Accounting question and answers for November 30, 2023
- Q Dunbar Corporation can purchase an asset for $31,000; the asset will be worthless after 15 years. Alternatively, it could lease the asset for 15 years with an annual lease payment...
- Q Joe secured a loan of $13,000 two years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 5%/year compounded monthly on...
- Q A restaurant prepares 200 pizza slices and sells them at a rate of $10/slice. Expenses for the restaurant include raw material for pizza at $5 per slice, $100 as monthly...
- Q What is the future value of $20,000 invested for 20 years at a nominal interest rate of 9 percent compounded continuously? a. $108,894 b. $112,088 c. $147,781 d. $120,993
- Q Consider the multifactor APT with two factors. Stock A has an expected return of 17.6%, a beta of 1.45 on factor 1 and a beta of .86 on factor 2....
- Q Bulldog stock doesn't currently pay dividends, but you expect it to pay its first dividend of $2.32 exactly 3 years from now. Thereafter, future annual dividends will grow at a...
- Q In 20X1, Cantell, Inc., has $6,000 of the accumulated adjustments account and $10,000 of previously taxed income. Carols basis in 100% of the corporate stock in $20,000. During the year,...
- Q One can definitely assess the credit quality of an issuer by using the Z-score alone. True or False? A. False, because Z-score ignores other soft information about the firm. B....
- Q A firm considers taking on a new project which will cost EUR 342 and provides cash flows of EUR 107,109,119,84 in the next 4 years. What is the internal rate...
- Q If a firm has a total debt ratio of .25, what is its A. (TOTAL LIABILITIES / TOTAL EQUITY) ratio? B. EQUITY MULTIPLIER? Please show all work
- Q Suppose you want to buy a new house. You currently have $32,521 and you figure you need to have a 15% down payment plus an additional 7% of the loan...
- Q A portfolio consists of the 3 stocks listed in the table. What is the beta of the portfolio? Stock Weight Beta A 25% 0.67 B 60% 1.36 C 15% 1.79...
- Q Discuss the benefits of sales commissions in addition to base salary for sales staff. Further elaborate on commission only sales positions and the advantage/disadvantage of this type of compensation.
- Q How is a bonds value determined? What is the value of a 10-year, $1000 par value bond with a 10% annual coupon if its required return is 10%? Please explain...
- Q Babs would like to offer publicly traded stock as a form of ownership in her company. The process of listing her company feels daunting, so she has reached out to...
- Q Charlene books a fishing tour with Adventure Fishing for herself and four friends at the group discount price ($680 = $136 5). The tour is scheduled for May 7
- Q You are starting to save for a vacation in the South Pacific. Starting today, you will deposit $525 at the beginning of each month into an investment account offering a...
- Q Consider two bonds, a 3-year bond paying an annual coupon of 6.70% and a 10-year bond also with an annual coupon of 6.70%. Both currently sell at a face value...
- Q Problem 4 Uncle Larry would like to supplement his pension so he calls his insurance company to find out about his options. He is told that...
- Q Use the following information to answer the questions on page 2 below: (Note: all sales are credit sales) Income Stmt info: ...
- Q The following table shows some data for three zero-coupon bonds. The face value of each bond is $1,000. Bond Price Maturity...
- Q Instructions. You will complete the exercises below and prepare your answers as a word document/pdf. The completed word document (or pdf) will be uploaded to the course Dropbox entitled Data...
- Q You wish to evaluate the expected return of the a stock using CAPM. Given that it has a beta of 1.4, the current market return is 11.7%, and the risk...
- Q Use the following information to answer the question below An auto parts supplier sells power sport batteries to Yamaha ATVs dealers and auto mechanics....
- Q A corporate bond pays interest annually and has 4 years to maturity, a face value of $1,000 and a coupon rate of 3.8%. The bond's current price is $996.36. It...
- Q the role of credit reference bureau in financial inclusion
- Q PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $135 million on equipment with an assumed life of 5 years and an...
- Q Maya obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 16% her loan is for 15400 for 93 days assume each...
- Q In the list of stocks below, which firm is most likely to have the largest impact on the behavior of a value-weighted index over the short-term future? ...
- Q QUESTION 20 Assume that investors have recently become more risk averse (less risk tolerant), so the market risk premium (r m - r RF) has increased. Also, assume...
- Q Target Two popular coffee brands sold at Target stores are SB and EO These coffees are shipped to Targets DeKalb distribution center (DC) from their local warehouses...
- Q Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipments accelerated depreciation rates are 33%, 45%, 15%, and 7% for Years 1 through...
- Q There are THREE main types of business structures: Sole Proprietorships, Partnerships and Corporations. What are the advantages and disadvantages of each?
- Q You borrow $235,000 to buy a house. The mortgage rate is 3.1 percent and the loan period is 10 years. Payments are made monthly. If you pay the mortgage according...
- Q The trade-off theory of capital structure was developed for large for-profit publicly-owned businesses, but it is equally applicable for small investor-owned businesses. True ...
- Q NBC company is expected to pay a $1.60 per share dividend at the end of this year (i.e., D1=$1.60). The dividend is expected to grow at a constant rate of...
- Q 6. Problem 10.11 (WACC and Percentage of Debt Financing) Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd...
- Q XYZ has annual sales of $277,000 and an annual cost of goods sold of $104,000. Accounts receivable is $14,000; inventory is $12,000; and accounts payable is $19,000. Given that information,...
- Q Katie Pairy Fruits Inc. has a $1,000,20-year bond outstanding with a nominal yield of 15 percent (coupon equals 15%\times $1,000= $150 per year). Assume that the current...
- Q Question 1: Term Structure and Default Risk. It is currently time 0 and you observe the following coupon bond prices in a newspaper. Each of the coupon bonds have a...
- Q Evaluate the following statement: "Issuing convertible securities represents a means by which a firm can sell common stock at a price above the existing market."
- Q The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case...
- Q Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $124,000 per year for 5 years. Depreciation on the new machine is...
- Q American Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firms total debt-to-assets ratio (also called Debt ratio). Round the...
- Q what is the goal of VFINXs portfolio manager, annual turnover rate, the portfolio managers education, the funds management fee, load fee, exit fee, and 12b-1 fee. ...
- Q Which of the following was offered in class or the text as a market imperfection that could make the dividend decision relevant? a....
- Q Which of the following is correct? More than one answer is possible You close out a long future position by buying a...
- Q 7.Some investment managers argue that it is simpler and more effective to simply sell a stock rather than try to influence management. This is called: Select one: a....
- Q Sunset, Inc., has a book value of equity of $14,130. Long-term debt is $8,150. Net working capital, other than cash, is $2,140. Fixed assets are $19,470 and current liabilities are...
- Q You own a high-tech manufacturing entity. You would like to expand your operations but to do so you need to either lease or buy a $1.3 million piece of equipment...
- Q You purchased a 4.35% Coupon Bond at $101.00 at a YTM of 4.2%. The bond has an 20-year maturity. What is the total future value of your...
- Q what would be the financial ratios for the company Nike. 1) Current (Liquidity) 2) Debt-to-Equity (Solvency) 3) Net Profit Margin...
- Q 23. Your company has started a new pension fund and anticipates it will owe $22 million to retirees in 12 years. The company ...
- Q Calculate the price in US dollars/ gallon California: $0.949/ liter Key: $1 US= $1.52 Canadian
- Q You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following...
- Q 1. You purchased 600 shares of stock ABC for $24 per share and 300 shares of stock XYZ for $200 per share exactly one year ago. During the year, stock...
- Q Identify the costs associated with mutual fund investing? What are the long-run cost ramifications to mutual fund investors?
- Q Consider a Treasury bill with a rate of return of 5% and the following risky securities: Security A: E(r) = .15; variance = .0400 Security B: E(r) =...
- Q Shao Airlines is considering the purchase of two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of...
- Q You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for...
- Q which one of the following is an example of a "flexibility" option? a. a company has an option to invest in a project today or to wait a year. b....
- Q Consider the following information: Rate of Return if State Occurs State...
- Q The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debt is 10%, and its marginal tax rate is 25%....
- Q Consider a stock currently trading at 25 that can go up or down by 15% per period. The risk-free rate is 10%. Use one-period binomial model. A. Find the value...
- Q Entity V is creating its annual statement of financial position as at 31 March 20x6. Entity V has already calculated its total equity for the period to be R650 000....
- Q GAMA Corp. and FAMA Corp. have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. GAMA Corp. has a higher debt to...
- Q If a firms debt-equity ratio is 25% what is its debt ratio?
- Q You own 1,000 shares of Yahoos Stock. The required return on Yahoos share is 18%. You will receive a $3.40 per share dividend in one year. In two years, Yahoo...
- Q Suppose you want to buy a house 10 years from now, and you estimate that an initial down payment of $22000 will be required at that time. To...
- Q Harmony Limited has as annual demand for cash of $3 000 00. The firm can earn 4.5% on its marketable securities and incurs transactions cost of $75 every time it...
- Q A company is planning to sell new shares of equity at an offer price of $100 per share via a general cash offering. The companys book value per share is...
- Q The Balance Sheet for Consolidated Industrial shows the following balances: common stock = $1,125,000; patents and copyrights = $480,000; accounts payable = $240,000; prepaid rent = $96,000; property plant and...
- Q I want points about ideology pluralism in western thinking From the conditions of diversity and hostility or conflicts that occur in the United States as...
- Q Problem 7-7 Current and Quick Ratios Ace Industries has current assets equal to $7 million. The company's current ratio is 2.0, and its quick ratio is 1.5. What is the...
- Q Which of the following actions would an intermediary be permitted to do without written permission from the parties? Group of answer choices Recommend the buyer offer the...
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