Genetic Insights Co. purchases an asset for $14,385. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r..
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Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value Years Interest Rate Future Value $ 620 9 % $ 1,619 870 10 2,071 19,000 17 ..
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Hollywood Tabloid needs a new state-of-the-art camera to produce its monthly magazine. The company is looking at two cameras that are both capable of doing the job and has determined the following: Camera 1 costs $4,000. It should last for eight year..
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The table below shows recent worldwide market shares of producers of printers. (See page 576 and Problem 26-1) Firm Share of Worldwide Market Sales Brother 2% Canon 22% Dell 6% Epson 18% Hewlett-Packard 36% Lexmark 4% Samsung 11% Other 1% a. In this ..
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You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.15 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?
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Yield to maturity A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,227, and currently sell at a price of $1,388.96. What is their nominal yield to maturity? Round your a..
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You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has pretax operating costs of $70,000 per year. The Techron II costs $455,000, has a five-year life, and has pretax operating co..
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After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only individual voting for you.If Schenkel has 550,000 shares ..
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Folic Acid Inc., has $20 million in earnings, pays $2.75 million in interest to bondholders, and $1.80 million in dividends to preferred shareholders. What are the common shareholders’ residual claims to earnings? What are the common shareholders’ le..
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Killer Whale, Inc., has the following balance sheet statement items: total current liabilities of $889,551; net fixed and other assets of $1,518,050; total assets of $3,015,920; and long term debt of $830,963. What is the amount of the firm’s current..
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Lyons Corp. expects annual dividends of $0.55, $0.85, $1.15 a share over the next three years, respectively. In year 4 and thereafter, Lyons expects to pay a constant dividend amount of $2.00 a share. The required rate of return for Lyons is 9.0%, an..
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Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 18 years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 4 percent annually. ..
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