Questions from Corporate Finance

Q: If Norwood Corp.’s management wants to reduce the DSO from

If Norwood Corp.’s management wants to reduce the DSO from that calculated in Problem 4.16 to an industry average of 56.3 days and its net sales are expected to decline by about 12 percent, what would...

Q: Nimitz Rental Company had depreciation expenses of $108,905,

Nimitz Rental Company had depreciation expenses of $108,905, interest expenses of $78,112, and an EBIT of $1,254,338 for the year ended June 30, 2017. What are the times interest earned and cash cover...

Q: Conseco, Inc., has a debt ratio of 0.56

Conseco, Inc., has a debt ratio of 0.56. What are the company’s debt-to-equity ratio and equity multiplier?

Q: Flying Penguins Corp. has total current assets of $11,

Flying Penguins Corp. has total current assets of $11,845,175, current liabilities of $5,311,020, and a quick ratio of 0.89. How much inventory does it have?

Q: Cisco Systems has total assets of $35.594 billion,

Cisco Systems has total assets of $35.594 billion, total debt of $9.678 billion, and net sales of $22.045 billion. Its net profit margin for the year is 20 percent, while the operating profit margin i...

Q: Procter & Gamble reported the following information for its fiscal year end

Procter & Gamble reported the following information for its fiscal year end: On net sales of $51.407 billion, the company earned net income after taxes of $6.481 billion. It had cost of goods sold of...

Q: Wal-Mart, Inc., has net income of $9

Wal-Mart, Inc., has net income of $9,054,000 on net sales of $256,329,812. The company has total assets of $104,912,112 and stockholders’ equity of $43,623,445. Use the extended DuPont identity to fin...

Q: Xtreme Sports Innovations has disclosed the following information: EBIT =

Xtreme Sports Innovations has disclosed the following information: EBIT = $25,664,300 ……………………………. Net income = $13,054,000 …………………………………….…………………….…… Net sales = $83,125,336 Total debt = $20,885,753...

Q: Cisco Systems had net income of $4.401 billion and

Cisco Systems had net income of $4.401 billion and at year end 6.735 billion shares outstanding. Calculate the earnings per share for the company?

Q: Bigbie Corp. issued a five-year bond a year ago

Bigbie Corp. issued a five-year bond a year ago with a coupon of 8 percent. The bond pays interest semiannually. If the yield to maturity on this bond is 9 percent, what is the price of the bond?