Accounting question and answers for December 03, 2023
- Q You are considering a project with an initial cash outlay of $90,000 and expected free cash flows of $20,000 at the end of each year for 6 years. The...
- Q A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. What is its yield to maturity (YTM)? Round your answer...
- Q on January 1, 2018, John deposited $5000 into a savings account that pays interest at 5% compounded annually. If he makes no further deposits or withdrawals, how much will John...
- Q Josh has earned $2,000 from the money he earned at his job. He is able to invest his money in a U.S Treasury Note that will pay him 6% per...
- Q Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 4% per year and the...
- Q The Penn State Grand Valley common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the stock market...
- Q Bad Investment Incorporated has promised investors to pay a $3.00 per year dividend in perpetuity. If investors want a 23.00% return on this stock based on the risk, what intrinsic...
- Q Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $105,000 and will generate net cash inflows...
- Q 4. Gentrex has just sold bonds that are currently trading at $905.52. The bonds have 15 years before they mature, $1,000 par value and 12% annual coupons. (a) On the...
- Q When the investors expected appreciation of the Japanese yen against the dollar falls, it implies that the rate of return will decline. True False can be...
- Q A US Treasury note (3% coupon maturing 10/1/2020) is selling at 105 (face value = 100). Assuming annual payments, what is its YTM
- Q Calculate the present value of the following sequence of willingness to pay: $150 this year; $150 next year; $150 in year 2, and $50 in year 3. Use a 5%...
- Q Your firm needs a machine which costs $290,000, and requires $44,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The...
- Q The S&P/ASX 200 Index is trading at 6449.681 and the dividend yield is 3.21%, if there are 124 days to expiry of the SPI200 contract and the continuously compounded rate...
- Q A 15,000 square foot strawberry processing facility costs $1,500,000 to construct. This structure should earn an after-tax income of $250,000 annual for its expected life of 20 years when it...
- Q Selling in the market now is 70% of its face value (RM1000) of Bond XY with 12% coupon payment and 10 year to maturity. Calculate current yield
- Q A new building is built at a cost of $500,000. The value of the whole property is $700,000. Comparable sites are selling for $400,000. What is the value of the...
- Q what will set you up to be a 'great tax professional'. Are you expecting clear black and white answers to the tax issues you will face (why/why not)?...
- Q Of the six key methods used to evaluation capital projects which one do you prefer? Why do you prefer this method over others? What is your second choice for an...
- Q The two principals sources of financing for corporations areA. Debt and accounts payable B. Debt and net assets C. Permanently restricted NA and Temporarily restricted NA D. Cash...
- Q Discuss five factors that determine organizational learning process
- Q Calculating Future Values. You have just made your first $1,400 contribution to your individual retirement account (IRA). Assume you earn a 11% rate of return and make no additional contributions....
- Q Tom purchased 700 shares of Disney for $181.18 per share one year ago. Today, he sold his shares for $154.89 per share and received a dividend of $1.76 per share....
- Q Wildhorse Corporation reported EBITDA of $7,299,900 and net income of $3,789,719.08 last year. The company also had $1,155,380 in interest expense, $1,023,278 in depreciation and amortization expense, and an...
- Q 2. There is an annual coupon 10% bond with 4 years to maturity. Assume that the current yield to maturity of the bond is 12 %, based on the Duration...
- Q Suppose you currently have $4,700 in your savings account, and your bank pays interest at a rate of 0.48% per month. If you make no further deposits or withdraws, how...
- Q A stock just paid a dividend of $2.05. Dividends are expected to grow at a constant rate of 3.0%. If the required return of the stock is 15%, what is...
- Q . . NEED ANSWER ASAP / ANSWER NEVER USED BEFORE a.) Inventory Management Williams & Sons last year reported sales of $7 million, cost of goods sold (COGS) of $4...
- Q You've just bought a new flat-screen TV for $3,600 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 14...
- Q You are paying an effective annual rate of 13.8% on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account? A.11.50% B.12.00% C....
- Q T. Martell Inc.'s stock has a 50% chance of producing a 30% return, a 35% chance of producing a 9% return, and a 15% chance of producing a -25% return....
- Q A trader shorts 25 90-day bank bill futures contracts at 97.36 and buys 18 of them back later that day at 97.32 and three days later buys back the remaining...
- Q Smith has 100000 with which she buys a perpetuity on january 1,2005.Suppose that i=0.045 and the perpeuity has annual payments begining january 1,2006.The first three payments are 2000 each,the next...
- Q The present value of $200 to be received 5 years from today, assuming an opportunity cost of 8 percent, is $136 ...
- Q A project has an initial cost of $95,800, a life of 7 years, and equal annual cash inflows. The required return is 8.7 percent. According to the profitability index decision...
- Q A feature that gives the investor the opportunity to exchange their bonds for a certain number of shares of common stock is called stock purchase warrants....
- Q What are foreign exchange markets and foreign exchange rates? Why is an understanding of foreign exchange markets important to financial managers and individual investors?
- Q EARL GREY GOLF CORP.2017 and 2018 Statement of Financial PositionAssets20172018Liabilities and Owners' EquityCurrent assets20172018Cash$ 24.046$ 24,255Current liabilitiesAccounts receivable112,44815,235Accounts payableNotes payable$ 23,184$ 27,420Inventory25,39212,00010,800Total$ 61,88627,155$ 66.645Other11,57115,553Fixed assetsTotal$ 46,755$ 53.773Net plant...
- Q Bernice is filing a joint return and qualifies to deduct student loan interest on her 2022 tax return. The modified adjusted gross income is $146,000, and her 1098-E shows $3,900...
- Q It can be observed that the average gearing ratio for the Pharmaceuticals industry is much lower than industries such as Utilities and Transportation. Explain why this is the...
- Q A quarterly coupon bond has a face value of $1,000 and a coupon rate of 6.6%. Time to maturity is 7 years and the current yield to maturity is 5.3%....
- Q The joint and several liability rule is often referred to as the deep pockets rule. Why?
- Q Assume your friend Adam offers to pay you $5,000 in 5 years if you will let him borrow some money now. If you need a return of 9% on your...
- Q The President has lobbied for tax cuts for the middle class. (5 pts) Use the loanable funds model to analyze the effect of the tax cut on real interest rates...
- Q Suppose that a 12-year bond with a face value of $4000 pays semiannual coupons at a rate of j2j2 = 10.8%. If the bond is redeemable for $4520, find...
- Q Many observers believe that firms "manage" their income statements to _______. a. minimize taxes over time b. maximize expenditures c. smooth their earnings over time d. generate level sales
- Q American Express's online banking division offered a money market account with an APY of 2.242%. A.) If interest is compounded monthly, what is the equivalent annual nominal rate? B.)...
- Q what country would you long (invest in), and what country would you currently short (not invest in), and why? give sufficient reasoning.
- Q A borrower on a mortgage for $250,000 on a 30-year 5% interest rate pays 1% per point for 4 points each lowering the interest rate...
- Q An investor is pitched that an investment in a real estate venture will provide returns at the end of the next four years as follows: Year 1: $10,900 ...
- Q The location =Sheet3! $A$4 : $B$8. Sheet3! Identifies the data in the table is coming from? Group of answer choices Table A of the workbook Sheet 3 of the workbook...
- Q Suppose that you would like to purchase a $250,000 home. Using 20% as a down payment", if you obtained a 15 year mortgage with a 3.7% interest rate, what is...
- Q An investor in money markets is considering purchasing a 90-day T-bill for $9,900. The Par value for the T-bill is $10,000. What is the discount rate offered on this bill?...
- Q Burke Tires just paid a dividend of $2.07. Analysts expect the company's dividend to grow by 30% this year, 20% next year (year 2), 10% the following year (year 3),...
- Q Find 4 different metals where I can buy/sell futures on those metals on the London Metal Exchange (LME). For each of those metals, find out how much metal 1 futures...
- Q Use the following income statement and balance sheet information to put together a statement of cash flows. 2017 ...
- Q Why do people make decisions that don't maximize their expected monetary value? Explain why and offer three examples of such behavior.
- Q Checks you write and present for payment can clear your bank in as little as Group of answer choices minutes. hours. one day. three days.
- Q Daily Enterprises is purchasing a $10.3 million machine. It will cost $47,000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation...
- Q Your bank advertises a 1-year CD rate of 2 percent. You are in the 15% tax bracket and expect inflation to be 3% over the next year. You estimate the...
- Q The expected return on stock A is 11.25 percent. The expected return on stock B is 8.50 percent. Assuming CAPM holds, if the beta of stock A is higher than...
- Q The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $24 million Operating costs (not...
- Q QUESTION 1 (10 MARKS) a) Explain the two (2) types of Purchasing Power Parity (PPP). b) Explain any two (2) methods of translating the balance sheet.
- Q innovations in financial instruments and developments in bank business models and strategies of lehman brothers' (2007-2009) NB: please use graph
- Q Bouchard Industries is a Canadian company that manufactures gutters for residen- tial houses. Its management believes it has developed a new process that produces a superior product. The company...
- Q Set up the calculation to arrive at the market value of a new bond having a face amount of $1,000, the annual interest rate of 7% payable semiannually, callable...
- Q 3.You want to buy a house and have determined you can afford a 30 year mortgage with monthly payments of $1,530. If the APR on the loan is 3.9%, how...
- Q A company plans to raise $1 million by issuing preference shares. The shares pay annual dividends of $1.50 per share. Potential investors are expected to get a rate of return...
- Q Use the Black-Scholes option pricing model to value a European call on a stock that does not pay dividends. The underlying stock is currently selling for 43. The annual risk-free...
- Q The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $350,500. Cost...
- Q PAYBACK PERIOD Project L costs $40,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 11%. What is the project's payback? Round your answer...
- Q True or False. Firms concerned with the sharemarket reaction to dividend announcements may adopt a sticky dividend policy. Explain
- Q Briefly describe the benefits associated with having comprehensive coverage
- Q 7 Find the MIRR assuming a 4 % reinvestment rate using the following cash flows: T0 = -39,000 T1 = + 20,000 T2 = + 30,000
- Q If the Tax rate increases, the Weighted Average Cost of Capital will: increase, decrease or stay the same
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