Questions from Corporate Finance

Q: At 6.5 percent interest, how long does it take

At 6.5 percent interest, how long does it take to double your money? To quadruple it?

Q: Sankey, Inc., has current assets of $4,900

Sankey, Inc., has current assets of $4,900, net fixed assets of $25,000, current liabilities of $4,100, and long-term debt of $10,300. What is the value of the shareholders’ equity account for this fi...

Q: If the Hunter Corp. has a ROE of 12 percent and

If the Hunter Corp. has a ROE of 12 percent and a payout ratio of 15 percent, what is its sustainable growth rate?

Q: Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor

Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor Corporation, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, TMCC promised to repay...

Q: Why is it not necessarily bad for the cash flow from assets

Why is it not necessarily bad for the cash flow from assets to be negative for a particular period?

Q: One tool of financial analysis is common-size financial statements.

One tool of financial analysis is common-size financial statements. Why do you think common-size income statements and balance sheets are used? Note that the accounting statement of cash flows is not...

Q: Assuming the following ratios are constant, what is the sustainable growth

Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.85 Profit margin = 5.9% Equity multiplier = 1.70 Payout ratio = 60%

Q: The following table presents the long-term liabilities and stockholders’ equity

The following table presents the long-term liabilities and stockholders’ equity of Information Control Corp. one year ago: During the past year, the company issued 5 million shares...

Q: One of the implicit assumptions we made in calculating the external funds

One of the implicit assumptions we made in calculating the external funds needed was that the company was operating at full capacity. If the company is operating at less than full capacity, how will t...

Q: Why is it not necessarily bad for the operating cash flow to

Why is it not necessarily bad for the operating cash flow to be negative for a particular period?