One alleged advantage of leasing voiced in the past is that it kept liabilities off the balance sheet, thus making it possible for a firm to obtain more leverage than it otherwise could have. This raised the question of whether or not both the lease obligation and the asset involved should be capitalized and shown … Continue reading "One alleged advantage of leasing voiced in the past is that it kept liabilities off the balance…"
Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.25 yesterday. Bahnsen’s dividend is expected to grow at 8% per year for the next 3 years, and, if you buy the stock, you plan to hold it for 3 years and then sell it. The … Continue reading "Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend…"
Assume that Kindred Healthcare and Sun Healthcare Group, two operators of nursing homes, have fiscal years that end at different times-say, one in June and one in December. Would this fact cause any problems when comparing ratios between the two companies?
At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the following balance sheet (in thousands of dollars). The court, after trying unsuccessfully to reorganize the firm, decided that the only recourse was liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral … Continue reading "At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining…"
Document Preview: FIN 7000 – Present Value Please see the two equations below: That is: PV is discounted future CFs and FV is PV (or CFs, equivalently) compounded to the future. Use your word to describe the relationship between these two equations and that of: Bond Valuation Stock Valuation IRR Attachments: FIN7000—PRE….docx
Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time. Respond to the following scenario with your thoughts, ideas, and comments. … Continue reading "Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late…"
When is the direct order appropriate in inquiries? When would you use the indirect order? Give examples
1. The United States restricts imports but, at the same time, supports the WTO and international banks whose objective is to enhance world trade. As a member of Congress, how would you justify this contradiction to your constituents?
Would it be a sound rule to liquidate whenever the liquidation value is above the value of the corporation as a going concern? Discuss.
What are the advantages of investing in the common stock rather than the corporate bonds of a company? Compare the certainty of returns for a bond with those for a common stock. Draw a line graph to demonstrate the pattern of returns you would envision for each of these assets over time.