A-3 (Coverage ratio) The firm in the two preceding problems also had $6 million of principal repayments during the latest 12 months. Its marginal tax rate is 40%. Calculate the debt service coverage ratio. Debt-Service Coverage Ratio = (EBIT + 1/3 Rentals) / (Interest Expense + 1/3 Rentals + Principal Repayments / (1 - T)) = ($30 + $15 / 3) / ($10 + $15 / 3 + $6 / (1 - 0.40)) = 1.40 A-4 (WACC with rebalancing) Nathan’s Catering is a gourmet catering service located in Southampton‚ New York
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Question 1 Your finance text book sold 53‚250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent for the next three years‚ and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4. (If you solve this problem with algebra round intermediate calculations to 6 decimal places‚ in all cases round your final answers to the nearest whole number.) Number of copies sold after 3 years Number
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Problem Assignment 4 1. You’ve observed the following returns on INTC Corporation’s stock over the past five years: -25%‚ -36%‚ 9%‚ 11%‚ and 17%. a. What was the arithmetic average return on the stock over this five-year period? b. What was the variance of returns over this period? c. What was the standard deviation of returns over this period? d. Suppose the current T-bill rate is 0.15%. What is the risk premium of owing INTC Corporation’s stock? e. What range of returns would you expect
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This pack of FIN 402 Week 3 Discussion Questions shows the solutions to the following problems: DQ1: What is the difference between systematic and unsystematic risk? How is the beta coefficient used to assess risk? Is it better to maximize return or minimize risk? Why? DQ2: What is the relationship between inflation and interest rates? How does this relationship affect asset prices? How does the unemployment rate affect interest rates? DQ3: What factors must be taken into consideration
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Minda Furgeson Week 6 Acc/290 problem 4-8 Dana La Fontsee opened Pro Window Washing Inc. on July 1‚ 2012. During July the following transactions were completed. July 1 Issued 12‚000 shares of common stock for $12‚000 cash. July 1 Purchased used truck for $8‚000‚ paying $2‚000 cash and the balance on account. July 3 Purchased cleaning supplies for $900 on account. July 5 Paid $1‚800 cash on 1-year insurance policy effective July 1. July 12 Billed customers $3‚700 for cleaning services. July 18
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ECE 430 Reflective Journal Template Please remember to use the chosen font color for each week Week 1 –BLACK Week 2 – BLUE Week 3 – GREEN Week 4 - PURPLE Program Comprehensive Exam Main Topic Program Comprehensive Exam Sub-Topics Course Reflection Task Analyze how the components of the case study are aligned to the Main Topics and Sub-Topics by providing a written summary of your reflections. Program Reflection Task Synthesize the learning from the case study‚ knowledge of main topics
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Shania Lewis Period 6B September 4‚ 2012 Problem of the Week: The Broken Eggs Problem Statement: A farmer is carrying her eggs in a cart when she accidentally spills every one of them and they all break. She decides to go to her insurance agent‚ who asks her how many eggs she had. She’s not sure but she does know some information from various ways she tried to pack her eggs. She knows that when she put her eggs in groups of one‚ two‚ three‚ four‚ five‚ and six‚ there was always one egg left
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Question 1 of 4: | | | Interview an entrepreneur. This entrepreneur could be one who was able to raise finance for the venture or one who was unable to raise finance for the venture. Write a paper summarizing: a) The various efforts put in by the entrepreneur in raising the funds b) The entrepreneur’s experience of the process of raising finance c) An analysis of the factors that made the investor or financial institution invest or not invest in the venture | | Question 2 of 4: | | |
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UNIVERSITY OF ILLINOIS AT CHICAGO FINANCE 431 – MANAGEMENT IN THE FINANCIAL SERVICES INDUSTRY PRACTICE SET 1 – BANK CAPITAL PROJECTS AND LEASE FINANCING Note: Problems 1‚3‚5‚7 are from Chapter 4 in the textbook. 1. A group of businesspeople from Gwynne Island are considering filing an application with the state banking commission to charter a new bank. Due to a lack of current banking facilities within a 10-mile radius of the community‚ the organizing group estimates that the initial banking
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Guillermo Furniture Store Concepts Paper Theresa Mitchell FIN/571 University of Phoenix July 18‚ 2011 Joseph McDonald Guillermo Furniture Store Concepts Paper Finance concepts and principles are divided into three sections with the first group of principles dealing with competition in an economic environment. The second group deals with ways of creating value and economic efficiency and the third group of principles deals with observing financial transactions
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