finance

Inventory on Dec 31,2004 is understated by 66,000 inventory on dec 31, 2005 is overstated by 30,000 year sold 2004 2005 2006 a.cost of good 715,000 847000 770000 b.net income 220,000 275000 231000 c.total current assets 1,15,000 1,265, ...continues

Buy or lease: depreciation and interest calc

1. Lease or Buy. Your company wants to purchase a new network file server for its wide-area computer network. The server costs $75,000. It will be completely obsolete in three years. Your options are to borrow the money at 10 percent or to lease the machine. If you lease, the payments will be $27,000 per year, payable at the ...continues

Relative PPP

For the coming year, inflation in Brazil is expected to be 15% while the US inflation is expected to be 3%. Spot Brazil Real is 2.86BRL/USD. Based on relative PPP, what would you expect BRL/USD to do and by how much in one year?

interest rates, forward exchange rates

CAD/USD is quoted 1.2237. IF USD interest rate is 3%, CAD interest rate 4%, what is CAD/USD one year forward? And CAD/USD 3M forward?

spot-forward exchange rates

The current spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate, you are pretty sure the spot will be $1.52/£ in 3M time. Assume that you'd like to buy or sell £1million. a) what actions do you need to take to speculate in the forward market? What is the exp ...continues

bond matures...current yield

a bond matures in 8 years and sells for 1030. the bond has a face value of 1000 and a yield to maturity of 11.41% the bond pays coupons semiannually. whats the bonds current yield?

stocks..current price..selling price

avery industries jsut paid a dividend of $2.00 per share (i.e.,D0=$2.00). analysts expect the company's dividend to grow 25% for the next 2 yrs and 15% for the following 3 years. After 5 years the dividend is expected to grow at a constant rate of 5%. the required rate of return on the company's stock is 12%. what should be the ...continues

weighted average cost of capital

jersey devil inc is estimating its WACC. its target capital structure is 20% debt, 20% preferred stock, and 60% equity. its bonds have a 12% coupon, paid semiannually, a current maturity of 20 yrs, and sell for $950. the firm could sell at par $100 preferred stock which pays a 12% annual dividend, but flotation costs of 5% would ...continues

bonds..max price

assume you wish to purchase a 25-year semiannual bond that has a maturity value of $1,000. the coupon rate is 8%. if you require a 10% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

beta

simons stock is currently selling for $40 a share. the stock is expected to pay a $2 dividend at the end of the year. the stock's dividend is expected to gorow at a constant rate of 7% a year forever. The risk free rate is 6% and the market risk premium is also 6%. what is the stock's beta?