You are considering the purchase of one of two machines required in your production process. Machine A has a life of two years. Machine A costs $50 initially and then $70 per year in maintenance. Machine B has an initial cost of $90. It requires $40 in maintenance for each year of its 3-year life. Either machine must be replaced at the end of its life, and the machines perform the same functions. Which is the better machine for the firm

Baker industries’s net income is $24,000, its interest expense is $5,000, and its tax rate is 40%. its notes payable equals $27,000, long-term debt equals $75,000, and common equity equals $250,000. the firm finances with only debt and common equity, so it has no preferred stock. what are the firm’s roe and roic?

In its 2016 annual report, caterpillar inc. reported the following (in millions): 2016 2015 sales $38,537 $47,011 cost of goods sold 28,309 33,546 as a percentage of sales, did caterpillar's gross profit increase or decrease during 2016? select one: a. gross profit increased from 26.8% to 28.6% b. gross profit decreased from 28.6% to 26.5% c. gross profit increased from 71.4% to 73.2% d. gross profit decreased from 73.2% to 71.4% e. there is not enough information to answer the question.

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be: