Accounting question and answers for December 01, 2023
- Q You are attempting to value a call option with an exercise price of $109 and one year to expiration. The underlying stock pays no dividends, its current price...
- Q You financed the purchase at the amount of $8800. What are your monthly payments if the bank charges you 8.1% compounded monthly for 36 months?
- Q Derivation Inc. has a bond with the following characteristics: Par: $1,000 Time to maturity: 50 years Coupon Rate: 5%, semi-annual payments Original YTM: 3% New YTM: 4% Calculate...
- Q An infinite sequence of cash flows is the following: year 1: 5; year 2: twice the amount of year 1's cash flow; ..., year n, n times of year 1's...
- Q What is a public key? What is a private key? What is the relationship between public key, private key, digital signature, and hashing in the bitcoin blockchain technology?
- Q A firm has a debt-equity ratio of 1.2. Total Assets are $5 million. What is Total Debt and What is Total Equity?
- Q What is the impact of this on the corporate economy and how to deal with it as a corporate finance manager going forward?
- Q What is the weighted average cost of capital computed (WACC) and how is it computed? Discuss the two major conditions required for a company to be able to use its...
- Q QUESTION FOUR An investor seeking to invest in one of these three alternatives: Islamic mutual funds, ETFs or REITS. (a) if he wants stable returns and needs annual income, what...
- Q Bonds ratings are not the primary measure of default risk. True or false?
- Q Question 2: John is 40 years old today (this is time 0). He is hoping to retire at age 65 (exactly on his 65th birthday) and actuarial tables suggest that...
- Q The owners of Arthouse Inc., a national artist supplies chain, are contemplating purchasing Craftworks Inc, a smaller chain. Arthouse's analysts project that the merger will result in incremental free flows...
- Q What is the net present value of a project with the following cash flows if the discount rate is 15 percent? Year Cash...
- Q An investor is considering the purchase of a small office building. The Gross Potential Rental Income is $250,000. Estimated Vacancy is 5%. Insurance Costs are $10,000. Real Estate Taxes are...
- Q Explain in your own words how the COVID-19 pandemic has influenced insurance companies liquidity risks. What advice would you give to your client to avoid or reduce liquidity risk?...
- Q Aqua system inc. expects to have 29,495,200 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 4...
- Q Do secondary markets add value to society or are they simply a legalized form of gambling?
- Q In June 2022 a USA company delivered a large shipment of care products to a major distributor in London. The 150 million pounds (GBP) receivable is due in 120 days....
- Q EOQ. Kryptonite Manufacturing uses 4970 sub-frames per week and then reorders another 4970. If the relevant carrying cost per sub-frame is $56, and the fixed-order cost is $8250, is Kryptonite's...
- Q Fisher and Statman (2002) find that investors believe that their own portfolios will outperform the market portfolio. The evidence is consistent with which of the following biases? a. conservatism b....
- Q The MerryWeather Firm wants to raise $29 million to expand its business. To accomplish this, the firm plans to sell 15-year, $1,000 face value zero-coupon bonds....
- Q For the year ended 2020, ABC Company has $1,250,000 of debt with an annual interest rate of 8.1%, $2,000,000 of preferred stock with an annual preferred dividend...
- Q You just won the lottery for $1 million. When you go to the government office to pick up your check, they tell you the $1 million is payable in 20...
- Q A firm currently has receivables of $800,000, inventory of $700,000, and accounts payable of $400,000, revenues of $6,500,000 and COGS of $3,250,000. The firms treasury manager would like to reduce...
- Q Maxwell Corporation's Board of Directors recently declared a $1 quarterly dividend. The Board set the payment date as Friday, January 7, 2022, and the record date as Wednesday, December 22,...
- Q Stanley has $50,000 that he plans to invest in Corning stock, which is currently selling at $20 per share. He plans to buy the stock on margin by borrowing...
- Q Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Yeatman Co.: Yeatman Co. is considering...
- Q A small business took out a loan of $50,000 four years ago, and paid it back today with $80,611.30. How much is the annual interest rate applied to this loan...
- Q The stock of Big Joe's has a beta of 1.52 and an expected return of 12.70 percent. The risk-free rate of return is 5.2 percent. What...
- Q Explain using your own words and examples the difference between Transactional leadership and Transformational leadership (15 marks) Apply Using SMART framework to set objectives for any product/service you choose. (10...
- Q 27. Facts: $100,000 loan, 30 years, fixed rate of 8%, monthly payment of $733.76. What is the loan balance after the first month? A. $100,000 B. $99,933 ...
- Q 1. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this...
- Q You write a put option on Apple Inc for an option premium $8.25. The option has a strike price of $55, The underlying stock is trading at $95 per share....
- Q Target Company is trading at $20 a share at the end of the year 2006 and has 1 million shares outstanding. Acquirer Corp. is trading at $50 a share and...
- Q A company is looking to add an equipment. The Equipment would cost $250,000 if purchased; it would be depreciated straight-line to zero salvage over 5 years. Alternatively, it may...
- Q Calculate the present value of annual payments of $3,000 per year for ten years at 8%: a. Ordinary Annuity b. Annuity Due
- Q S-One Insurance Company sold S&P 500 stock index futures when the index was 1690. When the position was closed out, the index was 1,750. Determine the profit or loss, ignoring...
- Q Compute the net asset value for a share of a mutual fund with the following characteristics: Market value of assets: $6,257,562,000 Market...
- Q Bangers Inc is a star-up manufactor of australian-style frozen veggie pies located in San Antonio Texas. The company is five years old and recently installed the manufacturing capacity to quadruple...
- Q Lisa holds a 1-year short put option on stock XYZ. The strike price is 60. The put premium is 10. The stock price a year from now is 50. The...
- Q A bond with a $1000 face value, paying 10% coupon rate and one year to mature is selling at 98 (98% of the face value). The issuing company faces 30%...
- Q How does expectation theory change the yield curve shape? What is an example of this with calculations
- Q 1. How many years will it take $400 to grow to $1671 if it is invested at 10 percent compounded annually? 2. At what rate would $1000 have to be...
- Q What is the weighted-average cost of capital for a firm with a debt to equity ratio of 65/50; 8% pre-tax cost of debt, 15% cost of equity, and 21% tax-rate...
- Q ABC, Inc. is expected to pay a dividend of $3.15 per share next year, and this dividend is expected to grow at a 5% rate annually forever thereafter. Given...
- Q Calculate the present value of each of the alternatives below, if the discount rate is 12%. a. $45,000 today in one lump sum. b. $70,000 paid to you in seven...
- Q The weighted average cost of capital (WACC) is: the required rate of return for all of a firm's capital investment projects. ...
- Q Sheridan, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash...
- Q General purpose use property vs special/specific use property
- Q Now assume that Wendt does not receive the interest income but does receive an Additional $1 million as dividends on some stock it owns. What is the tax on this...
- Q With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a surf lifestyle for the home. With limited...
- Q A year ago, the Very Large Growth Fund was being quoted at an NAV of $22.22 and an offer price of $23.64.Today, it's being quoted at $24.49(NAV)...
- Q In 2015, Turnpoint Inc. had net income of $400,000, assets of $5,000,000, sales of $2,000,000, and debt of 2,000,000. In 2016, Turnpoint Inc. had net income of $700,000,...
- Q make a job description of Ymca company
- Q he Statement of Financial Position of Picture This, Inc., a distributor of photographic supplies, as of May 31 is given below: PICTURE THIS, INC. Statement of Financial Position...
- Q Q2. If you are one of the regulators in the financial market what initiatives would you have taken to help health insurers minimize their risk exposure during this period. Explain...
- Q 1. Determine the amount of a $2000 Ontario Savings Bond (OSB) earning 16.7% compounded annually for 3 years. 2. Sheila invests $5000 in a Guaranteed Investment Certificate (GIC) earning 4.8%...
- Q An investor executed an arbitrage trade three month ago by selling a protective put and buying a fiduciary call. At expiration, the stock price was below the same strike price...
- Q Automobile dealers are increasingly advertising the leasing of vehicles in lieu of purchasing. In one case, a $20,000 automobile can be leased for $375 per month...
- Q John Smith purchases a Call Option on XYC for $3.00. The option's strike price (X) is $55. Assuming XYC's current stock price (S) is $45, what is the intrinsic value...
- Q Years to Retirement: 40 Years in retirement: 20 Annual Rate of Return: 11.64% Annual inflation rate: 2.58% Total annual expense: 70000 Questions: what is the value of inflation-adjusted...
- Q 1. what is the best personal investment statement policy and 2. why is it the best?
- Q The Baseline Corporation is planning to raise $14 million to finance a new project. Currently, the company has a D/E ratio of .55, which will be the target for any...
- Q Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with...
- Q if we require a 10% real return and expect inflation to be 8%, what is the nominal rate?
- Q What is the payback period (years) for the following set of cash flows? (Round your answer to 2 decimal places, e.g., 32.16.) ...
- Q A bond has a coupon rate of 8.3 percent and 3 years until maturity. If the yield to maturity is 10.7 percent, what is the price of the bond? (Do...
- Q I now have $17,000 in the bank earning interest of .75% per month. I need $27,000 to make a down payment on a house. I can save an additional $100...
- Q You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $2 million and...
- Q The IRS allows taxpayers to deduct the expense of operating a vehicle for business purposes. The taxpayer can keep records documenting the miles driven for business and the annual expenses...
- Q indicate if the shareholders of this company are required to approve the decision to declare dividends explain why
- Q If a bond's original issue prive was $10,000 and its original yield was 10%: What would be the new yield if the price jumped to $12,000? What if the price...
- Q Describe a business practice that would help a company manage each of the following financial risks: Liquidity risk; Interest rate risk; Credit risk.
- Q If you note the following yield curve in The Wall Street Journal, what is the one-year forward rate for the period beginning one year from today,...
- Q what is the future value of $1,300, placed in a saving account for four years if the account pays 6.00%, compounded quarterly?
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