Finance question and answers for July 17, 2023
- Q The current market price of a security is $50, the security'sexpected return is 15%, the riskless rate of interest is 2%, andthe market risk premium is 8%.What is the beta...
- Q briefly explain elements of bonds and stocks . what are the mainndifferences between common and preffered stocks
- Q What are important characterisitics of corporate directors? Arecorporate directors independent? Is there any academic researchthat finds independent directors are really independent?
- Q GFC’s balance sheet shows a total of $25 million long-termdebt with a coupon rate of 8.50%. The yield to maturity on thisdebt is 8.00%, and the debt has a total...
- Q MGM Enterprises expects earnings and dividends to grow at arate of 25% for the next 4 years, after that the growth rate inearnings and dividends will fall to zero, i.e.,...
- Q Sean-Ruben manage a $10.00 million mutual fund which has abeta of 1.05 and a 9.50% required return. The risk-free rate is4.20%. Sean-Ruben now receives another $5.00 million, which heinvests in...
- Q 87. A stock with a stock and exercise price of $20 can eitherincrease to $26 or decrease to $18 over the course of one year. Ina one-period binomial option model,...
- Q 90. The current stock price of KMW is $27, the risk-free rate ofreturn is 4%, and the standard deviation is 30%. What is the priceof a 63-day call option with...
- Q Chapter 8 discussed the following investment criteria: netpresent value, payback, profitability index, average accountingreturn, and the internal rate of return. Which one of these is themost valuable from a financial...
- Q Temple Corp. is considering a new project whose data are shownbelow. The equipment that would be used has a 3-year tax life,would be depreciated by the straight-line method over its...
- Q 36. Currently, Bloom Flowers Inc. has a capital structureconsisting of 20% debt and 80% equity. Bloom’s debt currently hasan 8.5% yield to maturity. The risk-free rate (rRF) is 4.3%, andthe...
- Q 26. You can invest in an account that pays simple interest or anaccount that pays compound interest. In either case, you plan toinvest $3,900 today and both accounts have an...
- Q Management of Group R Corporation is considering an expansion inthe company’s product line that requires the purchase of anadditional $185,000 in equipment with installation cost of $15,000and removal expense of...
- Q The president of Real Time Inc. has asked you to evaluate theproposed acquisition of a new asset and you found the followingdata:MACRSclass: 3-year (33%, 45%, 15%, 7%)EconomicLife: 3 yearsPrice: $300,000Freight andInstallation: $30,000SalvageValue: $60,000Effect on NWC...
- Q Approximately 14 million Americans are addicted to drugs andalcohol. The federal government estimates that these addicts costthe U.S. economy $300 billion in medical expenses and lostproductivity. Despite the enormous potential...
- Q Cash & M/S30,000Accruals20,000Receivables70,000Accounts Payable60,000Inventories 120,000 Notes Payable80,000Fixed Assets380,000L-T Liabilities140,000Total Assets600,000Common Equity300,000Total600,000Annual Sales = $1,200,000Net Income = $48,000Cost of Goods Sold = $960,000Number of Shares Outstanding = 30,000What is the current ratio...
- Q Garlington Technologies Inc.'s 2018 financial statements areshown below: Balance Sheet as of December 31, 2018 Cash $ 180,000Accounts payable $ 360,000 Receivables 360,000 Notes payable156,000 Inventories 720,000 Line of credit...
- Q Barton Industries expects next year's annual dividend, D1, to be$2.10 and it expects dividends to grow at a constant rate gL =4.9%. The firm's current common stock price, P0, is...
- Q What are some issues that facebook is facing right now? Pleaseexplain.
- Q The Campbell Company is considering adding a robotic paintsprayer to its production line. The sprayer's base price is$910,000, and it would cost another $22,500 to install it. Themachine falls into...
- Q (a) What is meant by working capital? (b) Why is an analysis ofworking capital important? (c) Do a little research to show anexample of a corporation with weak or strong...
- Q Kim Inc. must install a new air conditioning unit in its mainplant. Kim must install one or the other of the units; otherwise,the highly profitable plant would have to shut...
- Q Please answer these following questions briefly.1. What is bond?2. What is mutual fund?3. How much car insurance do you need?4. What is the certificate of deposit (CD)?5. What is a...
- Q ABC Company manufactures and sells a single product. Thefollowing information is available concerning the operations for1999. a. The company's single product sells for $60 per unit.Budgeted sales in units for...
- Q You are considering expanding your product line that currentlyconsists of skateboards to include? gas-powered skateboards, andyou feel you can sell 8,000 of these per year for 10 years? (afterwhich time...
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