Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Firm A has Fixed costs of $250,000 and Variable costs are 70% of Sales. Firm B has Fixed costs of $600,000 and Variable Costs are 40% of Sales. At what level of Sales do the two firms have the same EBIT?
a) $666,667
b) $1,166,667
c) $1,600,000
d) $2,000,000
2. Which of the following statements about warrants and convertibles is FALSE?
a. The value of both warrants and convertibles depends on the stock price.
b. One primary difference between warrants and convertibles is that warrants bring in additional funds to the firm when exercised while convertibles reduce debt when exercised.
c. The coupon rate on convertible debt is higher than the coupon rate on similar straight debt because convertibles are riskier.
d. Warrants and Convertibles are used by corporations in order to get a lower rate on their debt.
Fun Land is considering adding a miniature golf course to its facility. The course would cost $64000, would be depreciated on a straight line basis over its 4 year life, and would have a zero salvage value. The estimated income from the golfing fees ..
Health care is not free. Someone must pay. But how? Does each person pay when receiving care? Do people contribute regular amounts in advance so that their care will be paid for when they need it? When a person contributes in advance, might the contr..
Using the NPV as a decision rule for investment purposes takes into account the following considerations:
Lorre, Inc., recently issued new securities to finance a new TV show. The project cost $14 million, and the company paid $725,000 in flotation costs. In addition, the equity issued had a flotation cost of 7 percent of the amount raised, whereas the d..
Fast Eddie’s Used car will sell you a 1992 Ford Escort for $3,000 with no money down. You agree to make weekly payments for 2 years, beginning one week after you buy the car. Compute monthly HPR, make sure to include dividend. Calculate arithmetic me..
Why do you think the spread between buy and sell rates used in credit card payments is smaller than those applying to foreign banknotes?
A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semi annually at a 10% annual rate. What does the bond currently sell for?
A firm's internal growth rate is all of the following except:
In your words, what is the locational impact of inventory? How does it differ for transit inventories and safety stocks?
What is the Cash Conversion Cycle (CCC)? Name the components of the CCC and explain why the CCC is important to business. Name and describe the three functions of managerial finance. For each, give an example other than those used in the text and lec..
A company has a zero-coupon bond outstanding, with face value 1000 and a 2 year maturity. The bond is risky but bears no systematic risk. There are two equally likely scenarios at maturity: What is the monetary value of the bankruptcy costs at year 2..
Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Compute the incremental Return on Sales if these new credit customers are accepted: Would establish local collect..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd