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Management
I did not see an excel spreadsheet with formulas and the writing skills are not to a level worth 115.00. The writing could be critiqued by me but I would not pay full price for something that I would have to make corrections to. I am also intetested in your guarentee regarding proprietary or copy right interest. Do you have a system that will scan the documemt and send a report as proof that no copy right situation would arise?
Thanks,
Sandra
I have been waiting on your response today.
Thanks,
Sandra
I have been waiting on your response today.
Management
Choose three of the current trends and issues facing managers and explain how Starbucks might be impacted. What might be the implications for first-line managers? Middle managers? Top managers?
Management
5. Quigley Inc. is considering two financial plans for the coming year. Management expects sales to
be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 35%.
Under Plan A it would use 25% debt and 75% common equity. The interest rate on the debt
would be 8.8%, but the TIE ratio would have to be kept at 4.00 or more. Under Plan B the
maximum debt that met the TIE constraint would be employed. Assuming that sales, operating
costs, assets, the interest rate, and the tax rate would all remain constant, by how much would
the ROE change in response to the change in the capital structure?
a. 3.83%
b. 4.02%
c. 4.22%
d. 4.43%
e. 4.65%
be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 35%.
Under Plan A it would use 25% debt and 75% common equity. The interest rate on the debt
would be 8.8%, but the TIE ratio would have to be kept at 4.00 or more. Under Plan B the
maximum debt that met the TIE constraint would be employed. Assuming that sales, operating
costs, assets, the interest rate, and the tax rate would all remain constant, by how much would
the ROE change in response to the change in the capital structure?
a. 3.83%
b. 4.02%
c. 4.22%
d. 4.43%
e. 4.65%
Management
5. 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?
a. $673.27
b. $708.70
c. $746.00
d. $783.30
e. $822.47
a. $673.27
b. $708.70
c. $746.00
d. $783.30
e. $822.47
Management
4. Last year Roussakis Company’s operations provided a negative net cash flow, yet the cash shown on its balance sheet increased. Which of the following statements could explain the increase in cash, assuming the company’s financial statements were prepared under generally accepted accounting principles?
a. The company repurchased some of its common stock.
b. The company dramatically increased its capital expenditures.
c. The company retired a large amount of its long-term debt.
d. The company sold some of its fixed assets.
e. The company had high depreciation expenses.
a. The company repurchased some of its common stock.
b. The company dramatically increased its capital expenditures.
c. The company retired a large amount of its long-term debt.
d. The company sold some of its fixed assets.
e. The company had high depreciation expenses.
Management
3. Which of the following statements is CORRECT?
a. Dividends paid reduce the net income that is reported on a company’s income statement.
b. If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet.
c. If a company issues new long-term bonds during the current year, this will increase its reported current liabilities at the end of the year.
d. Accounts receivable are reported as a current liability on the balance sheet.
e. If a company pays more in dividends than it generates in net income, its retained. earnings as reported on the balance sheet will decline from the previous year's balance.
a. Dividends paid reduce the net income that is reported on a company’s income statement.
b. If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet.
c. If a company issues new long-term bonds during the current year, this will increase its reported current liabilities at the end of the year.
d. Accounts receivable are reported as a current liability on the balance sheet.
e. If a company pays more in dividends than it generates in net income, its retained. earnings as reported on the balance sheet will decline from the previous year's balance.
Management
Which of the following statements is CORRECT?
a. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
b. It is generally easier to transfer one’s ownership interest in a partnership than in a corporation.
c. One of the advantages of the corporate form of organization is that it avoids double taxation.
d. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one person, one vote.”
e. Corporations of all types are subject to the corporate income tax.
a. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
b. It is generally easier to transfer one’s ownership interest in a partnership than in a corporation.
c. One of the advantages of the corporate form of organization is that it avoids double taxation.
d. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one person, one vote.”
e. Corporations of all types are subject to the corporate income tax.
Management
Hello,
I just wanted to ask so after submitting my assignment but i have no yet paid, am i now just waiting for them to email me to tell me that they have found an expert to do my assignment? then i will process my payment after i approve your given price?
I just wanted to ask so after submitting my assignment but i have no yet paid, am i now just waiting for them to email me to tell me that they have found an expert to do my assignment? then i will process my payment after i approve your given price?
Management
Prolox inc is a small company with 100 million shares trading at $10/share and debt outstanding of $ 250 million. The firm has a levered beta of 1.00 and a pre-tax cost of debt of 4.5%. The appropriate risk-free rate is 3.5%, the marginal tax rate is 40% and the equity risk premium is 5%.
assume that the firm does buy back stock with the $ 500 million and pays $11/share. Estimate the value per share for the remaining shareholders in the company. (You can assume that it is a zero growth stock in perpetuity)
assume that the firm does buy back stock with the $ 500 million and pays $11/share. Estimate the value per share for the remaining shareholders in the company. (You can assume that it is a zero growth stock in perpetuity)
Management
Xachs Inc. is a small biotech company with 100 million shares trading at $10/share and debt outstanding of $ 250 million. The firm has a levered beta of 1.00 and a pre-tax cost of debt of 4.5%. The appropriate risk-free rate is 3.5%, the marginal tax rate is 40% and the equity risk premium is 5%.
Estimate the current cost of capital for the firm. Now assume that the firm plans to borrow $ 500 million and buy back stock. This will triple the default spread on the debt (both new and existing), estimate the new cost of capital for the firm after the recapitalization.
Now assume that the firm does buy back stock with the $ 500 million and pays $11/share. Estimate the value per share for the remaining shareholders in the company. (You can assume that it is a zero growth stock in perpetuity)
How would your answer to c have changed, if the firm had been able to keep all of its existing debt at the existing interest rate of 4.5% even after the recapitalization?
Estimate the current cost of capital for the firm. Now assume that the firm plans to borrow $ 500 million and buy back stock. This will triple the default spread on the debt (both new and existing), estimate the new cost of capital for the firm after the recapitalization.
Now assume that the firm does buy back stock with the $ 500 million and pays $11/share. Estimate the value per share for the remaining shareholders in the company. (You can assume that it is a zero growth stock in perpetuity)
How would your answer to c have changed, if the firm had been able to keep all of its existing debt at the existing interest rate of 4.5% even after the recapitalization?
