Accounting question and answers for December 03, 2023
- Q A precision lathe costs $11,000 and will cost $21,000 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 5 years, what...
- Q Suppose it costs BUS-104 Electronics, Inc. $27.5 on average to hire labor and capital to produce an external hard drive, which this firm sells at $55 in the market. If...
- Q Weismann Co. issued 20-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM...
- Q Which of the following is a diversifiable risk? Multiple Choice Inflation The corporate tax rate rising by 5% The price of oil rising The risk that a company's CEO is...
- Q Competitive Advantage. When firms decide to invest in foreign countries, their decision is based on the competitive advantage of the firm as well as those of the host country. What...
- Q When considering taking a lump sum in lottery winnings, how important is the inflation factor?
- Q Compute the value in 16 years of a $1,500 deposit earning 8 percent per year.
- Q Triangular Chemicals has total assets of $93 million, a return on equity of 36 percent, a net profit margin of 5.5 percent, and an equity multiplier of 2.66. How much...
- Q You currently have $50,000 in your bank account and you will need a total of $90,000 in 9 years to pay for a down payment on a house. What interest...
- Q Which investment has the least amount of risk? Coefficient of variation = 8%, expected return = $800 Coefficient of variation = 8%, standard deviation = $200 Standard deviation =...
- Q Dan is considering the purchase of Super Technology, Inc. bonds that were issued 4 years ago. When the bonds were originally sold they had a 20-year maturity and a 10.48...
- Q A painting business had revenues of $17,000 and expenses of $10,000. There were no depreciation expenses. However, the business reported the following changes in working capital: Beginning...
- Q Your Company is considering a new project that will require $20,000 of new equipment at the start of the project. The equipment will have a depreciable life of 6 years...
- Q what risks do you think might be unique to accepting and retaining clients in foreign country that is not necessarily supportive of U.S. interest? This about the client acceptance and...
- Q A 5.95 percent coupon bond with 19 years left to maturity is offered for sale at $1,065.25. What yield to maturity is the bond offering? (Assume...
- Q For the Nasdaq stock index futures traded on the CME, make a chart of the futures price as a function of maturity. Collect appropriate (or assume) interest rate...
- Q 1 In a CAPM world with a risk-free asset, an investor's degree of risk aversion will determine his or her ______. Select one alternative: 1) capital allocation line 2)...
- Q Suppose US government issues a treasury bond at Jan 15 2005 with a face value of $100, and the bond matures at Jan 15 2015. The bond pays semi-annual coupons,...
- Q A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter. Which of the following items would be increased by this cash...
- Q Which of the following statements is FALSE? a. As debt has a lower cost of capital than equity, higher leverage lowers a firms WACC. b. with perfect capital markets, a...
- Q All of the following are methods of evaluating the risk of a project EXCEPT The net present value profile A Monte Carlo simulation Decision trees The coefficient of variation
- Q An outstanding corporate bond has a face value of $1,000 and are currently selling at $975. The bond has a 6 percent coupon rate. What is the current yield on...
- Q What is the APR of 24.10% compounded daily?
- Q 5-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%. What is the real risk-free rate, r*?
- Q Management of Sycamore Home Furnishings is considering acquiring a new machine that can create customized window treatments. The equipment will cost $241,550 and will generate cash flows of $67,750 over...
- Q Please fine the projected value of 2022 Q4. Please be noted that the average weight of Q4 for 2018-2021 is 28% of the overall volume. So i have...
- Q You were hired as a consultant to Quigley Company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The interest rate on new debt is 6.50%,...
- Q We need to calculate the present value (the value at time period 0) of receiving a single amount of $1,000 in 20 years. The interest rate for discounting the future...
- Q A coupon bond that pays interest of $54 annually has a par value of $1,000, matures in 5 years, and is selling today at $73.75 discount from par value. What...
- Q What is the present value of the following annuity? $3,924 every year at the end of the year for the next 9 years, discounted back to the present at 12.36...
- Q A financing where the underwriter agrees, prior to filing the preliminary prospectus, to purchase the securities at a fixed price is a bought deal. ...
- Q Two components that make up option value are intrinsic value and time value. Explain why the intrinsic value of an option is always non-negative, even for out of the money...
- Q Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent,...
- Q BOND VALUATION Callaghan Motors' bonds have 15 years remaining to maturity. Interest is paid semiannually, they have a $1,000 par value, the coupon interest rate is 5%, and the yield...
- Q What is the present value of a 6-year ordinary annuity of $3,000 per year plus an additional $1,250 at the end of Year 6 if the interest rate is 4%?...
- Q Given i(365) = 4.475%, find the equivalent effective annual rate.
- Q Assume that you have a liability with following four required payments: $7,000 due in 1 year $9,000 due in 2 years $3,000 due in 3 years $2,000 due in 4...
- Q The market price is $825 for a 15-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What...
- Q In a letter of credit, the exporter allows the importer to pay 3 months after the goods are on the ship, -free and clear-. What is the type of this...
- Q Chaney Corp. has an EBIT of $1.31 million per year that is expected to continue in perpetuity. The unlevered cost of equity for the company is 11%, and the corporate...
- Q 1. Compare the advantages and disadvantages of becoming a public company.
- Q Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year X Y 0 -$5,000 -$5,000 1 1,000 4,500 2 1,500...
- Q We all have faced conflicts of interest within our workplace. Often, these conflicts are not even consciously considered or evaluated as part of our decision-making process. Identify problems that you,...
- Q As a treasurer, you must have a good knowledge of the credit market. To assess two distinct bond types, namely bond A and bond B. These two bonds...
- Q WACC: Calculating the weights of each cost component. Using the following information, calculate Wd, We, and Wp. In this question, enter the weight of debt (Wd): ...
- Q In at least 4 -5 sentences, please distinguish between the initial rate of interest and expected yield on an ARM. What is the general relationship between the two? How...
- Q A correlation coefficient of_______provides the greatest possible risk reduction to the firm. A) -2 B) -1 C ) 0 D) +1 Please justify and explain answer.
- Q Your Company is considering a new project that will require $16,000 of new equipment at the start of the project. The equipment will have a depreciable life of 7 years...
- Q Assume that you have been given the following information of Mouse Inc. Sales/Total Asset Return on Asset Return on Equity = 1.5 times = 3% = 5% Calculate the...
- Q Problem 2-6 (p.92) Explain the difference between NOPAT and net income. Which is a better measure of the performance of a companys operations? Problem 2-7 (p.92) What is free cash...
- Q The type of mortgage loan that best fits the asset-liability mix of most depository institutions is a(an): a. Fixed-payment, fully amortized mortgage....
- Q A firm has total equity of $2000 and a debt-equity ratio of 2. What is the value of the total assets
- Q Jack has taxable income of $65,000. He is a single tax filer, and his federal income tax rates on the first $8,350 is 10%; it is 15% on income from...
- Q Value-based payments. What were the major events and trends that cost CMS to institute a value based payment structure for Medicare
- Q Take a photo of a warning sign you see or find a warning sign online which you think attempts to limit occupiers liability.
- Q You sell one March futures contracts when the futures price is $1,025 per unit. Each contract is on 100 units and the initial margin per contract that you provide is...
- Q A portfolio is invested 25 percent in Stock G, 65 percent in Stock J, and 10 percent in Stock K. The expected returns on these stocks are 5 percent, 19...
- Q Your CEO. Ms Docter indicates volumes are expected to fall 15% next year because of a loss of a key managed care contract. Passing the bad news along, Nursing Director...
- Q You purchase a 20 year semi annually 9% coupon bond with an 11% ytm today. in one year you sell. if interest rates stay the same, what would be your...
- Q A company enters into a short futures contract to sell 1,000 barrels of oil for $50 per barrel. The initial margin is $6,000 and the maintenance margin is $4,000. What...
- Q Each quarter, Blossom, Inc., pays a dividend on its perpetual preferred stock. Today the stock is selling at $62.00. If the required rate of return for such stocks is 14.0...
- Q What is the Signaling Theory? A. Management will avoid using debt if they are confident about the company B. Management will pay extra taxes to the IRS just to show...
- Q NY Transco Zone 6 natural gas user hedges the December purchase with a Henry Hub futures contract expiring at the end of November. The locked-in futures price is...
- Q The interest rate on a $106,000 loan is 7.6% compounded semiannually. The monthly payments on the loan are $750.(Round your answers to 2 decimal places.) ...
- Q a number of companies seem to cycle in and out of vertical integration, for example, apple computers moves in and out of having its own store network versus relying on...
- Q Stock Y has a beta of .85 and an expected return of 15.90 percent. Stock Z has a beta of .60 and an expected return of 10 percent. If the...
- Q A person establishes a sinking fund for retirement by contributing $7,500 per year at the end of each year for 20 years. For the next 20 years, equa yearly payments...
- Q why woukd an organization choose to lease equipment instead of purvhasing it?
- Q You win a $314.9 million dollar Powerball jackpots. You are scheduled to get 30 equal annual payments that add up to $314.9 million, with the first payment comes today. However,...
- Q The estimated formula value per share is $43 and the market price is $35. What should an investor that has a portfolio of stocks do? a. Buy b. Sell c...
- Q Waterdeep Adventure Travel has an unlevered cost of equity of 18.8%, and a cost of debt of 6.1%. Their tax rate is 36%, and they maintain a capital structure of...
- Q A bought deal occurs when underwriter buys an issue from a firm and sells the securities to investors without preparing a prospectus. true or false
- Q As discussed in class, the marketing team's role is to qualify or disqualify a prospect and then send feedback to sales. Group of answer choices True False
- Q Assume a firm generates $400,000 ebit annually pays 40% tax and has 80 ,000 shares outstanding calculate eps if the firm is decided to borrow $250,000 at 9% interest and...
- Q A firm issued a new series of bonds on January 1, 1992. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in thirty years. Coupon...
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