Price = $45.25 Required Return = $3.38 / $45.25 Required Return = 7.47% A14.(Stock Valuation) Suppose Toyota has nonmaturing (perpetual) preferred stock outstanding that pays a $1.00 quarterly dividend and has a required return of 12% APR (3% per quarterly). What is the stock worth? Perpetual Quarterly Preferred Dividend (D) = $1.00 Annual Dividend ($1.00 x 4.00) = $4.00 Annual Percentage Rate (APR) = 12% Preferred Stock Value (P0) = (D / R) Preferred Stock Value (P0) = ($4
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Working Capital Simulation FIN/571 May 18‚ 2015 Arnold Harvey Victoria Holmes This simulation has given me a better understanding of what managers and CEO’s go through when making decisions for the company. As I went through each simulation more than once to see what affects the decisions had on cash flows‚ sales and EBIT. In some situations they changed whether it dropped or risen‚ and others they were completely stagnant with their movement through each phase. Below I will point out how and why
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Corporate Finance and Investment 1. Define “Working Capital” Working Capital=Current Assets-Current Liabilities =Accounts Receivable + Inventory - Accounts Payable “Working capital is how much in liquid assets that a company has on hand. Working capital is needed to pay for planned and unexpected expenses‚ meet the short-term obligations of the business‚ and to build the business.” 2. Give concrete measures how w.c. can be optimized (receivable‚ inventories (JIT
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Process Design and Matrix Summary Shantelle M. Belk OPS/571 June 15‚ 2015 Abdoulaye Keita Process Design and Matrix Summary This executive summary will be used to outline the design approach for Sports Clips Haircuts. In this summary the details that will be provided cover the process design approach‚ the production line‚ in addition to any personal attention approaches located within the process design matrix. Sports Clips Haircuts is a company that prides itself on the exceptional quality of customer
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the Philippines to be a source of raw materials for its industries and a base for expanding its business in the Orient‚ especially in China. 2. Military – the US wanted the Philippines as the first line of American defense in the Pacific front 3. Religious – the US wanted the Philippines as a base of operations for Protestant missionaries II. Preparation for Self-Autonomy When the Filipino-American ended‚ Americans immediately established a civilian colonial government and encouraged the
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1. Which of the following is considered a hybrid organizational form? Limited liability 2. Which of the following is a principal within the agency relationship? a shareholder 3. Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period? The statement of cash flows. 4. Teakap‚ Inc.‚ has current assets of $ 1‚456‚312 and total assets of $4‚812‚369 for the year ending September 30‚ 2006
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FIN 571 Final Exam Question Answers By www.StudenteHelp.com Copyright. All Right Reserved By www.StudenteHelp.com Multiple Choice Question 51 You are provided the following working capital information for the Ridge Company: Ridge Company Account $ Inventory $12‚890 Accounts receivable 12‚800 Accounts payable 12‚670 Net sales $124‚589 Cost of goods sold 99‚630 Cash conversion cycle: What is the cash conversion cycle for Ridge Company? A. 38.3 days B. 46.4 days C. 83.5 days D. 129.9 days Find
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WORKING CAPITAL AND FIXED CAPITAL AND ITS ADVANTAGES Introduction: A firm requires funds to acquire two types of assets : fixed assets and current assets .Fixed assets include land biulding ‚ plant‚ and machinary ‚ vehicles ‚ equipment etc.These assets relatively permanent in nature and are necessary for carrying on the bussiness .Current assets ‚on the other hand ‚are kept for supporting day-to-day operations and keep changing during the course of the business.They liquidated within short period
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This paperwork includes FIN 571 Week 6 Furniture Store Recommendation Cash Per Forma Resource: The Guillermo Furniture Store Scenario or your own organization‚ with the approval of your instructor‚ for this assignment Write a paper in no more than 2‚100 words that analyzes Guillermo’s alternatives and make a recommendation of a financial decision. The paper must also include a justification for your recommendation. Create a pro forma cash flow budget for the organization
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the project’s life because of its effect on taxes. Depreciation is an expense item and‚ the more depreciation incurred‚ the larger are expenses. Thus‚ accounting profits become lower and in turn‚ so do taxes which are a cash flow item. 3. When evaluating a capital budgeting proposal‚ sunk costs are ignored. We are interested in only the incremental after-tax cash flows‚ or free cash flows‚ to the company as a whole. Regardless of the decision made on the investment at hand‚ the sunk costs will
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