Current Assets 30,000,000 Current Liabilities 20,000,000
Fixed Assets 70,000,000 Notes Payable 10,000,000
Total Assets: 100,000,000 Long-term...
Current Assets 30,000,000 Current Liabilities 20,000,000
Fixed Assets 70,000,000 Notes Payable 10,000,000
Total Assets: 100,000,000 Long-term debt 30,000,000
Common Stock 1,000,000
Retained Earnings 39,000,000
Total liabilities & Equity 100,000,000
The notes payable are to banks, and the interest rate on this
debt is 7%, the same as the rate on new bank loans. These bank
loans are not used for seasonal financing but instead are part of
the company's permanent capital structure. The long-term debt
consists of 30,000 bonds, each...
A firm's current profits are $950,000. These profits are
expected to grow indefinitely at a constant...
A firm's current profits are $950,000. These profits are
expected to grow indefinitely at a constant annual rate of 6
percent. If the firm's opportunity cost of funds is 8 percent,
determine the value of the firm:
Instructions: Enter your
responses rounded to two decimal places.
a. The instant before it pays out current profits as
dividends.
$ million
b. The instant after it pays out current profits as
dividends.
$ million
If the Fed wishes to decrease long-term investment spending, it
must
cut the current short-term interest...
If the Fed wishes to decrease long-term investment spending, it
must
cut the current short-term interest rate.
convince the public that the expected future short-term rates
would be low.
raise the short-term interest rates and the expected short-term
future rates.
Both cut the current short-term interest rate and convince the
public that the expected future short-term rates would be low are
correct.
1-According to the expectations theory of the term structure of
interest rates,
A
a long-term interest...
1-According to the expectations theory of the term structure of
interest rates,
A
a long-term interest rate is equal to the average of current and
expected future short-term interest rates.
B-
the yield curve is always flat.
C-
a short-term interest rate has no relation to long-term interest
rates.
D- a short-term interest rate is equal to the average of current
and expected future long-term interest rates.
2-The expectations theory of yield curves is not very realistic
because
A-
a...
1.Long-term funds, short-term funds and shareholders’ interest
are detailed on the __________ side of the __________....
1.Long-term funds, short-term funds and shareholders’ interest
are detailed on the __________ side of the __________.
2. Insanity Sports (PTY) LTD wishes to evaluate their liquidity
and has provided you with the following information.
Current assets = R500 000
Current liabilities = R200 000
Total Inventory value = R50 000
Using the information provided, what would the acid-test ratio
results be for Insanity Sports (PTY) LTD?
3. Angie wants to determine the ability of her business to repay
its debts...