Accounting question and answers for December 04, 2023
- Q Can a ratio be too high or too low? A higher current ratio is generally considered to be better, but can a current ratio be too high? What do you...
- Q Suppose that a change in the expected inflation rate leads supply and demand to adjust so that the after-tax expected real interest rate is unchanged at 2.0 percent. The tax...
- Q A preferred stock pays an annual dividend of $7.50. If the return required by shareholders is 9% and the company is expecting earnings growth of 4%, then the price per...
- Q Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's...
- Q Coupon rates. What are the coupon rates for the following bonds below? Hint: Make sure to round all intermediate calculations to at least six decimal places. Par...
- Q 5. What is the present value of a perpetuity of $2,900 per year at a discount rate of 11% per year? ...
- Q The preferred stock of Sell Inc. sells for $120 per share, and it pays an $11 annual dividend. The company plan to sell a new preferred issue, and the flotation...
- Q Describe data validation, absolute cell referencing, custom formatting, naming a range in Excel. Why is this important for financial modeling? Use examples.
- Q 14.What is the present value of a security that will pay $40,000 in 20 years if securities of equal risk pay 5% annually? Do not round intermediate calculations. Round your...
- Q The Johnson's Company had net income(after tax) = 500,000 USD, Johnson's Company's income statement included Income Tax Expense = 150,000 USD; Interest Expense = 50,000 USD. Also we...
- Q Assume that you own a 10-year, $10,000 US Treasury bond with a coupon rate of 3%. There are two years left to maturity, and you are planning to sell the...
- Q An individual divides an investment between hedge funds that earn (before fees) -21%, -11%, +21%, +25%, +27%, and +31%. All hedge funds charge 2 plus 20%. What is the overall...
- Q An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,300,000...
- Q 3. ABC issued 7 3/8% bonds with annual interest payments that matures in 2042, but is callable at $1,037.08 in 2021, seven years from today. What is its yield to...
- Q A German company invested the following amounts to buy shares of a company in the United States. $15 Mn in 2016 to buy 12% shares $25 Mn in 2017 to...
- Q Fabiola just backed her car into another car in the parking lot. She caused $35,000 of damage to the other car. The damage to Fabiolas car amounts to $17,000. The...
- Q Consider an 8% coupon selling for $953.10 with three years until maturity making annual coupon payments. The interest rate in the next three years will be, with certainty r1 =...
- Q Consider a company that is projected to generate revenues of $252 million next year. Analysts expect revenues to grow at a 4.8% annual rate for the following two years (until...
- Q Old Comm Corp. is an old company in an industry which is declining. You are trying to determine what a fair price for the company would be given these facts....
- Q Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant...
- Q For capital budgeting purposes, which of these is considered a cash inflow? A decrease in the cash balance An increase in accounts...
- Q Haroldson Inc. common stock is selling for $22 per share. The last dividend was $1.20, and dividends are expected to grow at a 6% annual rate. Flotation costs on new...
- Q A banks balance sheet information is shown below (in $000). On-Balance-Sheet Items Face Value Cash $ 124,600 Short-term government...
- Q Given an Effective Annual Rate (EAR) of 0.086, the equivalent semiannual interest rate is ____
- Q Please show step by step how to calculate the estimate the required return for your company. Answer: 20.97 information: the risk-free rate in the economy right now is 0.07% the...
- Q An individual has $25,000 invested in a stock with a beta of 0.8 and another $40,000 invested in a stock with a beta of 2.4. If these are the only...
- Q Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to...
- Q Calculate the following questions. Show all work and assumptions ...
- Q Find a firm's financial statements,(at your own choice, but not a banking or utility firm's financial statements since their financial statements are different from what we cover), including balance sheet,...
- Q In your opinion, who should be most concerned with the estate planning? Is this something college student should be worried about? What are your recommendations for estate planning?
- Q Messman Manufacturing will issue common stock to the public for $50. The expected dividend and growth in dividends are $2.25 per share and 4%, respectively. If the flotation cost is...
- Q A bond has five years to maturity , a 1,000 face value and a 6.1% coupon rate with annual coupons. What is its yield to maturity it is currently trading...
- Q For which of the following hazards would avoidance be the best primary strategy The answers areowning a high-end television Throwing a block party at your house Owning a wood built...
- Q Julie wishes to begin making monthly deposits into a savings account which earns 5% interest annually. If she intends to have saved $8,500 by the end of 3 years, how...
- Q a. Compute the future value of $2,500 continuously compounded for 5 years at an APR of 11 percent. (Do not round intermediate calculations and round your...
- Q Uliana Company wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 9 percent coupon bonds on the market that sell for...
- Q Explain how a stop-loss hedging scheme can be implemented for a writer of an out-of-the-money call option. Why does it provide a relatively poor hedge?
- Q Bill is getting old so he would like to establish a trust fund that will provide $40,000 per year indefinitely for his heirs, with the first payment occurring a year...
- Q Question Richmond Ltd has a cost of equity of 12% (calculated assuming a classical tax system), a pre-tax cost of debt of 4.5%, and is financed 60% with equity and...
- Q t the beginning of its current fiscal year, TRE Co. issued $500,000 of 8%, 15-year bonds at a premium of $45,320. Interest is payable annually. Assuming that the effective interest...
- Q Your brother has asked you for a loan and has promised to pay you $6,750 at the end of three years. If you normally invest to earn 5.2 percent per...
- Q An investor initiates a strategy of "writing covered call". In the strategy, the investor sells a 2-year European call on a non-dividend-paying stock. The call has a strike price of...
- Q Discuss how changes in the following key drivers would influence the value of a company. 1. Revenue growth 2. Ebit% 3. Reinvestment in fixed assets 4. Working capital 5. WACC...
- Q What is the present value of $10,000 paid at the end of each of the next 66 years if the interest rate is 12% per year?
- Q 15 out of ____ is 72%.
- Q QUESTION 21 One implication of the tradeoff theories of capital structure decision is that firms that are likely to pay taxes at high rates should carry more debt than firms...
- Q (MARKETING QUESTION) 1. As a consumer, what do you think is the most effective pricing strategy and why? Use marketing vocabulary and refer to the pricing strategies (penetration, economy, psychological,...
- Q Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time...
- Q A company's current stock price is $44 per share, while investors' required return is 9.00%. If the dividend for the year just ended is $3.00 per share, how much is...
- Q Paul is a British citizen and lives in the UK where he has his only house. He iscontemplating starting a retail clothing business. He has appointed you as his taxrepresentative....
- Q Explain Tax Credit & Tax Decuctions. List exaples of how a single person with bo dependants can reduce their tax burden. This person makes an annual salary of 72,000k.
- Q Each of the fifty states has its own unique requirements for motor vehicle insurance. State insurance requirements fall into one of two systems - the tort system, and the no-fault...
- Q For a company accounts payable manager, which of the following credit terms has the lowest APR for forgoing discount? Answer 2/10 net...
- Q coca-cola has bonds on the market with 10 years to maturity, a YTM of 8 percent, and a current price of $1,150. the bonds make annual payments. What must the...
- Q If the cash flows for project A are C0=3,220 , C1=610 ; C2=1,610 ; and C3=5,220 , calculate the NPV of the project using a 15 percent discount rate.
- Q Laura moore has a choice at work between a traditional health insurance plan that pays 80% of the cost of doctor visits after a $250 deductible and an HMO that...
- Q Yahoo! operation did not produce significant cash flow during Year 6 and Year 7. How does Yahoo! finance its growth in the absence of sufficient operating cash flows? Explain your...
- Q Find the internal rate of return (IRR) for the following project. The project requires an initial investment of $12,000 and provides 5 annual cash inflows of $28,000. Assume a cost...
- Q White Memorial Hospital has a debt-to-equity ratio of 0.67. What is the hospital's debt ratio? 40% 30%...
- Q Hunt Taxidermy, Inc., is concerned about the taxes paid by the company in 2021. In addition to $42.1 million of taxable income, the firm received $2,985,000 of interest on state-issued...
- Q 1.a Explain how you build , construct or design a portfolio in the context of the capital asset pricing model CAPM. Show by way of graph as well. ...
- Q On June 17, 2020, Ben bought a government-guaranteed short-term investment maturing on August 31, 2020. How much did Ben pay for the investment if he will receive $14,000 on August...
- Q An investment should be _____ if the net present value is _____ and _____ if it is _____. accepted; positive; rejected; negative accepted; negative; rejected; negative accepted; positive; accepted; negative...
- Q Scott, aged 40, and Darby, aged 35, have two children, aged 5 and 10. Scotts estimated average gross annual earnings until planned retirement at age 65 are $65,000, and Darbys...
- Q Consider the following multifactor (APT) model of security returns for a particular stock. Factor Factor Beta Factor Risk Premium Inflation 1.6...
- Q At time zero let a unit share of AirAsia is selling for 100RM. It might increase to120RM or reduce to 80RM per unit at time one. Consider a call option...
- Q An investor purchases 1000 shares of Micron (MU) at $45.50 per share. Over the course of the year, the share price rises to $49 and Micron pays a $1 dividend....
- Q Mirrlees Corp. has 11,000 6% bonds convertible into 37 shares per $1,000 bond. Mirrlees has 580,000 outstanding shares. Mirrlees has a tax rate of 45%. The average Aa bond yield...
- Q Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $120,000 and sell its old low-pressure glueball, which...
- Q By using a firm's WACC to analyze all potential investments, we risk incorrectly accepting some unsuitable projects. TRUE or FALSE, please explain.
- Q The wider the dispersion of returns on a stock, the: higher the standard deviation. lower the variance. lower the real rate of return. lower the expected rate of return.
- Q Your car was severely damaged when your unattached garage caught fire. The car had $8,000 of damage from the fire. How will your insurance policies handle these damages to your...
- Q An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $12,060,000 and will be sold...
- Q What have been the keys to Nokia's global strength? Please note. This is from a case study on Marketing Management. I'm trying to answer the questions needed to...
- Q Let us consider a put option with strike price$110 currently trading at$100 and expiring in one year. Suppose the annual risk free rate is at 5%. The price is expected...
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