Finance Questions

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?