Questions from Corporate Finance

Q: List the major jobs available in the financial industry.

List the major jobs available in the financial industry.

Q: List the correct bookkeeping entries when a firm sells $50,

List the correct bookkeeping entries when a firm sells $50,000 worth of inventories for $80,000 using credit sales. (Ignore the tax effect.)

Q: Calculate the price change for a 1-percent decrease in market

Calculate the price change for a 1-percent decrease in market yield for the following bond: par = $1,000; coupon rate = 6 percent, paid semi-annually; market yield = 6 percent; term to maturity = 10 y...

Q: Based on the figures in practice problems 17 and 18, how

Based on the figures in practice problems 17 and 18, how much money did the shareholders actually invest in the firm (i.e., what is the value of the capital stock)? Use the following information to an...

Q: An 8 percent annual coupon bond with 12 years left to maturity

An 8 percent annual coupon bond with 12 years left to maturity is selling for $928. What is the YTM of the bond?

Q: A nine‐year, 6.5‐percent coupon bond

A nine‐year, 6.5‐percent coupon bond is selling for 106.2 percent of par. What is the bond ’ s market yield if it makes semi‐annual coupon payments?

Q: The forecast for retained earnings (Practice Problem 31) changes the

The forecast for retained earnings (Practice Problem 31) changes the year 3 forecast for total liabilities and owners ’ equity to $4,770. With total assets forecast to be $5,177, determine how much ex...

Q: Corine ’ s Candies Inc. registered a gross profit margin of

Corine ’ s Candies Inc. registered a gross profit margin of 75 percent on sales of $16 million in 2016. What would the company ’s income statement show for the cost of goods sold?

Q: A company is contemplating issuing new 15‐year bonds at par

A company is contemplating issuing new 15‐year bonds at par. The company currently has 5.5 percent coupon bonds on the market selling for $936. The bonds pay semi‐annual interest and have 15 years unt...

Q: Suppose Finns’ Fridges is subject to corporate income tax at a rate

Suppose Finns’ Fridges is subject to corporate income tax at a rate of 40 percent. What will the company ’s net income be after tax?