Advantage First Corporation has sales of $4,059,350; income tax of $409,472; the selling, general and administrative expenses of $246,585; depreciation of $302,729; cost of goods sold of $2,415,280; and interest expense of $103,041. What is the amoun..
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Consider the following Price and Dividend data relating to two stocks that are held in a portfolio. Below are the stock prices and the dividends of Berger during 2009 to 2014: Date Price ($) Dividend ($) respectively
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Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for..
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Sales and earnings for eMovies are expected to grow rapidly over the next 5 years. Although the firm is currently losing money, eMovies expects to begin paying out 60% of earnings during the fiscal year ending in June of 20/20, with initial sharehold..
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Kolby’s Korndogs is looking at a new sausage system with an installed cost of $910,000. This cost will be depreciated straight-line to zero over the project’s seven-year life, at the end of which the sausage system can be scrapped for $105,000. The s..
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Texas Chemicals is a major producer of oil-based fertilisers in the US. The company’s stock is currently selling for $80 per share and there are 10 million shares outstanding. The company also has debt outstanding with a market value of $400 million...
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In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..
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Based on the corporate valuation model, the value of Serenity Inc. operations is $1,200 million. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in market able securities. what is the b..
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Imagination Dragons Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 20-year zero coupon bonds with a par value of $1,000 each to raise the money. The required return on the bonds will be 7 percent. Assume se..
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Suppose a firm pays a 50,000$ trade credit obligation to a supplier in cash. What impact does this transaction have on the firm's current ratio if the intial current ratio equaled 1? What impact does this transaction have on the firm's current ratio ..
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Brooks Corp. shows the following information on its 2014 income statement: sales=$185,000; costs=$98,000; other expense=$6,700; depreciation=$16,500; interest expense=$9,000; taxes=$19,180; dividends=$9,500. In addition, 1) What is the average tax ra..
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You open a brokerage account and purchase 200 shares of Google at $443.05 per share. You borrow 40% from your broker to help pay for the purchase. The interest rate on the loan is 8%. Assume the day after your stock purchase, Google announces abys..
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