A company has just paid a dividend of $ 3 per share, D0=$ 3 . It is estimated that the

A company has just paid a dividend of $ 3 per share, D0=$ 3 . It is estimated that the company's dividend will grow at a rate of 18 % percent per year for the next 2 years, then the dividend will grow at a constant rate of 7 % thereafter. The company's stock has a beta equal to 1.4, the risk-free rate is 4.5 percent, and the market risk premium is 4 percent. What is your estimate of the stock's current price? Round your answer to two decimal places.

Boehm Incorporated is expected to pay a $ 1.2 per share dividend at the end of the year

Boehm Incorporated is expected to pay a $ 1.2 per share dividend at the end of the year (i.e.,D1). The dividend is expected to grow at a constant rate of 3 % a year. The required rate of return on the stock, r, is 13 %. What is the value per share of the company's stock? Round your answer to two decimal places.

Myers Business Systems is evaluating the introduction of a new product. The possible

Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next:

Possible Market Reaction	Sales in Units			Probabilities
Low response		20			0.30
Moderate response		35			0.20
High response		45			0.20
Very high response		60			0.30

a. What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.)

b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Joey realizes that he has charged too much on his credit card and has racked up $5,000 in

Joey realizes that he has charged too much on his credit card and has racked up $5,000 in debt. If he can pay $150 each month and the card charges 18 percent APR (compounded monthly), how long will it take him to pay off the debt?

Several years ago, Berkshire, Warren & Co., LLC, an investment banking firm, purchased

Several years ago, Berkshire, Warren & Co., LLC, an investment banking firm, purchased 1,000,000 shares of Outron Corporation preferred stock directly from the corporation for $100,000,000.   Berkshire paid for the stock by giving Outron a promissory note for $100,000,000 due in 20 years, with interest payable annually at 2 percent, which was then the prevailing market rate. Recently, Outron decided that it needed to increase its current cash flow and offered Berkshire a reduction of the principal amount of the promissory note to $80,000,000 if Berkshire would agree to increase the interest rate to the current market rate of 10%. Berkshire found the offer advantageous and accepted it. How much COD income does Berkshire realize? Are there any further tax consequences?

Payday loans are very short-term loans that charge very high interest rates. You can borrow

Payday loans are very short-term loans that charge very high interest rates. You can borrow $200 today and repay $225 in two weeks. What is the compound annual rate implied by this 12.5 percent rate charged for only two weeks?

Wigmore, Inc., has estimated sales of $17,400, $19,200, $18,840, and $19,100 for each

Wigmore, Inc., has estimated sales of $17,400, $19,200, $18,840, and $19,100 for each quarter next year, respectively. The accounts receivable period is 80 days. What is the expected accounts receivable balance at the end of the second quarter? Assume each month has 30 days.

You are provided the following amount about Cradle Inc

You are provided the following amount about Cradle Inc.

	2017	2018	2019
Sales	56,248	58,162	65,187
Cost of goods sold	35,047	36,205	42,372
Gross margin	21,201	21,957	22,815
Operating expenses	4,287	4,446	4,677
Depreciation	6,111	6,047	6,216
Net income before tax	10,803	11,464	11,922
Income tax	2,377	2,522	2,377
Net income	8,426	8,942	9,545
Cash	974	3,001	3,329
Accounts receivable	9,531	9,855	11,770
Inventory	7,886	8,046	10,004
Fixed assets, net	45,169	42,148	45,169
Line of credit	9,000	-	10,000
Accounts payable	4,381	4,526	5,296
Current portion of long term debt	3,862	3,247	4,124
Long term debt, net of current portion	31,149	35,167	26,197
Common stock	3,000	3,000	3,000
Retained earnings	12,168	17,110	21,655
Line of credit maximum	25,000	25,000	60,000

Does Cradle have liquidity issues?

In order to answer this question you should perform a cash inflow / outflow analysis and examine key liquidity ratios and interpret the results.

Altamimi Company’s net income for the year 2000, is $3,700,214. The company had an

Altamimi Company’s net income for the year 2000, is $3,700,214. The company had an EBITDA of $ 10,125,300, and its depreciation and amortization expense was equal to $2,543,790. The company's average tax rate is 35 percent.

1. What is the amount of interest expenses for the firm? (Show the details of your calculations).
2. Prepare a common sized Income Statement if sales equal $12,000,000.

Q2. (2 Marks)

The following are accounts balance (in thousands) for Malak Company. Prepare a balance sheet, and Income statement using intermediate steps t=35% for the year ended December 31, 2018.

Net property and equipment	$ 2,000
Accounts receivable	$3,000
Notes payable	$37,000
Revenues	$ 983,000
Supply expenses	$ 255,000
Depreciation expenses	$ 35,000
Labor expense	$300,000
Interest Expenses	$11,000
Stockholders’ Equity	$61,500
Cash & cash equivalents	$97,000
Long-term debt	$3,500

                              

Q3. Why secondary markets are so important to raise capital? (1 mark)

You purchased a stock six months ago for $50 and have since received two quarterly

You purchased a stock six months ago for $50 and have since received two quarterly dividend payments of $1 each.  The stock currently sells for $44.  What is your holding period return on this stock?

You have a saving account that you were told has an effective annual return of 12% and compounds daily.  What is the Annual Percentage Rate you on this account?

An investor purchased a bond for $1,000, received $11 in interest, and then sold the bond for $1,067 after holding it for seven months. What is the holding period return?