Finance Problems – Ackert Company’s and more Solution
1. Ackert Firm's final dividend was $1.55. The dividend progress fee is predicted to be fixed at 1.5% for two years, after which dividends are anticipated to develop at a fee of eight.zero% endlessly. The agency's required return (rs) is 12.zero%. What's the greatest estimate of the present inventory worth?$37.05$38.16$39.30$40.482. The Chadmark Company's budgeted month-to-month gross sales are $three,000. Within the first month, 40% of its clients pay and take the two% low cost.The remaining 60% pay within the month following the sale and do not obtain a reduction.Chadmark's unhealthy money owed are very small and are excluded from this evaluation. Purchases for subsequent month's gross sales are fixed every month at $1,500.Different funds for wages, lease, and taxes are fixed at $700 per thirty days. Assemble a single month's money funds with the knowledge given.What's the common money achieve or (loss) throughout a typical month for the Chadmark Company? Please present your calculation.three. Contemplate the next for the next Four corporations:Agency Money Debt Fairness rD rE rCEenie zero 150 150 5% 10% 40%Meenie zero 250 750 6% 12% 35%Minie 25 175 325 6% 11% 35%Moe 50 350 150 7.5% 15% 30%Which is the weighted common value of capital for Meenie closet to?a. 10.5% b. 7.Four% c. 10.zero% d. eight.8percent4. Your consulting agency was employed to enhance the efficiency of Shin-Soenen Inc which is extremely worthwhile however has been experiencing money scarcity because of its excessive progress fee. As one a part of your evaluation, you wish to decide the agency's money conversion cycle, utilizing the next info and a 365 day a 12 months, what's the agency's current money conversion cycle?Common Stock 75,000Annual Gross sales 600,000Annual value of products bought 360,000Common accounts receivable 160,000Common accounts payable 25,000a. 120.6 days b. 126.9 days c. 133.6 days d. 140.6 dayse. 148.zero days.5. Your organization has been provided credit score phrases of Four/30, web 90 days. What would be the nominal annual share value of its nonfree commerce credit score if it pays 120 days after the acquisition? (Assume a 365-day 12 months.)a. 16.05%b. 16.90%c. 17.74%d. 18.63%e. 19.56%6. Division Asset Subsequent interval exp. free money circulate Exp. growthOil Exploration 1.Four 450 4percentOil Refinery 1.1 525 2.5percentGas & Conv. zero.eight 600 three.0percentThe chance free fee of curiosity is three% and market danger premium is 5%. What's the price of capital for oil exploration div. closet to:a. 6.zero% b. 7.zero% c. eight.5% d. 10%7. You count on CCM Corp to generate the foll. free money flows ove rthe subsequent 5 years:Yr 1 2 three Four 5FCF(million) 25 28 32 37 40If CCM has $150million of debt and 12million shares of inventory outstandingwhich is the share worth of CCM closest to/a. $49.50 b. $11.25 c. $20.50 d. $22.758. Which is the variance of returns on the index from 2,000 to 2009 closet to?12 months Finish Index Realized Return (R-R) (R-R)22000 23.6% 14.78% zero.02184482001 24.7% 15.88% zero.02521742002 30.5% 21.68% zero.04700222003 9.zero% zero.18% three.Four E-062004 -2.zero% -10.82% zero.01170722005 -17.three% -26.12% zero.06822542006 -24.three% -33.12% zero.10969342007 32.2% 23.38% zero.05466242008 Four.Four% -Four.42% zero.00195362009 7.Four% -1.42% zero.0002016A. zero.zero450 B. zero.3400 C. zero.1935 D. zero.0375