Acer Systems, a manufacturer of gaming consoles, has $5,520,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,340,000 1,840,000 2,340,000 $5,520,000 Short-term rates are 5 percent. Long-term rates are 7.5 percent. (Note that long-term rates imply a return i Earnings before interest and taxes are $1,130,000. The tax rate is 25 percent. Assume the term structure c becomes inverted, with short-term rates going to 10 percent and long-term rates 5 percentage points loww rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of she what will earnings be after taxes? For an example of perfectly hedged plans.see Figure 6-8 Earning after taxes

Acer Systems, a manufacturer of gaming consoles, has $5,520,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,340,000 1,840,000 2,340,000 $5,520,000 Short-term rates are 5 percent. Long-term rates are 7.5 percent. (Note that long-term rates imply a return i Earnings before interest and taxes are $1,130,000. The tax rate is 25 percent. Assume the term structure c becomes inverted, with short-term rates going to 10 percent and long-term rates 5 percentage points loww rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of she what will earnings be after taxes? For an example of perfectly hedged plans.see Figure 6-8 Earning after taxes

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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Nighthawk Steel, a manufacturer of specialized tools, has $5,220,000 in assets. Temporary current assets Permanent current assets Capital assets Total assets $1,240,000 1,740,000 2,240,000 $5,220,000 Short-term rates are 4 percent. Long-term rates are 6.5 percent. (Note that long-term rates imply a return to any equity). Ear before interest and taxes are $1,080,000. The tax rate is 25 percent. Assume the term structure of interest rates becomes imm with short-term rates going to 9 percent and long-term rates 4.5 percentage points lower than short-term rates. If long-term financing is perfectly matched (hedged) with long-term asset needs, and the same is true of short-term financing, earnings be after taxes? Eor an example of perfectly hedged plans see Figure 6-8. Earning after taxes $
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Crystal Oil has $9 million in accounts payable, $1.8 in saleries and taxes payable, and $10.4 in other current liabilities. If Crystal Oil had a cost of sales of $54 million and selling, general, and admisitrative expenses of $18 million, what is the length of its payables deferal period? *show work* A) 10.47 days B) 73.02 days C) 54.75 days D) 45.63
Gorilla Movers has sales of S645,560, cost of gods sold of SsA25,890, depreciation of $32,450, and interest expense of S12,500. The tax rate is 30 percent. What is the times interest earmed ratio?
Nicholas Health Care Systems recently reported an EBITDA of $31.0 million and net income of $15.8 million. It had $4.0 million of interest expense, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its charge for depreciation and amortization? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.

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