Questions from Corporate Finance

Q: DFB, Inc., expects earnings this year of $5 per

DFB, Inc., expects earnings this year of $5 per share, and it plans to pay a $3 dividend to shareholders. DFB will retain $2 per share of its earnings to reinvest in new projects that have an expected...

Q: You are analyzing the leverage of two firms and you note the

You are analyzing the leverage of two firms and you note the following (all values in millions of dollars): a. What is the market debt-to-equity ratio of each firm? b. What is the book debt-to-equity...

Q: For 2010, Wal-Mart and Target had the following information

For 2010, Wal-Mart and Target had the following information (all values are in millions of dollars): a. What is each company’s accounts receivable days? b. What is each companyâ...

Q: You have a loan outstanding. It requires making three annual payments

You have a loan outstanding. It requires making three annual payments of $1000 each at the end of the next three years. Your bank has offered to allow you to skip making the next two payments in lieu...

Q: Consider the following potential events that might have occurred to Global on

Consider the following potential events that might have occurred to Global on December 30, 2010. For each one, indicate which line items in Global’s balance sheet would be affected and by how much. Al...

Q: In June 2007, General Electric (GE) had a book

In June 2007, General Electric (GE) had a book value of equity of $117 billion, 10.3 billion shares outstanding, and a market price of $38.00 per share. GE also had cash of $16 billion, and total debt...

Q: In July 2007, Apple had cash of $7.12

In July 2007, Apple had cash of $7.12 billion, current assets of $18.75 billion, and current liabilities of $6.99 billion. It also had inventories of $0.25 billion. a. What was Apple’s current ratio?...

Q: In April 2010, the following information was true about Abercrombie and

In April 2010, the following information was true about Abercrombie and Fitch (ANF) and The Gap (GPS), both clothing retailers. Values (except price per share) are in millions of dollars. a. What is t...

Q: Find online the annual 10-K report for Peet’s Coffee and

Find online the annual 10-K report for Peet’s Coffee and Tea (PEET) for 2008. Answer the following questions from the income statement: a. What were Peet’s revenues for 2008? By what percentage did re...

Q: Local Co. has sales of $10 million and cost of

Local Co. has sales of $10 million and cost of sales of $6 million. Its selling, general and administrative expenses are $500,000 and its research and development is $1 million. It has annual deprecia...