Gutierrez Goods has several proposed independent projects that have positive NPVs. However, the firm cannot initiate any of the projects due to a lack of financing. This situation is referred to as:

Bui Bakery has a required payback period of two years for all of its projects. Currently, the firm is analyzing two independent projects. Project X has an expected payback period of 1.4 years and a net present value of $6,100. Project Z has an expected payback period of 2.6 years with a net present value of $18,600. Which project(s) should be accepted based on the payback decision rule?

You are reviewing a project with estimated labor costs of $17.85 per unit, estimated raw material costs of $36.23 per unit, and estimated fixed costs of $17,600 per month. Sales are projected at 18,400 units, ±3 percent, over the one-year life of the project. Cost estimates are accurate within a range of ±2 percent. What are the total variable costs for the best-case scenario?

Your firm is offered credit terms of 2/15, net 35. What is the effective annual interest rate on this arrangement? Assume 365 days per year.

Stray Cats has annual sales of $847,000, annual depreciation of $47,000, and net working capital of $43,000. The tax rate is 21 percent and the profit margin is 7.3 percent. The firm has no interest expense. What is the amount of the operating cash flow?

Which two of the following are the key elements in determining the break-even default rate on a credit policy?

A stock has an expected return of 11.89 percent and its reward-to-risk ratio is 7.4 percent. If the risk-free rate is 3 percent, what is the stock’s beta?

Montez Supply is expected to pay an annual dividend of $.95 per share next year. The market price of the stock is $43.50 and the growth rate is 4.5 percent. What is the cost of equity?

The bid price is the:

A stock has an expected return of 10.65 percent. Based on the following information, what is the stock’s return in a boom state of the economy? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .28 −10.6% Normal .31 12.1% Boom .41 ?