What is the present value of these cash flows if the interest rate is 10% and cash flows are $1000 at the end of year one and $2000 at the end of year two?
The Greens Garden Center sells 90,000 bags of class fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying costs...
The Pabst Securities recently issued convertible bonds with a $1,000 par value. The bonds have a conversion price of $40 a share. What is the convertible issue's conversion ratio?
After a 5-for-1 stock split, the Strasburg Company paid a dividend of $0.75 per new share, which represents a 9% increase over last year's pre-split dividend. What was lasy year's dividend per share?
Carter Air Lines is now in the terminal year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Carter can sell the used equipment today to another airline for...
Your division is considering 2 investment projects, each of which requires an up-front expenditure of $25 million. You estimate that cost of capital is 10% and that the investments will produce the...
Calculate the after tax cost od debt under each of the following conditions: a. Interest rate, 13%; tax rate, 0% b. Interest rate, 13%; tax rate, 20% c. Interest rate 13%; tax rate, 35%