Questions from Corporate Finance


Q: Use the results of Problem 25 to find the accounting, cash

Use the results of Problem 25 to find the accounting, cash, and financial break-even quantities for the company in Problem 27. Problem 25: This problem concerns the effect of taxes on the various bre...

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Q: Say you own an asset that had a total return last year

Say you own an asset that had a total return last year of 14.1 percent. If the inflation rate last year was 2.83 percent, what was your real return?

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Q: Stinnett Transmissions, Inc., has the following estimates for its new

Stinnett Transmissions, Inc., has the following estimates for its new gear assembly project: Price = $1,220 per unit; variable costs = $380 per unit; fixed costs = $3.75 million; quantity = 90,000 uni...

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Q: Use the results of Problem 26 to find the degree of operating

Use the results of Problem 26 to find the degree of operating leverage for the company in Problem 27 at the base-case output level of 20,000 tons. How does this number compare to the sensitivity figur...

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Q: We are evaluating a project that costs $845,000,

We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected a...

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Q: In the previous problem, suppose the projections given for price,

In the previous problem, suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figures....

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Q: In each of the following cases, calculate the accounting break-

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.

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Q: In each of the following cases, find the unknown variable:

In each of the following cases, find the unknown variable:

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Q: A project has the following estimated data: Price = $53

A project has the following estimated data: Price = $53 per unit; variable costs = $22 per unit; fixed costs = $31,460; required return = 12 percent; initial investment = $46,200; life = four years. I...

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Q: Suppose a stock had an initial price of $74 per share

Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $83. Compute the percentage total return.

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