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Get college assignment help at uniessay writers A firm with sales of $1,000,000 net profits after taxes of $30,000, total assets of $1,500,000, and total liabilities of $750,000 has a return on equity of ___%.

Metroplex corp will pay $3.04 per share dividend next year. The company pledges to increase its dividends by 3.8 percent per year indefinitely. If you require an 11 percent return on investment, how much will you pay for the company’s stock today?

Motor Homes Inc. (MHI) is presently enjoying abnormally high growth because of a surge in the demand for motor homes. The company expects earnings and dividends to grow at a rate of 20% for the next 4 years, after which there will be no growth (g = 0) in earnings and dividends. The company’s last dividend, D(0), was $1.50. MHI’s beta is 1.5, the market risk premium is 6%, and the risk-free rate is 4%. What is the current price of the common stock?

A particle is moving along the curve y= 5 sqrt{2 x 1}. As the particle passes through the point (4, 15), its x-coordinate increases at a rate of 5 units per second. Find the rate of change of the distance from the particle to the origin at this instant.

percy motors has a target capital structure of 40% debt and 60% common equity, with no preferred stock. the yield to maturity on the company’s outstanding bonds is 9%, and it’s tax rate is 40%. percy’s CFO estimates that the company’s WACC is 9.96%. what is percys cost of common equity?

Hypothesis Testing The MBA department is concerned that dual degree students may be receiving lower grades than the regular MBA students. Two independent random samples have been selected 350 observations from population 1 (dual degree students) and 310 from population 2 (MBA students). The sample means obtained are X1(bar)=84 and X2(bar)=87. It is known from previous studies that the population variances are 4.6 and 5.0 respectively. Using a level of significance of .05, is there evidence that the dual degree students are receiving lower grades? Fully explain your answer.

Hypothesis Testing on Multiple Populations The Course Manager for MBA wants to use a new tutorial to teach the students about business ethics. As an experiment she randomly selected 15 students and randomly assigned them to one of three groups which include either a PowerPoint presentation created by the faculty, AuthorGen Presentation created by the faculty, or a well known tutorial by the ABC company. After completing their assigned tutorial, the students are given a Business Ethics test. At the .01 significance level, can she conclude that there is a difference between how well the different tutorials work for the students? (Data is attached)

Lancer Audio produces a high-end DVD player that sells for $1,250. Total operating expenses for July were as follows: Units produced and sold 140 Component cost $67,000 Supplies $1,680 Assembly labor $23,500 Rent $2,200 Supervisor Salary $5,500 Electricity $250 Telephone $180 Gas $200 Shipping $1,540 Advertising $2,500 Administrative costs $14,500 Total $119,050 A: Use account analysis to determine fixed cost per month and variable cost per DVD player. B: Project total cost for August assuming production and sales of 160 units. C: What is the contribution margin per DVD player? D: Estimate total profit assuming production and sales of 160 units. E: Lancer Audio is considering an order for 100 DVD players to be produced in the next 10 months, from a customer in Canada. The selling price will be $900 per unit. However, the Lancer Audio brand name will not be attached to the product. What will be the impact on company profit associated with this order?

Problem 4-3 High-Low, Break-Even Lancer Audio produces a high-end DVD player that sells for $1,250. Total operating expenses for the past 12 months are as follows: Units Produced and Sold Cost August 125 $112,670 September 145 $121,990 October 150 $129,500 November 160 $131,500 December 165 $139,700 January 140 $117,400 Febrauary 145 $125,600 March 135 $115,400 April 130 $116,140 May 135 $119,220 June 145 $121,700 July 140 $119,050 A: Use the high-low method to estimate fixed and variable costs. B: Based on these estimates, calculate the breal-even level of sales in units. C: Calculate the margin of safety for the coming August assuming estimated sales of 160 units. D: Estimate total profit assuming production and sales of 160 units. E: Comment on the limitations of the high-low method in estimating costs for Lancer Audio.

Give the boundaries of each value. 1. 42.8 miles

Get college assignment help at uniessay writers Problem 4-6, Account Analysis, High-Low, Contribution Margin. Information on occupancy and costs at the New Light Hotel for April, May, and June are indicated below: April May June Occupancy 1,500 1,650 1,800 Day Manager Salary $4,200 $4,200 $4,200 Night Manager Salary $3,700 $3,700 $3,700 Cleaning Staff $15,300 $15,600 $15,900 Depreciation $12,000 $12,000 $12,000 Complimentary Continental Food

You purchase 1,000 shares of Spears Grinders, Inc, stock for $45 per share. A year lagter, the stock pays a dividend of $1.25 per share, and it sels for $49. a. Calculate your total dollar return b. Calculate your total percentage return c. Do the answers to parts (a) and (b) depend on whether you sell the stock after one year or continue to hold it?

D. S. Trucking Company stock pays a $1.50 dividend every year withou fail. A year ago, the stock sold for $25 per share, and its total return during the pas year was 20%. What des the stock sell for today?

The table below shows the average return on U.S. stocks and bonds for 25-year periods ending in 1925, 1950, 1975,and 2000. Calculate the equity risk premium fo each quarter century. What lesson emerges from your calculations? Ave. Return 1925 1950 1975 2000 stocks 9.7% 10.2% 11.4% 16.2% bonds 3.5% 4.1% 2.4% 10.6%

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when you purchased,you took out a 30year annual payment mortgage with an interest rate of 6% per year.the payment on the mortgage is 12000.you have just made a payment and have now decided to pay the mortgage off by repaying the outstanding balance .what is the pay off amount if: a) yiu have lived in the house for 12 years(so there are 18 years left on the mortgage). b)you have lived in the house for 20 years( so you have 10 years left on the mortgage). c( you have lived in the house for 12 years(so t the mortgage by repaying the outstanding balance here are 18 years left on the mortgage) and you decide to pay off the mortgage immediately before thetwelft payent is due

Chapter 9 4. Stock Values. White Wedding Corporation will pay $3.05 per share dividend next year. The company pledges to increase its dividends by 5.25 percent per year, indefinitely. If you require an 11 percent return on your investment, how much will you pay for the company’s stock today? 6. Stock Valuation. Suppose you know that a company’s stock currently sells for $64 per share and the required return on the stock is 13 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’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? 10. Stock Valuation: Universal Laser, Inc., just paid a dividend of $2.75 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year, indefinitely. Investors require a 16 percent return on the stock for the first three years, a 14 percent return for the next three years, and then an 11 percent return thereafter. What is the current share price for the stock? 13. Non-constant Dividends: North Side Corporation is expected to pay the following dividends over the next four years: $9, $7, $5, and $2.50. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 13 percent, what is the current share price? 17. Finding the Dividend. Mau Corporation stock currently sells for $49.80 per share. The market requires an 11 percent return on the firm’s stock. If the company maintains a constant 5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? 23. Juggernaut Satellite Corporation earned $10 million for the fiscal year ending yesterday. The firm also paid out 20 percent of its earnings as dividends yesterday. The firm will continue to pay out 20 percent of its earning as annual, end-of-year dividends. The remaining 80 percent of earning is retained by the company for use in projects. The company has 2 million shares of common stock outstanding. The current stock price is $85. The historical return on equity (ROE) of 16 percent is expected to continue in the future. What is the required rate of return on the stock? 25. Consider Pacific Energy Company and U.S. Blue chips, Inc., both of which reported earnings of $750,000. Without new projects, both firms will continue to generate earnings of $750,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a 14 percent rate of return. a. What is the current PE ratio for each company? b. Pacific Energy Company has a new project that will generate additional earnings of $100,000 each year in perpetuity. Calculate the new PE ratio of the company. c. U.S. Bluechips has a new project that will increase earnings by $200,000 in perpetuity. Calculate the new PE ratio of the firm. Chapter 10 4. Suppose you bought an 8 percent coupon bond one year ago for $1,090. The bond sells for $1,056 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal rate of return on this investment over the past year? c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? 15. You bough a stock three months ago for $75.15 per share. The stock paid no dividends. The current share price is $82.01. What is the APR of your investment? The EAR? 25. Assuming that the returns from holding small-company stocks are normally distributed, what is the approximate probability that your money will double in value in a single year? Triple in value? 28. Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Based on the historical record, use the NORM-DIST function in Excel to answer the following questions. a. What is the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent? Less than 0 percent? b. What is the probability that in any given year, the return on T-bill will be greater than 10 percent? Less than 0 percent? c. In 1979, the return on long-term corporate bonds was -4.18 percent. How likely is it that this low of a return will recur at some point in the future? T-bills had a return of 10.56 percent this same year. How likely is it that this high of a return on T-bills will recur at some point in the future?

Chapter 6 P6–15 Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why similar-risk bonds are currently earning a return below the coupon interest rate on the Complex Systems bond. c. If the required return were at 12% instead of 10%, what would the current value of Complex Systems’ bond be? Contrast this finding with your findings in part a and discuss. Chapter 7 P7–6 Common stock valuation—Zero growth Scotto Manufacturing is a mature firm in the machine tool component industry. The firm’s most recent common stock dividend was $2.40 per share. Because of its maturity as well as its stable sales and earnings, the firm’s management feels that dividends will remain at the current level for the foreseeable future. a. If the required return is 12%, what will be the value of Scotto’s common stock? b. If the firm’s risk as perceived by market participants suddenly increases, causing the required return to rise to 20%, what will be the common stock value? c. Judging on the basis of your findings in parts a and b, what impact does riskhave on value? Explain.

Use the data below to calculat the standarddeviation of nominal and real treasury bill returs from 1972-1982. Do you think that when they purchased T-bills, investors expected to earn negative real returns as often as they did during this period? If not, what happened that took investors by surprise? Year Nominal Return(%) Real Return (%) 1972 3.8 0.4 1973 6.9 -1.7 1974 8.0 -3.7 1975 5.8 -1.1 1976 5.1 0.3 1977 5.1 -1.5 1978 7.2 -1.7 1979 10.4 -2.6 1980 11.2 -1.0 1981 14.7 5.3 1982 10.5 6.4

The nominal return on a particular investment is 11 percent and the inflation rate is 2 percent. What is th real return?

. For each of the scenarios below, explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning a. A large fire severely damages three major U.S. cities. b. A substantial unexpected rise in the price of oil. c. A major lawsuit is filed against one large publicly traded corporation. 2. Use the CAPM to answer the following questions: a. Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset “i” is 10%, the Risk-Free Rate is 3%, and the Beta (b) for Asset “i” is 1.5. b. Find the Risk-Free Rate given that the Expected Rate of Return on Asset “j” is 14%, the Expected Return on the Market Portfolio is 12%, and the Beta (b) for Asset “j” is 1.5. c. What do you think the Beta (β) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain. 3. In one page explain what you think is the main ‘message’ of the Capital Asset Pricing Model to corporations and what is the main message of the CAPM to investors?

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November 3, 2019