Questions from Corporate Finance

Q: Last year Pontiff Enterprises reported net sales of $13,144

Last year Pontiff Enterprises reported net sales of $13,144,680, a gross profit $4,127,429, EBIT of $2,586,150, and net income of $867,555. Compute Pontiff’s cost of goods sold, gross profit margin, o...

Q: National City Bank has 646,749,650 shares of common

National City Bank has 646,749,650 shares of common stock outstanding that are currently selling for $37.55 per share on the New York Stock Exchange. If National City’s net income was $2,780,955,000 i...

Q: Juliette Bronson anticipates needing $500,000 to start a business

Juliette Bronson anticipates needing $500,000 to start a business. If she can earn 4.5 percent compounded annually on her investments, how much money would Juliette have to invest today to have $500,0...

Q: Christopher Thompkins must decide how to invest $10,000 that

Christopher Thompkins must decide how to invest $10,000 that he just inherited. What would be the future value of his investment after five years under each of the following three investment opportuni...

Q: Tina DeLeon deposited $2,500 today in an account paying

Tina DeLeon deposited $2,500 today in an account paying 6 percent interest annually. What would be the simple interest earned on this investment in five years? With annual compounding, how much intere...

Q: The state of Texas had 42,725 active patient care physicians

The state of Texas had 42,725 active patient care physicians in 2013 and by 2017 this number had grown to 47,663. What was the compound annual growth rate (CAGR) in the number of active care physician...

Q: Compound growth is exponential over time. Explain?

Compound growth is exponential over time. Explain?

Q: Freisinger, Inc., is expecting a new project to start paying

Freisinger, Inc., is expecting a new project to start paying off, beginning at the end of next year. It expects cash flows to be as follows: If Freisinger can reinvest these cash flows to earn a retu...

Q: You plan to set up an endowment at your alma mater that

You plan to set up an endowment at your alma mater that will fund $200,000 of scholarships each year indefinitely. If the principal (the amount you donate) can be invested at 5.5 percent, compounded a...

Q: Annalise Genric wants to open a restaurant in a historic building.

Annalise Genric wants to open a restaurant in a historic building. The property can be leased for 20 years, but not purchased. She believes her restaurant can generate a net cash flow of $76,000 the f...