R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year’s annual dividend is expected to be $1.55 a share. The dividend growth rate is 2 percent. The firm also has 7,500…
Diamond Machine Technology makes a tool for sharpening the blades of pruning sheers and grass clippers. The company has invested $250,000 in developing this sharpener, which it would like to make back in the first year. This tool is about…
The educated horses corporarion needs to raise $60 million to finance its expansion into new markets. the company will sell new shares of equity via a general cash offering to raise the needed funds, if the offer price is $21per…
Great Fender, which uses a standard cost accounting system, manufactured 20,000 boat fenders during the year, using 144,000 feet of extruded vinyl purchased at $1.05 per square foot. Production required 420 direct labor hours that cost $13.50 per hour. The…
The real risk free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.3%. 1. What is the maturity risk premium for the 2-year security?
1. You are considering buying a new, $15,000 car, and you have $2,000 to put toward a down payment. If you can negotiate a nominal annual interest rate of 10% and finance the car over 60 months, what are your…
You manage a portfolio that consists of 70 percent in S & P 500 index stocks and 30 percent in a Crude Oil ETF. Over the past 10 years the S & P 500 has had an average monthly return…
You want to buy a house, and a mortgage company will lend you $150,000. The loan would be fully amortized over 15 years (180 months), and the nominal interest rate would be fixed at 7.75 percent, compounded monthly. What would…
You find a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that the best interest rate of 9% intersest…
11. Board Bagels, a small cafe in downtown Pittsburgh, had a net sales of $230,000 for the most recent fiscal year, 65% of which were eaten up by its costs. The firm had some baking equipment that cost $45,000 with…
