DJJ Company’s stock has a beta of 1.20, the risk-free rate is 4.0%, and the market risk premium is 6.0%. What is the firm’s cost of equity from retained earnings based on the CAPM?
Which of the following ratios is MOST informative regarding how capable a firm is of managing their short-term debts?
Answer
Inventory Turnover Ratio
Profit Margin
Current Ratio
Price-Earnings Ratio
Suppose the real risk-free rate is 2.15%, the average expected future inflation rate is 1.10%, and there is total maturity risk premium of 0.25% on a 3-year Treasury security. What rate of return would you expect? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
Panel Corp’s sales last year were $160,000, and its net income was $20,000. What was its profit margin?
During 2011, Linver Inc. paid out $23,000 of common dividends. It ended the year with $245,000 of retained earnings versus the prior year’s retained earnings of $165,000. How much net income did the firm earn during the year?
Using your financial calculator or spreadsheet, at 6% compounded annually, approximately how long will it take $10,000 to double?