Questions from General Investment

Q: For its fiscal year ending on June 30, 2018, Microsoft

For its fiscal year ending on June 30, 2018, Microsoft reported net income of $16.57 billion from sales of $110.36 billion. The company also reported total assets of $258.85 billion. a. Calculate Micr...

Q: The following data have been gathered from the financial statements of General

The following data have been gathered from the financial statements of General Nutrition Centers (in thousands of dollars): Calculate the times interest earned ratios for 2016 and 2017. Is the company...

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: TXS Manufacturing has an outstanding preferred stock issue with a par value

TXS Manufacturing has an outstanding preferred stock issue with a par value of $65 per share. The preferred shares pay dividends annually at a rate of 10%. a. What is the annual dividend on TXS prefer...

Q: Jack is considering a stock purchase. The stock pays a constant

Jack is considering a stock purchase. The stock pays a constant annual dividend of $3.00 per share and is currently trading at $21. Jack’s required rate of return for this stock is 13%. Should he buy...

Q: Allen Bagley bought 300 shares of stock at $95 per share

Allen Bagley bought 300 shares of stock at $95 per share using an initial margin of 60%. Given a maintenance margin of 35%, how far does the stock have to drop before Allen faces a margin call? (Assum...

Q: Kelsey Drums Inc. is a well-established supplier of fine

Kelsey Drums Inc. is a well-established supplier of fine percussion instruments to orchestras all over the United States. The company’s class A common stock has paid a dividend of $2.80 per share per...

Q: Wilbur and Orville are brothers. They’re both serious investors, but

Wilbur and Orville are brothers. They’re both serious investors, but they have different approaches to valuing stocks. Wilbur, the older brother, likes to use the dividend valuation model. Orville pre...

Q: Assume you’ve generated the following information about the stock of Ben’s Banana

Assume you’ve generated the following information about the stock of Ben’s Banana Splits: The company’s latest dividends of $2.00 a share are expected to grow to $2.27 next year, to $2.71 the year aft...