Portfolio A has a higher total risk but lower total return than the market portfolio. which of the following is least likely?
| A. |
Portfolio has a beta that is lower than 1. |
|
| B. |
Portfolio A has a relatively high unsystematic risk. |
|
| C. |
Portfolio A cannot possibly lie on the SML (security market line). |
Martha Stevens, CFA, is an investment manager who uses her friend, Robert James, exclusively for her clients' brokerage transactions. James provides better services than other brokers in return for a slightly higher price, which Stevens believes is justified. Which of the following statements is most accurate?
| A. |
Stevens is in violation of Standard III (A): Loyalty, Prudence, and Care. |
|
| B. |
Stevens is in violation of Standard III (B): Fair Dealing. |
|
| C. |
Steven has not violated any standard. |
In: Finance
Edelman Engines has $15 billion in total assets — of which cash and equivalents total $120 million. Its balance sheet shows $3 billion in current liabilities — of which the notes payable balance totals $1.1 billion. The firm also has $7.5 billion in long-term debt and $4.5 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $22 per share. The firm's EBITDA totals $0.792 billion. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What are Edelman's market/book and its EV/EBITDA ratios? Do not round intermediate calculations. Round your answers to two decimal places.
In: Finance
mary's bakery has sales of $213,600, total assets of $198,700, total debt ratio 0.6, and a profit margin of 2.4 percent. what is the equity multiplier?
In: Finance
|
Total assets are $14.2million, while sales are $19.2million, and total liabilities are $5 million. Profit margin equals 10%. |
| Requirement 1: |
|
What is net income? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).) |
| Net income | $ |
| Requirement 2: |
|
What is ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded 2 decimal places (e.g., 32.16).) |
| ROA | % |
| Requirement 3: |
|
What is ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
| ROE | % |
In: Finance
A firm’s Total Assets equals $10,000,000, and Total Equity equals $3,000,000. If its Return on Assets equals 10%, then what is its Earnings After Taxes?
| a. |
$700,000 |
|
| b. |
need to know what its Revenues are |
|
| c. |
$300,000 |
|
| d. |
$1,000,000 |
In: Finance
| Barrett, Inc., has a total debt ratio of .64, total debt of $324,000, and net income of $40,500. |
What is the company’s return on equity? |
In: Finance
Edelman Engines has $11 billion in total assets — of which cash and equivalents total $80 million. Its balance sheet shows $1.65 billion in current liabilities — of which the notes payable balance totals $0.85 billion. The firm also has $7.7 billion in long-term debt and $1.65 billion in common equity. It has 600 million shares of common stock outstanding, and its stock price is $50 per share. The firm's EBITDA totals $4.5 billion. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What are Edelman's market/book and its EV/EBITDA ratios? Do not round intermediate calculations. Round your answers to two decimal places.
In: Finance
ABC Electronics has sales of $225,000, profit margin of 9%, total assets of $280,000, and total equity of $210,000. The firm does not pay any dividends and does not plan to pay any dividends in the future. Currently, the firm is operating at 80% capacity. All costs vary directly with sales. The firm does not want to obtain any additional external equity. At the sustainable rate of growth, what will be the amount of debt on the firm’s pro-forma balance sheet? Will the firm raise new debt or repay debt? How much? Show full work, including current and pro-forma financial statements.
In: Finance
Total revenue for producing 10 units of output is $5. Total revenue for producing 11 units of output is $9. Given this information, the
Average revenue for producing 11 units is $2.
Average revenue for producing 11 units is $4
Marginal revenue for producing the 11th unit is $2.
Marginal revenue for producing the 11th unit is $4.
|
Output |
Total Cost |
|
0 |
40 |
|
1 |
80 |
|
2 |
110 |
|
3 |
130 |
|
4 |
160 |
|
5 |
200 |
|
6 |
250 |
|
7 |
320 |
Refer to the above data. If product price is $30, the firm
will:
A. shut down.
B. produce 4 units and realize a $40 economic profit.
C. produce 6 units and realize a $70 loss.
D. produce 5 units and incur a $60 loss.
In: Economics
Cleon's company has sales of $225,000, profit margin of 9%, total assets of $280,000, and total equity of $210,000. The firm does not pay any dividends and does not plan to pay any dividends in the future. Currently, the firm is operating at 80% capacity. All costs vary directly with sales. The firm does not want to obtain any additional external equity. At the sustainable rate of growth, what will be the amount of debt on the firm’s pro-forma balance sheet? Will the firm raise new debt or repay debt? How much additional equity financing is required for next year?
In: Finance