Papa Roach Exterminators, Inc., has sales of $714,000, costs of $305,000, depreciation expense of $52,000, interest expense of $28,000, and a tax rate of 30 percent. What is the net income for firm?

rev: 09_17_2012

$114,800

$258,300

$282,300

$230,300

$310,300

A firm has sales of $4,830, costs of $2,630, interest paid of $178, and depreciation of $491. The tax rate is 35 percent. What is the value of the cash coverage ratio?

8.35

9.60

16.50

12.36

5.59

Metroplex Corporation will pay a $4.10 per share dividend next year. The company pledges to increase its dividend by 5.80 percent per year indefinitely.

Required:

If you require an 11.60 percent return on your investment, how much will you pay for the company's stock today?

rev: 09_18_2012

$73.52

$22.27

$66.81

$67.86

$70.69

An investment will pay you $16,000 in 10 years. The appropriate discount rate is 8 percent compounded daily.

Required:

What is the present value?

rev: 09_17_2012

$7,411.10

$7,405.59

$7,549.39

$6,830.40

$7,189.89

Apocalyptica Corp. pays a constant $20 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever.

Required:

If the required return on this stock is 14 percent, what is the current share price?

Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.

Required:

If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

rev: 09_18_2012

$9.38

$4.95

$4.46

$5.00

$4.69

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $12 per share dividend in 10 years and will increase the dividend by 6 percent per year thereafter.

Required:

If the required return on this stock is 11 percent, what is the current share price? (Do not round your intermediate calculations.)

rev: 09_18_2012

$93.82

$96.64

$98.51

$89.13

$84.52