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EBIT is 22.000, taxes 34%, depreciation is 30.000. What is the operating cash flow? Anthony operates a part time auto repair service. He estimates

EBIT is 22.000, taxes 34%, depreciation is 30.000. What is the operating cash flow?

 

Anthony operates a part time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of $1.500 in Year 1, $2.100 in Year 2, and $3.200 in Year 3. If Anthonys cost of capital is 10%, then the most he would be willing to pay for the new computer system would be:


 If a firm has 35% chance to be under recession getting -5% return, 40% chance to be at a normal state and get 9% and 25% chance to be growing getting 17% return, what is the expected return for this firm?


If you invest $3000 in stock A, $6750 in stock B and $5250 in stock C, what should be the weight of each stock within the portfolio?


What is the Beta () of your portfolio if you decide to invest 50% of your funds in an asset that has a risk equal to the market risk and 50% of your funds in a risk-free asset?

What is the expected return of stock X if it sells for $40 in the market and is going to pay a dividend of 2$ next year where the dividend is expected to grow constantly at 3% forever?


What is the Expected return of stock A E(R A ) if it has a beta of 1.37, the risk free rate is 2.5% and the expected market return is 12%?

 

Currently AVA Inc. has 240.000 shares outstanding and the price per share is $33. If the company declares a 5 to 3 stock split, how will this affect the number of shares and the price per share?


Vu is $5.000.000 and the company issues new debt of $3.000.000. Assuming t = 30%, V L ?


A stock has produced annual returns of 9 percent, 12 percent, 17 percent, -8 percent, and 3 percent over the past five years. What is the arithmetic average rate of return?


What is the depreciation expense using the straight-line method on an asset costing 10,000 if it has a useful life of 4 years and a salvage value of 2000?

 

What is the Beta () of your portfolio if you decide to invest 25% of your funds in asset A with a risk equal to the market, 30% of your funds in a risk-free asset and 45% of them in asset B with a beta of 1.34?


Assume that a firm has a cost of equity of 13% and W E = 66.6%%; cost of debt of 7% and W D = 33.3%%; the tax rate is 30%; what is the WACC for the firm?

 

Currently BOARD Inc. has 150.000 shares outstanding and the price per share is $22. If the company declares a 7 for 4 stock split, how will this affect the number of shares and the price per share?


The current price per share of MS Inc. is $65. If tomorrow is the ex-dividend date and the company has declared a dividend payment of $3, how much will be the share price tomorrow?

GOLF Inc. stock had an initial price of $70 per share, paid a dividend of $4.8 per share during the year, and had an ending share price of $68

A firm has sales of $2,190, net income of $174, net fixed assets of $1,600, and current assets of $720.The firm has $310 in inventory. What is the common-size statement value of inventory?A. 13.36 percentB. 14.16 percentC. 19.38 percentD. 30.42 percentE. 43.06 percent

 

The present value of $100 expected in two years from today at a discount rate of 7% is:

Consider a $350 investment whose future values after being invested at 11% is $7,218. For how many years was the amount invested? ____________.

Michel is an investor who is thinking of purchasing a new house after 10 years. He has $100,000 but needs $250,000. At what rate of return should he invest his money to be able to buy the house?

The future value of $4,500 invested at 8% interest for 13 years is: 


If a bond is making semiannual coupon payments of $40, what is the coupon rate of that bond?


The current price of a zero-coupon bond with a YTM of 8% and 12 years to maturity is


You deposit $6,000 in a Bank. If your account pays 8% for the first three years, 11% for all consecutive years, how much will you have after 10 years? 


Say you own an asset that has a total return of 12.5 percent. If the inflation rate is 4.15 percent, what is your exact real return? 


A company pays equal annual dividends in perpetuity. Its current stock price is $30, and the required return is 10%. What is the dividend payment at year 4 expected to be?

 

If Current Ratio is 1.3 and Quick Ratio is 0.9; then the value of inventory is:


You deposit $9,000 in ISP Bank. The bank pays you 7% simple interest. How much interest you earn on your principal for 15 years: ____________.


You deposit $5,000 in a Bank. If your account pays 7% for the first year, 8% for the second year, and 9% for all consecutive years, how much will you have after 10 years?


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