1)TTaa Company had the following data for last year:Earnings before interest and taxes $5,000,000Net depreciation expenses $1,000,000Interest expenses $1,000,000Applicable income tax rate 25%Operating current assets $24,000,000Operating current liabilities $4,000,000Net plant and equipment $28,000,000Estimated after tax cost of capital 10% Assume that the company had only depreciation as non cash items or transactionsFind the company’snet income for the yearnet cash flownet operating profit after taxes (NOPAT)net […]

UniCredit Scrubs Up for Recovery summary and your oppinion ——— Cleaning up after a good night can be painful. But Italy’s UniCredit is at least offering investors an invite to the party they hope is to come. Italy’s largest bank by assets on Tuesday reported its biggest-ever quarterly loss, getting ahead of the European Central Bank‘s review of bank balance sheets by scrubbing its own […]

The GPI bookstore orders sweaters with the GPI logo on them, and sells them for $40 a piece. During typical month, 80 sweatshirts are sold (this includes all sizes and styles ordered from a particular supplier). It costs $25 to place an order, and 20 percent to carry sweatshirts in inventory for a year. a.    How many sweatshirts should the bookstore order at a time? b.  […]

Question FIN 515 – Managerial Finance: Homework Assignment Week 2 Complete the following graded homework assignment in a Word document named FIN515_Homework2_yourname. Show the details of your calculation and work in your answer to the problems.•Problems (pp. 56–57) ◦2-29 Gross and Net Profit Margin ◦2-30 Current and Quick Ratios ◦2-31 Change in Accounts Receivable and Inventory ◦2-36 Debt Ratios ◦2-42 ROE DuPont Analysis ◦2-43 ROE •Problem 3-10 (p. 82)•Problems (pp. […]

Date Number of Rings Purchased Cost Per Ring Total Cost1-Feb  4  $1,000  $4,0001-Apr  6  $1,100  $6,6001-May  8 $1,100  $8,8001-Jun  8  $1,150 $9,2001-Aug  6  $1,175 $7,0501-Oct 10  $1,200  $12,000 1-Nov 9  $1,175  $10,5751-Dec 7  $1,150  $8,05058  $66,275Beginning Inventory 10 Rings Available for Sale 60  You own a jewelry store and you sell nothing but black diamond rings. As of January 1st, you had 10 rings in stock at a cost of $1,000 each. You […]

  Cost of Capital (WACC). Suppose your company has decided to use a divisional WACC approach to analyze projects. The firm currently has 2 divisions, A and B, with betas for each division of 0.5 and 1.5, respectively. If all current and future projects will be financed with half debt and half equity, and if the current cost of equity (based on an average firm […]

King’s Mfg. Inc. has 12,000 bonds outstanding that have a 6% coupon rate. The bonds are selling at 98% of face value, pay interest semi-annually, and mature in 28 years. There are 400,000 shares of 9% $100 preferred stock outstanding with a current market price of $83 a share. In addition, there are 1.40 million shares of common stock outstanding with a market price of […]

1. Crypton Electronics has a capital structure consisting of 36% common stock and 64% debt. A debt issue of $1,000 par value, 6.4% bonds that mature in 15 years and pay annual interest will sell for $975. Common stock of the firm is currently selling for $30.23 per share and the firm expects to pay a $2.21 dividend next year. Dividends have grown at the […]

Case 8-3 Template INSTRUCTIONS: Read the case in the textbook. As a team, answer the questions in this spreadsheet, then save and submit the assignment as one Microsoft® Excel® attachment. Also, submit a 1-paragraph Microsoft® Word document explaining any issues or successes you had in answering these questions. Refer to and use the following abbreviations for the problems below: • PP = Parma minimum supply […]

Final Exam (Part II) 50 pointsGiven the following information for Syarikat Co., find the WACC. The company’s tax rate is 35%.Debt: 7,000 8% coupon bonds outstanding, 20 years to maturity, selling for 104% of par, bonds make semiannual paymentsCommon Stock: 120,000 shares outstanding, selling for $82 per share, beta is 1.20Preferred Stock: 10,000 shares preferred stock outstanding, $8.25 dividend, currently selling for $80 per shareMarket: […]