Chasteen Hall currently has 49 days in its cash cycle and 12…

Chasteen Hall currently has 49 days in its cash cycle and 123 days in its operating cycle. The firm purchases its inventory from one supplier. This supplier has offered a 5 percent discount to the firm if it will pay for its purchases within 10 days instead of the normal 38 days. If the firm opts to take advantage of the discount offered, its new operating cycle will be _____ days and its new cash cycle will be _____ days.

If the economy is normal, the stock of Flores Corporation is…

If the economy is normal, the stock of Flores Corporation is expected to return 12 percent. If the economy falls into a recession, the stock’s return is projected at a negative 3.5 percent. The probability of a normal economy is 76 percent. What is the standard deviation of the returns on this stock?

You are evaluating a project that requires $324,000 in exter…

You are evaluating a project that requires $324,000 in external financing. The flotation cost of equity is 8.4 percent and the flotation cost of debt is 5.1 percent. What is the initial cost of the project including the flotation costs if you maintain a debt-equity ratio of .35?

An investment costs $239,000 and has projected cash flows of…

An investment costs $239,000 and has projected cash flows of $123,900, $78,400, and −$22,300 for Years 1 to 3, respectively. The required rate of return is 15.5 percent. Based solely on the internal rate of return rule, should you accept the project? Why or why not?