Accounting question and answers for November 30, 2023
- Q You currently have $100,000 invested in a portfolio that has an expected return of 12% and a volatility of 8%. Suppose the risk-free rate is 5%, and there is another...
- Q Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 8.7 percent, a YTM of 6.7 percent, and has 20 years to maturity. Bond...
- Q Polo is considering an investment project that will generate $150,000 in annual earnings before taxes. Depreciation is expected to be $75,000 annually. Their marginal tax rate is 35%. What is...
- Q Indicate the effect on this periods FCFF and FCFE of a change in each of the items listed here. Assume a $100 increase in each case and a 40 percent...
- Q You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,150,000 this year. Depreciation, the increase in net working capital, and capital...
- Q Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made in 2016 are as follows: ($ millions) 2017 2018...
- Q Amanda Forsythe of Tampa, Florida, must decide whether to buy or lease a car she has selected. She has negotiated a purchase price of $24,700 and could borrow the money...
- Q (Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the following end-of-year stock prices over the last five years and paid no cashdividends: Time Marsh...
- Q The market price is $1,050 for a 15-year bond ($1 000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually)....
- Q Here are data on ?$1,000 par value bonds issued by? Microsoft, GE? Capital, and Morgan Stanley. Assume you are thinking about buying these bonds. Answer the following? questions: a. Assuming...
- Q Morales Publishing's tax rate is 40%, its beta is 0.8, and it uses no debt. However, the CFO is considering moving to a capital structure funded by debt, which produces...
- Q A Company has the following book value balance sheet. Current assets=$10,000,000 Net fixed assets= 60,000000 Total assets $70,000,000 Long-Term Debt = $40,000,000 Common stock (1.5 million shares) =1,500,000 Retained earnings=...
- Q MQP plc is a UK based multinational corporation. MQP plc normally sells on 60 day credit to its EU customers. The sales to the EU is worth about Euro 10...
- Q Abner Corporation's bonds mature in 19 years and pay 12 percent interest annually. If you purchase the bonds for $1 075, what is your yield to maturity? Your yield to...
- Q You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. The firm is operating...
- Q Returns Year X Y 1 10 % 23 ...
- Q 23. For an individual who pays personal income taxes at a rate of 30 percent, which of the following statements is most correct? a. An investment in a...
- Q A companynis considering a cost saving project, This involves purchasing a machine costing $ 70000 whichnwill result in annual savings (in real terms) On wage costs...
- Q The possibility that more than one discount rate can cause the net present value of an investment to equal zero is referred to as: Multiple Choice ...
- Q You are the finance manager for a premiere athletic venue in the United States. In an effort to streamline the point of the purchase process and track customer data...
- Q 1. The average return for large-cap domestic stock funds over the three years 2011-2014 was 18%. Assume the 3-year returns were normally distributed across Large-Cap domestic stock...
- Q If the beta of BP , an oil gas company , is 1.2 and beta of Wolsely , a distributor of plumbing and heating products is 1.54 . i. Explain...
- Q BHP Biliton Group: long Term Deb(A) in Chapter 9: The global economic slowdown coupled with the falling commodity prices put unexpected pressure on BHP's cash flow. So on march 18,...
- Q You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three...
- Q You observe the following exchange rate quotes: $ 1.1800 - 1.1830 / EUR $ 1.5235 - 1.5240 / GBP GBP 0.7800 - 0.7815 / EUR If you start with $...
- Q Explain the functions of housing finance companies?
- Q The Salisbury Stake Company wants to buy a new robotic wood lathe. They have a target debt/equity ratio of 4. Their equity has a dividend yield of...
- Q Suppose $70,000 can be invested in 2 separate investments with the following cash flows: Investment A Investment B Year 0 $(70,000) $(70,000)...
- Q You know that Wal-Mart stock is expected to have a standard deviation of 17% and a beta of 1.6 in the next year, and Target stock is expected to have...
- Q What is the present value of $25,000 received each 6 months for 3 years, beginning in 6 months, if the annual percentage rate is 6%? Select one: $153,816...
- Q Penny Davis runs the Shear Beauty Salon near a college campus. Several months ago, Penny used some unused space at the back of the salon and bought two used tanning...
- Q You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two...
- Q 3. What is the cost of five November 25 call option contracts on KNJ stock given the following price quotes? KNJ (KNJ) ...
- Q true or false: financial managers should want to slow down disbursements
- Q Consider the following historic information on the market, the risk-free rate (T-Bills) and two mutual funds, Templeton and Fidelity. ...
- Q Suppose Olivia has $6,840 in credit card debt on the VB credit card which has annual interest rate of 18.2%. Olivia is considering transferring her debt to the...
- Q A companynis considering a cost saving project, This involves purchasing a machine costing $ 70000 whichnwill result in annual savings (in real terms) On wage costs...
- Q Suppose an economy is passing through the expansionary phase of the business cycle. Using supply demand model of bonds, graphically examine. Impact on shift of demand and supply curves...
- Q Jimmy Seals and Dash Crofts create a retail travel supplies business, organized as an S Corp. The Corporation is named: Seals and Crofts, Inc. It has no income tax liability....
- Q In this weeks case, you will evaluate if options prices satisfy put-call parity. In the process, you will learn about the assumptions underlying the parity relationship. ...
- Q Options trade on the common stock of Dieter, Gmbh that have a strike price of $51.25 and a premium of $1.00. Calculate the net profit or loss from...
- Q Karl bought a property today that he thinks will be worth $1,000,000 in seven years if it appreciates at a rate of 8.5 percent annually. What must Karl think the...
- Q How long will it take to double your savings if you earn 3.3 percent interest, compounded annually?
- Q What is Sams monthly disposable income if his gross annual salary is $120,000, and his employer withholds monthly income taxes and other payroll deductions of $4,950? Note that Sams...
- Q Question 3 Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR...
- Q Which of the following actions would be likely to reduce conflicts of interest between stockholders and managers? Group of answer choices Congress passes a law that severely...
- Q Calculate Beta for Walt Disney (DIS). Use the S&P 500 as your proxy index of the stock market performance. Calculate the Beta for the period from October...
- Q 3.DeMarcus wants to retire with $1million in savings by the time he turns 60. He is currently 18 years old. How much will he need to save each year, assuming...
- Q You have $17,000. You want to invest them in the stock market. During the first year the investment earned 15% for the year. The second year, you earned only 6%...
- Q Which of the following is an example of a macroeconomic indicator? A) The price of a specific product B) The income of...
- Q Tammy Olsen has owned 100% of the common stock of Green Corporation (basis of $75,000) since the corporation's formation in 2006. In 2013, when Green had E & P of...
- Q Agritech Company is analyzing a proposed 5-year project using standard sensitivity analysis. The company expects to sell 27,000 units, 5 percent. The expected variable cost per unit is $20.80 and...
- Q True or false? 1.UCC Section 2-205 provides that all firm offers are irrevocable for three months 2.Revocation of a firm offer must be communicated in writing to the buyer. 3.In...
- Q A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a...
- Q Ten narrow topics from yhe broad topic finacial responsibility
- Q Currently, Forever Flowers Inc. has a capital structure consisting of 30% debt and 70% equity. Forever's debt currently has an 7% yield to maturity. The risk-free rate (rRF) is 4%,...
- Q Determine the discounted value of an ordinary annuity of $4642 every half year for 18 years if money is worth j2=6.35% A.$98749.92 B.$313900.79 C.$304241.13 D.$101885.23
- Q The most recent financial statements for Hailey Co. are shown here: Income Statement Balance Sheet Sales $ 82,200 Current assets $ 32,700 Long-term debt $ 70,400 Costs 27,400 Fixed assets...
- Q A. Many years ago, Castles in the Sand Incorporated issued bonds at face value at a yield to maturity of 6.6%. Now, with 6 years left until the maturity of...
- Q 5) Jones, Inc. has a current ratio equal to 1.40. Which of the following transactions will increase the company's current ratio? A) The company collects $500,000 of its accounts receivable....
- Q Crossfade Co. issued 13-year bonds two years ago at a coupon rate of 8.8 percent. The bonds make semiannual payments. If these bonds currently sell for 112 percent of par...
- Q 15%. It pays out 20 percent of earnings as cash dividends. Current book value per share is $60. Book value per share will grow as Q reinvests earnings. Assume that...
- Q Investors expect a stock to pay a $1.65 dividend one year from now. They also expect future dividends to grow at 2.2% per year indefinitely after first dividend is paid....
- Q Assume that you need a new car for exactly 4 years. You can either 1) lease the car for 4 years 2) purchase the car with a four-year loan and...
- Q If the cost of capital is 16 percent and an investment costs $70,000, should you make this investment if the estimated cash flows are $3,000 for years...
- Q A firm that is in the 35% tax bracket forecasts that it can retain $4 million of new earnings, and plans to raise new capital in...
- Q Colonial Pharmaceuticals is a small firm specializing in new products. It is organized into two divisions, which are based on the products they produce. AC Division is smaller and the...
- Q A general partner: a. Has a maximum loss equal to his or her equity investment. ...
- Q Explain the main differences between International Finance and Domestic Finance. What are the major trends in the globalization of the world economy?
- Q 2. Kilgore Auto Parts reported the following information at December 31, 2004: Preferred stock, 10%, $10 par value, cumulative $60,000 Common stock, $2 par value 10,000 Additional paid-in capital ...
- Q please this is one question. Solve from i to v
- Q Given a 10 percent discount rate, what is the present value of an perpetuity of $1,000 per year if the first payment does not begin until the end of year...
- Q If $80 grows to $183 in 16 years, how much will $221 grow to in 26 years? Group of answer choices $848 $829 $677 $756
- Q positive relationship between expected return and expected risk is consistent with 1. investors being risk avoiders. 2. investors being risk seekers. 3: None of the above ...
- Q WACC Estimation The following table gives the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains....
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