Finance question and answers for July 02, 2023
- Q Pine Systems Inc. pays an 11 percent coupon rate on debentures thatare due in 10 years. The current yield to maturity on bonds ofsimilar risk is 8.5 percent. The bonds...
- Q briefly explain the ethical responsibilities financial mangers havein relation to the firms stakeholders
- Q Procter and Gamble? (PG) paid an annual dividend of $ 1.68 in2009. You expect PG to increase its dividends by 7.3 % per year forthe next five years? (through 2014),...
- Q A company is considering the purchase of a $200,000computer-based inventory management system. It will be depreciatedstraight-line to zero over its four-year life. It will be worth$30,000 at the end of...
- Q 23A $1,000 par value bond was issued five years ago at a couponrate of 12 percent. It currently has 25 years remaining tomaturity. Interest rates on similar debt obligations are...
- Q Samsung Inc. estimate unit sales for a new music amplifier asfollows: 75,000; 86,000; 95,000; 92,000; and 73,000 for year 1through year 5, respectively. Production of the implants willrequire $1,600,000 in...
- Q Dividend Policya) Stock splits are said to be cosmetic events and yet investorsreact positively to stock split announcements. Explain why stocksplits are considered as cosmetic events and briefly discuss whythe...
- Q Your client has $96,000 invested in stock A. She would like tobuild a? two-stock portfolio by investing another $96,000 in eitherstock B or C. She wants a portfolio with an...
- Q Ariana contributed $100 from her pay cheque at the beginning ofevery month from age 18 to 65 into an RRSP account (no contributionin the month of her 65th birthday). Macy...
- Q In December 2017, an American investor buys 1,000 shares in aMexican company at a price of 500 pesos each. The share does notpay any dividend. A year later she sells...
- Q Kelso Electric is an all-equity firm with 52,250 shares of stockoutstanding. The company is considering the issue of $355,000 indebt at an interest rate of 9 percent and using the...
- Q The Greenbriar is an all-equity firm with a total market valueof $596,000 and 23,200 shares of stock outstanding. Management isconsidering issuing $213,000 of debt at an interest rate of 9percent...
- Q Currently, Forever Flowers Inc. has a capital structureconsisting of 30% debt and 70% equity. Forever's debt currently hasan 8% yield to maturity. The risk-free rate (rRF) is 3%,and the market...
- Q You are considering a new product launch. The project will cost$800,000, have a four-year life, and have no salvage value;depreciation is straight-line to zero. Sales are projected at 200units per...
- Q 1a. If you take out a car loan for $30,000 for 6 years at 4.5%Simple interest what is the monthly payment? and How much will youpay in total for interest...
- Q ABC's outstanding 5% coupon rate bonds mature in 10 years, andare selling for $900. The bonds make annual coupon payments.ABC preferred stock pays $2.00 dividend per share and sells for$50...
- Q You have just purchased a car and taken out a $ 50000 loan. Theloan has a? five-year term with monthly payments and an APR of6.3%. a. How much will you...
- Q A project generates cash flows of $125k, $125k, and $95k. Therequired rate of return is 10%. The value of the project or “asset”is $288,317.Given your answer, which ones are true.IRR...
- Q Task:Senior management asks you to recommend a decision on whichproject(s) to accept based on the cash flow forecasts provided.Relevant information:The firm uses a 3-year cutoff when using the paybackmethod.The hurdle...
- Q You have $30,000 to invest in a stock portfolio. Your choicesare Stock X with an expected return of 14 percent and Stock Y withan expected return of 7 percent. If...
- Q In mid-2009, Rite Aid had CCC-rated, 66-year bonds outstandingwith a yield to maturity of 17.3 % At the time, similar maturityTreasuries had a yield of 3 % Suppose the market...
- Q Some recent financial statements for Smolira Golf, Inc., follow.SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 20162015 2016 2015 2016 Assets Liabilities and Owners’ Equity Currentassets Current...
- Q Suppose an economy is an export based one where a US MultiNational Corporation conducts business with the economy, what arethe implications if the currency of the export based economydepreciates significantly...
- Q Explain how the possible profit and loss possibilities arisefor an individual who invests in a:A Call OptionBe sure to explain what a Call Option is.Be sure to incorporate the cost...
- Q A 30-year maturity bond making annual coupon payments with acoupon rate of 12% has duration of 11.54 years and convexity of192.4. The bond currently sells at a yield to maturity...
- Q Shady Sunglasses operates retail sunglass kiosks in shoppingmalls. Below is information related to the company:(dollar amounts in thousands)201220132014201520162017Net Cash Flow from Operations564628854105913451655Interest Expense after tax122134148145155148Decrease (Increase) in Cash Required for...
- Q Shady Sunglasses operates retail sunglass kiosks in shoppingmalls. Below is information related to the company:(dollar amounts in thousands)201220132014201520162017Net Cash Flow from Operations564628854105913451655Interest Expense after tax122134148145155148Decrease (Increase) in Cash Required for...
- Q You make deposits of $400 at the beginning ofevery month, into an account paying 8% interest compounded monthly.The value at the end of 15 years is:a.136,338b.137,338c.138,338d.139,338
- Q General Ledger for XYZ CompanyThe following is a portion of the general ledger for XYZ Company asof December 31, 20X1, and the statement of stockholders??? equityfor XYZ Company for the...
- Q Steinberg Corporation and Dietrich Corporation are identicalfirms except that Dietrich is more levered. Both companies willremain in business for one more year. The companies' economistsagree that the probability of the...
- Q Branard Industrial Equipment Corporation (BIEC) is in view ofleasing the new Machine which requires, for $155,000 a year, whichis payable in advance. The cost of the Machine is $900,000 has...
- Q bond pricespar value, coupon r, Year TM, YieldTM, Price$1,000.000. 5% 20. 5% ?$1,000.000. 9% 30. 6% ?$5,000.000. 11% 25. 8% ?$5,000.000. 6% 5. 12% ?find the price for the bond in the followingtable:
- Q Consider the following cash flows for two mutually exclusivecapital investment projects. The required rate of return is 15%.Use thisYear Project ACash Flow Project BCash Flow0 -$40,000 -$30,0001 12,000 9,0002 12,000 9,0003 12,000 9,0004 10,800 8,1005 10,800 8,1006 5,400 8,1009. Which of the following statements is true...
- Q Citigroup (C) stock has been up and down in the past year. Wouldbuy/hold/ or sell this stock? Support with ideas analytics. Alsostate further in depth facts other than analytics to...
- Q QUESTION 4 4.1 ABC shares have had returns of 8 percent, -13 percent, -7percent and 29 percent for four of the last 5 years.4.1.1 If the average return of the...
- Q What is capital budgeting? Are there any similarities between afirm’s capital budgeting decisions and an individual’s investmentdecisions?
- Q Overnight Publishing Company (OPC) has $3.8 million in excesscash. The firm plans to use this cash either to retire all of itsoutstanding debt or to repurchase equity. The firm’s debt...
- Q Fountain Corporation’s economists estimate that a good businessenvironment and a bad business environment are equally likely forthe coming year. The managers of the company must choose betweentwo mutually exclusive projects....
- Q Problem Four You work for a small investment management firm. You have beenprovided with the following historical information for three stocksand the market index. The information is shown in the...
- Q You're prepared to make monthly payments of $340, beginning atthe end of this month, into an account that pays 6 percent interestcompounded monthly. How many payments will you have made...
- Q There is a par 30 year, 6% bond. What is the %alteration, if the ytm alters by 2%? Do it with duration alone.Then, find the change, if you include convexity...
- Q Pearl Corp. is expected to have an EBIT of $2,400,000 next year.Depreciation, the increase in net working capital, and capitalspending are expected to be $160,000, $105,000, and $145,000,respectively. All are...
- Q 1. The balance sheet consists of assets and liabilities andequity. With a focus on liabilities, discuss the connectedness ofthese three components.2. Discuss the components needed to determine the present valueof...
- Q Problem Two If the cost of capital is 15%, which project should be chosen?If the cost of capital is 25% which project should be chosen?Construct the NPV profiles for Project...
- Q A corporate pension plan has to make the following payments overthe next few years:Year1234Amount ($ million)16202634The appropriate interest rate is 6%.1. What is the present value of the liability (in...
- Q You have the following balance sheet and income statementinformation for Epic Corp.:Line itemAmountAccounts receivable (A/R)$1,760Inventory$3,960Accounts payable (A/P)$960Sales$6,600Cost of goods sold$5,280All sales and purchases were on credit.1. What is the firm's...
- Q National Bank currently has $450 million in transaction depositson its balance sheet. The current reserve requirement is 12percent, but the Federal Reserve is decreasing this requirement to10 percent.a. Show the...
- Q Eric wants to start acar detailing business but is unsure how many cars he will need todetail before making a profit. His cousin has offered to let himuse a small...
- Q Sheila Goodman recently received her MBA from the HarvardBusiness School. She has joined the family business, GoodmanSoftware Products Inc., as Vice-President of Finance. She believesin adjusting projects for risk. Her...
- Q We are evaluating a project that costs $1,675,000, has asix-year life, and has no salvage value. Assume that depreciationis straight-line to zero over the life of the project. Sales areprojected...
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!