Questions from Corporate Finance

Q: Tina ’ s Business Inc. purchases one machine in its first

Tina ’ s Business Inc. purchases one machine in its first year of business for $1,000,000. In year 2, it purchases another machine for $500,000. The CCA rate for these assets is 20 percent. a. Find th...

Q: Calculate the receivables turnover, inventory turnover, and average collection period

Calculate the receivables turnover, inventory turnover, and average collection period for a firm, given the following accounting data: accounts receivable are $600,000; accounts payable are $305,000;...

Q: Estimate cash flow from operations for KER Inc. using the following

Estimate cash flow from operations for KER Inc. using the following information.

Q: Suppose firms A and B have identical revenues and operating expenses,

Suppose firms A and B have identical revenues and operating expenses, so that each has earnings before amortization and taxes of $10 million. Both firms will report amortization of $1 million on their...

Q: Kash Kow Inc. pays out all its after‐tax earnings

Kash Kow Inc. pays out all its after‐tax earnings to shareholders in the form of dividends. Suppose that in 2015 the company earned $1 per share before tax. Corporate income tax was paid at a rate of...

Q: David Finn notices that the local appliance store is now charging $

David Finn notices that the local appliance store is now charging $210 for the same model of refrigerator his company bought for $200. Given that Finns ’ Fridges purchased 25 of these refrigerators, w...

Q: The Finn brothers are concerned that the financial statements for Finns ’

The Finn brothers are concerned that the financial statements for Finns ’ Fridges don ’ t reflect the true state of affairs. The company ’ s 25 customers were charged $10 for rent at the end of each m...

Q: What are the scope and purpose of the auditor’s opinion?

What are the scope and purpose of the auditor’s opinion?

Q: Calculate cash flow from operations for Tina’ s Business Inc. using

Calculate cash flow from operations for Tina’ s Business Inc. using the following information.

Q: Consider a bond with five years to maturity, FV of $

Consider a bond with five years to maturity, FV of $1,000, and a coupon rate of 6.5 percent (semi‐annual payments). a . Calculate the price of this bond if the market yield is: i) 7.75 percent; ii) 5....