Accounting question and answers for December 03, 2023
- Q The Sutherland Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this...
- Q [SAIR to EAR Conversion] [Discounting & Compounding]: Fill in the table below for each of the following interest rates: Compounding PV of $1000 Case Stated Annual Rate Periods Per Year...
- Q Explain in 525 words what it means to have efficient capital market, including: Describe the behavioral challenges in achieving efficiency. Discuss the three forms of market efficiency. ...
- Q Of the below choices, _________ will likely increase the present value of a stock. (a) a decrease in the dividend growth rate; (b) an increase in the required...
- Q 9. You have the following portfolio: i. $1mm position in Apple Stock ii. $1mm position in Google Stock iii. $600K position in Facebook stock a. Calculate the Std Dev of...
- Q Derek currently has $10,664.00 in an account that pays 4.00%. He will withdraw $5,589.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $10664.0...
- Q 18) Attempted share issue privatizations are often withdrawn based on A) Political Considerations B) Public Finance Considerations C) Anti-Trust Considerations D) A and B.
- Q Peter takes a fixed-rate, 25-year loan with a monthly payment of $980.00. The amount financed was $122,000. What is the total amount of interest charged? Select one: a. $163,820 b....
- Q Springhill, Inc. has an issue of preferred stock outstanding. It pays a $4.75 dividend per year forever. If the required return is 5.50% per year, what is the share price...
- Q A bond that pays interest semiannually has a coupon rate of 5.47 percent and a current yield of 4.93 percent. The par value is $1,000. What is the bond's price?...
- Q First, estimate the probability the Federal Reserve will reduce the trading range of federal funds to -0.25% by the end of 2021. Federal funds now trade at 0.10%...
- Q Suppose an investment offers to quadruple your money in 12 months. What rate of return per quarter are you being offered?
- Q If the expected net income is $ 3,600.00, the expected dividend is $ 1,098 and the tax rate is 34%, what is the earnings retention ratio (Withheld Earnings Ratio)?
- Q "What do you think? Should individuals be held more responsible for their own costs of healthcare services? What about the arguments stated above? Is there some way of balancing the...
- Q Why Become an Entrepreneur?
- Q Which one of the following portfolios has the least amount of systematic risk? a portfolio comprised of 50 percent cash and 50...
- Q An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 4%, the expected return on the first factor (r1) is 10%, and...
- Q You own the following stocks in your portfolio. What is the beta of your portfolio. Stock Invested Amount Beta A 4,749 1.74 B...
- Q DT's has a 0.55 debt-equity ratio, 12.4% WACC, 34% tax rate, and 5.5% aftertax cost of debt. What is cost of equity? ** Please do not use excel and...
- Q South Penn Trucking is financing a new truck with a loan of 10,000 to be repaid in 12 semiannual end of period installments of 1,263.65. What nominal interest rate is...
- Q What are some of the pitfalls associated with a firms overall cost of capital? What measures can you take to mitigate the effect of these pitfalls when you plan...
- Q 6. Traders versus Investors.How do you distinguish between traders and investors? 7. Financial Analysis.What is the difference between technicaland fundamental analysis?16. Inflationary nations. Why are most export prices in inflationary...
- Q Prefered stock is really debt in disguise, a kind of equity bond. True or false? Explain
- Q Problem One. A $1,000 unit bond has a coupon rate of 5%. The bond has five years left until it matures. The current market interest rate equals 5%. Compute the...
- Q On January 1, 2015, ABC Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated salvage value is $20,000. What...
- Q Following are fiscal year financial statements of Costco. COSTCO WHOLESALE CORP Consolidated Statements of Income For Year Ended ($ millions) Sep. 1,...
- Q 1. When the US sends war ships towards the Strait of Hormuz in an effort to keep world oil flowing from the Persian Gulf toward export...
- Q A) You have exactly 45 years until retirement. You will be making monthly deposits into your relatively RISKY retirement account that is expected to earn either APR=4.8% or APR=9.6%. (Only...
- Q A loan of $150,000 is repaid by equal installments at the end of each month, for 25 years. Given that the nominal annual rate of interest, convertible semiannually, is 8%,...
- Q 6. Give an example of a company that has a licensing agreement (you may not use the examples from the textbook) 7. Give an example of the type of industry...
- Q What are the limitations of the dividend discount model? A stock currently pays a dividend of $4 for the year. Expected dividend growth is 20% for the next three...
- Q ) Find the EAR in each of the following cases: Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 9% Quarterly 18% Monthly 14%...
- Q One hundred $1,000 bonds having bond coupon rates of 8% per year payable anually are purchased for $95,250 and kept for 6 years, at which time they are sold. Determine...
- Q b. Estimated market value of debt Book value = $1,200 Interest expense= $60 Maturity = 5 Interest...
- Q Calculate the NPV of changing from a cash only sales policy to a 60 day credit sale if the current sales of 800 units for 60 days increases to 1000...
- Q Swan's Bicycle Boats had a degree of accounting operating leverage equal to 1.50 during the most recent period. If the firm's EBITDA was $5,000 and its fixed costs were equal...
- Q Intro You've recorded the following prices and dividend payments for a stock: Month Stock price Dividend 1 37.28 2...
- Q You are planning to save for retirement over the next 30 years. To do this, you will invest $800 a month in a stock account and $400 a month in...
- Q 1- what is the impact of information technology risk on the client business risk? explain with examples. 2- what is the impact of information technology risk on the risk...
- Q what is the basis activity of banks?
- Q In this course, we defined Financial Modeling as the , , and of financial data in a format.
- Q All other things equal, Company B, with its higher fixed costs and lower variable costs, will have a higher contribution margin ratio than Company A. Therefore, it will tend to...
- Q Someone offered you to sell a 2-year, zero coupon bond at the price of $900. 1) If the market rate of return for similar bonds is 8%, would you...
- Q On reviewing the financial statements the businesses's accountant discovered that an invoice for rent of 980 owed to its landlord has incorrectly been recorded as rent receivable of 580...
- Q Choose the correct answer _____________________________________________________________________ Q1 Ahmad invests $5000 in the stock market, $15000 in the bank. The risk of the market is 20%. If Ahmad overall risk is...
- Q A website is selling DVD players for $45. The site got the DVD players at a cost of $18. What percentage is the mark-up
- Q Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 38%. The T-bill rate is 5%. Your client chooses to...
- Q A fully amortizing mortgage loan is made for $118,000 at 6 percent interest for 30 years. Required: a. Determine payments if interest is accrued monthly. b. Determine payments if...
- Q What is the present value of $50,000 received each 6 months for 4 years if the annual percentage rate is 5%? a) $362,516 b) $334,891 c) $400,000 d) $358,507
- Q Broke Benjamin Co. has a bond outstanding with a coupon rate of 5.41 percent paid semiannually and sells for $1,936.98. The bonds have a par value of $2,000 and 17...
- Q Suppose you observe the following situation: Security Beta Expected Return Pete...
- Q Last year Janet purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected...
- Q Market value ratios give management an indication of what investors think of the company's -Select-liquidityriskassetsItem 1 and future prospects. The market value ratios include: (1) Price/Earnings...
- Q You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 3.66 percent, compounded annually....
- Q You are given the following information for Zonama Inc. for the fiscal year ending December, 2018: Sales is $232,887 million, Net Income is $10,073 million, Total Assets is $162,648...
- Q Future Value of re-invested payments and number of bonds An investor has the choice of purchasing a 12-year annual bond, that has annual coupon payment of $60, each year plus...
- Q Splish Natural Foods' current dividend is $11.50. You expect the growth rate to be 0 percent for years 1 to 5, and 2 percent for years 6 to infinity. The...
- Q PSE plans to pay an annual dividend of $1.20 per share in the coming year. If its equity cost of capital is 4% and dividends are expected to grow by...
- Q XYZ Inc. sells on terms of 2/10, net 30. Total sales for the year are $1,000,000. Consider 30 percent of the customers take discounts and pay on...
- Q Which of the following is a consequence of deposit insurance? Group of answer choices It may induce the officers of a bank to take more risks. It encourages banks to...
- Q 4. Suppose you buy a 30 year 7% bond that has a YTM of 8%. What is the price of the bond? 5. Suppose you buy a 12 year...
- Q Given the following: default premium = 0.50 % pts.; inflation 3.75%; real rate = 1.25%; maturity premium = 1.15% pts., what would be the nominal rate?
- Q a company is project to generate free cash flow of $12 mill next year, projected to grow at a stable 2.4% rate in perpetuity. the company has $28.9 mill of...
- Q why the stock offer becomes misleading to the shareholders of target firm? short answer
- Q Q4. When a Mexican distillery offers rebates to its current customers, what growth strategy is the company using? (0.5 points) (20-70 words)
- Q When should benchmarking be used? Convince the buyer of a BPO contract that benchmarking is a good investment.
- Q Santa bought an option contract on Telstra shares with an exercise price of $60 and an expiry date of three months. The market price for Telstra shares today is $56.85....
- Q Imperial Jewelers is considering a special order for 17 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling...
- Q You are analyzing a company that has cash of $11,200, accounts receivable of $27,800, fixed assets of $124,600, accounts payable of $31,300, and inventory of $56,900. What is the quick...
- Q IBM expects to pay a dividend of $3 next year and expects these dividends to grow at 9% a year. The price of IBM is $80per share. What is IBM's...
- Q A bond pays 9% yearly interest in semi-annual payments for 6 years. The current yield on similar bonds is 12%. To determine the market value of this bond, you must...
- Q Octopus Transit has a $1,000 par value bond outstanding with 10 years to maturity. The bond carries an annual interest payment of $98, payable semiannually, and is currently selling for...
- Q Using a modified discriminant function similar to Altman's, Burger Bank estimates the following coefficients for its portfolio of loans: Z = 1.4X1 + 1.09X2 + 1.5X3 where X1 = debt...
- Q Question 16 options: Use the following information to answer the 8 questions (filling in the blanks) that follow it. When answering the questions, DO NOT use dollar signs, USE commas...
- Q You have $675 today which is enough to buy 375 bottles of Diet Pepsi. If the price of Diet Pepsi is expected to increase by 4% over the next year,...
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