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Rachel, Can you answer the questions below?
Rachel, Can you answer the questions below? I need them all answered. I keep getting an email to resubmit my question. If this can not be answered please advise. I want my money back.From my prior submission:"I was looking for help with these questions. They were listed on the site and I thougt the answeres were already uploaded on the site. If I could have the answers by 4 PM (CST). Would be great at the latest."Use the following information for ECE Incorporated to answer questions 1 - 3: Assets $200 millionShareholder Equity $100 millionSales $300 million1. If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio is closest to:a. .24b. 4c. 6d. 302. If ECE's return on assets (ROA) is 12%, the ECE's net income is:a. $6 millionb. $12 millionc. $24 milliond. $36 million3. If ECE's net profit margin is 8%, then ECE's return on equity (ROE) is:a. 10%b. 12%c. 24%d. 30%4. If Firm A and Firm B are in the same industry and use the same production method, and Firm A's asset turnover is higher than that of Firm B, then all else equal we can conclude:a. Firm A is more efficient than Firmb. Firm A has a lower dollar amount of assets than Firm Bc. Firm A has higher sales than Firm Bd. Firm A has a lower ROE than Firm B5. If Moon Corporation's gross margin declined, which of the following is true?a. It's cost of goods sold increased.b. It's cost of goods sold as a percent of sales increased.c. Its sales increasedd. Its net profit margin was unaffected by the decline.6. Which of the following statements is false?a. The main components of net working capital are cash, inventory, receivables, and payables.b. The firm's cash cycle is the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product.c. Working capital includes the cash that is needed to run the firm on a day-to-day basis. It does not include excess cash, which is cash that is not required to run the business and can be invested at a market rate.d. If the firm pays cash for its inventory, the firm's operating cycle is identical to the firm's cash cycle.Please use the following information to answer questions 7 - 8. Reardon Metal (RM) had $120 million is sales in 2009. Its cost of goods sold was $85, and its average inventory balance was $15 million.7. The average number of inventory days outstanding for Rearden is closest to:a. 6 daysb. 8 daysc. 37 daysd. 64 days8. The industry average days of inventory is 75 days. The amount that Rearden would have to increase/decrease its inventory in order to match the industry average is closest to:a. decrease inventory by 2.2 millionb. increase inventory by 2.2 millionc. increase inventory by 2.5 milliond. increase inventory by 4.2 million9. Rearden Metal needs to order a new blast furnace that will be delivered in one year. The $1,000,000 price for the blast furnace is due in one year when the new furnace is installed. The blast furnace manufacturer offers Rearden Metal a discount of $50,000 if they pay for the furnace now. If the interest rate is 7%, then the NPV of paying for the furnace now is closest to:a. ($15,421)b. $15,421c. ($46,729)d. $46,72910. Which of the following statements is false?a. The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan.b. The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate.c. The interest rates that are quoted by banks and other financial institutions are nominal interest rates.d. Fundamentally, interest rates are determined by the Federal Reserve.11. Suppose a ten-year bond with semiannual coupons has a price of $1,071.06 and a yield to maturity of 7%. This bond's coupon rate is closest to:a. 3.5%b. 6.0%c. 7.0%d. 8.0%Use the following information to answer questions 12-14The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.12. How much will each semiannual coupon payment be?a. $60b. $40c. $120d. $8013. Assuming the appropriate YTM on the Sisyphean bond is 7.5%, then the price that this bond trades for will be closest to:a. $1,045b. $691c. $1,000d. $95714. Assuming the appropriate YTM on the Sisyphean bond is 9%, then this bond will trade ata. A premiumb. A discountc. Pard. Not enough information to determine15. Which of the following statements is false?a. Prices of bonds with lower durations are more sensitive to interest rate changesb. When a bond is trading at a discount, the price increase between coupons will exceed the drop when a coupon is paid, so the bond's price will rise and its discount will decline as time passes.c. Coupon bonds may trade at a discount, at a premium, or at par.d. The sensitivity of a bond's price changes in interest rates is the bond's duration.16. Which of the following is not a way a firm can increase its dividend?a. By increasing its retention rateb. By decreasing its shares outstandingc. By increasing its earnings (net income)d. By increasing its dividend payout rateUse the following to answer questions 17-19Rearden Metals has a current stock price of $30 share, is expected to pay a dividend of $1.20 in one year, and its expected price right after paying that dividend is $33.17. Rearden’s expected dividend yield is closest to:a. 3.40%b. 3.65%c. 4.00%d. 4.20%18. Rearden’s expected capital gains yield is closest to:a. 4.0%b. 6.4%c. 8.2%d. 14.0%19. NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely. If NoGrowth's equity cost of capital is 12%, then the value of a share of NoGrowth's stock is closest to:a. $10b. $15c. $14d. $12.5020. Von Bora Corporation (VBC) is expected to pay a $2.00 dividend at the end of this year. If you expect VBC's dividend to grow by 5% per year forever and VBC's equity cost of capital is 13%, then the value of a share of BBC stock is closest to:a. 25b. $40c. $15.40d. $11.1021. Which of the following statements is false?a. The total payout model allows us to ignore the firm's choice between dividends and share repurchasesb. By repurchasing shares, the firm increases its share count, which decreases its earning and dividends on a per-share basis.c. The total payout model discounts the total payouts that the firm makes to shareholders, which is the total amount spent on both dividends and share repurchasesd. In the dividend discount model we implicitly assume that any cash paid out to the shareholders takes the form of a dividend.22. Suppose that KAN's beta is 1.5. If the market risk premium is 8% and the risk-free interest rate is 4%, then the expected return for KAN stock is?a. 8.0%b. 16.0%c. 13.5%d. 10.0%Use the following information to answer questions 24-25: Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one hour photo sales will be new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one hour service.23. The level of incremental sales associated with introducing the new one hour photo service is closest to:a. $90,000b. 150,000c. 60,000d. 120,00024. Suppose that of the 60% of FFL's current overnight photo customers, half would start taking their film to a competitor that offers one hour photo processing if FFL fails to offer the one hour service. The level of incremental sales in this case is closest to:a. $60,000b. $150,000c. $90,000d. $120,00025. You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in inventory of $8,000, an increase in accounts payable of $2,500, and an increase in property, plant and equipment of $40,000. All other accounts will remain unchanged. The change in net working capital resulting form the addition of the microbrewery isa. $45,500b. $10,500c. $6,500d. $5,50026. Bubba Company reported net income of $300 million for the most recent fiscal year. The firm had depreciation expenses of $125 million and capital expenditures of $150 million. Although they had no interest expense, the firm did have an increase in net working capital of $20 million. What is Bubba's free cash flow?a. $170 millionb. $255 millionc. $150 milliond. $5 million27. Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%. The NPV for this project is closest to:a. $6,250b. $14,100c. $10,000d. $18,60028. Suppose that Taggart Transcontinental currently has no debt and has an equity cost of capital of 10%. Taggart is considering borrowing funds at a cost of 6% and using these funds to repurchase existing shares of stock. Assume perfect capital markets. If Taggart borrows until they achieve a debt-to-equity ratio of 20%, then Taggart's levered cost of equity would be closest to:a. 8.0%b. 9.2%c. 10.0%d. 11.0%29. Which of the following statements is false?a. In perfect capital markets, buying and selling securities is a zero-NPV transaction, so it should not affect firm value.b. Making positive NPV investments will create value for the firm's investors, whereas saving the cash or paying it out will not.c. In perfect capital markets, if a firm invests excess cash flows in financial securities, the firm's choice of payout versus retention is irrelevant and does not affect the initial share price.d. After adjusting for investor taxes, there remains a substantial tax advantage for the firm to retain excess cash.30. Which of the following statements is false?a. A call option gives the owner the right to buy the asset.b. A put option gives the owner the right to sell the asset.c. A financial option contract gives the writer the right (but not the obligation) to purchase or sell an asset at a fixed price at some future date.d. A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price.31. Wyatt Oil has 8 million shares outstanding and is about to issue 10 million new shares in an IPO. The IPO price has been set at $15 per share, and the underwriting spread is 6%. the IPO is a big success with investors, and the share price rises to $35 the first day of trading.The amount that Wyatt Oil raised during the IPO is closest toa. $113 millionb. $141 millionc. $150 milliond. $329 million