- The formula for calculating the cost of equity capital that is based on the dividend discount model is:
- The issuance costs of bonds and stocks are referred to as _____ costs.
- the WACC is the minimum return a company needs to earn to satisfy _______
- ULC and LEV have earnings before interest and taxes of $110. LEV has $20 of interest expense. Both companies are taxed at 30%, ULC aftertax earnings are ___, which is ______ than LEV's aftertax earnings.
- If the firm is all equity, the discount rate is equal to the firms cost of ______ capital
- Calculate Intrinsic Value and Time Premium of this Call Option:- Exercise Price $60- Premium $7- Market Value $65
- An investor who exercises LEAPS and then sells the stock within a year would be subject to _________ even if they had the LEAPS contract for ________
- Call Option Taxability to Writer (due to lapse)
- Loans must be paid back with interest. The maturity terms differ depending on the type of loan.
- Sharing a startup business on an online platform where one can pre-sell products. The money from the pre-sale orders can be used as capital to build the products.
- Tina owns a car dealership. She just received a shipment of luxury sports cars. She paid $50,000 for each vehicle and wants to make 25% on each car sale. What is Tina's selling price?
- Free money given to small business owners to help with the launching and development of their business. They do not have to be paid back.
- An owner uses their own savings to fund the business.
- Ben owns a print shop. Last quarter's income was $8,000, his cost of goods was $650, and his total expenses were $4,300. What are Ben's net income and gross income for the last quarter?
- Devin owns a clothing store. He recently purchased jeans to sell in his store. He paid $23 for each pair of jeans, and his desired profit margin is 18%. What is Devin's selling price?
- Helps fund a business or a specific project, usually for some kind of stake in the company.
- One should separate ________ costs from one-time costs when starting a new business.
- Laurie owns a restaurant. She had a beginning cash balance of $2,500, $57,250 in total cash sales, $5,300 for utilities, $7,500 in loan payments, and $3,200 for marketing costs. What is Lauren's ending cash balance for the year?
- Melody owns a dog grooming business. Her total monthly cost is $2,750. She charges $25 per grooming service. How many dogs must Melody groom to break even?
- Jerry owns an ice cream parlor. His starting balance last month was $1,900. His ending balance was $2,200. What is Jerry's burn rate?