Questions from General Investment

Q: Highgate Computer Company produces $1.8 million in profits from

Highgate Computer Company produces $1.8 million in profits from $27 million in sales. It has total assets of $15 million. a. Calculate Highgate’s total asset turnover and its net profit margin. b. Fin...

Q: Financial Learning Systems has 2.5 million shares of common stock

Financial Learning Systems has 2.5 million shares of common stock outstanding and 100,000 shares of preferred stock. (The preferred pays annual cash dividends of $5 a share, and the common pays annual...

Q: An investor estimates that next year’s sales for Dursley’s Hotels, Inc

An investor estimates that next year’s sales for Dursley’s Hotels, Inc., should amount to about $100 million. The company has five million shares outstanding, generates a net profit margin of about 10...

Q: Assume you’ve generated the following information about the stock of Bufford’s Burger

Assume you’ve generated the following information about the stock of Bufford’s Burger Barns: The company’s latest dividends of $4 a share are expected to grow to $4.32 next year, to $4.67 the year aft...

Q: Let’s assume that you’re thinking about buying stock in West Coast Electronics

Let’s assume that you’re thinking about buying stock in West Coast Electronics. So far in your analysis, you’ve uncovered the following information: The stock pays annual dividends of $5.00 a share in...

Q: The price of Myrtle’s Plumbing Supply Co. is now $80

The price of Myrtle’s Plumbing Supply Co. is now $80. The company pays no dividends. Ms. Bossard expects the price three years from now to be $110 per share. Should she buy Myrtle’s Plumbing stock if...

Q: This year, Shoreline Light and Gas (SL&G)

This year, Shoreline Light and Gas (SL&G) paid its stockholders an annual dividend of $3 a share. A major brokerage firm recently put out a report on SL&G predicting that the company’s annual dividend...

Q: Briefly differentiate among the following types of brokerage accounts: a

Briefly differentiate among the following types of brokerage accounts: a. Single or joint b. Custodial c. Cash d. Margin e. Wrap

Q: Assume there are three companies that in the past year paid exactly

Assume there are three companies that in the past year paid exactly the same annual dividend of $2.25 a share. In addition, the future annual rate of growth in dividends for each of the three companie...

Q: New Millennium Company earned $2.5 million in net income

New Millennium Company earned $2.5 million in net income last year. It took depreciation deductions of $300,000 and made new investments in working capital and fixed assets of $100,000 and $350,000, r...