Questions from Managerial Finance

Q: Brash Corporation initiated a new corporate strategy that fixes its annual dividend

Brash Corporation initiated a new corporate strategy that fixes its annual dividend at $2.25 per share forever. If the risk-free rate is 4.5% and the risk premium on Brash’s stock is 10.8%, what is th...

Q: The actual sales and purchases for Xenocore Inc. for September and

The actual sales and purchases for Xenocore Inc. for September and October 2019, along with its forecast sales and purchases for the period November 2019 through April 2020, follow. The firm makes 20%...

Q: The following represent financial transactions that Johnsfield & Co. will be

The following represent financial transactions that Johnsfield & Co. will be undertaking in the next planning period. For each transaction, check the statement or statements that will be affected...

Q:  Trotter Enterprises Inc. has gathered the following data to plan

 Trotter Enterprises Inc. has gathered the following data to plan for its cash requirements and short-term investment opportunities for October, November, and December. All amounts are sho...

Q: Brownstein Inc. expects sales of $100,000 during each

Brownstein Inc. expects sales of $100,000 during each of the next 3 months. It will make monthly purchases of $60,000 during this time. Wages and salaries are $10,000 per month plus 5% of sales. Brown...

Q: The marketing department of Metroline Manufacturing estimates that its sales in 2020

The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.5 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $70,00...

Q: Allen Products Inc. wants to do a scenario analysis for the

Allen Products Inc. wants to do a scenario analysis for the coming year. The pessimistic prediction for sales is $900,000; the most likely amount of sales is $1,125,000; and the optimistic prediction...

Q: Leonard Industries wishes to prepare a pro forma balance sheet for December

Leonard Industries wishes to prepare a pro forma balance sheet for December 31, 2020. The firm expects 2020 sales to total $3,000,000. The following information has been gathered: (1) A minimum cash b...

Q: Peabody & Peabody has 2019 sales of $10 million. It

Peabody & Peabody has 2019 sales of $10 million. It wishes to analyze expected performance and financing needs for 2021, which is 2 years ahead. Given the following information, respond to parts a...

Q: In early 2019, Sosa Enterprises purchased a new machine for $

In early 2019, Sosa Enterprises purchased a new machine for $10,000 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $2,000....