Accounting question and answers for December 04, 2023
- Q Question 5 [4 points] Suppose the interest rate is 5%. You inherit a trust (a perpetuity) that will eventually pay you $10,000 a year forever. You will receive the first...
- Q You approach two different banks for a loan of $100,000 to finance the purchase of this equipment. Farm Credit charges 12% APR compounded monthly. CoBank charges 11.95% APR...
- Q 1. Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of...
- Q 1.Compute the price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100. 2.Compute the price of a forward contract on the same ZCB...
- Q SouthCo is considering the purchase of a new bubble packaging machine. If the machine will provide $25,000 annual savings for 4 years and can be sold for $51,000 at the...
- Q AFN Equation Broussard Skateboard's sales are expected to increase by 25% from $7.4 million in 2015 to $9.25 million in 2016. Its assets totaled $4 million at the end of...
- Q "A company know that it will purchase an asset in the future. What is the optimal number of futures contracts to deploy, given the following information: The correlation...
- Q P0 = Price of stock = $45.00 Floatation Expense = 7.0% ROE = 16.00% Dividend Payout Ratio = 40% Dividend just paid = $2.00 What is cost of equity (rS)?...
- Q Dorothy Taylor is planning to buy 10-year zero coupon bonds issued by the U.S. Treasury. If these bonds have a face value of $1,000 and are currently selling...
- Q A 10-year bond with semiannual coupons is bought at a discount to yield 8% convertible semiannually. If the amount for accumulation of discount in the 16th...
- Q Under Armor Inc Class A (UAA) - using the 2021 10-K Form Accrued liabilities arise from ordinary operations and provide interest-free financing. Are the operating liabilities large...
- Q the fisher effect states: a. the real interest rate in any country equals the nominal rate of interest plus the expected rate of inflation b. spot exchange rate between countries...
- Q Which of the following are typical repurchase agreement maturities? Check all that apply. 1 day 1 month 1 year...
- Q A bank quotes an interest rate of 12% pa with monthly compounding. Note that another way of stating this rate is that it is an annual percentage rate (APR) compounding...
- Q If you deposit $1,735 in an account that pays an annual interest rate of 5.53% compounded quarterly, what will your account balance be in 4 years? Please round your answer...
- Q Choose the most appropriate statement with regard to best interests duty and related obligations? a. Best interests duty and related obligations are applicable when financial advice is provided to customers....
- Q As a Professional Accountant, you are regarded as an expert with specialized knowledge acting ethically and influencing others to do what is right whilst working to very high standards. When...
- Q 1) A HCO's investment of $2,000 in a piece of equipment will reduce labor costs by $550 per year for the next 5 years. Twenty-five percent (25%) of all patients...
- Q Chapters 8-10 inPrinciples of Managerial Finance Question 1 Diversification occurs when stocks with low correlations of returns are placed together in a portfolio. What are two types of firm...
- Q Prego Sauce is in the process of preparing a production cost budget for May. The actual costs in April were: Prego Sauce ...
- Q You want to receive $100,000 in five years. How much would you have to invest today at 3% compounded annually?
- Q A leading broker has advertised money multiplier certificates that will triple your money in ten years; that is, if you buy one for $2,333.33 today, it will pay you $7,000...
- Q DeMagistris Fashion Company, based in New York City, imports leather coats from Acua Leather Goods, a reliable and longtime supplier, based in Buenos Aires, Argentina. Payment is in Argentine pesos....
- Q Question 1(10 Marks) Differentiate between capital markets and money markets and explain the importance of the two markets in South Africa.
- Q An investment in a lease offers returns of $3000 per month due at the beginning of each month for five years. What investment is justified if the returns...
- Q What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 6%? A.) 15.00% B.) 21.00%...
- Q PART B (5 marks, 9 minutes)You have recently been employed by a firm of accountants as a tax adviser. The following queryregarding a South African resident client has...
- Q Mid States Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 70 percent and the probability...
- Q Problem 9-25 You have a car loan with a nominal rate of 6.10 percent. With interest charged monthly, what is the effective annual rate (EAR) on...
- Q On your ninth birthday, you received $400 which you invested at 3.5 percent interest, compounded annually. Your investment is now worth $856. How old are you today?
- Q Which one of the following statements is correct? a. The Australian government introduced the Superannuation (Super) Fund in response to the significant burden on the social welfare system due to...
- Q Abner Corporation's bonds mature in 18 years and pay 13 percent interest annually. If you purchase the bonds for $875, what is your yield to maturity?...
- Q NPVs, IRRs, and MIRRs for Independent Projects Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects...
- Q Assume that risk free rate r = 0.12, the price of the IBM stock is $100 per share now. Suppose the price of the IBM stock can go up or...
- Q A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the...
- Q 1. Forwards and Arbitrage You are working as an FX trader on Wall Street which specializes in currency carry trade strategies. A currency carry trade is a trading strategy that...
- Q Explain a conflict of interest that can arise in a credit agency. Provide an example. (10 marks)
- Q Chen plans to save 20,200 dollars per year for 3 years. His first savings contribution is expected later today. He then plans to make withdrawals for 7 years. How much...
- Q You have just purchased 6% coupon bond with 4 years to maturity. The bond makes semi-annual coupon payments and has a yield to maturity of 5.60% annual rate, compounded semi-annually....
- Q A university is planning to hold an event at a local venue, which will charge a fixed rental fee of $720 for the event plus $19.90 per guest for food....
- Q Suppose you save $100 each year of the next 4 years. The interest rate is 8% per year. How much will you have accumulated at the end of the...
- Q Brandywine Homecare, a non-profit business, had revenues of $12 million in 2017. Expenses other than depreciation totaled 75% of revenues, and depreciation expense was $1.5 million. All revenues were collected...
- Q 1. Arbitrage is limited because the wealth of arbitrageurs is limited. Discuss this statement in the context of those who are managing their own money and those who are managing...
- Q Suppose a bank offers an EAR of 12% compounded quarterly. What is the APR? explain using an excel formula plz
- Q You have decided that you want to be a millionaire when you retire in 44 years. If you can earn an annual return of 11.26 percent, how much do you...
- Q Transactional based exchange rate risk is the most important risk faced by businesses having dealings in foreign exchange. Depending on the nature of business and the development of the financial...
- Q Anna is the owner of an online sporting goods company, Unique Sports, that features a wide assortment of specialty sporting goods. She launched her website two years ago and she...
- Q 2. Explain the concept and implications of market efficiency. How do the derivatives markets increase market efficiency?
- Q 1- compare commerciale banking with investment banking. what is universal banking? 2- find the name of the broker who does business on the Internet, 3-5 names. How much they charge....
- Q (Cost of debt) Carraway Company is suing a $1,000 par value bonds that pays 7 percent annual interest and matures in 9 years. Investors are willing to pay $965 for...
- Q EnvironCo is performing vehicle inspections, with emphasis on emission standards. The company issued 7% annual coupon bonds three years ago. These bonds are now selling at a YTM of 8.5%....
- Q What is today's world economy telling us? Where is the best place to invest? What types of companies will profit over the next investment cycle?
- Q Assume that all you have available are data for the following ratios and your firm and your industry. Total Asset Turnover = Revenues/Assets Total Margin...
- Q The IRR decision rule states that a project should be accepted if its IRR: A.exceeds the IRRs of all other potential projects. B.is equal to zero. C.is greater than the...
- Q The following net cash flows are projected for two separate projects. Your required rate of return is 12%. Year Project A Project B 0 ($150,000)...
- Q In 2015, Usher Sports Shop had cash flows from investing activities of $4,374,000 and cash flows from financing activities of $5,885,000. The balance in the firms...
- Q spot rate on 1yr bond- 6%spot rate on 2yr bond- 8% liq premium for yr 2- 0 .5% what is the expected one year rate, one year from...
- Q A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm...
- Q Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital? Target common equity weight:...
- Q 1.) Japan has a higher ratio of stock market capitalization relative to GDP than the US. What would explain this? 2.) The Gold Standard and the Money Supply. Under the...
- Q A firm has sales of $2.6 million, and 20 percent of the sales are for cash. The year-end accounts receivable balance is $160,000. What is the average collection period?
- Q It is impossible to prove that Apple was efficiently priced at $110 per share. Provide one reason why we cannot prove this?
- Q 1- in a world without information cost and transaction costs, financial intermediaries would not exist!, Is this statement true, false or uncertain? Explain your answer. 2- In...
- Q Copying is strictly prohibited. I will rate. You have decided to advance refund $10,000,000 of outstanding debt that is callable in five years. The interest rate on these bonds...
- Q What is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures in 10 years? Assume a required rate of return...
- Q Your team is assigned to the Gadget Division of The FGM Corporation, the largest multinational automobile manufacturer in the U.S. Your team is asked to evaluate...
- Q You just won the grand prize in a national writing contest! As your prize, you will receive $3,000 a month for ten years. If you can earn 8 percent on...
- Q 12 Collections on accounts receivable will lag behind sales, and accrual sales during a period will exceed cash collections during the O introductory phase of the corporate life cycle. O...
- Q Which of the following statements about off-balance-sheet (OBS) business of banks is INCORRECT? Select one: a. Basel III takes into account OBS business of banks. b. Documentary letters of credit...
- Q Penguin Pucks, Inc., has current assets of $4334, net fixed assets of $26073, current liabilities of $3461, and long-term debt of $13973. What is the value of the shareholders equity...
- Q A rich alumni has created a trust for his university. It will pay the university USD15,000 three years from today. In addition, each year after that, the trust will pay...
- Q Annual payments of $1,045 are made for 5 years to repay a loan at 4.75% compounded annually. Find i (the rate per period) and n (the number of periods).
- Q What is the purpose of insurance? If insurance is necessary, why do people resent paying for it so much? Give me two scholarly references to support your answer in APA...
- Q Capstone Quarry is analyzing whether a new contract proposal will be a good idea. The relevant data is shown below. The net working capital will be paid in the same...
- Q Given a 5 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,650, $1,850, $1,850, and $2,150, respectively. ...
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