Blog

What is the yield to maturity of a $1,000-face value bond that matures in 24 years and pays a 10.5 percent, semiannual coupon if it trades at $931.25?

A company purchased an asset for $2,750,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, and 14.81 percent, respectively. What is the book value of the equipment at the end of the project?

A project that costs $17,000 today will generate cash flows of $4,100 per year for seven years. What is the project’s payback period?

A project has a unit price of $19.45, a variable cost per unit of $7.07, fixed costs of $415,000, and depreciation expense of $30,000. Ignore taxes. What is the accounting break-even quantity?

The recovery in jobs has not been as quick as after previous recessions. Why is this?

What percentage of African American children are born to a single mother?

What is the value of one share of stock whose most recent dividend was $4.00 if the dividend is expected to grow 3.75 percent next year and every year thereafter and if the appropriate required return is 15.25 percent per year?

Country Breads uses specialized ovens to bake its bread. One oven costs $296,000 and lasts about 10 years before it needs to be replaced. The annual operating cash outflow per oven is $50,000. What is the equivalent annual cost, or EAC, of an oven if the required rate of return is 20 percent?

Blinding Light Co. has a project available with the following cash flows: Year Cash Flow 0 −$33,470 1 8,270 2 9,970 3 14,260 4 16,010 5 10,940 What is the project’s IRR?

Max Weber understood alienation as the