What was the corporations market capitalization

Assignment Help Financial Management
Reference no: EM131020079

Last Year, a corporation had a book value of equity of $350 million of USDs, 1 million shares outstanding, and a market price of $40 per share. The corporation also had cash of $3 million of USDs, and total debt of $360 million USDs.

What was the corporation's market capitalization, in million USDs? What was the corporation's market-to-book ratio? What was the corporation's book debt-equity ratio?

Reference no: EM131020079

Questions Cloud

Simple interest on its investment accounts : First Simple Bank pays 9.3 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 13..
The present value of five years future salary : You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already dec..
What is this firms debt-equity ratio : Jiminy Cricket Removal has a profit margin of 9 percent, total asset turnover of 1.07, and ROE of 14.39 percent. What is this firm’s debt-equity ratio?
What is the quarterly payment : Ramco borrows $1,769,000 for a new machine at an interest rate of 4.8I% APR compounded weekly. What is the quarterly payment if it owes $450,000 9 years from now?
What was the corporations market capitalization : Last Year, a corporation had a book value of equity of $350 million of USDs, 1 million shares outstanding, and a market price of $40 per share. The corporation also had cash of $3 million of USDs, and total debt of $360 million USDs. What was the cor..
About weighted average cost of capital : Explain under what circumstances the book value cost of capital should be used. Explain why you answered as you did. Explain under what circumstances the market value cost of capital should be used. Explain why you answered as you did.
What is the maximum dollar amount of loans bank could make : A bank has $7.5 mil in reserves, $35 mil in bank loans, and $45 mil of deposits. If the reserve requirement is 15%, what is the bank’s reserve position? What is the maximum dollar amount of loans the bank could make? What would happen to the nation’s..
Compute the expected share price at the end : Having issues figuring this one out... Suppose the dividends for the Seger Corporation over the past six years were $1.06, $1.14, $1.23, $1.31, $1.41, and $1.46, respectively. Compute the expected share price at the end of 2014 using the perpetual gr..
Mortgage with monthly payments : Patty purchases a $250,000 house. She pays $50,000 down and takes out a 20 year mortgage with monthly payments, at an interest rate of 12% interest compounded monthly. How much money will Patty have to pay each month?

Reviews

Write a Review

Financial Management Questions & Answers

  How well team is progressing in terms of schedule and cost

Analyze the financial problem faced by this project. You are given the following information at the end of year 1 of the 3-year project.  Describe how well the team is progressing in terms of schedule and cost? What do you expect the EAC to be depend..

  What is the company total book value of debt

Jiminy's Cricket Farm issued a 30-year, 7 percent semi-annual bond 5 years ago. The bond currently sells for 81 percent of its face value. The book value of the debt issue is $23 million. The company's tax rate is 33 percent. What is the company's to..

  Cypress corporations alternative minimum tax liability

Cypress Corporation has regular taxable income of $170,000 (assume annual gross receipts are greater than $5 million) and a regular tax liability of $49,550 for 2014. The corporation also has tax preference items amounting to $105,000. Calculate Cypr..

  What amount must be deposited in the account at retirement

Susan and Tom Houser believe that they will need payments of $4,460 at the beginning of each of their retirement. The payments will be made out of an account that is expected to earn 10% interest annually. If the payments are made over 20 years, what..

  What is the change in price bond will experience in dollars

A 6.45 percent coupon bond with fifteen years left to maturity is priced to offer a 7.9 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollar..

  Face value bonds-what is the current yield

The 8 percent, $1,000 face value bonds of Sweet Sue Foods are currently selling at $1,057. These bonds have 16 years left until maturity. What is the current yield?

  Weighted average contribution margin per unit for lambardi

Lambardi Company sells 3 types of bags. Bag A sells for $17 and has variable cost of $9.00 per unit. Bag B sells for $12 and has variable cost of $12.00 per unit. What is the weighted average contribution margin per unit for Lambardi?­­­­­­­­­­

  Evaluate the financial performance of a company

Evaluate the financial performance of a company of your choosing using the knowledge and technical skills that you have gained during the course so far. Provide a theoretical explanation of any ratio analysis. No need to recalculate ratios, often ..

  What is the overall return on the investments

A fund of funds divides its money between five hedge funds that earn –5%, 1%, 10%, 15%, and 20% before fees in a particular year. The fund of funds charges 1 plus 10% and the hedge funds charge 2 plus 20%. The hedge funds’ incentive fees are calculat..

  Assume the risk-free rate-rate of return on the market

A share of stock is now selling for $115. It will pay a dividend of $9 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 5% and the expected rate of re..

  Standard deviation of that starting salary

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. If you are accepted into medical school, then you’re starti..

  What is the gain or loss in inventory value

Suppose Stack Pool Inc. had inventory in Britain valued at 240,000 pounds one year ago. The exchange rate for dollars to pounds was 1£ = 2 U.S. dollars. This year the exchange rate is 1£ = 1.82 U.S. dollars. The inventory in Britain is still valued a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd