round 19

#1HOMEWORK #1A (Financial statements)

Advantage First Corporation has sales of $4,363,510; income tax of $327,343; the selling, general and administrative expenses of $233,466; depreciation of $346,697; cost of goods sold of $2,871,380; and interest expense of $137,604. What is the amount of the firm’s EBIT?

Your Answer

#2 Homework #6F (Cost of equity financing)

Heavy Rain Corporation just paid a dividend of $4.84 per share, and the firm is expected to experience constant growth of 5.39% over the foreseeable future. The common stock is currently selling for $61.36 per share. What is Heavy Rain’s cost of retained earnings using the Gordon Model (DDM) approach?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

#3Homework #7E (After-Tax cash flow from selling the old asset)

Reversing Rapids Co. purchases an asset for $127,201. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $10,330.

Calculate accumulated depreciation over 4 years. Round the answer to two decimals.

Your Answer:

#4 Homework #8A (Lock-Box system, Cost of Trade Credit)

Pets Store Inc Sells on terms of 3/15, net 80. What is the effective annual cost of trade credit under these terms? Use a 365-day year.

Round your answer to two decimal places in percentage form

Your Answer

#5Homework #8B (Carrying Costs and Ordering Costs)

Post Card Depot, an large retailer of post cards, orders 3,172,710 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 16 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.06 per post card per year. The ordering cost is $487 per order.

What is the annual total costs of post card inventory?

(Round the answer to two decimal places).

Your Answer:

#6Homework #8C (EOQ, Average Inventory)

Cheeseburger and Taco Company purchases 7,076 boxes of cheese each year. It costs $30 to place and ship each order and $3.00 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual total costs of post card inventory.

Round the answer to two decimals.

Your Answer:

#7 QUIZ

The next year the common stock of sliver corp will pay a dividend of $9.64 per share. If the company is growing at a rate of 4.69 percent per year, and your required rate of return is 10.39 percent, what is silvers company stock worth to you?

Round the answer to two decimal places

(you must show your work!)

#8 3D (FV of mixed stream)

You have been offered the opportunity to invest in a project that will pay $1,280 per year at the end of years one through three and $7,970 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 5.11 percent per year. What is the future value of this cash flow pattern at the end of year five?

Round the answer to two decimal places.

Your Answer:

#9 Homework #4E (zero-coupon bond)

18 years ago, Blue Lake Corp. issued 30 year to maturity zero-coupon bonds with a par value of $5,000. The current interest rate on this type of bond is 10.06 percent, compounded annually. What is the current price of the bond?

Round the answer to two decimal places.

Your Answer:

#10 Homework#5A Value and Expected rate of return on preferred stock)

Giant Co. has issued preferred stock with a par value of $100 and an annual dividend rate of 8.66 percent. If your required rate of return is 10.62 percent, how much will you be willing to pay for one share of this preferred stock?

Round the answer to two decimals places

Your Answer

#11 Homewok #5B (Value of Common Stock, Expected Rate of return on Common Stock)

Digging Deep Company's common stock is currently selling for $108.85 per share. Next year, the company dividend is expected to be $12.78 per share. The projected growth at a rate of dividends for this stock is 2.20 percent per year. What rate of return does the investor expect to receive on this stock if he or she purchases the stock today?

Round the answer to two decimal places in percentage form.(Write the percentage sign in the "units" box).

Your Answer: