When valuing REITs, investors should consider dividend coverage from Funds from Operations (FFO).  Essentially, FFO is calculated by adding what expense to net income?

The G1 checkpoint is used to determine which of the following?

The nitrogenous base thymine is what type of base?   

Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,200.  The firm finances using only debt and common equity, and total assets equal total invested capital.  Year-end assets were $250,000, and the firm’s debt ratio (total-debt-to-total-capital ratio) was 15%.  What was their ROE?    Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.

Byron Books Inc. recently reported $13 million of net income.  Its EBIT was $20,225,000, and its tax rate was 35%.  What was its interest expense? Your answer should be between 140,000 and 725,000, rounded to even dollars (although decimal places are okay), with no special characters.

American Capital has $375,000 of assets, and uses only common equity capital (zero debt).  Sales for the last year were $420,000, and stockholders recently voted in a new management team that has promised to lower costs and increase the company’s return on equity.  Holding everything else constant, what profit margin would the firm need in order to achieve an ROE of 17.8%?   Your answer should be between 8.54 and 18.22, rounded to 2 decimal places, with no special characters.

Corporations can raise capital using either debt (and must pay interest) or equity (and are expected to pay dividends).  However, the interest expense is tax deductible while dividends paid cannot be deducted.  How much pre-tax income must a company with a tax rate of 35% need to earn per share to pay out $2.05 per share in dividends?   Your answer should be between 1.57 and 6.12, rounded to 2 decimal places, with no special characters.

Edelman Engines has $18 million in total assets. Its balance sheet shows $2 million in current liabilities, $10 million in long-term debt, and $6 million in common equity. It has 300,000 shares of common stock outstanding, and its stock price is $34.20 per share. What is Edelman’s market/book (M/B) ratio? Your answer should be between 1.04 and 1.96, rounded to 2 decimal places, with no special characters.

There are only two exams during this course.  These exams are worth 200 points each.

There will be a total of 5 Online Conferences during this course.