Questions from Corporate Finance


Q: What is the difference between the internal growth rate and the sustainable

What is the difference between the internal growth rate and the sustainable growth rate?

See Answer

Q: What information does time series and cross-sectional analysis provide for

What information does time series and cross-sectional analysis provide for firm managers, analysts, and investors?

See Answer

Q: Why is it important to know a firm’s accounting rules before making

Why is it important to know a firm’s accounting rules before making any conclusions about its performance from ratios analysis?

See Answer

Q: Paychex Inc. (PAYX) recently paid an $0.

Paychex Inc. (PAYX) recently paid an $0.84 dividend. The dividend is expected to grow at a 15 percent rate. At a current stock price of $40.11, what is the return shareholders are expecting?

See Answer

Q: What is the difference between time series analysis and cross-sectional

What is the difference between time series analysis and cross-sectional analysis?

See Answer

Q: A firm has an ROE of 20 percent. The industry average

A firm has an ROE of 20 percent. The industry average ROE is 12 percent. Is this a good or poor sign about the management of the firm?

See Answer

Q: Shown below are partial financial statements for Garners’ Platoon Mental Health Care

Shown below are partial financial statements for Garners’ Platoon Mental Health Care, Inc. Fill in the blanks on the four financial statements. Garners’ Platoon Me...

See Answer

Q: Vinny’s Overhead Construction had free cash flow during 2018 of $25

Vinny’s Overhead Construction had free cash flow during 2018 of $25.4 million. The change in gross fixed assets on Vinny’s balance sheet during 2018 was $7.0 million and the change in net operating wo...

See Answer

Q: You are evaluating the balance sheet for Goodman’s Bees Corporation. From

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

See Answer

Q: Casello Mowing & Landscaping’s year-end 2018 balance sheet lists current

Casello Mowing & Landscaping’s year-end 2018 balance sheet lists current assets of $435,200, fixed assets of $550,800, current liabilities of $416,600, and long-term debt of $314,500. Calculate Casell...

See Answer