Questions
 Lisa Simpson wants to have $1,400,000 in 30 years by making equal annual​ end-of-the-year deposits into...

 Lisa Simpson wants to have $1,400,000 in 30 years by making equal annual​ end-of-the-year deposits into a​ tax-deferred account paying 11.75 percent annually. What must​ Lisa's annual deposit​ be?

In: Finance

Explain the implications of the “Degree of Operating Leverage”.

Explain the implications of the “Degree of Operating Leverage”.

In: Finance

1. Suppose you negotiate a selling price of $29,995 for a Ford Explorer. You make a...

1. Suppose you negotiate a selling price of $29,995 for a Ford Explorer. You make a down payment of 10% of the selling price and finance the remaining balance for 5 years at an annual interest rate of 8.3%. The sales tax is 8.3% of the selling price, and the license fee is 0.4% of the selling price. Find the monthly payment. (Round your answer to the nearest cent.)

$ _________

2. A mutual fund has $600 million worth of stock, $600,000 in cash, and $1 million in other assets. The fund's total liabilities amount to $2 million. There are 10million shares outstanding. You invest $9,000 in this fund. How many shares are you purchasing? (Round your answer down to the nearest whole number.)

_________ shares

3. A credit card account had a $285 balance on March 5. A purchase of $181 was made on March 12, and a payment of $100 was made on March 28. Find the average daily balance if the billing date is April 5. (Round your answer to the nearest cent.)

$ ________

4. Use the given partial stock table. Round dollar amounts to the nearest cent when necessary.

Consider the following for Boeing (BA).

(a) What is the difference between the highest and lowest prices paid for this stock during the last 52 weeks?

$ _______

(b) Suppose that you own 850 shares of this stock. What dividend do you receive this year?

$ _______

(c) How many shares of this stock were sold during the trading day?

_______ shares

(d) Did the price of a share of this stock increase or decrease during the day shown in the table?

1-increase

2- decrease   

(e) What was the price of a share of this stock at the start of the trading day?

$ _______

In: Finance

​(​Break-even point and operating leverage​) Footwear Inc. manufactures a complete line of​ men's and​ women's dress...

​(​Break-even

point and operating

leverage​)

Footwear Inc. manufactures a complete line of​ men's and​ women's dress shoes for independent merchants. The average selling price of its finished product is

​$85

per pair. The variable cost for this same pair of shoes is

​$60

.

Footwear Inc. incurs fixed costs of

​$180 comma 000

per year.

a. What is the​ break-even point in pairs of shoes sold for the​ company?

b. What is the dollar sales volume the firm must achieve to reach the​ break-even point?

c. What would be the​ firm's profit or loss at the following units of production​ sold:

6 comma 000

pairs of​ shoes?

12 comma 000

pairs of​ shoes?

15 comma 000

pairs of​ shoes?

In: Finance

How long will it take to pay off a loan of $45,000 at an annual rate...

How long will it take to pay off a loan of $45,000 at an annual rate of 8 percent compounded monthly if you make monthly payments of $600? Use five decimal places for the monthly percentage rate in your calculations.

In: Finance

You are graduating from college at the end of this semester and after reading the The...

You are graduating from college at the end of this semester and after reading the The Business of Life box in this​ chapter, you have decided to invest $5100 at the end of each year into a Roth IRA for the next 47 years. If you earn 9 percent compounded annually on your investment, how much will you have when you retire in 47 years? How much will you have if you wait 10 years before beginning to save and only make 37 payments into your retirement account?

In: Finance

(1) How is the future, present, and past reflected in terms of interior and exterior finance?

  • (1) How is the future, present, and past reflected in terms of interior and exterior finance?

In: Finance

PLEASE ANSWER J&K :) THANK YOU! 1. Q Corporation and R Inc. are two companies with...

PLEASE ANSWER J&K :) THANK YOU!

1. Q Corporation and R Inc. are two companies with very similar characteristics. The only difference between the two companies is that Q Corp. is an unlevered firm, and R Inc. is a levered firm with debt of $5 million and cost of debt of 10%. Both companies have earnings before interest and taxes (EBIT) of $2 million and a marginal corporate tax rate of 40%. Q Corp. has a cost of capital of 15%.                         (20 marks total)

a. What is Q’s firm value?                                                                                     

b. What is R’s firm value?                                                                                      

c.   What is R’s equity value?                                                                         (1 mark)

d. What is Q’s cost of equity capital?                                                        (1 mark)

e. What is R’s cost of equity capital?                                                       .

f.   What is Q’s WACC?                                                                                     (1 mark)

g. What is R’s WACC?                                                                                  

h. Compare the WACC of the two companies. What do you conclude?       (1 mark)

i.    What principle have you proven in this case?                                                (1 mark)

j.   Both companies are now evaluating a project that requires an initial investment of $1.15 million and that will yield cash inflows of $500,000 per year for the next three years. Assume that this project has the same risk level as the individual firm’s assets. Should Q invest in this project? Should R invest in this project?                                                                                                                               

k. Based on your results for part (j), discuss the effects of leverage and its tax shields effects on the future value of the two firms.                                 (1 mark)

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You are planning to purchase a new car explain whether it is to your advantage to...

You are planning to purchase a new car explain whether it is to your advantage to lease or buy your new car, and why. What did you have to consider about your personal circumstances before making this decision? What are the potential drawbacks of your decision?

In: Finance

1. One argument for high dividend payout is the desire of investors for current income. Explain...

1. One argument for high dividend payout is the desire of investors for current income. Explain why this argument does/does not work in a perfect capital market with no transaction costs. Explain how this argument does/does not work in real life.

In: Finance

​(Operating leverage​) The Quarles Distributing Company manufactures an assortment of cold air intake systems for​ high-performance...

​(Operating leverage​) The Quarles Distributing Company manufactures an assortment of cold air intake systems for​ high-performance engines. The average selling price for the various units is ​$600 . The associated variable cost is ​$400 per unit. Fixed costs for the firm average $ 190 comma 000 annually. a. What is the​ break-even point in units for the​ company? b. What is the dollar sales volume the firm must achieve to reach the​ break-even point? c. What is the degree of operating leverage for a production and sales level of 5 comma 000 units for the​ firm? (Calculate to three decimal​ places.) d. What will be the projected effect on earnings before interest and taxes if the​ firm's sales level should increase by 50 percent from the volume noted in part ​(c​)?

In: Finance

Bahamas Inc. is experiencing rapid growth. The company expects dividends to grow at 15 % per...

Bahamas Inc. is experiencing rapid growth. The company expects dividends to grow at 15 % per year for the next 4 years before leveling off at 6% into perpetuity. The required return on the company's stock is 11 percent. The dividend per share just paid was $1.25. 1) calculate the current market value of Bahamas Inc.'s stock. 2) calculate the expected market price of the share in one year. 3) calculate the expected dividend yield and capital gains yield expected at the end of the first year.

In: Finance

Review any current events/transactions that have taken place and have an opinion about them. Describe 3...

Review any current events/transactions that have taken place and have an opinion about them.

Describe 3 Business transactions in DETAIL. (M&A, IPO, stocks)

In: Finance

(​Break-even analysis​) You have developed the income statement in the popup​ window, LOADING... ​, for the...

(​Break-even

analysis​)

You have developed the income statement in the popup​ window,

LOADING...

​, for the Hugo Boss Corporation. It represents the most recent​ year's operations, which ended yesterday. Your supervisor in the​ controller's office has just handed you a memorandum asking for written responses to the following​ questions:

a. What is the​ firm's break-even point in sales​ dollars?

b. If sales should increase by 35 ​percent, by what percent would earnings before taxes​ (and net​ income) increase?

a. What is the​ firm's break-even point in sales​ dollars?

​$26083606

  

​(Round to the nearest​ dollar.)

b. If sales should increase by 35 ​percent, by what percent would earnings before taxes​ increase by _______ ​(Round to two decimal​ places.)

question b please!

Sales   50,803,627
Variable costs   (21,878,000)
Revenue before fixed costs   28,925,627
Fixed costs   (14,851,000)
EBIT   14,074,627
Interest expense   (1,031,032)
Earnings before taxes   13,043,595
Taxes at 35%   (4,565,258)
Net income   ˜NI

In: Finance

The following table lists prices of Alphabet options in December 2015 when Alphabet stock was selling...

The following table lists prices of Alphabet options in December 2015 when Alphabet stock was selling for $470.

Expiration Date Exercise Price Call Price Put Price
March 2016 $ 440 $ 43.66 $ 15.10
470 26.75 27.90
475 14.70 46.40

Use the data in the table to calculate the payoff and the profits for investments in each of the following June maturity options, assuming that the stock price on the expiration date is $450. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Payoff Profit
a. Call option with exercise price of $440
b. Put option with exercise price of $440
c. Call option with exercise price of $470
d. Put option with exercise price of $470
e. Call option with exercise price of $500
f. Put option with exercise price of $500

This is an exact screenshot of the question. This same question with different number was answer in the past on Chegg's website. This is all the info. Please pass this question to another Q&A expert if this continues to be a problem. Thanks

In: Finance