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Can I upload my whole class lecture to StudyFetch?

Yes, you can even upload lectures that last up to an hour.

What types of course material can I upload?

You can upload a variety of formats including PDF, DOC, DOCX, PPT, PPTX, TXT, PNG, JPEG, MP3, MP4, YouTube videos, and Google Docs.

Does my course material automatically convert into other features?

Spark.E, our AI tutor, allows you to interact directly with your study materials. You can ask questions, create flashcards, take practice tests, and customize your learning experience.

How do I upload my material?

It's a simple two-step process: Register with StudyFetch, then select 'Create a Set' and choose from various options to upload your study material.

How does the AI work?

StudyFetch's AI, Spark.E, utilizes advanced machine learning algorithms to offer a tailored, interactive tutoring experience. Once you upload your study materials, Spark.E scans and indexes them, making the content searchable and accessible for real-time queries.

Spark.E is your friendly dog AI tutor. Spark.E is a virtual assistant that helps you study your course material. Spark.E is powered by advanced machine learning algorithms that allow it to understand your course material and help you study better.

Finance Questions

Explore questions in the Finance category that you can ask Spark.E!

The company cost of capital: A. measures what investors want from the company.B. depends on current profits and cash flows.C. is measured using security book values.D. depends on historical profits and cash flows.

Capital structure decisions refer to the: A. dividend yield of the firm's stock.B. blend of equity and debt used by the firm.C. capital gains available on the firm's stock.D. maturity date for the firm's securities.

With terms of 4/15, net 60, what is the implied interest rate for forgoing a cash discount and paying at the end of the credit period?

. At what point does a customer's unpaid account become delinquent when the terms of sale are 2/10, net 60?

What return on equity do investors seem to expect for a firm with a $55 share price, an expected dividend of $5.50, a beta of .9, and a constant growth rate of 5.5%? A. 9.00%B. 10.00%C. 13.95%D. 15.50%

A proposed project has a positive NPV when evaluated at the company cost of capital. If the firm employs debt in its capital structure, will the project remain acceptable after evaluation with the WACC? A. Yes, using the WACC will increase the NPV.B. No, using the WACC will decrease the NPV.C. The project may now become unacceptable.D. There will be no change in the project's NPV.

How much cash flow BEFORE tax and interest is necessary to support a project that requires $4 million annually for equity investors and $2 million annually in interest payments if the firm's tax rate is 35%? A. $7.40 millionB. $8.10 millionC. $8.15 millionD. $8.85 million

If equity investors require a 20% rate of return, what is the maximum acceptable amount of equity financing for a project with $2 million annual cash flows before tax and interest, $3 million in debt with a 10% coupon, and a 35% tax rate? A. $5.53 millionB. $5.87 millionC. $8.5 millionD. $9.03 million

For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then: A. the book value of equity should be used.B. the book value of equity less retained earnings should be used.C. the market value of equity should be used.D. the market value of equity less retained earnings should be used.

What is the WACC for a firm with equal amounts of debt and equity financing, a 16% before-tax company cost of capital, a 35% tax rate, and a 10% coupon rate on its debt that is selling at par value? A. 10.40%B. 14.25%C. 15.13%D. 16.00%

What is the WACC for a firm with 50% debt and 50% equity that pays 12% on its debt, 20% on its equity, and has a 40% tax rate? A. 9.6%B. 12.0%C. 13.6%D. 16.0%

Changing the capital structure by adding debt will not: A. increase the return that shareholders require.B. increase default risk.C. decrease debtholder risk.D. increase the cost of debt.

According to CAPM estimates, what is the cost of equity for a firm with beta of 1.5 when the risk-free interest rate is 6% and the expected return on the market portfolio is 15%? A. 19.5%B. 21.0%C. 22.5%D. 24.0%

Using market values rather than book values for cost of capital computations ensures that the firm: A. does not ignore the value of retained earnings.B. gets the full value of the debt tax shield.C. uses expected rates of return.D. will not invest in positive NPV projects.

Why is it important to include the tax effect into cost of capital computations for firms with debt financing? A. Firms pay taxes on the outstanding principal amount of the debt.B. Taxable income is reduced by the amount of the interest expense.C. Comparisons with equity financing would otherwise not be possible.D. Taxes are paid on interest but not on dividends.

What is the WACC for a firm with 40% debt, 20% preferred stock, and 40% equity if the respective costs for these components are 6% after tax, 12% after tax, and 18% before tax? The firm's tax rate is 35%. A. 9.48%B. 11.16%C. 12.00%D. 15.60%

Company X has 2 million shares of common stock outstanding at a book value of $2.00 per share. The stock trades for $3.00 per share. It also has $2 million in face value of debt that trades at 90% of par. What is its ratio of debt to value for WACC purposes? A. 13.9%B. 23.1%C. 31.0%D. 76.9%

How would a company's cost of capital calculated from book values be affected if the company's bonds were selling for more than face value? A. The cost of capital would increase.B. The cost of capital would decrease.C. The cost of capital would not be affected.D. The effect depends on the bonds' coupon rate.

If the debt is trading at face value, what coupon rate is being paid on debt for a firm with an after-tax cost of debt of 7.5% and a tax rate of 40%? A. 10.5%B. 12.0%C. 12.5%D. 18.75%

What decision should be made on a project of above-average risk if the project's IRR exceeds the WACC? A. Accept the project; NPV is positive.B. Reject the project; NPV is negative.C. Decide after discounting at the IRR.D. Decide after discounting at an appropriate rate.

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