Accounting question and answers for December 02, 2023
- Q Suppose that the current spot exchange rate is 1.50/ and the one-year forward exchange rate is 1.60/. The one-year interest rate is 5.4% in euros and 5.2% in pounds. You...
- Q Suppose that you have found the optimal risky combination using all risky assets available in the economy, and that this optimal risky portfolio has an expected return of 0.1 and...
- Q You want to buy your dream car which will cost you $5500. If you could invest your entire savings of $3400 at an annual interest of 11.5%, how long (in...
- Q A firm has a debt-equity ratio of .35, a pretax cost of debt of 8.5 percent, and a required return on assets of 11.7 percent. What is the cost of...
- Q Determine the present value (PV) if $10,000 is to be received at the end of five years and the discount rate is 5% with semiannual compounding. a. $8,838.54 b. $6,139.13...
- Q What is the argument in favour of using sector-specific multiples? When do sector-specific multiples work best? (20 marks) Why do multiples generally have skewed...
- Q State whether you agree or disagree with the following statement: "All else equal, a new law that streamlines a corporate bankruptcy procedure and makes it cheaper should lead to firms...
- Q Gerritt wants to buy a car that costs $27,250. The interest rate on his loan is 5.37 percent compounded monthly and the loan is for 6 years. What are his...
- Q Find the annual depreciation expenses for the following items: a) Original cost is $35,000 for an asset in the three-year class b) Original cost is $70,000 for an asset in...
- Q A bank makes a $50,000 loan and will receive payments of $600 each month for 20 years as repayment. What is the rate of return to the bank for making...
- Q What happens to the country international reserves because of the dollar appreciation? Why do countries keep international reserves? Explain.
- Q A car dealership offers you no money down on a new car. You may pay for the car for 4 years by equal monthly end-of-the-month payments of $648 each, with...
- Q A bank has risk-weighted assets of $170 and equity of $12. If regulators require a minimum risk-weighted capital ratio of 6 percent given the current level of equity, how many...
- Q What is the effective annual interest rate when 30% per year is compounded quarterly
- Q "Relief for trading losses is straight forward. relief can only be given in one way and no other factors need be considered." Critically evaluate the statement. (650words)
- Q Estimate the fair value of the stock using the industry average P-E. Current Price $52 EPS ttm $6.06 forward EPS $3.88 Industry average ttm P-E $56 Industry average foward P-E...
- Q eBook Problem 16-04 Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 1/15, net 40, but routinely takes 55 days to pay its bills. (Because...
- Q The interest rate on 30 Year T-bonds is 3%, while the coupon rate for UPS bonds is 4%, for Wal-Mart the rate is 6 % and 5.6% for Cit Group....
- Q Which of the following investment can give you the maximum return if you have an extremely bullish outlook on the stock market? A. purchasing out-of-the-money call options B....
- Q A firm has a project with the following cash flows: Year Cash Flows ($) 8,00 -4,000 -3,000 -2,000 Compute the internal rate...
- Q Sam got a job at the Brick. He immediately finances a car paying $500 every month for 3 years. The interest is 2.25% compounded semi-annually. How much is the interest...
- Q What important factors should guide you while selecting the investment choices given the fact that the funds are available only for a short period.As a CFO investing surplus cash is...
- Q i.Discuss any five sources of public funding for Kenyan SMEs (10 Marks)
- Q Problem 5-18 (LG 5-2) A bank has issued a six-month, $1.9 million negotiable CD with a 0.53 percent quoted annual interest rate (iCD, sp). a. Calculate the bond equivalent yield...
- Q You have take home pay of $500 a week. Your disability insurance coverage replaces 80% of your earnings after a four-week waiting period. What amount would you receive in disability...
- Q market analysis of costco (size of market, growth of market, maturity of market, prominent market segments, segments currently targeted by the company)
- Q Mr. Finch would like to invest $1,000 today with the goal to have $2,000 in 10 years. Which annual interest rate would allow him to reach that goal? Solve using...
- Q The income statement for the year ended December 31, 2000, the balance sheets for December 31, 2000 and 1999 and the statement of retained earnings for the year ended December...
- Q Grecian Tile Manufacturing of Athens, Georgia, borrows $1,500,000 at six-month CME Term SOFR plus a Bank Credit premium of .43 percent and a lending margin of .80 percent per annum...
- Q An investor buys a stock at $ 32 a share and deposits 50% initial margin. Assume that the maintenance margin is 25%, the stock pays no dividends, and the...
- Q Find the price of a stock that is expected to pay a $4.35 dividend 4-years from today, a $1.07 dividend 7-years from today, and has an expected price of $47...
- Q Jacquie is 69 years of age and has the following sources of income: Income Canada Pension Plan (CPP) retirement benefits Old Age Security (OAS) benefits $1,154.58 per month $601.45 per...
- Q Derek will deposit $2,476.00 per year into an account starting today and ending in year 10.00. The account that earns 12.00%. How much will be in the account 10.0 years...
- Q Duration of a perpetual bond will generally decrease with the following variable(s): Group of answer choices All answers are correct. Coupon rate. Term to maturity Yield to maturity. ...
- Q 1. What advice would you give to your client to avoid or reduce liquidity risk? Firstly thank you for information. i didn't know that i can submit one...
- Q Which type of substantive analytical procedure develops an expectation using items of data (e.g. financial data and/or non-financial data) from one or more time periods or sources to calculate an...
- Q You decide to sell short 230 shares at a price of $69.47 each. The inital margin is 50%. If the price rises to $81.68 after 11 months, what is the...
- Q Suppose the MiniCD Corporation's common stock has a return of 12%. Assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return....
- Q Firms that operate at break-even on an accounting profit basis are really losing the opportunity cost of capital on their investments. True or False?
- Q Olivia plans to secure a 5-year balloon mortgage of $260,000 toward the purchase of a condominium. Her monthly payment for the 5 years is calculated on the basis of a...
- Q Boda Cycling Corp is an all-equity firm that has 425,000 shares of stock outstanding. The company is in the process of borrowing $3.2 million at 5.5 percent interest to repurchase...
- Q The total market value of the common stock of the acme company is $10 million, and the total value of its debt is $9 million. The treasurer estimates that the...
- Q Your firm currently has $250 million in debt outstanding with an 8% interest rate. The terms of the loan require the firm to repay $50 million of the balance each...
- Q Goldman gave you an offer for a payment stream, which you now need to evaluate in detail. Your alternative to this investment is an investment that will generate a 5.9%...
- Q PREPARE THE RATIOS FOR TD BANK 2017 IN EXCEL Current Ratio Quick Ratio Accounts Receivable Turnover Total Asset Turnover Total Debt Ratio Long-Term Debt Ratio Debt to Equity Times Interest...
- Q Calculate the present value of $5,000 received six years from today if your investments pay for the following interest rates. (Do not round intermediate calculations. Round your answers to 2...
- Q discuss with examples the negative aspects of diversification from the business perspective (20)
- Q Example of APA- Style with abstract?
- Q The Math department purchased a copy machine for $ 12000. After 44 years, the machine will be worthless. How much money should the department deposit at the end of...
- Q Suppose Capital One is advertising a 60-month, 5.98% APR motorcycle loan. If you need to borrow $9,200 to purchase your dream Harley-Davidson, what will be your monthly payment? (Note: Be...
- Q Which of the following is NOT something proper financial management can ensure? A.) The availability of money for immediate cash flow problems B.) Effectively planning and controlling...
- Q Which of the following statements relating to bond pricing is false? Group of answer choices An indenture is a legal document that spells out the contract between the bondholders and...
- Q misty needs to have $21,000 at the end of 6 years to fulfill her goal of purchasing a small sailboat. she is willing to invest a lump sum today and...
- Q Sing Song Radio Corp's stock price at the end of last year was $26.45 with 50,000,000 shares outstanding. Dividends paid were $1.30 per share on an earnings per share for...
- Q Firm XYZ is evaluating a 10-year project with year=0 annual cash flow of $90 ml. and growing at 3.5% per year. If the discount rate attributed to the project is...
- Q A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond (give me a percentage...
- Q Assuming that a project has a loan of 8 million with a rate of 10%; and the capital is 10 million with an expected return of 12% .... How would...
- Q You've recorded the following sample of prices and dividend payments for a stock: Month Stock price Dividend 1 47.28 ...
- Q Exchange rate is the focal point to understand the whole mechanism of monetary system. Justify the statement with illustration?
- Q You agree to make 36 deposits of $800 at the beginning of each month into a bank account. At the end of the 36th month, you will have $33,000 in...
- Q What annual rate of return is earned on a $4,000 investment made in year 3 when it grows to $7,200 by the end of year 7? Note: Do not round...
- Q Given the following information, what is the standard deviation of the returns on this stock State of Economy Probability of State of Economy Rate of Return Boom 0.2 0.21 Normal...
- Q which of the following items is not included in the list of practitioner duties and restrictions as stated in circular 230 subpart b?
- Q https://www.youtube.com/watch?v=0TcFYfoB1BY&feature=youtu.be https://www.hersheys.com/en_us/our-story/our-process.html 1)Discuss the advantages and disadvantages of the Hershey chocolate factorys facility layout. 2)How does Hersheys use technology in its production process? In what ways...
- Q Compute the annual worth of a project with the cash flows described in the table below. Assume 8% minimum attractive rate of return ? Year cash flow 0 ----> -14600...
- Q An analyst at DEF hedge fund believes that the euro (which currently trades at $1.25) will appreciate relative to the dollar over the next 6 months. The analyst decides to...
- Q Television and movies often depict chaotic scenes of traders trading stocks on the stock market. In such scenes, hundreds of traders interact on the floor of the market, face to...
- Q Gulf Shores Inn is comparing two separate capital structures. The first structure consists of 375,000 shares of stock and no debt. The second structure consists of 342,000 shares of stock...
- Q should a company use its composite WACC as the hurdle rate for each of its divisions?
- Q Assume a given stock has a required return of 10%, the risk-free rate is 4%, and the market risk premium is 3%. What is the stocks beta? And what...
- Q Jack pays $1 million for a property with a 9% cap rate. Jack keeps this property for 5 years and sells at the end of year 5 at the same...
- Q Which of the following statements about the issuance of an initial public offering (IPO) is correct? A. IPO's may be either underpriced or overpriced. B. IPO's are never overpriced. C....
- Q Arbitrage is limited because the wealth of arbitrageurs is limited. Discuss this statement in the context of those who are managing their own money and those who are managing other...
- Q Which of the following factors will cause a movement along the AD curve? a. The government decides to fund small businesses in Limpopo. b. The minister of finance together with...
- Q Department C had direct materials EUP cost of $4.00 and conversion EUP cost of $2.50. If the department had 38,000 units completed and transferred to the next department, their cost...
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