Consider the following cash flows: Year Cash Flow 2 $ 21,600 3 39,600 5 57,600 Assume an interest rate of 8.4 percent per year. Requirement 1: If today is Year 0, what is the future value of the cash flows five years from now? Requirement 2: If today.. |

What was the annual percentage increase : In 1901, the first U.S. Open Golf Championship was held. The winner’s prize money was $210. In 2012, the winner’s check was $1,410,000. Requirement 1: What was the annual percentage increase in the winner’s check over this period? ** I've answered Re.. |

Eliminate any further possibilities of locational arbitrage : What market forces would occur to eliminate any further possibilities of locational arbitrage? |

What must be the opportunity cost of capital : A stock sells for $20. The next dividend will be $3 per share. If the return on equity ROE is a constant 10% and the company reinvests 30% of earnings in the firm, what must be the opportunity cost of capital? |

Charges an annual percentage rate of prime rate plus : Chase has a $42,500 line of credit which charges an annual percentage rate of prime rate plus 5%. His starting balance on June 1 was $2,550. On June 4 he borrowed $5,300. On June 9, Chris made a payment of $800, and on June 17 he borrowed $5,600. If .. |

What must be the coupon rate on the bonds : Large Industries bonds sell for $1,096.52. The bond life is 11 years, and the yield to maturity is 7.2%. What must be the coupon rate on the bonds? Assume coupons are paid once a year and the face value is $1,000. |

What are the key differences between risk and uncertainty : The fact that risk and uncertainty are experienced differently might matter in times of financial crisis. What are the key differences between risk and uncertainty? Discuss. |

Direct methods of preparing the statement of cash flows : What are the differences between the indirect and direct methods of preparing the statement of cash flows? Do you agree with the FASB that the direct method is preferred? Why, or why not? |

## What is the yield to maturity for the investmentAir products and Chemicals sold $125 million of notes in Nov. of 2003 with a December 1. 2010, maturity date. The bonds were sold at a discount of $99.721 per $100 with a coupon rate of 4.125%. Assume that bonds with a face value if $10,000 were purc.. |

## How many days would the cash conversion cycle be changedCyree Inc. has annual sales of $80,000,000; its average inventory is $20,000,000; and its average accounts receivable is $16,000,000. The firm buys all raw materials on terms of next 35 days, and it pays on time. The firm is searching for ways to sho.. |

## What was the total return on this stockCorning (a glass and ceramics maker) has a stock price of $20.30 on November 1. Suppose it pays a 25 cent dividend on November 30, and the stock price at the end of the day on November 30 is $21.75. What was the total return on this stock in November.. |

## What is the standard deviation of returnsA stock had returns of 8 percent, -4 percent, 6 percent, and 16 percent over the past four years. What is the standard deviation of these returns? |

## Maintain constant growth rate in its dividendsSuppose you know that a company’s stock currently sells for $50 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it.. |

## Calculate the number of shares issued through this IPOHughes Technology Corp. recently went public with an initial public offering in which it received a total of $62.15 million in new capital funding. Calculate the number of shares issued through this IPO. |

## How much money can be withdrawn at the endHow much money can be withdrawn at the end of 20 years if $6,000 is deposited at the end of each year for 12 years, and no deposits are made after, where the fund earns 7.5 percent? |

## What is difference between beta required rates of returnCompany A has a beta of 0.70, while Company B's beta is 0.85. The required return on the stock market is 11.00%, and the risk-free rate is 2.25%. What is the difference between A's and B's required rates of return? |

## Comment on the liquidity and profitability performanceAnalyse and comment on the liquidity and profitability performance of the selected company from the point of view of management, based on the financial statements for years 2008 to 2010. |

## Calculate economic order quantityAn appliance for less is a local appliance store. It costs the store $2.4 per unit annually for storage, insurance act. To hold microwave in their inventory. Sales this year are anticipated to be 632 units. Each order costs $21. The company is using .. |

## Can investors accurately forecast the direction of futureProvide one reason for using the bank's investment portfolio to speculate on interest rate movements. Provide one reason against such a strategy. What do you believe about efficient markets, and how does this influence your opinion of speculating? Ca.. |

## Cause the value of a bond to increase other things held sameWhich of the following will cause the value of a bond to increase, other things held the same? |

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