Accounting question and answers for December 03, 2023
- Q A clothing merchant purchases a shipment of clothes for $36,000.00 with discounts of 9.00% and 5.00%. He sells it to a customer at a price which includes 19.00% profit...
- Q You opened an account to short-sell 1000 shares of ABC at $80 per share. The initial percentage margin was 60% (20 points). a. Suppose the broker has a maintenance margin...
- Q 1) A 100-year corporate bond has a coupon rate of 12% with monthly payments. If interest rates drop to 4% on similar bonds, then what is the value of the...
- Q Joel purchased dress shirts to sell in his clothing store that has overhead expenses equal to 14.00% of costs. To make a profit of 15.00% of the cost, he sells...
- Q 19. Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction...
- Q Assume you have conducted an appraisal of a 15-year, four-unit office building and you used all three approaches to value (sales comparison, income, and cost). You used a cost manual...
- Q Hamilos Worldwide is considering a 5 million expansion of their existing business. The initial expense will be depreciated straight-line over years to zero salvage value; the pretax salvage value in...
- Q Suppose an individual invests $20,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 1 percent of the amount invested and is...
- Q Southeastern IT Systems has the following balance sheet and the income statement. Make sure the unit is in million dollars. (unit: $ in millions) Southeastern...
- Q Mitchell Investments has offered you the following investment opportunity: $7,000 at the end of each year for the first 3 years, plus $3,000 at...
- Q Hello, I need assistance with this problem. Thanks Assume Maria, a small business owner, wants to purchase an expensive truck worth $82,000. She paid an amount of $10,000 as a...
- Q 1. FedEx Corp. stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend last year. It...
- Q This problem illustrates the risk of short sale using the GameStop story. Before the January 2021 frenzy, the GameStop stock was trading under $20 on the market while...
- Q Investment X offers to pay you $7,100 per year for 9 years, whereas Investment Y offers to pay you $9,700 per year for 5 years. If the discount rate is...
- Q A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$300 $80 $80 $80 $240 $240 Project 2...
- Q What is the profitability index for Project A with a cost of capital of 8%? Year Project A Project B 0 ($42,000.00) ($45,000.00) 1 $14,000.00 $28,000.00 2 $14,000.00 $12,000.00 3...
- Q IRR Project L costs $45,343.93, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 12%. What is the project's IRR? Round your answer to...
- Q Juan Garza invested $121,000 10 years ago at 8 percent, compounded quarterly. How much has he accumulated? Use Appendix A for an approximate answer but calculate your final answer using...
- Q Currently, John helps his client to estimate annual return for a bond portfolio. The characteristics and expectation of this bond portfolio is presented on the following: Current average bond...
- Q Were you exposed to certain business, financial and economic aspects of business practice.? If not, why not
- Q Jupiter Explorers has $8,200 in sales. The profit margin is 5 percent. There are 5,200 shares of stock outstanding, with a price of $1.70 per share. What is the company's...
- Q Assets Cash 12,000 Marketable securities 2,000 Accounts receivable 5,000 Inventory 34,000 Current assets 53,000 ...
- Q Your company is planning to borrow some money on a 16 year, 8%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the...
- Q The Castro company has outstanding bonds with a coupon rate of 6.25% and semi-annual payments. The bonds are redeemable at their face value of $1,000 on December 30, 2025. If...
- Q 6 You are contemplating putting part of your investment funds into a Money Market Mutual Fund (MMF). Recently MMFs have had trouble retaining funds. It was our understanding due to...
- Q Caughlin Company needs $55 million to start a new project. They have a target capital structure of 70% common stock, 5% preferred stock, and 25% debt. Flotation costs for issuing...
- Q You just won the lottery. Congratulations! The jackpot is $10,000,000, paid in six equal annual payments. The first payment on the lottery jackpot will be made today. In present value...
- Q Relation between spot and forward rates Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. Recall that in this course interest rates are...
- Q 2. The Auto Group has 1,000 bonds outstanding that are selling for $850 each. The company also has 8,400 shares of preferred stock at a market price of $70 each....
- Q QUESTION 2 Explain any four (4) methods in managing the economic exposure
- Q 1. Identify the three most critical human resource management challenges that multinational companies operating in developing countries face. Explain your answer
- Q 5. (TCO 4) The value of a bond at any given time is the sum of _____. (Points : 3) the future...
- Q You are on options trader specializing in the Singapore dollar. The current spot rate is $0.60/S$. A put option on the
- Q how do I calculate a combined adjusted monthly income gross income 2,751 for one person 4,200 for another . monthly liabilities 550 one person and 250 for the other .one...
- Q A decrease in a firm's beta would have what effect on investor's required rate of retun increase decrease No Change None of the above
- Q Median Income and Median Home Price in Selected Eastern Cities (n = 34) ...
- Q 2.Effective interest rate You borrow $250,000; the annual loan payments are $38,075.05 for 30 years. What interest rate are you being charged? Round your answer to two decimal places. answer:...
- Q Bond A is a 3 month bond, Bond B is a year old bond, and Bond C is a 30 year bond. With an upward sloping term structure, which bond...
- Q As the discount rate increases without limit, the present value of the future cash inflows and why ? Gets larger without limit Stays unchanged approaches zero Gets smaller without limit,...
- Q 20 years ago, Delicious Mills, Inc. issued 30-year to maturity bonds that had a 9.09 percent annual coupon rate, paid semiannually. The bonds had a $1,000 face value. Since then,...
- Q Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 6.0% per year. If that growth rate were maintained, how many...
- Q . Heights Corp. is considering a project that will require a $100,000 investment. It will generate the following end-of-year cash flows: $20,000, $20,000, $20,000, $20,000, $20,000, $15,000, $15,000, $15,000, $15,000,...
- Q Lee Manufacturing's value of operations is equal to $900 million after a recapitalization. (The firm had no debt before the recap.) Lee raised $300 million in new debt and used...
- Q a) The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is...
- Q At the end of 2q2018 tesla inc had 3.9 billion in common equity 11.6 billion in debt and no preferred equity. Tesla inc. had an estimated WACC of 7.55%, an...
- Q You will need to buy 300oz of gold in February 2019, but gold futures contracts are available for January 2019 and April 2019 only. The contract size is 100 oz....
- Q A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of 18.7, and a book value per share of $9.12. What...
- Q QUESTION 8 The regional Federal Reserve Banks ____. "establish" the discount rate ration discount...
- Q There are a number of common tax saving methods available to most individuals and households. What are some actions you have (legitimately) taken to reduce your taxes.
- Q One year ago, your company purchased a machine used in manufacturing for $95,000.
- Q Please draw and label the most common yield curve. Explain the three theories of term structure of interest rate and provide with illustration how each of these theories...
- Q Ridiculousness, Inc., has sales of $42,500, costs of $23,800, depreciation expense of $2,000, and interest expense of $1,300. If the tax rate is 35 percent, what is the...
- Q Which one of the following combination of features will cause bond prices to be the most volatile? A) low coupon, short maturity B) high coupon, short maturity C) low coupon,...
- Q 3. There are many who feel that Islamic finance is being used to back terrorist organizations such as ISIS. That probably explains the different way they go about making money....
- Q Ten years ago, you put $5,000 in a savings account. Today, your investment has the purchasing power of $4,800 What is your real rate of return? (just calculate like a...
- Q Why did the Fed increase its rates while ECB did not? Whats your view
- Q The following information applies to Tennis Team Ltd: Return on assets (with all-equity financing) 10% Operating income per year (with allequity financing $10000 Value of debt $50000 tax rate 15%...
- Q Suppose you have a goal of having a balance of $1000 in your investment account. No matter what your initial conditions or target value happen to be, are you always...
- Q Consider an all electric household in Sydney that uses an average of 32 kWh per day (cost of electricity $0.12/kWh). If a discount rate of 7% and an inflation rate...
- Q Discuss the primary reasons for buying life insurance? Distinguish between term life insurance and cash-value life insurance. What are the benefits of each?
- Q It is January 10, 2020. The price of a Treasury bond with a 10% coupon paid semiannually that matures on October 1, 2020 is quoted as 103-55. What is the...
- Q Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect this dividend to grow a 12.2% per year thereafter until the 4th year. Thereafter,...
- Q Peter Low, a professor of finance and mathematics, states: I have collected massive amounts of data on markets and the companies listed on them, going back 50 years in some...
- Q Strategic Management 16th Edition BUSI 400 Purpose This Exercise can improve your understanding of various strategies by giving you experience in classifying strategies. This skill will help you use...
- Q Which of the following is an example of capital expenditure? Group of answer choices A) 14 x micro-centrifuge - $42,000 total B) Replacement laser for an instrument - $50,000 C)...
- Q Reno Revolvers has an EPS of $2.00, a free cash flow per share of $4.50, and a price/free cash flow ratio of 9.0
- Q Your bank is offering you an account that will pay 19% interest in total for a two-year deposit. Determine the equivalent discount rate for the following periods. a. Six months...
- Q I just want to see how the answer it made Acme Inc. plans to issue 10-year, zero-coupon bonds to finance its capital expansion. Acme wants to raise $50...
- Q Today, you are purchasing a 15-year, 6.5 percent annuity at a cost of $36,500. The annuity will pay annual payments starting one year from today. What is the amount of...
- Q Oxygen optimization is considering a project that is expected to cost 6,261 dollars today; produce a cash flow of 14,584 dollars in 7 years, and have an NPV of 361...
- Q The follwoing is a question for a Forensic Accounting course: The internet has given widespread and anonymous access (free or paid) to publisher test banks. One of the earlier examples...
- Q The Larry Cotton Textile common stock pays an annual dividend of RM1.65 a share. While economic times are rough, the company has vowed to sustain a constant dividend. If Jerry...
- Q What factors contribute to a cost of equity of 20%?
- Q Assume you buy a share of stock at $24, it pays $2.17...
- Q You sold short 100 shares of stock STU at $50 per share on 50% initial margin. The stock pays no dividend and there is no lending fee. What would be...
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