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At an output level of 50,000 units, you calculate that the degree of operating leverage is 1.8. What will be the percentage change in operating cash flow if the new output level is 54,500 units?
Basic Finance, Finance
Every year for the past five years, Flights 'R Us has paid a constant dividend of $2.50 per share. Next year and every year after, Flights 'R Us will increase the dividend rate 2.5% per year. If investors require a 15% r ...
A company paid $13,000 in cash dividends. The retained earnings account decreased by $3,100 in the same period. What is the net income for the period?
Question - Discuss how a stock repurchase acts like a cash dividend and the tax advantages provided by the stock repurchase. A substantial initial response consisting of a minimum of 100 words using proper grammar, spell ...
A perpetual bond sells for $885 and pays a semiannual coupon in the amount of $34. What is the annualized yield for the bond?
1) Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 10. ...
What are the effects of coupon rate to the sensitivity of a bond price and to changes in interest rates?
Suppose that today's stock price is $32.36. If the required rate on equity is 21.7% and the growth rate is 9.1%, compute the expected dividend (i.e. compute D1) Note: Enter your answer rounded off to two decimal points. ...
One year ago, you bought a put option on 125,000 euros with an expiration date of one year. You paid a premium on the put option of $.05 per unit. The exercise price was $1.36. Assume that one year ago, the spot rate of ...
Suppose that the annual interest rate is 1.0 percent in the United States and 3 percent in Germany, and that the spot exchange rate is $1.25/€ and the forward exchange rate, with one-year maturity, is $1.35/€. Assume tha ...
Use the bond-yield-plus-risk-premium method to estimate the cost of equity for Galveston Corp. A US Treasury bond yields 2.4%, the long-term bond for Galveston yields 4.4%, Galveston's beta is 1.2, the market risk premiu ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
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