Questions from Corporate Finance

Q: The most recent financial statements for Moose Tours, Inc., appear

The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payou...

Q: What is the future value in six years of $1,

What is the future value in six years of $1,000 invested in an account with an APR of 7.5 percent, a. Compounded annually? b. Compounded semiannually? c. Compounded monthly? d. Compounded continuously...

Q: Consider the following abbreviated financial statements for Weston Enterprises: /

Consider the following abbreviated financial statements for Weston Enterprises: a. What is owners’ equity for 2014 and 2015? b. What is the change in net working capital for 2015? c...

Q: The discussion of EFN in the chapter implicitly assumed that the company

The discussion of EFN in the chapter implicitly assumed that the company was operating at full capacity. Often, this is not the case. For example, assume that Rosengarten was operating at 90 percent c...

Q: First Simple Bank pays 4.1 percent simple interest on its

First Simple Bank pays 4.1 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to mat...

Q: Draw up an income statement and balance sheet for this company for

Draw up an income statement and balance sheet for this company for 2014 and 2015.

Q: In Problem 21, suppose the firm wishes to keep its debt

In Problem 21, suppose the firm wishes to keep its debt–equity ratio constant. What is EFN now?

Q: You are planning to save for retirement over the next 30 years

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account and $250 per month in a bond account. The return of the stock account is e...

Q: Barrett, Inc., has sales of $19,800,

Barrett, Inc., has sales of $19,800, costs of $10,900, depreciation expense of $2,100, and interest expense of $1,250. If the tax rate is 40 percent, what is the operating cash flow, or OCF?

Q: Gordon Driving School’s 2014 balance sheet showed net fixed assets of $

Gordon Driving School’s 2014 balance sheet showed net fixed assets of $1.32 million, and the 2015 balance sheet showed net fixed assets of $1.51 million. The company’s 2015 income statement showed a d...