Business Finance Help for College and University Students

Cash flow, balance sheet, income statement

Please explain how to solve the attached finance questions

sustainable growth rate, effective rate of interest

1) A firm's profit margin is 10% and its asset turnover ratio is .6. It has no debt, has net income of $10 per share, and pays dividends of $4 per share. What is the sustainable growth rate? 2) A bank loan has a quoted annual rate of 6%. However, the borrower must maintain a balance of 25% of the amount of the loan, and the ...continues

Bonds (Yield; Liability; Bond Maturity)

Suppose the attached coupon info. Yield to maturity is 6% Suppose I have a liability to of $20,000 to pay at the end of year 7 1. How to immunize my liabilities with the following constraints? Case A: Can invest any bond of different maturity shown above Case B: Can only invest any bond (shown above) of with maturitie ...continues

Investment Science (Arbitrage; Bonds; Forward Rate; Return): 1. Is there any other arbitrage opportunity? 2. Given above bonds, what are the implied forward rates? 3. If one was to invest $1,000 two years from now for one year. Which would be the best strategy (what forward rate to use)? What is the return?

Please see attachment for tables and pre-question information. Questions: Data: Suppose the following coupon info Maturity (year) Coupon Rate price 1 0% 97 2 3.00% 99 2 0% 91 3 4.00% 98 3 0% 87 Please note there are arbitrage opportunities (shown below). The 1-yr rate implied by the 1-yr zero coupon bou ...continues

Historical Dividend Growth Rate is assessed.

The current dividend yield for a company in $1.46 and the dividend eight years ago was $0.585. The current stock price is $80.00 What is the historical dividend growth rate for the company?

Compute Cash Flow from Operating Activities

2001 2002 Net Income $1200 $1500 Depreciation $200 $300 Total Current Assets $700 $900 Total Current Liabilities $500 $800 During 2002, the company made capital expenditures totaling $500 and disposed of property worth $400. What ...continues

Free-Cash Flow

TA 101733 Please: You helped me with posting 15008. This is an additional question. Based on the information provided, what is the company's Free-Cash Flow? Also, could you just please clarify for me on the previous problem, why you would add a net of $100 to cash flow (change in working capital) when the difference in as ...continues

Rights issue , required rate of return, dividends, capital gains, maximizing shareholder's wealth, leverage, refinancing, capital structure, cross rate, triangular arbitrage, forward premium, Fisher hypothesis, purchasing power parity.

• The New Word Corporation has 1,000,000 shares outstanding at $30/share. If the firm wishes to raise $13.5 million at a subscription price of $27/share, calculate the value of a right. A) $3/right B) $1/right C) $2/right D) None of the above • Company X has 100 shares outstanding. It earns $1,000 per year and e ...continues

Present Value, future value calculations: lump sum deposits, discounted market price

Present value for 1$: 1. You want to begin a college fund for your newborn child; you hope to accumulate $ 30,000 by 18 years from now. If a current investment opportunity yields 7 percent, how much must you invest in a lump sum to realize the $30,000 when needed? 2. You hope to retire in 25 years and want to deposit a si ...continues

Personal finance: FV of a lump sum, rate of return, expected deposit for retirement

1. You want to begin a college fund for your newborn child; you hope to accumulate $50,000 by 17 years from now. If a current investment opportunity yields 9 percent, how much must you invest in a lump sum to realize the $50,000 when needed? 2. If you had invested $100/Mo. for the last 5 years into the Fidelity Magellan Mutu ...continues