DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Debt ratio = 1 – (1 / Equity multiplier) Debt ratio = 1 – (1/2.5) = 1 - .40 = .60 Debt ratio = 60% (3-3) Market/Book Ratio: Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.
Each debenture can be converted into 25 shares of common stock at any time before 2019. What is the conversion value of the bond? Question 23 Warren Corporation’s stock sells for $42 per share. The company wants to sell some 20-year, annual interest, $1,000 par value bonds. Each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $47.
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
NASCAR has such a huge fan base you could market almost anything and find people that it would apply to but some companies target market might match better to who watches NASCAR. So out of NASCAR’s 75 million fans 60 percent of those are male and of course the other 40 percent is females. 32 percent are between the ages 18-34, 43 percent are 35-44, and the other 43 percent are 45 or older. 42 percent of NASCAR’s fan base makes 50,000 dollars or more every year, which happens to be more affluent than the US population. The complete income distribution is 29 percent make 30-50,000 dollars, 22 percent make 50-75,000 dollars, 12 percent make 75-100,000 dollars, and 8 percent make over 100,000 dollars every year.
Based on that, Corporation B is desirable to Corporation A as it has a greater net present value. The Internal Rate of Return (IRR) is defined as the discount rate that equates the present value of the project’s free cash flows with the project’s initial cash outlay (Keown, A. J., Martin, J. D., & Petty, J. W. (2014). Based on the Internal Rate of Return rule, an investment is suitable if the Internal Rate of Return exceeds the required return, it should be rejected otherwise. Based on that, Corporation B is preferred over Corporation A since the former has a higher Internal Rate of Return. Examining the above, the Net Present Value and the Internal Rate of Return are closely related.
Whalen Court is also entering a relatively affluent area attracting what Target considers its preferred customer. The two negative attributes of Whalen Court are the Capital Investment is greater than the Target prototype store and the store itself is a lease arrangement rather than owned outright by Target. However, Whalen Court’s impressive NPV and the affluent customers it should attract override these
CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies. EBIT is "capital structure neutral" and is therefore a more appropriate way of comparing the earnings of different companies than net income
While the Winklevoss twins originated the idea and had begun executing it, they had taken no steps to protect their intellectual property and had no formal arrangement with Zuckerberg. It is likely that they made several missteps that led to the loss of billions of dollars. The first misstep was their assumption that their idea would be protected from theft. Their second misstep was not taking action to protect their idea, which led to the false assumption about Zuckerberg. For his part, Zuckerberg conducted himself with weak moral standing, having stolen a valuable idea and taken steps to register and launch it without stating his position to the Winklevosses.
Collusive behavior in the work place means supporting or allowing the unethical or incompetent actions done by the leaders, managers or supervisors. Certain type of collusive behavior in the work place do exist because employees want to gain appreciation or trust by managers through doing so. If the leaders or supervisors appreciate their support, the employees might get a promotion. What’s more, by behaving collusively to the managers, employees could also be in a better relationship than the others who do not, which means “potential benefit” to themselves in their own eyes. However, what I want to say is that if the company behave unethically as a whole, it may lose its consumer trust and undermine the firm’s reputation, then how can an employee realize his personal value?
This is not to say that post-secondary schooling is a waste of time, as I feel that it has many benefits. But this is not the only measurement that a person should be rated against to qualify them as being well educated or not. I believe that I am just as educated about my company and the business than any other individual that has a degree in the company. I will say that having a degree may have sped up my journey in obtaining my goals, but it does not have to be the only path. I have had the support of executives within the company, only to have the dreaded question asked of me; “Do you have a degree?” When I have to answer that I do not have a degree, then the response is always directed that I will need to get a degree before I can move further up in the