Explain how managing your student loans (or personal loans and debt if you don’t have student loans) can contribute to personal financial success and growth.

Profitability Ratios The following data came from the financial statements of St. James Corp. for 2019 and 2018. 2019 2018 Net income $150,500 $120,000 Cash dividends paid on preferred stock $15,000 $15,000 Cash dividends paid on common stock $42,000 $38,000 Weighted average number of preferred shares outstanding 20,000 20,000 Weighted average number of common shares outstanding 105,000 95,000 Required: Calculate St. James' earnings per share as it would be reported on the 2019 income statement. Round your answer to the nearest cent. $

13. Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year. Ordering

costs are $95.00 per order and carrying costs are $4.25 per chair. What is BBOS’s total inventory

cost per year, including both carrying costs and ordering costs, if BBOS orders the EOQ of office

chairs? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

You are analyzing the Photon project, which has the expected cash flows below. The Photon project has a 4 year life (assume "best life") and is competing against another project for funding (the Warp project). That is, the two projects are mutually exclusive. The Warp project has an 8 year life (assume "best life"; cash flows not provided).

You notice that the projects have lives of different lengths, so you ask whether the Photon project can be repeated at the end of 4 years. The answer is that it can be. To adjust for the differing lives, you decide to use the NPV replacement chain method. For your initial analysis, you are to assume that Photon can be duplicated exactly.

Using the replacement chain method and a discount rate of 16.0%, compute Photon's NPV, in a way that would be appropriate to compare to the NPV of the Warp project. Round to nearest penny.

Year 0 cash flow = -171,000
Year 1 cash flow = 78,000
Year 2 cash flow = 78,000
Year 3 cash flow = 78,000
Year 4 cash flow = 78,000

1. Discuss the various implications for managers when making capital structure decisions.

​(Measuring growth)  Solarpower Systems earned ​$20 per share at the beginning of the year and paid out ​$8 in dividends to shareholders​ (so, D 0 = $ 8​) and retained ​$12 to invest in new projects with an expected return on equity of 21 percent. In the​ future, Solarpower expects to retain the same dividend payout​ ratio, expects to earn a return of 21 percent on its equity invested in new​ projects, and will not be changing the number of shares of common stock outstanding.

Q:

Calculate the future growth rate for​ Solarpower's earnings.

If the​ investor's required rate of return for​ Solarpower's stock is 14 percent​, what would be the price of​ Solarpower's common​ stock?

What would happen to the price of​ Solarpower's common stock if it raised its dividends to $14 and then continued with that same dividend payout ratio​ permanently? Should Solarpower make this​ change? ​ (Assume that the​ investor's required rate of return remains at 14 percent​.)

What would happened to the price of​ Solarpower's common stock if it lowered its dividends to ​$2 and then continued with that same dividend payout ratio​ permanently? Does the constant dividend growth rate model work in this​ case? Why or why​ not? ​ (Assume that the​ investor's required rate of return remains at 14 percent and that all future new projects will earn 21 ​percent.)

Consider the following debt-free project for a machine: Physical Lifespan 5 years Capital Expense, Year 0 $13,000 EBITDA / Year $8,000 Cost of Capital 5.3% Tax Rate 22% Depreciation Life 4 years What is the value of this project? Note: Report answer to 4 decimal places, no rounding.

Based on the estimated future incremental cash flows, what is the highest price (total amount, not per share) JHC should offer Mobile for a cash acquisition? Assume a cost of capital of 13%. how would I find the answer to this? what would the excel formulas be?

if the incremental values are

19200000 for year 1

18900000 for year 2

19900000 for year 3

22350000 for year 4

26900000 for year 5

28000000 for years 6-30

1.   A ___ gives the bondholder the right, but not the obligation, to sell/exchange the ___ for a pre-specified number of shares of the issuing firm's stock.
        Call option; bond
Callable bond; bond
        Convertible bond; bond
        Convertible bond; stock

2.   ___ is the amount by which the call price exceeds the ___ of a callable bond.
        Call premium; face value
        Conversion price; current stock price
        Call premium; conversion ratio
        Conversion premium, current stock price
        Conversion premium, face value

3. ___ is the rate by which the conversion price of a callable bond exceeds the ___ .
        Call premium; face value
        Conversion price; current stock price
        Call premium; conversion ratio
        Conversion premium, current stock price
        Conversion premium, face value

3. Which of the following amounts is closest to the net present value of a project that contributes $5,000 at the end of the first year and $8,000 at the end of the second year? The initial cost is $3,000. The appropriate interest rate is 8% for the first year and 9% for the second year.

A. $8,585

B. $8,426

C. $8,363

Maschale Corp. wants to issue bonds with a zero coupon bond, a face value of $1,000, and 12 years to maturity. Maschale
estimates that the bonds will sell for $384. Maschale Corp. common stock currently sells for $30 per share. Maschale paid
a dividend yesterday of $4.00 per share and expects the dividend to grow at a constant rate of 5% per year. Maschaleʹs
capital structure is $4 million debt, $6 million common equity and $5 million preferred stock which pays $3.2 dividend and
selling at $40 per share. Maschaleʹs marginal tax rate is 35%.

a. Calculate the after-tax cost of debt assuming Maschaleʹs bonds are its only debt.
b. Calculate the cost of preferred stock.
c. Calculate the cost of common equity.
d. Calculate the weighted average cost of capital

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

2) Milton Parker has a capital structure that consists of $7 million of debt, $2 million of preferred stock, and $11 million of
common equity, based upon current market values. Parkerʹs yield to maturity on its bonds is 7.4%, and investors require
an 8% return on Parkerʹs preferred and a 14% return on Parkerʹs common stock. If the tax rate is 35%, what is Parkerʹs
WACC? 2) _______
A) 12.25% B) 10.18% C) 8.12% D) 7.21%

Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

​

​

1. Calculate the requested measures in parts (a) through (g) for bonds A and B (assume that each bond pays interest semiannually):

Bond A . Bond B

Coupon    4% 4.5%

Yield to maturity 4% 5%

Maturity (years) 3 10

Par $100.00 $100.00

Price $100.00 ?

(a)   What is the price of bond B?

(b)   What is the price value of a basis point for bonds A and B?

(c)   Compute the Macaulay duration for the two bonds.

(d)   Compute the modified duration for the two bonds.

(e)   Compute the approximate modified duration for bonds A and B using the shortcut formula by changing yields by 10 basis points and compare your answers with those calculated in part (d).  

(d). Compute the convexity measure for the two bonds.

(g)   Compute the approximate convexity measure for bonds A and B using the shortcut formula by changing yields by 10 basis points and compare your answers to the convexity measure calculated in part (f).