Finance Answers

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 16% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, D, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?
a. $18.35
b. $21.01
c. $22.11
d. $16.81
e. $17.03

Discuss how senior management’s short-term focus on stock price in a publically traded company can lead to unethical behavior

Suppose a firm relies exclusively on the payback method when making capital budgeting
decisions, and it sets a 4-year payback regardless of economic conditions. Other things held
constant, which of the following statements is most likely to be true?

What impact does current fiscal and monetary policy's have on the economy?

Muscarella Inc. has the following balance sheet and income statement data:



Cash $ 14,000 Accounts payable $ 42,000

Receivables 70,000 Other current liabilities 28,000

Inventories 210,000 Total CL $ 70,000

Total CA $294,000 Long-term debt 70,000

Net fixed assets 126,000 Common equity 280,000

Total assets $420,000 Total liab. and equity $420,000

Sales $280,000

Net income $ 21,000



The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.70, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change?

a. 4.28%

b. 4.50%

c. 4.73%

d. 4.96%

e. 5.21%
Please show work

how mean,median,mode,docile,percentile r calculated from cumulitive frequency distributiion?

. Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow?

•From the e-Activity, determine if the company you analyzed would be a good investment for you or not. Provide specific examples to support your response.

2. Determine the size of the M1 money supply using the following information.
a) Currency $700 billion
b) Money market mutual funds $2,000 billion
c) Demand deposits $300 billion
d) Other checkable deposits $300 billion
e) Traveler’s checks $10 billion

5. The following information is available to you: traveler’s checks = $1 million; coin and paper currency = 30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; retail money market mutual funds = $60 million; savings accounts at depository institutions = $40 million; checkable deposits at depository institution = $35 million; large-denomination time deposits = $50 million; institutional money market mutual funds = $65 million; and small-denomination time deposits = #45 million. Using Fed definitions, determine the dollar size of the
a) M1 money supply
b) M2 money supply
c) M3 money supply
7. Assume that the real output (RO) for a country is expected to be 2.4 million products.
a) If the price level (PL) is $250 per product, what will be the amount of the gross national product (GDP)?
b) Now assume that the GDP is projected to be $8 million next year. What will the PL of the products need to be to reach the GDP target?
c) Now assume that the RO of 2.4 million products is composed of equal amounts of two types of products. The first product sells for $100 each, and the second product sells for $500 each. What will be the size of the GDP?

CH 15-7
Robinson expects its 2012 sales and cost of goods sold to grow by 20 percent over their 2011 levels.
a. What will be the affect on its levels of receivables, inventories, and payments if the components of its cash conversion cycle remain at their 2011 levels? What will be its net investment in working capital?
b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its inventory period by ten days?