Answered step by step
Verified Expert Solution
Question
1 Approved Answer
solve this using Microsoft words 1. (TCO 1) Lifeline, Inc., has sales of $685,000, costs of $273,000, depreciation expense of $51,000, interest expense of $60,000,
solve this using Microsoft words 1. (TCO 1) Lifeline, Inc., has sales of $685,000, costs of $273,000, depreciation expense of $51,000, interest expense of $60,000, and a tax rate of 35 percent. What is their net income? 2. (TCO 1) Hamble, Inc., has sales of $19,070, costs of $10,460, depreciation expense of $2,530, and interest expense of $1,600. If the tax rate is 35 percent, what is the operating cash flow, or OCF? 3. (TCOs 2 and 3) Bey Co. issued 20-year, $1,000 bonds at a coupon rate of 7 percent. The bonds make annual payments. If the YTM on these bonds is 5 percent, what is the current bond price? 4. (TCO 3) Sixteenth Bank has an issue of preferred stock with a $10 stated dividend that just sold for $70 per share. What is the banks cost of preferred stock? (Show your work and round your answer to two decimal places. 5. (TCOs 3 and 5) You own a portfolio that has $2,500 invested in Stock A and $3,500 invested in Stock B. If the expected returns on these stocks are 10 percent and 16 percent, respectively, what is the expected return on the portfolio? (Show your work.) 6. (TCO 3) A stock has a beta of 0.75, the expected return on the market is 12 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be? (Show your work.) 7. (TCO 4) Suppose Pat, Ltd. just issued a dividend of $2.50 per share on its common stock. The companys dividends have been growing at a rate of 5%. If the stock currently sells for $65, what is your best estimate of the companys cost of equity? (Show your work.) 8. (TCO 4) Given the following information, calculate the weighted average cost for the Han Corp. Percent of capital structure: Preferred stock 15% Common equity 60% Debt 25% Additional information: Corporate tax rate 34% Dividend, preferred $9.50 Dividend, expected common $1.50 Price, preferred $100.00 Growth rate 9% Bond yield 6% Price, common $75.00 9. (TCO 7) What are the costs associated with extending (or not extending) a credit policy to customers? 10. (TCO 1) Explain the concept of the stakeholder in contemporary finance. 11. (TCO 6) What is the relationship between risk and return? What are some mathematical ways to measure risk
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started