What is net income

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Problem 1: Likeline Inc., has sales $445,000, costs $173,000, depreciation expense of $72,000, interest expense of $36,000, and a tax rate of 35 percent. What is their net income?

Problem 2: Hamble, Inc., has sales of $19,070, costs of $10,460, depreciation expense of $2,530, and interest expense of $1,600. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

Problem 3: Bey Co, issued 20-year, $1,000 bonds at a coupon at a coupon rate of 7 percent. The bonds make annual payments. If the YTM on these bonds is 5 percent, what is the current bond price?

Problem 4: Fifteen Bank has an issue of 7% preferred with a $100.00 par value that just sold for $109 per share. What is the bank's cost of preferred stock?

Problem 5: You own a portfolio that has $2,600 invested in Stock A and $3,400 invested in Stock B. If the expected returns on these stocks are 11 percent and 17 percent, respectively, what is the expected return on the portfolio?

Problem 6: Suppose Tom, Ltd, just issued a dividend of $2.00 per share on its common stock. The company's dividend has been growing at a rate of 7%. If the stock currently sells for $50.00, what is your best estimate of the company's cost of equity?

Problem 7: A stock has a beta of 1.25, the expected return on the market is 12 percent, and the risk-free rate is 2 percent. What must the expected return on this stock be?

Reference no: EM13858257

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