Sub : Finance Pls answer very fast.I ll upvote. Thank You Smashed Pumpkins Company paid $136 in dividends and $568 in interest over the past year. The company increased retained earnings by $474 and had accounts payable of $594. Sales for the year were $16,265 and depreciation was $720. The tax rate was 21 percent. What was the company's EBIT? Options: $984 $1,333 $1,340 $6,181 $1,823
Q: Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales…
A: Sales Year 2020 = P 80000 Sales Year 2021 = P 97200 Selling Unit in year 2020 = Sales / Selling…
Q: Wheels, Inc. manufactures bicycles sold through retail bicycle shops in the southeastem United…
A: Hiring Salesperson Cost = 40000 + 0.04 x Let x be the value of sales, he earns a commission of 4% on…
Q: Cullumber Clinic is considering investing in new heart-monitoring equipment. It has two options.…
A: Net Present Value - It is the difference between the present value of cash outflow and present value…
Q: Which of the following is a problem associated with capital budgeting? Select all that apply.…
A: capital budgeting helps organizations make well-informed investment decisions, manage risks, and…
Q: Please use the following information to answer the next THREE questions. Kaplan Brewery is…
A: After tax salvage value is calculated as shown below. After tax salvage value=Market value-Tax…
Q: Charlie's Hamburgers is considering adding pizza to its menu. The pizza require purchasing cooking…
A: Year Cash Flows 0 ($16,000) 1 $4,700 2 $5,100 3 $5,400 4 $5,800 5 $6,000 6 $6,200…
Q: Consider the following two projects: Project A B Year 0 Cash Flow -100 -73 C. 1.7% d. 17.3% Year 1…
A:
Q: Carter Communications does not currently pay a dividend. You expect the company to begin paying a…
A: Price of stock can be determined using the dividend discounting model(DDM) of constant growth.
Q: Hamlin Steel Company wishes to determine the value of Craft Foundry, a firm that it is considering…
A: The dividend discount model refers to the method of calculation of the share price based on the…
Q: weekly payroll of Abkar Hardware includes 19 employees who earn $240 each. How much is the…
A: Tax rates Social security = 6.2 Medicare. =1.45 Total. =7.65%
Q: Suppose you wish to have $17,250 in 5 years. Use the present value formula to find how much you…
A: Compound = semiannually = 2 Future value = fv = $17,250 Time = t = 5 * 2 = 10 Interest rate = r = 5…
Q: nomas has started working, and he is wondering how much he needs to put aside every mont TV IN 2…
A: Due to the compounding of interest over the period of time large amount is being accumulated over…
Q: You are considering investing $1,000 in a T-bill that pays 4% and a risky portfolio, P, constructed…
A: A portfolio is a combination of different securities in one basket and portfolios are created for…
Q: C a s e 1 . J a n e M c D o n a l d , a f i n a n c i a l a n a l y s t f o r C a r r o…
A: The cash budget is prepared by businesses to know the cash receipts, payments, and closing cash…
Q: If the present discounted value of $1,562 received 7 years from now is $1,123, what is the interest…
A: Here, Particulars Values Future value (FV) $1,562.00 Present discounted value (PV)…
Q: Suppose that you took out a loan at 10% interest for 283 days. If the amount of interest was…
A: Interest rate = 10% Period = 283 days Amount of interest = $852.88
Q: Which would increase a firm’s return on equity? A. Issuance of 12% bonds and investing the proceeds…
A: Return on equity (ROE) is a financial measurement that measures company's profitability by the…
Q: Bushman, Inc., issues $250,000 of 9% bonds that pay interest semiannually and mature in 10 years.…
A: A bond is a kind of debt security issued by the government and private companies for raising funds…
Q: 2.11 Heddy is considering working on a project that will cost her $20 000 today. It will pay her $10…
A: Cash flows represent the amount of cash generated by the firm from its normal business operations.…
Q: hich statement about book value per share (BVPS) is true??? A. Market price per share usually…
A: When company start the operations than company issues shares and they are issued at very low prices…
Q: force of interest measured in years is δ(t) = 0.02 + 0.01t for t ≥ 0. (a)Compute the accumulated…
A: Over the period of time due to compounding of interest large amount of interest is accumulated and…
Q: Cobali Industries had sales of 158,700 units at a price of $10,91 per unit. It faced fixed…
A: Here, Particulars Values Sales units 158700 Selling price per unit $ 10.91 Fixed operating…
Q: Filer Manufacturing has 4,766,598 shares of common stock outstanding. The current share price is…
A: The capital structure is defined as the combination of debt and equity that is used during the…
Q: Considering trading days only, Microsoft Corporation (MSFT) has an expected return of 11.67%…
A: Expected return are the returns required by the investor, who has calculated the risk and return of…
Q: Emerald City Umbrellas sells umbrellas and rain gear in Seattle, so its sales are fairly level…
A: Working capital refers to the financial term used for showing the difference between the current…
Q: Everjust, Inc., stock has an expected return of 16 percent. The risk-free rate is 3 percent and the…
A: Stock beta is measure the risk which is involved in earning the return from the stock in relation to…
Q: If a trader developed a series of algorithms and bots to help her profit from predictable price…
A: In this algorithm trading, we need to look at each trade when the trade would get executed.
Q: Smashed Pumpkins Company paid $136 in dividends and $568 in interest over the past year. The company…
A: Here, Particulars Values Dividends $136 Interest $568 Additions to retained earnings…
Q: Many companies still go ahead to undertake capital projects even when these projects have a negative…
A: The net present value method is used to evaluate projects for investment by the companies. The…
Q: equires an initial investment in net working capital of $250,000, and the fixed ave a market value…
A: NPV is the difference between the project value of cash flow and initial investment and it must be…
Q: Suppose you have a stock market portfolio with a beta of 1.34 that is currently worth $261 million.…
A: An investor's collection of stocks, funds, and other market-traded instruments is known as their…
Q: A derivative is a financial instrument whose value is derived from the underlying asset. It’s an…
A: A derivative is a type of financial contract whose value is determined by the value of an underlying…
Q: Schwert Corp. shows the following information on its 2019 income statement: sales = $246,000; costs…
A: Net capital spending refers to the amount that should be spend by the company for acquiring the…
Q: An individual has $35,000 invested in a stock which has a beta of 0.8 and $40,000 invested in a…
A: Portfolio Beta simply means to be a risk of all those investments, securities, or financial…
Q: According to the CAPM, which of the following risks is irrelevant? Select one: a. Unsystematic…
A: CAPM stands for Capital Asset Pricing Model. This theoretical model shows the relationship between…
Q: a y i n g P 3 7 , 5 0 0 . 0 0 p e r m o n t h o n h e r P 2 , 0 0 0 , 0 0 0 . 0 0 , 8…
A: In case of mortgage, a series of periodic equal amount (PMT) is paid. Based on this, total amount to…
Q: r
A: To calculate the overall cost of capital for Humble Manufacturing, we need to calculate the cost of…
Q: Information related to Company PM: Outstanding Shares = Required rate= Debt- Growth rate= Bond price…
A: The question is based on the concept of Stock valuation. The fair value of a company's stock is…
Q: 1 . F r e d O n g k e k o w i s h e s t o h a v e P 4 M i n a r e t i r e m e n t…
A: 1. PV = A * 1-(1+r)-nr where , PV = present value of annuity A = periodic withdrawals r = interest…
Q: Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales…
A: Here, Particulars 2020 2021 Sales 80000 97200 Cost of sales 50000 72000 Gross margin 30000…
Q: Which would increase a firm's return on equity? A. Issuance of 12% bonds and investing the proceeds…
A: Return on Equity = Return on income can be calculated by dividing the company net income by the…
Q: Rosina plans on saving $2,225 a year and expects to earn a rate of 8.37% compounded quarterly. How…
A: Amount in the future is the future value of annuity accumulated along with interest. This is the…
Q: A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal…
A: A coupon is the interest payment received by a bondholder from the date of issuance to the maturity…
Q: Sub : Finance Pls answer very fastt.I ll upvote. Thank You The Rusty Auto Parts Company has…
A: Cost of Inventory = Sales - Markup amount
Q: How did we find the NPV here for $17997? How did we find the NPV here for $17997? (Please calculate…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: Suppose intel stock has a beta of 0.80, whereas Boeing stock has a beta of 1.15. If the risk-free…
A: Intel Beta = ib = 0.89 Boeing Beta = bb = 1.15 Risk free rate = rf = 3.1% Market return = rm = 10.1%
Q: Fey Fashion paid the following dividends from 2013 to 2019: 2013 2014 2015 2016 2017 2018 2019 $1.00…
A: Please note that under Answering Guidelines only 1 question can be solved. Kindly repost the 2nd…
Q: Firms should focus on promoting the interest of all stakeholders rather than prioritising only the…
A: The shareholders owners of the company and the invest there on in the company in order to get the…
Q: Beginning three months from now, you want to be able to withdraw $2,200 each quarter from your bank…
A: Present value refers to an amount of the an asset that will be present at some future date. It…
Q: Consider the following information for Vine Inc.: Beta: 1.39 Risk-free rate: 7% Market Risk Premium:…
A: According to Capital asset pricing model ( CAPM), ke = Rf + [beta × ( Rm - Rf)] Where, ke = cost of…
Sub : Finance
Pls answer very fast.I ll upvote. Thank You
Smashed Pumpkins Company paid $136 in dividends and $568 in interest over the past year. The company increased
Options: $984 $1,333 $1,340 $6,181 $1,823
Step by step
Solved in 3 steps with 2 images
- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectivelyThe Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
- The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is 200,000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the companys net income? What is its net cash flow?Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company’s weighted average cost of capital is 12%. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Calculate the value of Kendra’s operations.The Raattama Corporation had sales of $3.5 million last year, and it earned a 5% return (after taxes) on sales. Recently, the company has fallen behind in its accounts payable. Although its terms of purchase are net 30 days, its accounts payable represents 60 days’ purchases. The company’s treasurer is seeking to increase bank borrowing in order to become current in meeting its trade obligations (that is, to have 30 days’ payables outstanding). The company’s balance sheet is as follows (in thousands of dollars): How much bank financing is needed to eliminate the past-due accounts payable? Assume that the bank will lend the firm the amount calculated in part a. The terms of the loan offered are 8%, simple interest, and the bank uses a 360-day year for the interest calculation. What is the interest charge for 1 month? (Assume there are 30 days in a month.) Now ignore part b and assume that the bank will lend the firm the amount calculated in part a. The terms of the loan are 7.5%, add-on interest, to be repaid in 12 monthly installments. What is the total loan amount? What are the monthly installments? What is the APR of the loan? What is the effective rate of the loan? Would you, as a bank loan officer, make this loan? Why or why not?
- Income, Cash Flow, and Future Losses On January L 2017, Cermack National Bank loaned 55,000,000 under a 2-year, zero coupon note to a real estate developer. The bank recognized interest revenue on this note of approximately $400,000 per year. Due to an economic downturn, the developer was unable to pay the $5,800,000 maturity amount on December 31, 2018. The bank convinced the developer to pay $800,000 on December 31, 2018, and agreed to extend $5,000,000 credit to the developer despite the gloomy economic outlook for the next several years. Thus, on December 31, 2018, the bank issued a new 2-year, zero coupon note to the developer to mature on December 31, 2020, for $6,000,000. The bank recognized interest revenue on this note of approximately $500,000 per year. The banks external auditor insisted that the riskiness of the new loan be recognized by increasing the allowance for uncollectible notes by $1,500,000 on December 31, 2018, and $2,000,000 on December 31, 2019. On December 31, 20201 the bank received $1,200,000 from the developer and learned that the developer was in bankruptcy and that no additional amounts would be recovered. Required: Prepare a schedule showing the effect of the notes on net income in each of the 4 years.Income, Cash Flow, and Future Losses On January L 2017, Cermack National Bank loaned 55,000,000 under a 2-year, zero coupon note to a real estate developer. The bank recognized interest revenue on this note of approximately $400,000 per year. Due to an economic downturn, the developer was unable to pay the $5,800,000 maturity amount on December 31, 2018. The bank convinced the developer to pay $800,000 on December 31, 2018, and agreed to extend $5,000,000 credit to the developer despite the gloomy economic outlook for the next several years. Thus, on December 31, 2018, the bank issued a new 2-year, zero coupon note to the developer to mature on December 31, 2020, for $6,000,000. The bank recognized interest revenue on this note of approximately $500,000 per year. The banks external auditor insisted that the riskiness of the new loan be recognized by increasing the allowance for uncollectible notes by $1,500,000 on December 31, 2018, and $2,000,000 on December 31, 2019. On December 31, 20201 the bank received $1,200,000 from the developer and learned that the developer was in bankruptcy and that no additional amounts would be recovered. Required: 1. Prepare a schedule showing annual cash flows fur the two notes in each of the 4 years.Income, Cash Flow, and Future Losses On January L 2017, Cermack National Bank loaned 55,000,000 under a 2-year, zero coupon note to a real estate developer. The bank recognized interest revenue on this note of approximately $400,000 per year. Due to an economic downturn, the developer was unable to pay the $5,800,000 maturity amount on December 31, 2018. The bank convinced the developer to pay $800,000 on December 31, 2018, and agreed to extend $5,000,000 credit to the developer despite the gloomy economic outlook for the next several years. Thus, on December 31, 2018, the bank issued a new 2-year, zero coupon note to the developer to mature on December 31, 2020, for $6,000,000. The bank recognized interest revenue on this note of approximately $500,000 per year. The banks external auditor insisted that the riskiness of the new loan be recognized by increasing the allowance for uncollectible notes by $1,500,000 on December 31, 2018, and $2,000,000 on December 31, 2019. On December 31, 20201 the bank received $1,200,000 from the developer and learned that the developer was in bankruptcy and that no additional amounts would be recovered. Required: Which figure, net income or net cash flow, does the better job of telling the banks stock-holders about the effect of these notes on the bank? Explain by reference to the schedules prepared in Requirements 1 and 2.