Reference no: EM133113972

QUESTION 1: Problem 2-5 Market Values and Book Values (LO1)

Kimbo Widgets Inc. purchased new cloaking machinery four years ago for $8 million. The machinery can be sold to the Rimalons today for $7.4 million. Kimbo's current statement of financial position shows net fixed assets of $6.0 million, current liabilities of $0.79 million, and net working capital of $370,000. If all the current assets were liquidated today, the company would receive $1.17 million cash. (Do not round intermediate calculations. Enter the answers in dollars, not millions of dollars, i.e. 1,234,567. Omit $ sign in your response.)

What is the book value of Kimbo's total assets today?

Total asset book value : $ _________________

What is the market value?

Total asset market value $ _______________

QUESTION 2:

Glenboro Fire Prevention Corp. has a profit margin of 7.60%, total asset turnover of 2.10, and ROE of 19.07%. What is this firm's debt-equity ratio? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Debt-equity ratio: ______________________

QUESTION 3:

Problem 7-23 Finding the Bond Maturity (LO2)

Colwood Corp. has 9.6% coupon bonds making annual payments with a YTM of 8.8%, current market value of $1,055.60.

How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Years left to maturity _____________________ years

QUESTION 4:

Problem 8-1 Stock Values (LO1)

The Stopperside Wardrobe Co. just paid a dividend of $1.83 per share on its stock. The dividends are expected to grow at a constant rate of 7.9% per year indefinitely. If investors require an 12.9% return on The Stopperside Wardrobe Co. stock, answer the following: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)

What is the current price?

Current price: $ _____________

What will the price be in three years?

Stock price in three years  $ _____________

What will the price be in 15 years?

Stock price in 15 years $ ___________

QUESTION 5:

Codner Corporation stock currently sells for $31 per share. The market requires a 11.6% return on the firm's stock. If the company maintains a constant 3.8% growth rate in dividends, what was the most recent dividend per share paid on the stock? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)

Dividend paid per share   $ ____________________