1. | Question : | (TCO C) Blease Inc. has a capital budget of $625‚000‚ and it wants to maintain a target capital structure of 60 percent debt and 40 percent equity. The company forecasts a net income of $475‚000. If it follows the residual dividend policy‚ what is its forecasted dividend payout ratio? (a) 40.61% (b) 42.75% (c) 45.00% (d) 47.37% (e) 49.74% | | | Student Answer: | | (d) 47.37 Equity required (Residual income) = $625‚000*40% = $250‚000 Dividend paid = $475‚000 - $250
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1. | Question : | (TCO D) Which of the following factors would increase the likelihood that a company would call its outstanding bonds at this time? (a) The yield to maturity on the company’s outstanding bonds increases due to a weakening of the firm’s financial situation. (b) A provision in the bond indenture lowers the call price on specific dates‚ and yesterday was one of those dates. (c) The flotation costs associated with issuing new bonds rise. (d) The firm’s CFO believes that interest
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FIN 571 Week 4 Quiz. 100%. UOP‚ 2014. NEW. Grade A. There are 9 questions total Note: The questions might be in a different order. Please use the find feature in word to locate your questions faster. For customized tutorial service or if you have any questions/concerns‚ please contact me at tutoruop@gmail.com. Thank you :) Please purchase to see answers. Thank you Present value: Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he
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FIN 534 Week 3 HW Chapter 5 1. Three $1‚000 face value bonds that mature in 10 years have the same level of risk‚ hence their YTMs are equal. Bond A has an 8% annual coupon‚ Bond B has a 10% annual coupon‚ and Bond C has a 12% annual coupon. Bond B sells at par. Assuming interest rates remain constant for the next 10 years‚ which of the following statements is CORRECT? Answer: D. Bond A sells at a discount (its price is less than par)‚ and its price is expected to increase over the next year
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SYLLABUS MKT/571 Marketing Copyright 2013 by University of Phoenix. All rights reserved. Course Description This course prepares students to apply marketing concepts to create and sustain customer value. Students learn to solve marketing problems in a collaborative environment. Topics include market research‚ customer relationships‚ branding‚ market segmentation‚ product development‚ pricing‚ channels‚ communications‚ and public relations. Course Dates Sep 08‚ 2015 - Oct 19‚ 2015 Faculty Information
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FIN 534 – Homework Chapter 2 Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed‚ or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points for this homework assignment. 1. Which of the following statements is CORRECT? c. If a firm is more profitable than average (e.g.‚ Google)‚ we would normally expect
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| Question 1 | | Which one of the following statements about trend analysis is NOT correct? | It allows management to examine each ratio over time and determine whether the trend is good or bad for the firm. | | All of these are true statements. | | The Standard Industrial Classification (SIC) System is used to identify benchmark firms. | | This benchmark is based on a firm’s historical performance. | | | Question 2 | | Coverage ratios: Sectors‚ Inc.‚ has an EBIT of $7‚221
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Sara had just rented her first apartment starting December 1 before beginning college in January. The apartment had washer and dryer hook-ups‚ so Sara wanted to buy the appliances to avoid trips to the laundromat. The Saturday newspaper had an advertisement for a local appliance store offering “90 days‚ same as cash!” financing. Sara asked how the financing worked and learned that she could pay for the washer and dryer anytime during the first 90 days for the purchase price plus sales tax. If she
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Monique Moore FIN 534 Homework Chapter 16 1. Swim Suits Unlimited is in a highly seasonal business‚ and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars): Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total
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FIN 334 (Investments) Syllabus Instructor Course Overview Travis Box The purpose of this course is to provide you with an understanding of the fundamentals of investments. Such an understanding is crucial to anyone who wishes to pursue a career in finance and/or participate in financial markets. Included are topics such as security types‚ the buying and selling of securities‚ mutual funds‚ market efficiency‚ common stocks and their valuation‚ diversification‚ the CAPM‚ performance
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