Ask Question, Ask an Expert


Ask Basic Finance Expert

1) An investor is considering starting a new business. The company would require $550,000 of assets, and it would be financed entirely with common stock. The investor will go forward only if she thinks the firm can provide a 21.5% return on the invested capital, which means that the firm must have an ROE of 21.5%. How much net income must be expected to warrant starting the business?

2) Helmuth Inc.'s latest net income was $1,250,000, and it had 275,000 shares outstanding. The company wants to pay out 35% of its income as dividends. What dividend per share should it declare?

3) Heaton Corp. sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $475,000, and its year-end receivables were $80,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late? Base your answer on this equation: DSO - Credit period = days early or late, and use a 365-day year when calculating the DSO. A positive answer indicates late payments, while a negative answer indicates early payments.

4) Last year Mason Inc. had a total assets turnover of 2.25 and an equity multiplier of 1.75. Its sales were $185,000 and its net income was $8,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,400 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915035

Have any Question? 

Related Questions in Basic Finance

Impact of monetary policy on cost of capital explain the

Impact of Monetary Policy on Cost of Capital : Explain the effects of a stimulative monetary policy on a firm's cost of capital.

Choose a stock from the attachportfolio information-

Choose a stock from the attach(Portfolio Information- Public),and do a report in ppt(Econ Update Q3 2016.pptx),why you choose it,also you need to do is the analyst. The simply template is also in attach.(SMIF Analyst Rep ...

In 2006 ben bernanke said the goals of strong output growth

In 2006, Ben Bernanke said the goals of strong output growth and low inflation "are almost always consistent with each other." Alan Greenspan once called the trade-off between output and inflation "ephemeral." a. Are the ...

You are being interviewed for a job as a financial

You are being interviewed for a job as a financial assistant. As part of the interview process, the office manager tells you there will be a short test to assess your familiarity with basic financial terms which would pl ...

Many people claim that playing the stock market is like

Many people claim that playing the stock market is like gambling. How is this true or not true? What should be one's approach to the stock market? Please no plagiarism. cite sources.

Excel exercise loan amoritizationloan amoritization video

Excel Exercise: Loan Amoritization Loan Amoritization Video: Create a Loan Amortization Schedule Excel Assignment For this assignment you are required to create two loan amorti ...

Analyzing capital expendituresassume that you have received

Analyzing Capital Expenditures Assume that you have received a capital expenditure request for $52,000 for plant equipment and that you are required to do a justification analysis using capital budgeting techniques. The ...

The domestic and international financial marketplace topic

The domestic and international financial marketplace. Topic include financial markets, types of financial intermediaries, the form and methods of stock market operation, the stock market, multinational corporation, forei ...

Assignment- tvm 2 - tth classto complete your degree and

Assignment- TVM 2 - T/Th Class To complete your degree and then go through graduate school, you will need $50,000 at end of each of the next7 years. Your Aunt offered to put you through school, and she will deposit in a ...

Us interest rates during the credit crisisduring the credit

U.S. Interest Rates during the Credit Crisis : During the credit crisis, U.S. interest rates were extremely low, which enabled businesses to borrow at a low cost. Holding other factors constant, this should result in a h ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate