Accounting question and answers for December 02, 2023
- Q A company issued a 3-year $1,000,000 4% coupon bond with a 30% default risk, which means the bondholders would only receive $600 for each $1,000 par value on default. What...
- Q 1. I invested $23,000 exactly 7 years ago and the balance is now $86,000. What effective annualised interest rate did I earn? (as a percentage to the closest two decimal...
- Q Question 3: Basic calculus (10 marks in total) The selling price of a particular type of car is $20,000. The total cost of producing the car is TC = 2000...
- Q INTRODUCTION TO FINANCE ASSIGNMENT : Justify the implications of the recent hike in interest rate by the Central Bank of Nigeria ( CBN) by 150 basis points on key Identified...
- Q Security analysts at Smith Blarney have assigned the following probability distributions to the rates of return on Phoenix and LV stocks one year from now as follows Return(%) Probability...
- Q rever placed a limit order to sell 300 shares of stock at $20 a share. Which of the following does Trevor know for sure?\ \ I. Hir oder will execute...
- Q CalPer Corporation's stock has a current market price per share of $57.50. Given the level of risk the required rate of return of 10.25%. The dividend is expected to grow...
- Q Marika Katz bought a new Blazer and has insurance coverage of 25/50/25 with $200 deductible for collision. Driving up to her summer home one evening, Marika hit a parked car...
- Q A small firm spends $6,500 annually on electricity. Johnson Controls offers to install a new computer-controlled lighting system that will reduce electric bills by $1,250 in each of the next...
- Q what is a yield to maturity of a 10 year $5000 bond with a 4.7% coupon rate in semiannual coupons this bond is currently trading for price $4000545 $4554 hit...
- Q Show your work Last year, Jean purchased a $1,000 face value corporate bond with an 11.6 percent annual coupon rate and a 15-year maturity. At the time of the purchase,...
- Q Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218,000, $224,000, and $235,000 over the next three years, respectively. After that time, they...
- Q Your firm currently has $ 80 million in debt outstanding with an 8 % interest rate. The terms of the loan require the firm to repay $ 20 million of...
- Q 10. You are the ethics compliance officer at the Bank of Brexit. The wizards in the financial products marketing division are selling a new student line of credit. It is...
- Q The following information is given concerning options on the stock of a certain company: S = 23, E = 20, r = .09, T = .5, variance = .15, no...
- Q You have been managing a $5 million portfolio that has a beta of 1.15 and a required rate of return of 10%. The current risk-free rate is 7.75%. Assume that...
- Q The expected return of Stock A is 7%, Stock B is 10% and Stock C is 12%. If you equally invest in these three stocks, what is the expected return...
- Q Suppose the current yield on a one-year zero-coupon bond is 4%, while the yield on a five-year zero-coupon bond is 5%. Neither bond has any risk of default. Suppose you...
- Q If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches to use to account for flotation costs. The first...
- Q You want to save for your retirement. What should you do if markets are largely efficient? What should you do if they are not efficient?
- Q During the year, Belyk Paving Co. had sales of $2,397,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,428,000, $435,300, and $490,300, respectively. In addition, the...
- Q Discuss the advantages and disadvantages of derivatives, supported by relevant citations (books, journal articles, credible websites). And then write the summary Total need 700-1000 words You just give me the...
- Q True or False? The underlying rational behind the sales approach to value is that similar assets should sell for similar prices in a competitive market. The underlying rational behind the...
- Q state the relationship between effective and nominal interest rate.
- Q There is a bond selling with a modified duration of 12.7 years and convexity of 218. What would a 2.9% decrease in yield change the percentage price change according to...
- Q A perpetuity pays $1000 at the end of every month for 11 months of each year. At the end of the 12th month of each year, it...
- Q 5. Since venture capital only invest in startup business, very high-risk investments,explain how venture capital minimize their level of risk?
- Q ignore
- Q A company has total equity of $2,190, net working capital of $250, long-term debt of $1,090, and current liabilities of $4,920. What is the company's net fixed assets? Multiple Choice...
- Q Suppose you are committed to owning a $275,000 Ferrari. If you believe your mutual fund can achieve an annual rate of return of 11.2 percent and you...
- Q You own 300 shares of Dalton Resources preferred stock, which currently sells for $38.96 per share and pays annual dividends of $ $3.25 per share. a.What is your expected return?...
- Q how does the estimate of weighted average cost of capital (whether higher or lower) affect capital budgeting decisions? Whether to accept or reject?
- Q NEED IT ASAP You observe the current yield curve as follows: r0.5=4%, r1=4.2%, r1.5=4.3%, and r2=4.6%. What is the price of a T-note which has a coupon rate of 4%,...
- Q First national bank pays 6.2% interest compounded quarterly. Second National Bank pays 6% interest, compounded monthly. Which bank offers the higher effective annual rate? Show how by using excel spreadsheet...
- Q (Bond valuation) Calculate the value of a bond that will mature in 17 years and has a $1,000 face value. The annual coupon interest rate is 16 percent, and the...
- Q The company with the common equity accounts shown here has decided on a two-for-one stock split. The firms 33-cent-per-share cash dividend on the new (postsplit) shares represents an increase of...
- Q The Thrifty Inn maintains an average selling price per room at $50; and also maintains the variable cost per room sold at 60% of the sales price. The propertys fixed...
- Q On September 1, 2010, a wealthy industrialist gives a university a fund of $100,000 that is invested at 8% compounded daily. If semi-annual scholarships are awarded for 20 years from...
- Q If the long term interest rates come down, would the value of an MBS security increase or decrease?
- Q What is the efficient frontier? Why is it called efficient for portfolio investment? Explain
- Q Calculate the cost of new common stock. (Duchess Corporation has estimated that on the average, new shares can be sold for $47. THE 43 per share underpricing is due to...
- Q In this part, calculate the interest rates. Use the Excel Rate function to compute the interest rates. In 2018, one of the first copper pennies struck at the Philadelphia mint...
- Q 1. Emily Black has just purchased an annuity to begin payment at the end of 2019 (that is the date of the first payment). Assume it is now the beginning...
- Q b. Damia plans to keep some amount of money on each quarter into her savings account in Amanah Bank. Determine the future value of the balance in her account after...
- Q project: 1. create an excel sheet for monthly budgeting for a fictional etsy shop ( you will be selling lip balms, lip scrubs, feminine care, bath soaks, vegan body scrubs....
- Q Recall in case study 2 "Capital Budgeting for Sun Devil Cookie Co." What is the role of working capital in the analysis? Is it an expense item?How could it affect...
- Q Assume you are working for a small firm that supplies a product or service to an MNE. How might your relationship change as the MNE moves from Globalization 2.0 to...
- Q Asset Management and Profitability Ratios You have the following information on Universe It Ts, Inc.: sales to working capital = 10 times, profit margin = 26%, net income available to...
- Q An investor buys a 6% annual payment bond with three years to maturity. The bond has a yield-to-maturity (YTM) of 8% and par value of 1,000 of par. What is...
- Q Business Law: As you enter the final week of your internship at Lambert, Bendini & Bocke, your supervising partner (Mitch Grisham) has given you an opportunity to advise the Morolto...
- Q Pro forma. You are a financial analyst that has been hired to forecast the possible funding need for a company based on its financial information and future plans. You know...
- Q Haunted Forest, Inc.is selling fog machines. Use the following information about Haunted Forest, Inc. to answer the following questions. Average selling price per unit $310. Variable cost per unit $183...
- Q A company operating in the IT sector has Profit before tax for the year ended March 2021 at Rs 42120 crores. The YTD market return on the IT sector is...
- Q Market rate of return is 14%, beta is 1.5 and required rate of return is 18.5%. What risk free rate of return is:" ...
- Q Consider an asset that costs $695,000 and is depreciated straight-line to zero over its 9-year tax life. The asset is to be used in a 7-year project; at the end...
- Q Last year janet purchased a $1000 face value corporate bond with an 8% annual coupon rate and a 25 year maturity. At the time of the purchase, it had an...
- Q The Furniture Showroom offers credit to its customers at a rate of 1.4 percent per month. What is the effective annual rate of this credit offer?
- Q Give an example of a real life shock that dramatically affected the aggregate returns on a particular stock market. How can you frame this event in the context of the...
- Q Andriana Stefak mentioned a claim she was involved in where one of her company's trucks backed into a person's vehicle and caused damage. The person then sued the company for...
- Q Kara Delaney received a $13,000 gift for graduation from a relative. If she deposits the entire amount in an account paying 9 percent, what will be the...
- Q X-Tech Company issued preferred stock many years ago. It carries a fixed dividend of $12 per share. With the passage of time, yields have changed from the original 10 percent...
- Q Discuss the nature of Working Capital Management. What are its main components and in what way they contribute to the efficiency of a companys overall performance? Illustrate its formula. ...
- Q What is the present value of a $151 perpetuity discounted back to the present at 3.72 percent. The answer should be calculated to two decimal places.
- Q 2. Given the same information in question #1, how much will Thomas earn in interest over the 10 year period?
- Q Your firm spends $ 400 comma 000 per year in regular maintenance of its equipment. Due to the economic downturn, the firm considers forgoing these maintenance expenses...
- Q Set the closing price of a stock rights registration day of 20 yuan/share, the rights issue price of 15 yuan, the rights issue ratio of 20%, the cash distribution of...
- Q Maverick Technologies has sales of $3,000,000. The companys fixed operating costs total $508,735 and its variable costs equal 60% of sales. The companys interest expense is $500,000. What is the...
- Q A 20 year US Treasury zero coupon note has a current market quoted interest rate of 3.53%. What price would you expect to pay for this note? A. $499.66 B....
- Q TJ Inc. and Mall Inc.operate in the same industry. A). Use the financials below to compare the two firmsFocus on the three levers of performance that affect return on equity...
- Q Moving Cash Flows What is the value in year 18 of a $1,400 cash flow made in year 8 when the interest rates are 4.8 percent?
- Q discuss why it might be undesirable to lend to a foreign entity registered in a foreign land
- Q The concept of materiality is an underlying principle of financial reporting. Which of the following statement(s) is true? a. Adjusting entries need not to be made to accrue immatereial amounts...
- Q Discuss each of the three competitive advantage strategies (operational excellence, product leadership, customer intimacy) and explain why most firms pursue only one of these strategies.
- Q A statement of cash flows shows cash flows for the period under each of the following headings except: a. Shareholder dividends. b. Operating c. Financing. d....
- Q You invest $100 in a risky asset with an expected rate of return of 0.10 and a standard deviation of 0.15 and a T-bill with a rate of return...
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