Blog

Which one of the following is classified as a tangible fixed asset?

The value today of the following cash flows is $6,423.71 at an interest rate of 5.8 percent. What is the value of the Year 3 cash flow? Year Cash Flow 1 $ 1,665 2 1,845 3 ? 4 2,505

Rocky Top has a capital intensity ratio of .87 at full capacity. Currently, total assets are $48,900 and current sales are $53,600. At what level of capacity is the firm currently operating?

The Connection has an equity multiplier of 1.13, a total asset turnover of .56, and a net profit margin of 18.8 percent. What is the return on assets?

Your parents are giving you $165 a month for 4 years while you are in college. At an interest rate of .34 percent per month, what are these payments worth to you when you first start college?

Anytime Coffee has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of 21.3, and a book value per share of $7.92. What is the market-to-book ratio?

A stock is expected to maintain a constant dividend growth rate of 4.2 percent indefinitely. If the stock has a dividend yield of 5.5 percent, what is the required return on the stock?

Choi Tech stock currently sells for $64 per share and the required return is 12 percent. The total return is evenly divided between the capital gains yield and the dividend yield. What is the current dividend per share if it’s the company’s policy to always maintain a constant growth rate in its dividends?

All else constant, a(n) ______ will increase the internal rate of growth.

You have a credit card with a balance of $13,600 and an APR of 18 percent compounded monthly. You have been making payments of $260 per month, but you have received a substantial raise and will increase your monthly payments to $335 per month. How many months quicker will you be able to pay off the account?