Questions from Corporate Finance

Q: Brenda’s Bar and Grill has current liabilities of $15 million.

Brenda’s Bar and Grill has current liabilities of $15 million. Cash makes up 10 percent of the current assets and accounts receivable makes up another 40 percent of current assets. Brenda’s current r...

Q: Financial analysts forecast Limited Brands’ (LTD) growth rate for the

Financial analysts forecast Limited Brands’ (LTD) growth rate for the future to be 12.5 percent. LTD’s recent dividend was $0.60. What is the value of Limited Brands’ stock when the required retur...

Q: You have the following information on Els’ Putters, Inc.: sales

You have the following information on Els’ Putters, Inc.: sales to working capital is 4.6 times, profit margin is 20 percent, net income available to common stockholders is $5 million, and current lia...

Q: You are thinking of investing in Nikki T’s, Inc. You

You are thinking of investing in Nikki T’s, Inc. You have only the following information on the firm at year-end 2018: net income is $250,000, total debt is $2.5 million, and debt ratio is 55 percent....

Q: Dogs R Us reported a profit margin of 10.5 percent

Dogs R Us reported a profit margin of 10.5 percent, total asset turnover of 0.75 times, debt-to-equity of 0.80 times, net income of $500,000, and dividends paid to common stockholders of $200,000. The...

Q: Construct the DuPont ROA and ROE breakdowns for Lake of Egypt Marina

Construct the DuPont ROA and ROE breakdowns for Lake of Egypt Marina, Inc.

Q: What is the optimal length of time over which to take an

What is the optimal length of time over which to take an average of historic sales when using the average approach?

Q: Calculate the internal and sustainable growth rate for Lake of Egypt Marina

Calculate the internal and sustainable growth rate for Lake of Egypt Marina, Inc.

Q: Using the ratios from question 3-30 for Lake of Egypt

Using the ratios from question 3-30 for Lake of Egypt Marina, Inc. and the industry, what can you conclude about Lake of Egypt Marina’s financial performance for 2018.

Q: You are evaluating the balance sheet for Patty Cake’s Corporation. From

You are evaluating the balance sheet for Patty Cake’s Corporation. From the balances heet you find the following balances: cash and marketable securities = $400,000; accounts receivable = $1,200,000;...