QUESTION The following table tracks the main components of working capital over the life of a four-year project. 2000 2001 2002 2003 ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
Date: September 2nd, 2020
QUESTION What are the main disadvantages of the corporate form of organization? The main disadvantage of a corporate form of organization is the complexity in formation of a corporation. The formation of a corporation form of a business organization requires the fulfillment of a lot of legal formalities. Moreover there is a distinction of ownership […]
Date: September 2nd, 2020
QUESTION Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were $4,562,500, and accounts receivable averaged $437,500. Half of Grunewald”s customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald”s non discount customers? (Hint: Calculate sales/day based on a 365-day […]
Date: September 2nd, 2020
QUESTION What are the advantages of matching the maturities of assets and liabilities? What are the disadvantages? The matching approach for meeting the financing needs of the company states that fluctuating assets should be financed by the short term sources of financing while the long term i.e. fixed assets of the business should be financed […]
Date: September 2nd, 2020
QUESTION Buena Terra Corporation is reviewing its capital budget for the upcoming year. It has paid a $3.00 dividend per share (DPS) for the past several years, and its shareholders expect the dividend to remain constant for the next several years. The company”s target capital structure is 60 percent equity and 40 percent debt; it […]
Date: September 2nd, 2020
QUESTION The Rogers Company is currently in this situation: (1) EBIT = $4.7 million; (2) tax rate, T = 40%; (3) value of debt, D = $2 million; (4) rd = 10%; (5) rs = 15%; (6) shares of stock outstanding, n0 = 600,000; and stock price, P0 = $30. The firm”s market is stable, […]
Date: September 2nd, 2020
QUESTION At year-end 2002, total assets for Bertin Inc. were $1.2 million and accounts payable were $375,000. Sales, which in 2002 were $2.5 million, are expected to increase by 25 percent in2003. Total assets and accounts payable are proportional to sales and that relationship will be maintained. Bertin typically uses no current liabilities other than […]
Date: September 2nd, 2020
QUESTION FIN 534 Homework Chapter 14 1. Myron Gordon and John Lintner believe that the required return on equity increases as the dividend payout ratio is decreased. Their argument is based on the assumption that . 2. Which of the following should notinfluence a firms dividend policy decision? 3. Which of the following statements about […]
Date: September 2nd, 2020
QUESTION Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data: Debt ratio: 50% Quick ratio: 0.80X Total assets turnover: 1.5X ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
Date: September 2nd, 2020
QUESTION The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the NPV indicated rejection, but the IRR and Payback methods both indicated acceptance. Explain why this conflicting situation might occur and what conclusions the analyst […]
Date: September 2nd, 2020
