Parramore Corp has $12 million of sales, $2 million of inventories, $2 million of receivables, and $2 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 9% rate. Assume 365 days in year for your calculations. Do not round intermediate steps.

1. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places.
     days
2. 
   
3. If Parramore could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places.
     days
4. 
   
5. How much cash would be freed up, if Parramore could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
   $
6. 
   
7. By how much would pretax profits change, if Parramore could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
   $

1. TRUE OR FALSE By accepting a lot of capital budgeting projects with a high level of fixed costs I can inadvertently increase my operating leverage and business risk to the firm.
2. TRUE OR FALSE The higher the debt, the higher the financial risk, but since you decrease the # shares and equity you should see higher EPS and ROE.
3. TRUE OR FALSE A firm should pay out a dividend if they cannot earn a better rate of return than the stockholder and the clientele effect is when a firm reduces a dividend and investors are indifferent.
4. TRUE OR FALSE A firm has a decent coverage ration if has EBIT of 10 million and interest expense of 10.5 million
5. TRUE OR FALSE If the current ratio is above 1, a firm can meet its short term obligations.

1.A bond currently trades at $1,045.00 and has a face value of $1,000. If the annual yield is 6% and the bond has 19 years to maturity, what is its coupon rate?

2. A bond maturing in 7 years at a par value of $1,000 has a coupon rate of 6% and current yield of 7%. What is the price of the bond?

​A(n) 8.5​%, ​25-year bond has a par value of​ $1,000 and a call price of ​$1050. ​(The bond's first call date is in 5​ years.) Coupon payments are made semiannually​ (so use semiannual compounding where​ appropriate). a. Find the current​ yield, YTM, and YTC on this​ issue, given that it is currently being priced in the market at $ 1175. Which of these 3 yields is the​ highest? Which is the​ lowest? Which yield would you use to value this​ bond? Explain. b. Repeat the 3 calculations​ above, given that the bond is being priced at ​$825. Now which yield is the​ highest? Which is the​ lowest? Which yield would you use to value this​ bond?

You’ve identified a comparable firm for a new division you are heading up. The comparable has an equity beta of 1.4 and its debt has a beta of 0.3. The equity of the comparable has a market value of $30B and has $4B in debt outstanding. The market risk premium is 6% and the risk-free rate is 2%. What is the appropriate discount rate to use for your division’s assets/projects?

A 30-year, $200,000 adjustable-rate mortgage starts out with the rate of 4%. The borrower makes only the required payments in the first year. If after one year the rate resets to 4.4%, what is the new required payment?

What is the principal portion of the required payment to be made in the first month of a 30-year, 4.9%, $295.8 thousand conventional fixed-rate mortgage? Round to then nearest penny ($0.01)

A company's 8% annual coupon rate, semi-annual coupon payment, $1,000 Face Value bond has 30-years until maturity and is currently selling at a price = $775. The company's Federal income tax rate = 22%.

What is the firm's after tax component cost of debt for the purpose of calculating the WACC?

What issues should executives of a company such as Blue Apron consider before deciding to go public? In your opinion, was the company ready for an IPO? Why or why not?

1. Suppose that the current price of gold is $1,734 per oz and that it costs $5 per oz per month to store gold (payable monthly in advance). Suppose also that the term structure is flat with a continuously compounded rate of interest of 6% for all maturities.
   1. Calculate the forward price of gold for delivery in three months.
   2. If the current forward price for gold is $1,775.36 per oz, is there arbitrage opportunity? If so, please explain why there is an arbitrage opportunity and what position (long or short) you would take on the forward market (you do not need to show how to exploit the arbitrage opportunity if any, just say if you would buy or sell forward).

(can you please put the formula you use before plugging the numbers in so i can get clarity because different approaches is what is getting me confused, thank you.

Stock FBN is selling at 60. The risk-free rate is 4 percent per period. Each period, the stock price can either go up by 10 percent or down by 10 percent.

Fill in the price sequence as listed below, labeling each stock price and the 65 put values for an American put. (Draw out the tree first to help your calculations, of course. And copy-paste the price sequence to your answer space so you can just fill it in)

S₀ = 60

P₀ =

_________

S_u =

S_d =

P_u =

P_d =

_________

S_uu =

P_uu =

S_ud =

P_ud =

S_dd =

P_dd =

Describe in your own words why you believe hospitals spend money on marketing and whether you think what they buy is effective or not.

• Your initial post should have a minimum of one hundred and fifty (150) words.
• Answer two (2) other classmates with a minimum of 25 words

Thank you so much

Please show all work.

Assume a par value of $1,000. Caspian Sea plans to issue a 16.00 year, annual pay bond that has a coupon rate of 8.05%. If the yield to maturity for the bond is 7.76%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 20.00 year, annual pay bond that has a coupon rate of 7.85%. If the yield to maturity for the bond is 8.37%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans to issue a 25.00 year, annual pay bond that has a coupon rate of 11.00%. If the yield to maturity for the bond is 11.0%, what will the price of the bond be?

Answer format: Currency: Round to: 2 decimal places.

SGS Golf Academy is evaluating different golf practice equipment. The "Dimple-Max" equipment costs $105,000, has a 5-year life, and costs $9,700 per year to operate. The relevant discount rate is 11 percent. Assume that the straight-line depreciation method is used and that the equipment is fully depreciated to zero. Furthermore, assume the equipment has a salvage value of $23,500 at the end of the project’s life. The relevant tax rate is 35 percent. All cash flows occur at the end of the year. What is the EAC of this equipment?