Accounting question and answers for November 30, 2023
- Q Offered 20 annual payments of $200,000 each beginning today (annuity due) or a single payment of $2,267,000 what is the annual discount rate used to calculate the single-payment amount? PLEASE...
- Q content area top Part 1 A firm's yearend retained earnings balances are $670,000 and $560,000, for the previous year and the current year just ended respectively. The firm paid $10,000...
- Q Project B: Where Would You Invest Your Money? Let's look at several sets of stock prices. The following prices were obtained from historical records from 2019, and are...
- Q HR Corporation has a beta of 2.0, while LR Corporation's beta is 0.5. The risk-free rate is 10 percent, and the required rate of return on an average stock is...
- Q A project has an initial cost of $40,000, expected net cash inflows of $14,000 per year for 10 years, and a cost of capital of 10%. What is the project's...
- Q Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.87 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.96...
- Q Assume that buying the brewery will cost $1.1 million in upfront investment and net income after taxes will be $50k per year. The hurdle rate is based on the balance...
- Q d. A security has a cost of $1,000 and will return $2,000 after 5 years. What rate of return does the security provide?
- Q a) Explain the difference between short-term and long-term investing both from the accounting definition and from the decision to invest. b) Describe a strong investment policy statement; what to ensure...
- Q News Corp is expected to pay a dividend of $0.8 in one year. The dividend is expected to grow at 12% in the following 3 years and then at a...
- Q You are valuing your business ready for its initial public offering. You have determined the most recent annual (2021) cash-flow to the firm, was $30 million. You expect...
- Q What is the after tax cost of debt if the marginal tax rate is 40% and the yield to maturity on long-term bonds is 8.0%?
- Q What is the purpose of the cash flow statement? WHY is it different than the income statement? For example, why aren't expenses = to cash outflows and why isn't revenue...
- Q The Hewler Corp. is thinking about a project which requires the purchase of $450,000 of fixed assets. The NPV of the project is $30,000. Equity shares will be issued as...
- Q Encuentre el ingreso total durante los prximos 10 aos de un flujo de ingreso continuo que tiene una tasa de flujo anual en el momento t dada por f...
- Q Which of these are not major investors in U.S. stocks? Multiple Choice hedge funds mutual funds banks pension funds
- Q Consider an asset that costs $465,000 and is depreciated straight-line to zero over its six-year tax life. The asset is to be used in a four-year project; at the end...
- Q You initiated a short futures position at a price of 100 before leaving for school. Now you must be at school so you cannot monitor the progress of your position;...
- Q Tell me your cash inflows and outflows if today you purchase a bond with a face value of $1,000, a coupon rate of 3%, and 5 years to maturity for...
- Q A Treasury bill has a face value of $75,000, an asked yield of 3.05 percent, and matures in 35 days. What is the price of this bill?
- Q Consider the following spot and forward rate quotations for the Swiss franc. S($/SFr) = 0.85 F1($/SFr) = 0.86 F2($/SFr) = 0.87 F3($/SFr) =0.88 Calculate the 3-month forward premium in American...
- Q You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature on 15 February 2027 and have a coupon rate of 4.75%. If your purchase...
- Q The December 31, 2015, balance sheet of Marias Tennis Shop, Inc., showed current assets of $1,085 and current liabilities of $905. The December 31, 2016, balance sheet showed current assets...
- Q Online marketing research seems to be the wave of the future. What drawbacks do you see associated with conducting surveys online? Are privacy issues greater with online surveys than with...
- Q The yield to maturity on bonds is usually the same as a. yield to call. b. current yield. c....
- Q Depreciation expenses should be added back to after tax EBIT to get operating cash flows because depreciation is not important. depreciation is a noncash expense and cash flow...
- Q RRM Incorporated has just declared a dividend of $5.50 per share. The tax rate of dividends is 18 percent. The tax rate on capital gains is 0. The tax laws...
- Q The price of one share is currently $105. It is expected that for a period of 3 months rise 12% or fall 11%. Rate Risk-free interest is 9% annually compounded...
- Q Sask Inc.'s cost of equity is 12%. The before-tax cost of debt is 5.50%, and the tax rate is 22%. The target capital structure consists of 40% debt and 60%...
- Q Which of the following are considered a decrease in cash (or cash availability)? I. Common stocks increase. III. Accounts receivable increase. II. Accounts payable decrease. IV. Inventory decreases. ...
- Q In 1904, the first U.S. Open Golf Championship was held. The winner
- Q Price each of the following bonds: Par value $1,000, coupon rate 8%, semiannual payments, 10 years to maturity and a 10% yield to maturity. Par value $1,000, coupon rate 12%,...
- Q A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and convexity of 183.3. The bond currently sells at a yield...
- Q if a discount rate is 8.07% on a 4 week till what is the semi-annual APR?
- Q A firm is constructing a forecast balance sheet and wants to estimate future inventory using its inventory turnover ratio rather than its production schedule. If the inventory turnover ratio is...
- Q Firms often provide supplemental disclosures that report and discuss income figures that do not necessarily equal bottom-line net income from the income statement. For example, in Twitters initial public offering...
- Q A Real Estate Investment Trust (REIT): 1.may specialize in loans to finance real estate. 2.for an investor, may be considered a more passive investment than owning a rental house. 3.are...
- Q Jed spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that he owns at a resort community. He also owns a music store in another...
- Q Considering capital budgeting, if you were to choose a machine upgrade that will increase productivity, what will your payback period be? Installed machine purchase option would require a $100,000 loan....
- Q A house costs $138,000. It is to be paid off in exactly ten years, with monthly payments of $1,711.00. What is the APR of this loan? A.9.5% B....
- Q The Harding Corporation has $50 million of bonds outstanding which were issued at a coupon rate of 10.25 percent seven years ago. Interest rates have...
- Q Sharons portfolio, which is valued at $200,000, contains six stocks and has a beta coefficient equal to 1.5. Later today, Sharon is going to sell one of the stocks in...
- Q For the Precision Delivery Inc Case Study - what is the current DPMO/Sigma level for Rebate Cost?
- Q A company currently pays a dividend of $3.8 per share (D0 = $3.8). It is estimated that the company's dividend will grow at a rate of 20% per year for...
- Q Case Scenario (B) Can you please detail all your andwers John Elton is the CFO of a multinational manufacturing company based in the UK....
- Q What are the consequences of the 2008 financial crises for ireland and europe? please write at least a paragraph
- Q The WACC is a weighted average of the costs of debt, preferred stock, and common equity. Would the WACC be different if the equity for the coming year came solely...
- Q USA officially abandoned gold as an international reserve of dollars: Select one: a. In the 1971 Smithsonian Agreement b. In the 1944 Bretton Woods Agreement c. None of the above...
- Q Sumner Inc.'s capital structure consists of 80% debt and 20% common equity, its beta is 1.9 before tax, cost of debt is currently at 12%, and its tax rate is...
- Q What price will be paid for a $1000 U.S. Treasury bond with an ask price of $135.20? Please show work.
- Q You deposit $400 each month into an account earning 3% interest compounded monthly. a. How much will you have in the account in 25 years? b. How much total money...
- Q Given generic asset 1, with expected return 1 and risk 1, and generic asset 2, with expected return 2 and risk 2, let 1,2 be the covariance between the two...
- Q Your bank offers a a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. If you invest $2,000 in the CD, how much will you have when itmatures?
- Q A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,228.71, and currently...
- Q Your bank offers a a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. If you invest $2,000 in the CD, how much will you have when itmatures?
- Q Of the $60,000 invested in a two-stock portfolio, 40 percent is invested in Stock S and 60 percent is invested in Stock X. If Stock S has a beta coefficient...
- Q A local finance company quotes a 16 percent interest rate on one-year loans. So, if you borrow $21,000, the interest for the year will be $3,360....
- Q Gomi waste disposal is evaluating a project that would last 4 years. The projects internal rate of return is 7.88 percent; its NPV is 5,150 dollars; and the expected cash...
- Q For commodities, you should try to maximize your firm's commercial advantage/ spending power. Strategic Bottleneck Non-Critical Leverage
- Q The US economy is suffering from high inflation. Prices are rising an an annualized rate of 5%. The government is in a bind and you expect them to...
- Q Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $480,000, to be paid immediately. Bill expects aftertax cash inflows of $103,000 annually for...
- Q You are given the following spot rates: Quote #1: EUR/CAD=1.357 Quote #2: EUR/JPY=137.85 Quote #3: CAD/CHF-.756 Compute the CAD/JPY cross rate. Compute the CHF/EUR cross rate.
- Q Present Value for Various Compounding Periods Find the present value of $625 due in the future under each of the following conditions. Do not round intermediate calculations. Round your answers...
- Q A company that manufactures purgable hydrogen sulfide monitors will make deposits such that each one is 5% larger than the preceding one. How large must the first deposit at the...
- Q Should Trade Restrictions be Used to Influence Human Rights Issues? POINT: Yes. Some countries do not protect human rights in the same manner as the U.S. At times, the U.S....
- Q You own a portfolio that has $1,700 invested in Stock A and $2,800 invested in Stock B. Assume the expected returns on these stocks are 12 percent and 18 percent,...
- Q You currently have $600,000 in a retirement account, and you plan to deposit $5,000 at the end of every year until your account reaches $1,000,000. You expect to earn 8.5%...
- Q Assume Forsythe, Inc. had sales last year of 12 million and a profit of 2 million dollars. This year, we had sales of 15 million and made a profit of...
- Q Suppose after you graduate from Algoma University, you find a job that pays you $75,000 a year. Further suppose that you take out a home equity loan of $360,000 for...
- Q Based on Chinese and U.S. governments standpoint, is it logical to impose further trade barrier? Nowadays, China drives the global economy. So if the trade barrier is increased, the...
- Q Walsh Company is considering three independent projects, each of which requires a $4 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are...
- Q Krawczek Company will enter into a lease agreement with Heavy Equipment Company where Krawczek will make lease payments over the next five years. The lease is cancelable and...
- Q Depreciation expense is recognized as a reimbursable cost by a number of payers who pay prospective rate for operating cost. Would you prefer accelerated depreciation (sum of the years digits)...
- Q The gamma and vega of a delta-neutral portfolio are 50 and 25, respectively, where vega is per %. Estimate what happens to the value of the portfolio...
- Q Bryan opened an RRSP account and deposited $3,100 into it. She then deposited $800 at the end of the 1st year and $475 at the end of the 2nd year,...
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