You own 850 shares of Bennett Trading stock valued at $53.15 per share. What is the dividend yield if your total annual dividend income is $1,256?

A project will produce operating cash inflows of $61,000 per year for 10 years in a row. The initial fixed asset investment in the project will be $94,000. The net aftertax salvage value is estimated at $7,000 and will be received during the last year of the project’s life. What is the net present value of the project if the required rate of return is 14.5 percent?

A proposed expansion project is expected to increase sales by $74,300 and increase cash expenses by $46,900. The project will require $52,800 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the five-year life of the project. The store has a marginal tax rate of 23 percent. What is the operating cash flow of the project using the tax shield approach? Ignore bonus depreciation.

Under its current cash sales-only policy Willard’s Company sells 176 units per month for a total sales value of $11,848. The variable cost per unit is $33 and the monthly interest rate is 1.1 percent. The firm should sell an additional 25 units per month if it offers a net 30 credit policy. What is the present value of the proposed switch using the accounts receivable approach?

When computing the adjusted cash flow from assets, the tax amount is calculated as:

The Dog House expects sales of $770, $860, $950, and $960 for the months of May through August, respectively. The company collects 84 percent of sales in the month of sale, 13 percent in the month following the month of sale, and 1 percent in the second month following the month of sale. The remaining sales are never collected. How much money does the company expect to collect in the month of July?

Cosplay Unlimited sells 1,040 outfits per year at an average price of $148. The terms of the sale are 1/10, net 35. The discount is taken by 76 percent of customers. What is the company’s accounts receivable balance? Assume 365 days per year.

Which one of the following indicates an accept decision for an independent project with conventional cash flows?

Phone Home, Incorporated, is considering a new five-year expansion project that requires an initial fixed asset investment of $6.089 million. The fixed asset will be depreciated straight-line to zero over the project’s life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $4,389,000 in annual sales, with costs of $1,731,200. The tax rate is 24 percent. What is the annual operating cash flow for this project?

Suppose a stock had an initial price of $30 per share, paid a dividend of $5 per share during the year, and had an ending share price of $33.40. What was the capital gains yield?