Accounting question and answers for November 30, 2023
- Q what are the 3 causes of the financial crisis of 2008?Please Explain how they contributed.
- Q You are opening your own business and estimate the following expenses and revenues: Revenues year 1 $210,000 growing at 9% thereafter Cost of goods sold year 1 $121,000...
- Q Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent,...
- Q A company has the following ratios for three years: Current ratio. 2014; 2.0X 2013; 1.45X 2012; 1.3X Receivable Turnover ratio 2014; 3.0X 2013; 2.5X 2012; 1.75X Debt/Equity ratio 2014 400%...
- Q Greta, an elderly investor, has a degree of risk aversion of A = 3 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the...
- Q A characteristic of capital budgeting is that a large amount of money is always involved. the internal rate of return must be greater than the cost of capital. the time...
- Q All techniques, conflicting rankingsNicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that both cost $110,000. The company's board of directors has set a 4-year payback requirement the cost...
- Q XYZ is a retailer and sells 157,000 units per year. It purchases from a single supplier. Fixed costs per order are $947 and carrying cost is $6 per unit. How...
- Q 2. CapitalBudgetingThea2MilkCompanyLimited(A2M)[30marks] Answer the below questions in your word file and refer to your excel spreadsheet as a supporting document. Upload your excel spreadsheet under Excel Submissions. . Page 3...
- Q WEIGHTED AVERAGE COST OF CAPITAL P&G. Peafiel and Godoy have an optimal capital structure that consists of 25% debt and 75% common equity. They expect to have $12,000,000 of...
- Q Steve and Ed are cousins who were both born on the same day, and both turned 25 today. Their grandfather began putting $2,500 per year into a trust fund...
- Q You need a 35-year, fixed-rate mortgage to buy a new home for $340,000. Your mortgage bank will lend you the money at an APR of 6.35...
- Q 1. Which of the following bonds has the greatest interest rate price risk? a. A 10-year, $1,000 face value, zero coupon bond. b. A 10-year, $1,000 face value,...
- Q A 10-year Circular File bond with face value of $1,000 pays interest once a year of $65 and sells for $954. What are its coupon rate and yield to maturity?...
- Q Year - Stock A Returns - Stock B Returns 2014 (23.00 %) (13.90 %) 2015 26.50 17.90 ...
- Q An industry expert, part of your project analysis team, told you that no matter when you take (recognize) depreciation of a given capital asset, you save the same number of...
- Q A company is going public at $14 and will use the ticker XYZ. The underwriters will charge a 7 percent spread. The company is issuing 22 million shares, and insiders...
- Q Use the following information relating to a float-adjusted market-capitalization-weighted equity index Security Shares Outstanding % of Shares in the Market Float Price at the End of 2009...
- Q f Assets Cash and due from banks Time Deposits at other institutions Federal funds sold & Repos Investments: U.S. Treasury securities Federal Agency securities Municipal securities Other securities Total investments...
- Q Which of the following statements is CORRECT? a. To implement the corporate valuation model, we discount net operating profit after taxes...
- Q Expenses include all of the following except: O a. taxes. O b. dividends. O C. O d. cost of goods sold. depreciation
- Q In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $41.4 per share, and the market price was $105.70 per share. The companys balance...
- Q Ms. Sucheta is planning to make an investment in the equity shares of companies and thinking of seriously considering any one of the following three companies and gathered the related...
- Q Suppose that the current spot exchange rate is 0.82 per $ and the three-month forward exchange rate is 0.8013 per $. The three-month interest rate is 5.60 percent per annum...
- Q October November December Credit sales RM547,200 RM570,240 RM630,720...
- Q In terms of managerial finance; What are the pros and cons of the various capital budgeting decision methods (NPV, IRR, MIRR, PB, DPB)? If you had to pick one method...
- Q What is the future value of $2,900 in 19 years at an APR of 8.2 percent compounded semiannually?
- Q Which of the following statements is CORRECT? a. The IRR method assumes that cash flows will be reinvested at the WACC, while the NPV method assumes reinvestment at the projects...
- Q Suppose a company has 5 million common shares outstanding, which have a market value of $24 per share. The most recent annual dividend paid was $2.25/share. The expectation is for...
- Q What is the expected return for a stock with a of 1.06 if the market return is 10.5% and the risk free rate is 3.6%? Please show...
- Q Please choose thebestanswer to the following question from the four choices below: Q. The primary difference between early stage, venture capital investing and later stage, private equity investing is: Group...
- Q Dole Enterprise is considering an investment project with the following information: Initial investment: $1,700,000; Fixed costs: $350,000; Variable costs: $10.20 per unit; Selling price: $31.80 per unit; Discount rate: 16...
- Q Hedging Interest Rate Risk with Futures: A financial institution has $100m in assets and $90m in liabilities. Further, assume that the average duration on the asset side is 34 years...
- Q The 2010 balance sheet of Greystone, Inc., showed current assets of $3,150 and current liabilities of $1,630. The 2011 balance sheet showed current assets of $3,000...
- Q Based on your research on personal investment, the found the following information on the Green Securities Fund: Unit price at start of year $8.09 Unit price at end of year...
- Q Which one of the following statements about a limited partnership is correct? a. The partnership is managed on a daily basis by its limited partners. b. Each limited partnership must...
- Q You put $18,181 in a college trust fund for your children today. In order for the balance of the fund to become $181,818 eighteen (18) years from today, what average...
- Q A bond issued by the State of Pennsylvania provides a 6.00% yield. What yield on a Synthetic Chemical Company bond would cause the two bonds to provide the same after-tax...
- Q Should the executive package include stock, stock options, or bonuses? What are the potential market threats & opportunities of each of these choices? Can hostile threats/takeovers, institutional investors, & corporate...
- Q You just graduated and you expect to work for ten years and then to leave for the Australian "Outback" bush country. You figure you can save $1,000 a year for...
- Q A bond with a coupon rate of 5.25 percent, semi-annual payments, face value of $1000, and 10-year maturity is trading at a YTM of 2.50%. Because of some announcements made...
- Q 1. Suppose that: The spot price of a non-dividend-paying stock is $40 The 3-month forward price is $43 The 3-month US$ interest rate is 5% per annum Is there an...
- Q Suppose we observe the following rates: 1R1=0.90%,1R2=1.35%, and E(2r1)=0.945%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for...
- Q A corporation has 1 million in assets, 400,000 in liabilities, and 600,000 in owner's equity. Which of the following is true?A. The investors of the company have injected $600,000 of...
- Q 1) The 4.5 percent bond of XYZ Corporation has a face value of $1,000, a maturity of 15 years, semiannual interest payments, and a yield to maturity of 7.50 percent....
- Q 1) You are considering buying a 4 year, $1000 bond with a 5% annual pay coupon and a 6% YTM. What price should this bond sell for in the market?...
- Q The following table contains expected return and variance for each of three stocks. It also has three different portfolios each of which has a different weight for each of...
- Q Northmans common equity, debt, and preferred equity are worth $70,000, $10,000 and $20,000 respectively with a total value is $100,000. The companys common stock is currently listed at $54 per...
- Q You are trying to determine which of two mutually exclusive projects to undertake. Project Adam has an initial outlay of $10,000, an NPV of $4,392.15, an IRR of 11.33%, and...
- Q a. You purchase one IBM July 120 put contract for a premium of $3. You hold the option until the expiration date, when IBM stock sells for $123 per share....
- Q Titan Mining Corporation has 7.3 million shares of common stock outstanding, and 120,000 bonds with 6.5% coupon rate (semiannually paid), par value $1,000 each. The common stock currently sells for...
- Q Consider the multi-factor APT with two factors. Portfolio A has a beta of 0.6 on factor 1 and a beta of 1.45 on factor 2. The risk premiums on the...
- Q A grandparent recently passed away and left a small inheritance for you and each of your family members. You receive a lump sum of $10,000 from the inheritance. Knowing the...
- Q Ruby places $600 in a savings account paying 6% interest compounded annually. She wants to know how much money will be in the account at the end of 5 year....
- Q Barry Cuda would like to save $210,000 over the next 20 years. He will assume that his account will earn 6% annually. If Barry knows today that he will be...
- Q Analysis of a companys ratios is relevant to: Group of answer choices lenders concerned with long-term liquidity. managers concerned...
- Q Mary Ann, age 65 retires from Bust it up corporation and receives 25000 shares of employer stock with a fair market value at the same time of $500,000. Mary Ann...
- Q Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.30 71 % Slow growth 0.40 17 Recession 0.19 18 Depression 0.11 50...
- Q A corporation is in the process of choosing the better of two equal-risk, mutually exclusive investment projects - project A, and project B. The relevant cash flows for each project...
- Q In mid-May, there are two outstanding call option contracts available on the stock of ARB Co.: Call # Exercise Price Expiration Date Market Price ...
- Q 1. Periodic Deposit $? at the end of each month Rate 5.25% compounded monthly ...
- Q Client #9 Ingrid is buying a house selling for $345,000. She is coming to your bank for a 20-year mortgage. Your bank is offering a 3.95% interest rate but requires...
- Q 5 15-year bonds each having a face value of $1000 and a coupon rate of 6% per 6 months payable semiannually were purchased for $7000 8 years ago, and the...
- Q Keep the Old Car or Buy a Used Car Manny is an online student who currently owns an older car that is fully paid for. He drives, on average, 110...
- Q a scholarship provider has $475000 which she will invest today to fund a scholarship forever. she expects to earn 4% on her money each year. if she wants to begin...
- Q buying margin cara has brokerage account she wants to purchase 200 shares of Stock x at $30 per share. she has available capital is $8,000. she ask her broker for...
- Q The standard deviation of stock returns for Stock A is 30%. The standard deviation of the market return is 20% and the correlation between Stock A and the market is...
- Q Which of the following is not a function of money? A) Medium of exchange B) Store of value ...
- Q What is a currency board? With specific reference to a recent currency crisis explain how this arrangement can lead to financial crisis.
- Q ou are evaluating two different silicon wafer milling machines. The Techron I costs $300,000, has a 3-year life, and has pretax operating costs of $83,000 per year. The...
- Q 1. 1.Which of the following is/are electronic underwriting software programs? a. Desktop Underwriter b. Loan Prospector c. both a and b d. neither a nor b 2.Using borrowed funds for...
- Q A mortgage loan in the amount of $50,000 is made at 12 percent interest for 20 years. Payments are to be monthly. What are the monthly payments if it is...
- Q Duela Dent is single and had $197,600 in taxable income. Using the rates from Table 2.3, calculate her income taxes. What is the average tax rate? What is the marginal...
- Q 1) Suppose you purchased a 20-year bond four years ago at par. The bond pays annual interest, has a par value of $1,000 and a coupon rate of...
- Q The constant-growth dividend discount model can be used both for the valuation of companies and for the estimation of the long-term total return of a stock. ...
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