What is the common-size statement value of inventory

Assignment Help Financial Management
Reference no: EM132005793

1. Quality Home Made Ice Cream has plans to pay decreasing annual dividends of $1.50, $1.25, and $1.00 over the next three years, respectively. After that, the firm will increase the dividend by 4 percent each year. What is the value of this stock today at a discount rate of 9 percent?

a) $19.93

b) $19.69

c) $19.26

d) $19.54

e) $20.48

2. Contrail Air, Inc. has sales of $1500, Net income of $300, net fixed assets of $700, and current assets of $300. Inventory totals $250.

What is the common-size statement value of inventory?

63%

70%

25%

14%

Reference no: EM132005793

Questions Cloud

What is operating cash flow : The firm does not have interest expense. What is the operating Cash Flow?
What is the value of your holdings in this stock : Your required rate of return is 15 percent. Ignoring taxes, what is the value of your holdings in this stock?
Assume the cost of the loan : Assume the cost of the loan is $1.00 per day per $100 borrowed until the loan is repaid.
Managers should follow in raising capital for investment : According to the Pecking Order Theory of Stewart Myers, what is the pecking order that managers should follow in raising capital for investment?
What is the common-size statement value of inventory : Contrail Air, Inc. has sales of $1500, Net income of $300, What is the common-size statement value of inventory?
What is the market value for the company equity : What is the market value for the company’s equity?
Computech corporation is expanding rapidly : cComputech Corporation is expanding rapidly and currently needs to retain all of its earnings;
Risks that the bank failed to mitigate adequately : Identify five areas of Risks that the bank failed to mitigate adequately that could have contributed to the crisis at the bank in 2008.
Estimate the wacc for company : Estimate the WACC for the Company XYZ given that its effective tax rate is 25%. Show work.

Reviews

Write a Review

Financial Management Questions & Answers

  From an economic perspective are these policies beneficial

What has been the effect of higher minimum wage laws in cities such as Seattle, WA? Draw a graph showing the effect these laws have on market for low-skilled labor and upon consumer and supplier surplus (Be careful!). Who benefits from these increase..

  Determine suitable minimum acceptable rate of return

Determine a suitable Minimum Acceptable Rate of Return (MARR) for this investment.

  What are the solution for over trading

What are the solution for over trading that has caused for expanding operation.

  Compare the average value of the standard deviations

Compare the average value of the standard deviations of the returns on the securities included in each portfolio with the standard deviation of portfolio's returns.

  Suppose clovix pays the special dividend

Clovix Corporation has $50 million in cash, 10 million shares outstanding, and a current share price of $30. Clovix is deciding whether to use the $50 million to pay an immediate special dividend of $5 per share, Suppose Clovix pays the special divid..

  Credit against the estate tax payable reduces taxable estate

A credit against the estate tax payable reduces the taxable estate before the tax rates are applied.

  Calculate the net present value of this investment

The turbine has a 20-year lifewith a salvage value of $20,000. The discount rate is 8%. Calculate the net present value of this investment (NPV)

  Ways that northam could reduce its collection float

If the cost of implementing your recommendation is $100,000 per year, based on your finding in part (b), should NorthAm implement it?

  About the cyclical phase of the stock market

Common stock mutual fund manager, Mr. Jim, forms expectations about the cyclical phase of the stock market when actively managing his fund portfolio. In what situation might Mr. Jim want to lower the average beta of the fund that he manages? Explain ..

  Considering new three-year expansion project

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.47 million.

  Analyze the cash flow after taxes

The asset will be depreciated by three-year MACRS. (a) Using the generalized cash flow approach, determine the cash flow after taxes.

  Why did the federal reserve agree to this policy

In World War II the Federal Reserve engaged in a rudimentary form of Open Market Operations and   purchased large amounts of Liberty Bonds directly from the US Treasury. Why did the Federal Reserve agree to this policy? Under today’s conditions, this..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd