Questions from Corporate Finance

Q: What are the three types of financial management decisions? For each

What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant.

Q: Papa Roach Exterminators, Inc., has sales of $586,

Papa Roach Exterminators, Inc., has sales of $586,000, costs of $247,000, depreciation expense of $43,000, interest expense of $32,000, and a tax rate of 35 percent. What is the net income for this fi...

Q: Klingon Widgets, Inc., purchased new cloaking machinery three years ago

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Romulans today for $4.9 million. Klingon’s current balance sheet shows net fixe...

Q: In a large corporation, what are the two distinct groups that

In a large corporation, what are the two distinct groups that report to the chief financial officer? Which group is the focus of corporate finance?

Q: So Long, Inc., has sales of $27,500

So Long, Inc., has sales of $27,500, costs of $13,280, depreciation expense of $2,300, and interest expense of $1,105. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

Q: The 2008 balance sheet of Maria’s Tennis Shop, Inc., showed

The 2008 balance sheet of Maria’s Tennis Shop, Inc., showed $740,000 in the common stock account and $5.2 million in the additional paid-in surplus account. The 2009 balance sheet showed $815,000 and...

Q: Given the information for Maria’s Tennis Shop, Inc., in Problems

Given the information for Maria’s Tennis Shop, Inc., in Problems 11 and 12, suppose you also know that the firm’s net capital spending for 2009 was $940,000, and that the firm reduced its net working...

Q: Earnhardt Driving School’s 2008 balance sheet showed net fixed assets of $

Earnhardt Driving School’s 2008 balance sheet showed net fixed assets of $3.4 million, and the 2009 balance sheet showed net fixed assets of $4.2 million. The company’s 2009 income statement showed a...

Q: The 2008 balance sheet of Saddle Creek, Inc., showed current

The 2008 balance sheet of Saddle Creek, Inc., showed current assets of $2,100 and current liabilities of $1,380. The 2009 balance sheet showed current assets of $2,250 and current liabilities of $1,71...

Q: The 2008 balance sheet of Maria’s Tennis Shop, Inc., showed

The 2008 balance sheet of Maria’s Tennis Shop, Inc., showed long-term debt of $2.6 million, and the 2009 balance sheet showed long-term debt of $2.9 million. The 2009 income statement showed an intere...