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A firm has operating income of $1,000, depreciation expense of $185 and its investment in operating capital is $400. The firm is 100% equity financed and has a 35% tax rate. What is the firm's free cash flow?
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Basic Finance, Finance
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Moore Company is about to issue a bond with semiannual coupon payments, a coupon rate of 8%, and a par value of $1,000. The yield to maturity for this bond is 10%. a. What is the bond price if it matures in five, ten, fi ...
Tiffany borrows a $200,000, 5 years loan at 7%, with a fixed amount of principal to be repaid every year. What is the total amount that she will need to pay at the end of year 4? (round off all answers to 2 decimal place ...
A stock is trading at $78 per share. The stock is expected to have a year-end dividend of $5 per share (D1=$5), which is expected to grow at some constant rate g throughout time. The stock's required rate of return is 15 ...
How may the Royal Commission inquiring into the activities of financial institutions in Australia affect systematic (market) risk and unsystematic (firm-specific) risk? Explain how items of news reported from the Royal C ...
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