a During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest and $740 in dividends, and had an operating cash flow of $16,207. The firm acquired $33,500 in new fixed assets and sold $8,400 of old assets. Net working capital declined by $1,592 during the year. What is the annual cash flow to stockholders? b An investment project has an initial cost of $382, and cash flows $105, $130, $150, and $150 for Years 1 to 4, respectively. The required return is 9 percent. What is the discounted payback period? c Siam Capital Corporation offers a bond with a current market price of $1,200, a coupon rate of 8 percent, and a yield to maturity of 6 percent. The face value is $1,000. Interest is compounded semiannually. How many years is it until this bond matures?

a During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest and $740 in dividends, and had an operating cash flow of $16,207. The firm acquired $33,500 in new fixed assets and sold $8,400 of old assets. Net working capital declined by $1,592 during the year. What is the annual cash flow to stockholders? b An investment project has an initial cost of $382, and cash flows $105, $130, $150, and $150 for Years 1 to 4, respectively. The required return is 9 percent. What is the discounted payback period? c Siam Capital Corporation offers a bond with a current market price of $1,200, a coupon rate of 8 percent, and a yield to maturity of 6 percent. The face value is $1,000. Interest is compounded semiannually. How many years is it until this bond matures?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 18E

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