10) On March 31, Adolpha, Inc. reported the following information on its financial statements. Total current assets Total long-termassets Total current liabilities Total long-term debt 5421374 $212864 $675.218 $2005,286 What is the available net working capital for Adolpha, Inc.? (A) $253,844 B) -$132,366 C) $121,578 D) $1,873,020 Answer: debt-equity ratio and a 11) A lending institution would prefer that a firm have a times interest earned ratio. A) higher; higher B) higher; lower C) lower, higher D) lower; lower Answer: investors should investigate 12) When dividend payout ratios are higher than whether or not they are sustainable. A) 15% B) 25%. C) 40%. D) 75% Answer: 13. C&P Trading Inc. will pay a dividend for the first time at the end of 2016. It projects the following dividend per share: be bolestivi 2016 $1.60 2017 $2.50 2018 $2.80 Beginning with 2016 dividends will grow at 5% per year. The required rate of return is 10%. What is intrinsic value of C&P Trading shares? 14. An investor estimates that next year's sales for Dursley's Hotels Inc. should amo about $100 million. The company has 5.0 million shares outstanding, generates as margin of about 10%, and has a payout ratio of 50%. All figures are expected to hold year. Given this information, compute the following. a. Estimated net carnings for next year b. Next year's dividends per share c. The expected price of the stock (assuming the P/E ratio is 24.5 times camnings) d. The expected holding period return (latest stock price: $40 per share) All figures are expected to hold for next The expected pridends per share car IS 03.12 15) Returns on the stock of First Boston and Midas Metals for the years 2010-2013 are shown below. ol Portfolio First Boston 2010 -18.00% 2011 32.00% 2012 18.00% 20131 .00% a. Avg. b. St. Dev. Midas Metals 26.00% -5.00% 3.00% 10.00% bet a. Compute the average annual return for each stock and a portfolio consisting of 60% First Boston and 40% Midas. b. Compute the standard deviation for each stock and the nortfolio c. Are the stocks positively or negatively correlated and what is the effect on riel 03. 10