Blog

If a firm equates its pro forma sales growth to the rate of sustainable growth, and has positive net income and excess capacity, then the:

The financial planning process tends to place the least emphasis on a firm’s:

During the year, Pharr Corporation had sales of $459,000. Costs were $388,000 and depreciation expense was $102,800. In addition, the company had an interest expense of $79,250 and a tax rate of 21 percent. What is the operating cash flow for the year? Ignore any tax loss carry-forward provisions.

You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $39,000. You feel you can earn an APR of 10.5 percent compounded monthlyand plan to save $485 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation?

A call-protected bond is a bond that:

Thom owes $7,200 on his credit card. The credit card carries an APR of 18.4 percent compounded monthly. If Thom makes payments of $225 per month, how long will it take for him to pay off the credit card assuming that he makes no additional charges?

Peggy Grey’s Cookies has net income of $360. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year, the company sold $81 worth of common stock. What is the cash flow to stockholders?

Timber Company just paid its annual dividend of $3.82 and expects to reduce this payout by 6 percent each year indefinitely. What is the per share value of this stock if you require a return of 14.5 percent?

Your employer contributes $75 at the end of each week to your retirement account. The account will earn a weekly interest rate of .16 percent. How much will the account be worth when you retire in 40 years?

Dandelion Fields has a Tobin’s Q of .96. The replacement cost of the firm’s assets is $225,000 and the market value of the firm’s debt is $101,000. The firm has 20,000 shares of stock outstanding and a book value per share of $2.09. What is the market-to-book ratio?