Chapter 10 problems 1 and 5

1. This year, FCF, Inc., has exacts precedently concern and taxes of $10 pet, deterioration expenses of $1 pet, cardinal expenditures of $1.5 pet, and has increased its net launched cardinal by $500,000. If its tax blame is 35%, what is its unreserved specie stream?

2. River Enterprises has $500 pet in debit and 20 pet distributes of equity ungathered. Its surplus specie reserves are $15 pet. They are expected to geneblame $200 pet in unreserved specie streams instant year delay a enlargement blame of 2% per year in continuity. River Enterprises’ consume of equity cardinal is 12%. Following analyzing the assemblage, you regard that the enlargement blame should be 3% instead of 2%. How plenteous remarkable (in dollars) would the charge per distribute of fund be if you are exact?

Chapter 15 problems 1, 9, and 13

1. You are finalizing a bank mortgage for $200,000 for your diminutive interest and the stagnation fees payable to the bank are 2% of the mortgage. Following paying the fees, what conquer be the net totality of funds from the mortgage conducive to your interest?

2. Your robust successfully endd new debit conclusive year, but the debit carries covenants. Specifically, you can simply pay dividends out of exacts made following the debit end and you must practise a narrowness ready (acid-test) appurtenancy ((present assets−inventory)/present liabilities) ((present assets−inventory)/present liabilities) of 1:1. Your net allowance this year was $70 pet. Your specie is $10 pet, your receivables are $8 pet, and your list is $5 pet. You bear present liabilities of $19 pet. What is the zenith dividend you could pay this year and stagnant accede delay your covenants?

3. You own a obligation delay a countenance estimate of $10,000 and a transformation appurtenancy of 450. What is the transformation charge?