Terry’s T-shirts makes hand-painted T-shirts for distribution to upscale retail outlets. The firm is currently considering making hand-painted shorts as well. Which one of the following is the best example of an amount that would be included in the “incremental operating cash flow” related to the hand-painted shorts project?

Dizzy Corp. bonds bearing an annual coupon rate of 8%, pay coupons semi-annually, have 3 years remaining to maturity, a $1,000 face value, and are currently priced at $990 per bond. What is the yield to maturity as an annual stated rate (APR)?

You presently own stock that you purchased one year ago. Your nominal return on the stock for the past year was 15%. You calculate your real return on investment as 11.50%. According to the “Fisher Effect” formula, the rate of inflation must have been _____.

Etling Inc. is expected to pay a $2 dividend in one year and a $3 dividend in two years. The dividends are expected to grow at a 5% growth rate after that forever. If the required return is 14%, what is the price of the stock?

Today, the bond market requires a return of 7% on the 5-year bonds issued by Action Corporation. The 7% percent is referred to as

A firm has 1,500,000 shares outstanding. If 5 directors will be elected, how many shares do you need to control to assure yourself a seat on the board under cumulative voting procedures?

How much would you pay for a share of ABC Corporation stock today if the next dividend will be $4 per share, your required return on equity investments is 10%, and the stock is expected to be worth $90 one year from now?

A preferred stock that pays a constant dividend of $3.00 forever currently sells for $16.50. What is the required rate of return?

Your broker offers you the opportunity to purchase a bond with a coupon rate of 7% per year and a face value of $1,000. If the yield to maturity on similar bonds is 8%, this bond should:

Which of the following cash flows are included in the analysis of investment opportunities?