Accounting question and answers for December 03, 2023
- Q Describe two ways to resolve agency conflict between shareholder & manager of a company
- Q 10 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000. Now the bond has a yield to maturity of 8.17 percent,...
- Q You invested your cash into a portfolio of three stocks with the following Betas; 0.87, 1.04, and 2. If you invested 30% of your cash into the first stock, and...
- Q Which of the following is not an advantage of private placement? A) no expensive registration process B) lower interest rates C) more flexibility in negotiation D) no extensive public relations...
- Q A loan of $12,000 is repaid by payments of $571 at the end of every three months. Interest is 9% compounded quarterly (a) How many payments are required to repay...
- Q You are a senior execute at an ASX-listed company. If it is helpful, you may nominate a specific ASX-listed company to represent. The CEO of your company is interested in...
- Q When the weighted average cost of capital increases what happens to the NPV and the IRR? A.) NPV and the IRR do not change B.) The NPV increases and the...
- Q QM Motors invests $40 million in a new project which is expected to generate the following cash flows: Years 1 2 3 4 Cash Flows ($ millions) 10 10 15...
- Q If you pay 5000$ at a rate %10 in five years, by paying five equal installments at the end of the every year. How much is each installment?
- Q Examine the concept of time value of money in relation to corporate managers. Propose two (2) methods in which time value of money can help corporate managers in general
- Q using Beta: 0.03 compute the expected return for your company (Walmart) based on CAPM (based on current stocks) using the expected return from above, what should the price of Walmart's...
- Q ps7 4 today is Dereks 25th birthday. Derek has been advised that he needs to have $2,249,609.00 in his retirement account the day he turns 65. He estimates his retirement...
- Q #4 A restaurant sells pizza for $13.25/slice. Expenses for the restaurant include raw material for pizza at $8.25 per slice, $183.00 as monthly rental and $50.00 as monthly insurance. How...
- Q Explain the concept of time value of money. How does it impact financial decision-making?
- Q (Holding-period returns) From the price data that follow, compute the holding-period returns for periods 2 through 4. Period Stock Price 1 $ 8 2 10 3...
- Q Determine the prevailing futures price of the Chinese currency and determine the prevailing spot rate. What is the discount or premium of the futures price?
- Q 13.) You can pay off a loan either by paying the entire amount of $16,000 now or you can pay $10,000 now and $10,000 at the end of 10 years....
- Q In a Gordon Growth model of stock valuation, the capital gains yield is determined by the: a. Required rate of return b. Dividend yield c. Dividend growth...
- Q The Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 24 percent. Assume all sales revenue...
- Q Southeastern IT Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock...
- Q You put $190 per month in an investment plan that pays an APR of 4% compounded monthly. How much money will you have after 17 years? Compare this amount to...
- Q Bond valuation long dashSemiannual interestFind the value of a bond maturing in 10 years, with a $1,000 par value and a coupon interest rate of 99% (4.54.5% paid semiannually) if...
- Q New company is expected to pay $ 0.75 per shar dividend at the end of the year. The dividend is expected to grow at a constant rate of 6% a...
- Q Jeff Zucker and Brian L. Roberts claim that the merger of their companies would represent only a vertical combination. How would Mark Cooper disagree with this assertion? Which side do...
- Q LuAnn Chandler recently opened a new office as a Certified Public Accountant (CPA). LuAnn bought a fireproof four-drawer vertical filing cabinet for $857.40. If the vendor had marked it up...
- Q 7) Professor Wendy Smith has been offered the following opportunity: A law firm would like to retain her for an upfront payment of $50,000. In return, for the next year...
- Q Alphabet Inc. has a 7 percent coupon bond outstanding that matures in 13.5 years. The bond makes semiannual coupon payments. The par value of the bond is $1000, and it...
- Q You own a 6-month futures contract on U.S. Treasury notes. The underlying notes have a duration of 3.87 years. What is the duration of the futures contract? ...
- Q The following organizations must prepare a statement of functional expenses as part of their audited financial statements (select all that apply): a. Not-for-profit organizations b. state and local governments c....
- Q On October 12, the Bureau of Labor Statistics announced the Producer Price Index (PPI) for September at 0.4%. The next day the Consumer Price Index (CPI) would be announced. A...
- Q A mortgage company offers to lend you $85,000; the loan calls for payments of $7,779.44 at the end of each year for 30 years. What interest rate is the mortgage...
- Q As a United States resident currently working in the financial services industry in Australia, the CFA Standards of Professional Conduct requires the member to: (B) A.act as a fiduciary B.undertake...
- Q You manage a $265 million bond portfolio which has a duration of 7.1 years. You want to hedge this portfolio with Treasury note futures that have a duration of 7.6...
- Q Tommy invests $2,000. He earns 3% for 4 years and then 5% for the next 6 years. He makes no withdrawals and pays no taxes. How much will he have...
- Q mm2 22 A firm will pay a dividend of $1.39 next year. The dividend is expected to grow at a constant rate of 3.09% forever and the required...
- Q Assume today is 13 January 2022. When is the final trading day of the 3-month KLIBOR futures for the spot-month contract? Provide a specific day, date and time.
- Q Which of the following is most likely a correct statement regarding a venture capital (VC)'s competitive advantage? A) VC partners typically actively engage with a company, providing expertise...
- Q Security Return Standard Deviation Beta A 15% 8% 1.2 B 12% 14% 0.9 Risk-free asset 5% ??? ??? What is the value of systematic risk for a portfolio with 75%...
- Q A policyholder wishes to annuitize the cash value of her insurance policy at retirement. She desires a monthly payment of $ 3500 and the cash value is expected...
- Q You are evaluating a product for your company. You estimate the sales price of product to be $110 per unit and sales volume to be 10,100 units in year 1;...
- Q Your friend invested $1,000 3 years ago and received $1,500 today when closing the account. If your friend told you the account had a monthly compounding frequency, what was the...
- Q Question 1 It has been suggested that in a world with only corporate taxation the value of the firm = the value of all equity financed + the present value...
- Q Based on the following information, determine the location quotient for Amusement City (round to the hundredths) and whether this city has a competitive advantage in the amusement industry. Employment in...
- Q Professor Diehard discovered an effective antibiotic and patented the drug. He believes that he could sell the patent for $20 million. He then formed a corporation and invested...
- Q Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $290, the probability of a fire is 0.1%, and in the event of a fire, the insured damages...
- Q If you find an error or omission on your credit report, you should notify the credit bureau that you wish to exercise your right to reinvestigation under the Group of...
- Q A 10 year, 6.75% semi-annual coupon bond with a par value of $1,000 of the Mark Cuban company may be called in 4 years at a call price of $1,060....
- Q 1. How many stocks does it take to diversify a portfolio? 2. If the minimum level of risk is 19.2%: What does that number represent? Do you think that number...
- Q William's surgery has a current ratio equal to 3, a quick ratio equal to 1.8, and total current assets of $6 million. What is the amount of current liabilities?
- Q Which of the following correspond to a wide frequency distribution? I. relatively low risk II. relatively low rate of return III. relatively high standard deviation IV. relatively large risk premium...
- Q What is free cash flow (FCF)? What is the weighted average cost of capital? What is the free cash flow valuation model?
- Q Thompson's Jet Skis has operating cash flow of $258. Depreciation is $45 and interest paid is $53. A net total of $79 was paid on long-term debt. The firm spent...
- Q A perpetuity pays $85 per year and costs $3,380. What is the rate of return?
- Q The manager from cougar bought 100 shares of a common stock and paid $50 per share. Two years later he fold the stock for $60 after receiving dividend checks totaling...
- Q I need the hand written solution to this problem. The Martins are excited about buying their first home. They need to borrow $180,000 to make the purchase. Their local credit...
- Q b) A Malaysian importer has entered into a contract under which it will require payment in AUD in one month. The company is concerned at its exposure to foreign exchange...
- Q Discuss the disadvantages of dollarization?
- Q SIROM Scientific Solutions has $5 million of outstanding equity and $10 million of bank debt. The bank debt costs 4% per year. The estimated equity beta is 2. If the...
- Q a price weighted index consistes of stocks A, B, and C which are priced at #38, $21, and $26 a share respectively. The current divisor is 2.7. What will the...
- Q A U.S. Treasury bill with 157 days to maturity is quoted at a discount yield of 2.62 percent. What is the bond equivalent yield? (Do not...
- Q Storico Co. just paid a dividend of $1.45 per share. The company will increase its dividend by 24 percent next year and will then reduce its dividend growth rate by...
- Q Can you PLEASE help me with this? I DO NOT have a financial background..Create a 3- to 5-year financial plan to implement the goals and objectives created in Part II...
- Q Which of the following statements is FALSE? A positive investment in a security can be referred to as a long position in the security. The efficient portfolios are those portfolios...
- Q General Motors is thinking about building a new factory. The factory cost (today) is $280 millions and the perspective yield is $312 millions in 3 years. Can you explain whether...
- Q 9) We deposit $100,000 in the bank at 5% interest, compounded monthly. After 10 years, how much can we withdraw from the bank account? A. $162,889 B. $164,701 C. $164,362...
- Q You have been offered a 30-year mortgage at 6.00% for $300,000. The original loan to value is 90% and thus the loan requires PMI. The loan requires PMI payments of...
- Q Given the following information about a project, calculate the financial evaluation indicators and determine if the project is viable. Initial investment $40,000,000 Net flow year 1: $5,000,000 Net flow year...
- Q A firm's beta is 1.0. If the risk-free rate is 6.0%, and the Market Risk Premium is 8.0%, what is the company's expected return? Enter your answer as a percentage,...
- Q Which one of the following bonds will offer the highest coupon payment? (InterestRate&BondValuation) S&P AAA rated company US 10 year Treasury Note Secured Bond...
- Q Based upon the following cash flows, Using IRR should Nick Als Cookie Company introduce a new product, Rolling In Bulla? The initial investment is $180,000, and the cost of capital...
- Q Who are the winners and who are the losers if a currency, let's say the yen, weakens? Who are the winners and who are the losers if a currency, let's...
- Q You are looking to buy a car. You can afford $720 in monthly payments for five years. In addition to the loan, you can make a $820 down payment. If...
- Q Suppose that the treasurer of IBM has an extra cash reserve of $400,000 to invest for six months. The six-month interest rate is 4.7 percent per annum in the United...
- Q Paymaster Enterprises has arranged to finance its seasonal working-capital needs with ashort-term bank loan. The loan will carry a rate of 16 percent per annum with interest paid in advance...
- Q UPS, a delivery services company, has a beta of 1.3, and Wal-Mart has a beta of 0.6 The risk-free rate of interest is 5% and the market risk premium is...
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