Questions from Corporate Finance

Q: Consider that you are the marketing manager of a firm. You

Consider that you are the marketing manager of a firm. You need to have approximately 1 additional salesperson for every $10 million in sales. You currently have $50 million in sales and have 5 employ...

Q: Oil prices have increased a great deal in the last decade.

Oil prices have increased a great deal in the last decade. The table below shows the average oil price for each year since 1949. Many companies use oil products as a resource in their own business ope...

Q: Show how the Rule of 72 can be used to approximate the

Show how the Rule of 72 can be used to approximate the number of years to quadruple an investment.

Q: List and describe the purpose of each part of a time line

List and describe the purpose of each part of a time line with an initial cash inflow and a future cash outflow. Which cash flows should be negative and which positive? Why?

Q: How are the present value and future value related?

How are the present value and future value related?

Q: How are present values affected by changes in interest rates?

How are present values affected by changes in interest rates?

Q: What do you think about the following statement. “I am

What do you think about the following statement. “I am going to receive $100 two years from now and $200 three years from now, so I am getting a $300 future value.” How could the two cash flows be com...

Q: A firm is expected to pay a dividend of $2.

A firm is expected to pay a dividend of $2.05 next year and $2.35 the following year. Financial analysts believe the stock will be at their price target of $110 in two years. Compute the value of this...

Q: Suppose that Psy Ops Industries currently has the following balance sheet,

Suppose that Psy Ops Industries currently has the following balance sheet, and that sales for the year just ended were $5 million. The firm also has a profit margin of 25 percent, a retention ratio of...

Q: Without making any computations, indicate which of each pair has a

Without making any computations, indicate which of each pair has a higher interest rate? a. $100 doubles to $200 in 5 years or 7 years. b. $500 increases in 4 years to $750 or to $800. c. $300 increas...