Recent Question

What is the stock's expected price following the split . Ross Financial has suffered losses in recent years, and its stock currently sells for only $0.50 per share. Management wants to use a reverse split to get the price up to a more "reasonable" level, which it thinks is $25 per share. How many of the old shares must be given up for one new share to achieve the $25 price, assuming this transaction has no effect on total market value? ...

Other / Other 28 Apr 2016

Which of the following is a primary market transaction 1. Ajax Corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio? a. 4.72 b. 4.97 c. 5.23 d. 5.51 e. 5.80 2. Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets rati ...

Other / Other 28 Apr 2016

DeAngelo Corp.'s projected net income . Pavlin Corp.'s projected capital budget is $2,000,000, its target capital structure is 40% debt and 60% equity, and its forecasted net income is $1,000,000. If the company follows a residual dividend policy, how much dividends will it pay or, alternatively, how much new stock must it issue? Dividends Stock Issued a. $514,425 $162,901 b. $541,500 $171,475 c. $570,0 ...

Other / Other 28 Apr 2016

Fauver Worldwide forecasts a capital budget . D&P Co. has a capital budget of $2,000,000. The company wants to maintain a target capital structure that is 35% debt and 65% equity. The company forecasts that its net income this year will be $1,800,000. If the company follows a residual dividend policy, what will be its total dividend payment? a. $100,000 b. $200,000 c. $300,000 d. $400,000 e. ...

Other / Other 28 Apr 2016

Trenton Publishing follows a strict residual dividend policy . Which of the following would be most likely to lead to a decrease in a firm’s dividend payout ratio? a. Its earnings become more stable. b. Its access to the capital markets increases. c. Its R&D efforts pay off, and it now has more high-return investment opportunities. d. Its accounts receivable decrease due to a change in its credit policy. e. Its stock price ha ...

Other / Other 28 Apr 2016

What is the opportunity cost of Project A 1. What is the opportunity cost of Project A if it is expected to yield 10%, while the yields from other projects range from 6.5% to 11.5% with the mean 9% and 5% standard deviation? a. 10% b. 6.5% c. 11.5% d. 9% e. 9.3% 2. You recently sold 200 shares of Disney stock, and the transfer was made through a broker. This is an example of: a. A money market transaction. b. A primary market ...

Other / Other 28 Apr 2016

Which of the following effects would occur as a result of this action 1. The term “additional funds needed (AFN)” is generally defined as follows: a. Funds that are obtained automatically from routine business transactions. b. Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock, to support operations. c. The amount of assets required per dollar of sales. d. The a ...

Other / Other 28 Apr 2016

Which of the following actions will best enable a company to raise . Firm M is a mature firm in a mature industry. Its annual net income and net cash flows are both consistently high and stable. However, M’s growth prospects are quite limited, so its capital budget is small relative to its net income. Firm N is a relatively new firm in a new and growing industry. Its markets and products have not stabilized, so its annual opera ...

Other / Other 28 Apr 2016

Myron Gordon and John Lintner believe that the required return on equity increases . In the real world, dividends a. are usually more stable than earnings. b. fluctuate more widely than earnings. c. tend to be a lower percentage of earnings for mature firms. d. are usually changed every year to reflect earnings changes, and these changes are randomly higher or lower, depending on whether earnings increased or decreased. e. are usua ...

Other / Other 28 Apr 2016

Why may there be deviations from Purchasing Power Parity 1. Why may there be deviations from Purchasing Power Parity? 2. Translation exposure is one of the types of exchange rate risk. Which statement best describes translation exposure? 3. A speedup in __________ should __________ a firm's financing needs; whereas, a slowdown in __________ should __________ financing needs for a firm. Business Management Assignment Help, Busin ...

Other / Other 28 Apr 2016