Questions from Corporate Finance


Q: Nuber Company has a debt–equity ratio of .80.

Nuber Company has a debt–equity ratio of .80. Return on assets is 9.7 percent, and total equity is $735,000. What is the equity multiplier? Return on equity? Net income?

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Q: Your buddy comes to you with a sure-fire way to

Your buddy comes to you with a sure-fire way to make some quick money and help pay off your student loans. His idea is to sell T-shirts with the words “I get” on them. “You get it?” He says, “You see...

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Q: You purchase a bond with a coupon rate of 5.9

You purchase a bond with a coupon rate of 5.9 percent and a clean price of $1,053. If the next semiannual coupon payment is due in four months, what is the invoice price?

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Q: If Jares, Inc., has an equity multiplier of 1.

If Jares, Inc., has an equity multiplier of 1.55, total asset turnover of 1.75, and a profit margin of 4.3 percent, what is its ROE?

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Q: Indicate whether you think the following claims regarding takeovers are true or

Indicate whether you think the following claims regarding takeovers are true or false. In each case, provide a brief explanation for your answer. a. By merging competitors, takeovers have created mono...

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Q: You have found the following stock quote for RJW Enterprises, Inc

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper. What is the annual dividend? What was the closing price for this stoc...

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Q: Saché, Inc., expects to sell 700 of its designer suits

Saché, Inc., expects to sell 700 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 500 suits and a...

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Q: Cusic Industries had the following operating results for 2012: sales =

Cusic Industries had the following operating results for 2012: sales = $19,900; cost of goods sold = $14,200; depreciation expense = $2,700; interest expense = $670; dividends paid = $650. At the begi...

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Q: The most recent financial statements for Moose Tours, Inc., appear

The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payou...

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Q: What is the future value in six years of $1,

What is the future value in six years of $1,000 invested in an account with a stated annual interest rate of 9 percent, a. Compounded annually? b. Compounded semiannually? c. Compounded monthly? d. Co...

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