Anle Corporation has a current price of $\$ 27$, is expected to pay a dividend of $\$ 2$ in one year, and its expected price right after paying that dividend is $\$ 28$.

a. What is Anle's expected dividend yield?

b. What is Anle's expected capital gain rate?

c. What is Anle's equity cost of capital?

Suppose Acap Corporation will pay a dividend of $\$ 2.72$ per share at the end of this year and $\$ 2.99$ per share next year. You expect Acap's stock price to be $\$ 53.72$ in two years. If Acap's equity cost of capital is $11.1 \%$ :

a. What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years?

b. Suppose instead you plan to hold the stock for one year. What price would you expect to be able to sell a share of Acap stock for in one year?

c. Given your answer in part (b), what price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for one year? How does this compare to your answer in part (a)?

Travis Corporation expected to pay its stockholders a dividend in January 2020. The cash dividend of $75,000 was declared on December 31, 2019.

Required:

What is the appropriate journal entry to record this declaration?

A deficiency of _____ can cause pernicious anemia.

a. vitamin B12

b. iron

c. folic acid

d. vitamin C

e. EPO secretion

Your brother wants to borrow $\$ 10,750$ from you. He has offered to pay you back $\$ 12,750$ in a year. If the cost of capital of this investment opportunity is $12 \%$, what is its NPV? Should you undertake the investment opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

Your grandfather put some money in an account for you on the day you were born. You are now $18$ years old and are allowed to withdraw the money for the first time. The account currently has $\$ 4200$ in it and pays a $12 \%$ interest rate.

a. How much money would be in the account if you left the money there untili your $25$th birthday?

b. What if you left the money in the account until your $65$th birthday?

c. How much money did your grandfather originally put in the account?

Find the finance charge per $100 and the APR. A 24-month loan. Finance charge:$96.22. Amount financed of $850.

In early $2012$, General Electric (GE) had a book value of equity of $\$ 109$ billion, $10.3$ billion shares outstanding, and a market price of $\$ 9.66$ per share. GE also had cash of $\$ 40$ billion, and total debt of $\$ 530$ billion. Three years later, in early $2015$, GE had a book value of equity of $\$ 112$ billion, $10.9$ billion shares outstanding with a market price of $\$ 16.59$ per share, cash of $\$ 85$ billion, and total debt of $\$ 417$ billion. Over this period, what was the change in GE's

a. market capitalization?

b. market-to-book ratio?

c. enterprise value?

Suppose the following orders are received by an exchange for Cisco stock:

• Limit Order: Buy $200$ shares at $\$ 25$

• Limit Order: Sell $200$ shares at $\$ 26$

• Limit Order: Sell $100$ shares at $\$ 25.50$

• Limit Order: Buy $100$ shares at $\$ 25.25$

a. What are the best bid and ask prices for Cisco stock?

b. What is the current bid-ask spread for Cisco stock?

c. Suppose a market order arrives to buy $200$ shares of Cisco. What average price will the buyer pay?

d. After the market order in ( c ) clears, what are the new best bid and ask prices, and what is the new bid-ask spread for Cisco?

Cellular Access, Inc. is a cellular telephone service provider that reported net income of $\$ 241$ million for the most recent fiscal year. The firm had depreciation expenses of $\$ 128$ million, capital expenditures of $\$ 159$ million, and no interest expenses. Working capital increased by $\$ 10$ million. Calculate the free cash flow for Cellular Access for the most recent fiscal year.

Consider a project that requires an initial investment of $\$ 102,000$ and will produce a single cash flow of $\$ 153,000$ in five years.

a. What is the NPV of this project if the five-year interest rate is $4.9 \%$ (EAR)?

b. What is the NPV of this project if the five-year interest rate is $9.8 \%$ (EAR)?

c. What is the highest five-year interest rate such that this project is still profitable?

Suppose that a company receives 60$\%$ of its orders over the Internet. Suppose that 30$\%$ of the orders received over the Internet are large orders, and 40$\%$ of the orders received by other means are large orders. Out of eight independently placed orders, what is the probability that two will be large orders received over the Internet, two will be small orders received over the Internet, two will be large orders not received over the Internet, and two will be small orders not received over the Internet?

Use the data from down below to determine the change, from $2012$ to $2015$, in GE's

a. book debt-equity ratio.

b. market debt-equity ratio.

In early $2012$ , General Electric (GE) had a book value of equity of $\$ 109$ billion, $10.3$ billion shares outstanding, and a market price of $\$ 9.66$ per share. GE also had cash of $\$ 40$ billion, and total debt of $\$ 530$ billion. Three years later, in early $2015$, GE had a book value of equity of $\$ 112$ billion, $10.9$ billion shares outstanding with a market price of $\$ 16.59$ per share, cash of $\$ 85$ billion, and total debt of $\$ 417$ billion.

You have saved some money. Your friend has saved $40 more than you. Write an expression in simplest form that represents the total amount of money you and your friend have saved.