Accounting question and answers for December 04, 2023
- Q Explain why marketing expenses, such as accounting, bank fees, are the normal business expenses.
- Q How much would need to be annually saved over the next 35 years to accumulate an amount sufficient to fund $4,000 of equal monthly retirement payments over 30 years of...
- Q Renfro Rentals has issued bonds that have a 12.50% coupon rate, payable semiannually. The bonds mature in 5 years, have a face value of $1,000, and a yield to maturity...
- Q Calculate the PV of cash flows below and the NPV of the project now Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 -250...
- Q Your brother has asked you for a loan and has promised to pay you $7,350 at the end of three years. If you normally invest to earn 6.00 percent per...
- Q Amsterdand industries has a target capitsl structure of 60% common equity , 30% debt, and and 10 % preferred stock. The cost of retained earnings is 15 % ,and the...
- Q What are the potential impact the performance evaluation method (behavioral appraisals) could have on at least three different organizational stakeholder groups?
- Q Nowlin Pipe & Steel has projected sales of 12,600 pipes this year, an ordering cost of $5 per order, and carrying costs of $1.40 per pipe. a. What is the...
- Q Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.009, while in the 180-day forward market 1 Japanese yen = $0.0098. 180-day risk-free securities yield...
- Q What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a yield to maturity of 9.37%? a....
- Q What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to...
- Q A company is considering two mutually exclusive expansion plans. Plan A requires a $39 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.23 million...
- Q Explain how forwards or futures can be used to manage risk. Provide an example of a hedge that uses a short futures position. Why might you chose to use a...
- Q NPV - Mutually exclusive projects - Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternatives replacement machines are under consideration. The relevant cash...
- Q Scenario: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less...
- Q . Fuel costs are a significant fraction of total costs in the airline industry. How might airline managers use options to manage fuel costs? What is the downside of doing...
- Q Margo has a $100,000 home. She has it insured by four different insurers, each providing the following amount of coverage: Insurer A: $10,000 Insurer B: $20,000 Insurer C: $30,000 Insurer...
- Q Your rich Uncle Bertie invested $7,335 on your behalf 10 years ago into a hedge fund. You just found out that your share of that hedge fund is now worth...
- Q What happened to the exchange rate of the Sri Lankan rupee recently? Had a MNC (of your country) invested in Sri Lanka, what exchange rate exposure would that be categorized...
- Q Cocacola Inc., has an enterprise value (EV) of $758 million. The company has a $378 million bank loan, cash of $18 million, and 6.4 million shares outstanding. What is Griffley's...
- Q You have a stock priced at $40 (which you already own). The three-month call with a strike of $45 is $2.25. The three-month put with a strike of $35.00 is...
- Q The signaling theory predicts that when firms announce plans to sell new shares of stock, the price of the existing stock will go up because investors take the decision to...
- Q Set up an amortization schedule that repays a $50,000 loan with 5 equal annual payments but with the first annual payment starting 3 years from now. Assume that the annual...
- Q Appa, Inc. is currently trading at $26 per share. It has 100 million shares outstanding. The company has issued bonds that are trading at 80 percent of its par value....
- Q What is the target price for Zynga's stock in one year? It has a beta of -0.42, sells for $499.00 today, and expects to pay a dividend of $11.50 in...
- Q Moncoda Exports expects earnings at the end of the year to amount to $3.25 million. Moncoda has 425,000 shares of stock outstanding. Consensus among analysts indicates an appropriate P/E ratio...
- Q 1. A. The Anberlin Co. had $285,000 in 2011 taxable income. Use the tax rates from Table 2.3. ...
- Q The websites of the major commodities exchanges provide futures prices. Calculate the annualized net convenience yield for a commodity of your choice. Retrieve the current risk free rate from the...
- Q Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .28 .096...
- Q What are the rules of financial accounting
- Q 3. If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices rises from 2% to 9%, are people more or less likely to...
- Q A stock has the following prices in 5 consecutive months, starting from the earliest to the latest: $52, $49, $58, $55, and $53. What is standard deviation of its monthly...
- Q FCF is the amount of cash produced by a company after payouts to debtholders and stockholders. Group of answer choices False True
- Q A typical practice of many companies is to distribute part of the earnings to shareholders through ________. Question 16 options: A) ...
- Q QUESTION 112 Your hospital has billed charges of $6,000,000 in February. If your collection experience indicates that 20 percent is paid in the month billed, 40 percent in the second...
- Q A project has the following cash flows: 0 1 2 3 ($500) $160.00 $200 $250.00 What is the projects NPV if the interest rate is 6%? Round to two decimal...
- Q Which is a better indicator of a firms quality of earnings, CFO or Net Income? Why?
- Q 1.10. A single deposit of $25,000 was made by your grandparents on the day you were born 25 years ago. The balance in the account today if it grew at...
- Q HBS is an all-equity firm and its net income is $135,000. The firm has 30,000 shares outstanding and has a dividend payout ratio of 1. The value of the firm...
- Q Balance Sheet The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.4 million and net plant and...
- Q The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.4 percent. If you...
- Q Typically stocks are grouped into different indices according to their size and liquidity, e.g. a large cap index (such as DAX30) and a small- or mid-cap index (such as MDAX)....
- Q Calculate the NPV of a machine which is bought for $5000 , sold at the end of year 5 for 2500 and produce the following each following cash flows: year...
- Q Epley Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4 percent. The expected return on...
- Q If the offering price of an open-end fund is $14.00 per share and the fund is sold with a front-end load of 5%, what is its net asset value? (Round...
- Q (Individual or component costs of capital) Compute the cost of capital for the firm for the following: a. A bond that has a $1000 par value (face value) and a...
- Q Parker is 50 and wants to retire in 15 years. His family has a history of living well into their 90s. Therefore, he estimates that he will live to age...
- Q Question 2 (total of 12 marks): Refer to the below table to answer the questions that follow. Assume that returns are effective annual rates or net discrete returns. ...
- Q QUESTION 4 Given the following exchange rates in the market, what should be the cross exchange rate between Japanese yen and Euro? Japanese yen: 105 JPY/USD Euro: 1.13 USD/EUR...
- Q After watching Simon Sineks Start with Why Ted talk, explain the quote below in light of Training and Development: "People don't buy what you do, they buy why you do...
- Q Corporate Tax Liability The Wendt Corporation reported $35 million of taxable income. Its federal tax rate was 21% (ignore any possible state corporate taxes). What is the company's...
- Q Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Q4 Sales $ 130 $ 150 $ 170 $ 200 Sales for the...
- Q 3. a. A project is started with an initial investment of Rs.6,00,000. The cash flows generated over the next 4 years are Rs.1,00,000 ; Rs.2,50,000...
- Q Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2019. 2018 Cash and cash equivalents. $21,000. $20,000 Short-term investments 3,759 3,240 Accounts Receivable 52,500 48,000 Inventories...
- Q Which of the following statements is true? Select one: a. In part due to limited liability and ease of ownership transfer, corporations have less trouble raising money in financial markets...
- Q Salt-Bae is a food company which just came across an average-risk investment project that offers a rate of return of 8%. This is less than the company's normal rate of...
- Q The Montgomerys borrowed $115,000 at 7.50% for 30 years to purchase a house. Find the total interest the Montgomerys will pay if they pay the loan on schedule.
- Q a) A financial manager is considering a new project. The project will require RM250,000 for new fixed assets, RM120,000 for additional inventory and RM25,000 for additional accounts receivable. Short-term debt...
- Q A project that requires two cash investments in the amount of $18,000 each, one today and one in 2 years. In exactly 6 years, this project will...
- Q A company conducts the following capital payout and raising policies. Assume that there are no taxes, no signalling effects and no transaction costs. Which one of the following statements is...
- Q Question Three TYG Bank is a small bank which offers a range of banking and credit facilities to both individual and corporate customers. TYG Bank generates most of its funds...
- Q A financial company, No Mercy Inc., earns an effective annual rate of 16.78% on its credit card offering. If interest is compounded monthly, what APR (Annual Percentage Rate) monthly compounding...
- Q You have been given information about two different businesses. Each business has the same degree of business risk. Business 1 is financed entirely with common stock while business 2 is...
- Q Because of corrosion, the feed pump to a batch reactor must be replaced every three years. What is the capitalized cost of the pump? Data: Purchased cost of pump =...
- Q Diego expects the market interest rate will keep decreasing in the future. Which of the following bond would give him the highest return based on his expectation? Select one: a....
- Q PROBLEM 6 State Probability Stock As return Stock Bs return Boom 0.1 15% 11% Normal 0.8 10% 8% Recession 0.1 20% 3% a. Referring to Table above, compute the expected...
- Q Below is a list of prices for zero-coupon bonds of various maturities. Maturity (Years) Price of $1,000 Par Bond (Zero-Coupon) Maturity (Years) Price of $1,000 Par Bond (Zero coupon)...
- Q Kelsey was supposed to pay Mitchell $5200 6 months ago and $ 1060 in 5 months. She wants to repay this amount with two payments of 3400 today and the...
- Q Assume you are shopping for a pre-owned car and intend to finance part of the purchase through an installment loan charging 3.75% APR. You want to find the best deal...
- Q There are a select number of groups that are exempt from the individual mandate, and therefore its penalties. Which of the following taxpayers will not have to pay an "individual...
- Q The manufacturing firm Rebo is considering a new capital investment project. The project will last for five years. The anticipated sales revenue from the project is $3 million in year...
- Q Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock Expected Return Standard Deviation ...
- Q According to the Williams Act of 1968, which of the following is NOT true? a. Once 5% of firm stock is amassed, the acquirer...
- Q Which comes closest to the future value of $675 to be received at the end of 6 years, if the amount earns an annual interest rate of 5% and is...
- Q #1 Your local lender offers you a fixed-rate mortgage with the following terms: $250,000 at 5.25% for 30 years, monthly payments. The lender will charge you two discount points and...
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