-16.63%-26.37%64.8%36.87% Happy Time Inc. is expected to generate the following cash flows for the next year, as shown in the table below. Happy Time now only has one outstanding debt with a face value of $110 million to berepaid in the next year. The current market value for the debt is $67 million. The tax rate is zero. If you invest in the corporate debt of Happy Time Inc. today, what is your expected percentage return onthis investment?Cash flow in the next yearEconomy Probability Amount0.3Boom$110 millionNormal0.4$101 millionRecession 0.3$61 million

The expected return is the estimation of profit or loss that an investor determine from his…

Answered: Happy Time Inc. is expected to generate…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Prob. of state S&P 500 Technology T-Bills -15% State International Fund + 1% GDP .25 8% 5% 30% + 2% GDP .50 12% 15% 15% + 3% GDP .25 16% 45% 5% 0%
WELL8 TECHNICAL INBTITUTE Income statement For Year Ended December 31
The most recent financial statements for Live Co. are shown here: Income Statement Sales Costs Taxable income Taxes (35%) Net income $13,000 Current assets Fixed -assets. $5,200 Total 1,820 $3,380 7,800 Balance Sheet $28,032 Debt 19,616 Equity $47,648 Total $27,628 20,020 $47,648 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. No external equity financing is possible. Required: What is the sustainable growth rate? (Do not round your intermediate calculations.)
The most recent financial statements for Live Co. are shown here: Income Statement Sales Costs Taxable $15,000 income 9,000 Current assets Fixed -assets $6,000 Total Taxes (33%) 1,980 Net income $4,020 Balance Sheet $32,345 Debt 22,633 Equity $31,878 23,100 $54,978 Total $54,978 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. Required: What is the sustainable growth rate? (Do not round your intermediate calculations.)
Income Statement 2009 2010 2011 2012 2013 Revenue 393.3 366.3 428.6 513.7 599.2 Cost of Goods Sold (186.6) (175.8) (205.3) (248.6) (292.6) Gross Profit 206.7 190.5 223.3 265.1 306.6 Sales and Marketing (67.2) (65.8) (82.5) (102.9) (122.5) Administration (59.3) (59.1) (60.2) (67.6) (77.8) Depreciation & Amortization (27.5) (26.7) (36.2) (39.6) (39.2) EBIT 52.7 38.9 44.4 55 67.1 Interest Income (Expense) (34.7) (31.1) (32.9) (38.5) (37.6) Pretax Income 18 7.8 11.5 16.5 29.5 Income Tax (6.3) (2.7) (4.0) (5.8) (10.3) Net Income 11.7 5.1 7.5 10.7 19.2 Shares Outstanding (Millions) 55.5 55.5 55.5 55.5 55.5 Earnings per Share $0.21 $0.09 $0.14 $0.19 $0.35 Balance Sheet 2009 2010 2011 2012 2013 Assets Cash 47.4 66.7 92.8 79.1 89.3 Accounts Receivable…
None
What is 26% of 756
Income Statement 2009 2010 2011 2012 2013 Revenue 393.3 366.3 428.6 513.7 599.2 Cost of Goods Sold (186.6) (175.8) (205.3) (248.6) (292.6) Gross Profit 206.7 190.5 223.3 265.1 306.6 Sales and Marketing (67.2) (65.8) (82.5) (102.9) (122.5) Administration (59.3) (59.1) (60.2) (67.6) (77.8) Depreciation & Amortization (27.5) (26.7) (36.2) (39.6) (39.2) EBIT 52.7 38.9 44.4 55 67.1 Interest Income (Expense) (34.7) (31.1) (32.9) (38.5) (37.6) Pretax Income 18 7.8 11.5 16.5 29.5 Income Tax (6.3) (2.7) (4.0) (5.8) (10.3) Net Income 11.7 5.1 7.5 10.7 19.2 Shares Outstanding (Millions) 55.5 55.5 55.5 55.5 55.5 Earnings per Share $0.21 $0.09 $0.14 $0.19 $0.35 Balance Sheet 2009 2010 2011 2012 2013 Assets Cash 47.4 66.7 92.8 79.1 89.3 Accounts Receivable 87.1 69.6 67.9 76.9 85.2 Inventory 34.7 32.5 28.1 32.8 33.5 Total Current Assets 169.2 168.8 188.8 188.8 208 Net Property, Plant & Equip. 248.8 238.7 312.4 341.9 351.2 Goodwill & Intangibles 358.3 358.3 358.3 358.3 358.3 Total Assets 776.3 765.8…
2020 S Change 9% Change 9.60% 2021 Gross operating revenue 1,870,188,069.00 1,706,358,991.00 163,829,078.00 Cost of operating revenue (1,245,049,430.00) (1,160,747,229.00) (84,302,201.00) 7.26% Gross profit 625,138,639.00 545,611,762.00 79,526,877.00 14.58% Other income 1,994,192.00 (1,994,192.00) -100.00% 625,138,639.00 547,605,954.00 77,532,685.00 14.16% Administrative, selling and distribution expenses: Administrative (427,856,374.00) (395,323,017.00) (32,533,357.00) 8.236 (68,301,238.00) (463,624,255.00) Selling and distribution (60,656,587.00) (488,512,961.00) 7,644,651.00 (24,888,706.00) -11.19% 5.37% Impairment recovered/(loss) on trade receivables Operating profit before finance costs and taxation 1,804,151.00 138,429,829.00 (2,673,129.00) 81,308,570.00 (868,978.00) 32.516 57,121,259.00 70.2556 Finance income - interest 1,333,200.00 1,133,753.00 199,447.00 17.5956 Finance costs (21,262,694.00) (20,270,767.00) (991,927.00) 4.896 Profit before taxation 118,500,335.00…
Total revenue is 400 and quantity is 20 Calculate average revenue
How much could you save for retirement if you chose to invest the money you spend on Starbucks coffee in one year? Assume you buy one venti cup of caffe latte for $4.15 each weekday for 50 weeks and can invest the total amount in a mutual fund earning 5% compounded annually for 30 years. (Use the Table 12.1 provided.) Note: Round your answer to two decimal places.
Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year 2 (round to the nearest tenth). Net sales Cost of goods sold Interest expense Net income Total assets Total liabilities Total equity Year 2 $ 478,500 276,300 9,700 46,050 317,100 181,400 135,700 Year 1 $426,250 250,120 10,700 39,900 288,000 167,300 120,700

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