Accounting question and answers for December 03, 2023
- Q Janice has $7,000 invested in a bank that pays 11.4% annually. How long will it take for her funds to triple? a. 6.42 years b. 10.18 years c. 9.08 years...
- Q Ben Collins plans to buy a house for $287,000 If that real estate property is expected to increase in value by 8 percent each year, what will its approximate value...
- Q Edge Equipment Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as...
- Q Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $1,800 in the bank and leave it there: (Do not round intermediate calculations. Round your answers...
- Q 1. The principal-agent problem a. occures when managers have more incentive to maximize profits than the stockholders-owners do b. would not arise if the owners of the firm had complete...
- Q Houston Industrial bonds have a maturity of 7 years with a $1000 face value, have an 9% semiannual coupon, are callable in 3 years at $1,045, and currently sell at...
- Q Jared would like to retire when he turns age 63. Jareds full Social Security benefit age is 67. How much will his Social Security benefit be reduced if he...
- Q Which of the following qualified retirement plans does not allow for participant elective deferrals? 457 Plan Target Benefit Plan Roth 401(k) Plan Thrift and Savings Plan ...
- Q A firm initial cash outlay is $100,000 and earns $70,000 in year 1, $30,000 in year 2, $30,000 in year 3, $25,000 in year 4, and $10,000 in year...
- Q You own a bond that has a duration of 5 years. Interest rates are currently 6%, but you believe the Fed is about to increase interest rates by 20 basis...
- Q Powered by Koffee (PBK) is a new campus coffee store. PBK uses 40 bags of whole bean coffee every month, and you may assume that demand is perfectly...
- Q Which of the following provides payment for services regardless of the service provided? Managed Care Plans Indemnity Plans HMOs PPOs None of the above
- Q Which machine would you recommend, basing your analysis on the net present value rule? 2. What is the appropriate discount rate to use? Explain. 3. Using the internal rate of...
- Q Sixteen years ago your parents deposited an amount in your saving account, today the balance of this account is $260,000. If the account has been earning 8% compounded continuously, how...
- Q Nan needs to save $35,000 to finance her wedding two years from today. How much does she need to deposit into her savings account...
- Q Assume that you had speculated the day of DC1 by selling put options that specify 1 million units of the foreign currency. If puts are expiring, the counter-party on your...
- Q What is the difference between a cost objects direct cost and its? Give an example.
- Q Suppose the firm borrows $100,000 at 10% interest per year, for annual interest expense of $10,000. The firm faces a corporate tax rate of 35%. What is the after tax...
- Q Suppose you hold a corporate bond that is convertible in the firms stock. Stock prices are falling and interest rates are also falling. Would it be a good idea to...
- Q On June 25, 2014, the futures price for the June 2014 bond futures contract is 118-23. a) Calculate the conversion factor for a bond maturing on January 1, 2030, paying...
- Q you are considering extending credit to a new customer, your decision to grant one months credit is a one-time decision. the customer will order 500 units of your product for...
- Q A man invests $1000 now at 16% monthly. He wants to draw interest at the end of each year in perpetuity. If his first withdrawal is in...
- Q Assume that Baps Corporation is considering the establishment of a subsidiary in Norway. The initial investment required by the parent is $5,000,000. If the project is undertaken, Baps would terminate...
- Q As part of the Secure Act 2.0, beginning for plan years after December 31, 2023, taxpayers who make qualified student loan payments may be eligible to receive what? A reduction...
- Q Transfer prices can be based on: Select one: a. All of the other answers are correct. b. full cost. c. an external market price. d. variable cost. e. a negotiated...
- Q An existing high-profits company is considering a new expansion project. The required initial investment will be 400 million in Y0. Two other investments (100 million euro...
- Q 1. A company wants to raise money. The company will sell $12M of common stock, the expected return is 18%. The company has $5M in preferred stock at a...
- Q Suppose you manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 20%. The T-bill rate is 2%. Also, suppose your risky portfolio...
- Q You are asked to analyze the companies historical data. You need to choose two companies from the below list to analyze and write an executive report. 1. Walmart (WMT) 2....
- Q QUESTION 3 The data on closing stock prices at the end of the year for all firms listed in S&P 500 is an example of which kind of historical information?...
- Q QUESTION 7 Based on the following data the investment has a positive net present value. time cash flows from investment in a leased property...
- Q 5.1 Explain three(3) reasons why liquidity or holding onto cash is important. 5.2 Discuss the measures a business can put in place to try to rectify a poor payment culture...
- Q A housing loan is to be repaid by a 15-year, fortnightly annuity-immediate loan repayment installment of $900 at a nominal interest rate of 3% per year. After 110 such payments,...
- Q Depreciation and accounting cash flow: A firm in the third year of depreciating its only asset, which originally cost $174,000 and has a 5-year MACRS recovery period (Table at bottom),...
- Q You currently have $3,175.00 in a retirement savings account that earns an annual return of 11%. You want to retire in 42 years with $1,000,000. How much...
- Q Rocky has a full-time job as an electrical engineer for the city utility. In his spare time, Rocky repairs TVs in the basement of his personal residence. Most of his...
- Q You take out a 30-year $150,000 mortgage loan with an APR of 12% and monthly payments. In 11 years, you decide to sell your house and pay off the mortgage....
- Q Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 -37,500,000 1 56,500,000 ...
- Q Stock A has an expected annual return of 24% and a return standard deviation of 28%. Stock B has an expected return 20% and a return standard deviation of 32%....
- Q Hilary earns $600 per week working for EZ Med After Hours. resource or producrt markets
- Q Charles Chaplane, who is not a member of CFA Institute, is a senior partner of a small brokerage firm, Blue Moon Securities, which recently participated in a large stock offering....
- Q your aunt has $550,000 invested at 5.5% and she now wants to retire. She wanted to withdraw $45,000 at beginning of each year, beginning immediately. She also wants...
- Q Martin is offered an investment where for $4000 today, he will receive $4,280in one year. He decides to borrow $4000 from the bank to make this investment. What is the...
- Q An order book displays the following information for stock ABC: Bid Ask Shares Price Price Shares 200 45.35...
- Q A corporate bond is quoted at 101.67 in the WSJ. The annual coupon rate is quoted as 10% and the bond has 6 years until maturity. Also 50 days have...
- Q A stock just paid a dividend of $1.75. The dividend is expected to grow at 28.14% for two years and then grow at 3.76% thereafter. The required return on the...
- Q Congratulations! You have won the $ 1 million lottery grand prize. You have been presented with several payout alternatives, and you have to decide which one to accept. The...
- Q A project has initial costs of $3,000 and subsequent cash inflows of $1350, 275, 875 and 1525. The company's 10% cost of capital is an appropriate discount rate for this...
- Q You expect GDL to pay a dividend of $3 in one year, $4 in two years and $6 in 3 years. After that, you think dividends will grow at a...
- Q In a letter of credit, the exporter requires immediate payment. However, importer needs 3 months to pay. What types of financing applies to this case? How does it work?
- Q Spherical Manufacturing recently spent $18 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 30% and Spherical's marginal...
- Q 5. Sam has a Georgia real estate salesperson's license, although it is on inactive status and he is not currently affiliated with any broker. Sam purchases a home through Shady...
- Q Value the technical analysis and BOP approach to forecasting. Your response should be at least 200 words in length.
- Q Guthrie Enterprises needs someone to supply it with 140,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid...
- Q Please show work and solve using a BA II Plus Financial Calculator. Answer to #1 is here. Require help understand how to resolve #2 and #3. An individual is currently...
- Q Jim Nasium is age 50 and plans to retire in 20 years (at age 70). He has retirement savings in a mutual fund account, which has...
- Q ford motor corporation's capital structure consists of 60% debt, 10% preferred stock, and 30% common equity. fort's pre-tax cost of debt is 6.5%, its cost of preferred is 8% and...
- Q Blair & Rosen, Inc. (B&R), is a brokerage firm that specializes in investment portfolios designed to meet the specific risk tolerances of it clients. A client who contacted B&R this...
- Q When hotdogs are sold for $5, approximately 700 are sold. When the price is raised to $6, the quantity demanded drops to 500. The initial cost is $200 and the...
- Q 18.AutoPartsWarehouse.com sells chrome rims for $1,680 (for a set of 4) and uses a markup of 60% on selling price. What will be the cost? Round your answer to nearest...
- Q A bank offers 9.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually? Submit Answer format: Percentage Round to: 4 decimal places (Example:...
- Q Melissa Adams has just given an insurance company $68,525. In return, she will receive an annuity of $8,627 for 12 years. a. At what rate of return must...
- Q Woidtke Manufacturing's stock currently sells for $18 a share. The stock just paid a dividend of $1.40 a share (i.e., D0 = $1.40), and the dividend is expected to grow...
- Q A bank decides to create a fiveyear principalprotected note on a nondividendpaying stock by offering investors a zerocoupon bond plus a bull spread created from calls. The riskfree rate is...
- Q Explain how the decision of the Federal Reserve Bank (Fed) to raise interest rates would be expected to affect each component of the weighted average cost of capital (WACC). What...
- Q Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent. $1,000 per year for 14 years at 10%. $ ...
- Q Assume that a stock is priced at $50 and pays an annual dividend of $2 per share. A. Assume that an investor purchases the stock paying 100% cash. After one...
- Q 1. You have decided that you when you retire 40 years from now, you want to buy a lodge in Northern Manitoba that you believe will cost $100,000 at that...
- Q if a firm buys trade credit terms of 5/15, net 30 and decides to forgo the trade credit discount and pay the next day, what is the annualized cost of...
- Q Assume a corporate bond with a $1000 face value matures 5 years and 7 months from today and has an annual coupon rate of 8% paid...
- Q Fifteen years ago, Roop Industries sold $400 million of convertible bonds. The bonds had a 40-year maturity, a 5.75% coupon rate, and paid interest annually. They were sold at their...
- Q Assignment 3 At the beginning of the year, FPT Inc. had 1 million common shares outstanding. It also had total bonds outstanding worth $5 million. Recently, the company...
- Q Consider the following cash flows: Year Cash Flow 2 $ 21,800 3 39,800 5 57,800 Assume an interest rate of 8.6 percent per year. Requirement 1: If today is Year...
- Q You have just completed all audit testing and are now in the completion stage of the audit for a client with a December 31, 2021, year-end. The audit partner has...
- Q Taxpayers must generally include income from the cancellation of debt in their total income, unless they qualify for an excepti6n or exclusion. Exclusions must be applied in the following order:...
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