Finance question and answers for October 12, 2023
- Q Pharoah Tire Co. just paid an annual dividend of $1.20 on its common shares. If Pharoah is expected to increase its annual dividend by 2.10 percent per year into the...
- Q A company's projected capital budget is $1,100,000, its target capital structure is 50% debt and 50% equity, and its forecasted net income is $700,000. If the company follows a residual...
- Q Industry Average Financial ratios this year and last year This Last year year Liquidity Net Working Capital $5,056 $4,892 Current Ratio...
- Q The operating cash flow for a project should exclude which one of the following? taxes variable costs employee salary cost sunk cost depreciation tax shield
- Q Suppose Alcatel-Lucent has an equity cost of capital of 10.7%, market capitalization of $9.52 billion, and an enterprise value of $14 billion. Assume Alcatel-Lucent's debt cost of capital...
- Q Pompeii, Inc., has sales of $48,500, costs of $22,400, depreciation expense of $2,100, and interest expense of $1,850. If the tax rate is 25 percent, what is the...
- Q Help Save & Submit Mt. Fury is deciding whether to purchase an office building that he estimates to have operating costs of $750,000 per...
- Q Question 25 15 points Save Answer KADS, Inc., has spent $400,000 on research to develop a new computer game. The firm is planning to spend $250,000 on a...
- Q Your neighbor, Kitty Kardashian, of Philadelphia, Pennsylvania, bought $5,000 worth of mutual funds with a back-end load of 5 percent if she sells within the first year. It decreases 1...
- Q ABC Company has an average retained loss of $3,000 per year and they currently do not have property insurance. They are considering whether they should install...
- Q Royal Dutch Shell has been doing business in Nigeria since the 1920s, and has announced new plans to develop oil and gas projects there. However, over the years Shell has...
- Q Here are stock market and Treasury bill percentage returns between 2006 and 2010: Year Stock Market Return...
- Q If the covariance between the excess return of stock A and the market excess return is 0.03, the standard deviation of the market excess return is 0.15, and the standard...
- Q Based on loan underwriting parameters utilizing a 20% conventional down payment, 8% interest rate, 30year amortization. Provide details on monthly/annual mortgage payments. Assume annual insurance premium is $5,000...
- Q A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: A company is analyzing two mutually exclusive projects, S and...
- Q The residual dividend policy approach to dividend policy is based on the theory that a firm's optimal dividend distribution policy is a function of the firm's...
- Q What is a common requirement regarding qualification and waiting periods before one can collect employer-sponsored disability income protection? Using all sick days Using all vacation days Using all...
- Q using a weighted moving average approach calculate 2020 and 2021 forecasts. Most recent - 40 second most recent - 35 third most recent. 2, fourth most...
- Q Which of the following best describes the term spot price? Question 6 options: a) The price for immediate delivery...
- Q 1. If a 6.75% coupon bond is trading for $1,016.00, it has a current yield of A. 7.38%. B. 6.64%. C. 7.25%. D. 8.53% E. 7.18%. 2. Of...
- Q The NPV method is preferable to the IRR method because it assumes reinvestment at the required return. Do you agree? Explain your reasoning.
- Q Suppose the risk-free interest rate is 9% APR with monthly compounding. If a $2,000,000 MRI machine can be leased for 6 years for $27,000 per month (as usual, the first...
- Q QUESTION 10 The following table presents information on a potential project currently being evaluated by XYZ. Which of the assertions about statement 1 and statement is...
- Q Please answer all parts. Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that you have an opportunity to buy the...
- Q Kingstown Corporations is trying to decide between two different conveyor belt systems System A costs $290,000, has a four-year life, and requires $80,000...
- Q please provide manual formula and working step by step don't directly hive answer after the formula You have been investing $250 a month for the...
- Q (1) After a mere six years of blood, sweat and tears, you made partner in your accounting firm, Smart & Smarter, LLP. You made your initial...
- Q Problem 5-14 Investment criteria Consider the following two projects: Cash flows C1 Project A Project B -$260 -$260 110 138 110 138 C2 C3 C4 110 138...
- Q China Imports currently has 2,000 shares of common stock outstanding. The firm has assets of $200,000 and total liabilities including preferred stock of $75,000. Calculate the book value per share...
- Q Project Andrew's Art Studio is expected to require an investment of $58,950 upfront in year 1 and then produce positive cash inflows of $12,048 in years 2 through...
- Q Common stock valueVariable growthNewman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $2.73 per share and paid cash dividends...
- Q 1 and 2 Finance 313 - Handout #15 Deferred Tax Entry on Balance Sheet Assume the firm reports a deferred tax liability of $14...
- Q A borrower has the option of accepting a fixed rate loan for five years at 10% or a floating rate loan of LIBOR plus 3%. Assume the current...
- Q Dockers Inc. beginning inventory and purchases during the year ended December 31, 2019 were as follows: Required: a) Determine the cost of inventory on December 31,...
- Q If you have a company that sells shoes. A current pair of shoes would sell at an average of KD__59__a pair. And currently, you sell __14,800__pairs annually. You are considering...
- Q The difference between these two positions is that the financial records associated with that cash flow. maintains the corporation's cash flow, while the maintains the O controller: secretary...
- Q Noah and Kati are 43 and 45, respectively. Noah and Kati have two children. Charlotte is 16 and is learning to drive. She is planning to study forensic science at...
- Q The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $83 per share. You have employee stock options to purchase 1,000 TWTR...
- Q XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $63.1 each. The investment bank charged 7% spread. At the end of the 1st...
- Q On Monday, January 26, 2009, Pfizer (NYSE: PFE), the worlds largest pharmaceuticals group, announced that over the weekend it had reached an agreement to acquire Wyeth (NYSE: WYE), one of...
- Q One of the key assumptions of Miller-Modiglianis Irrelevance Theory on dividends is that A. there are agency costs. ...
- Q 32
- Q You hold a portfolio with the following securities: Percent of Security Return portfolio Stock A 40% 6.2% Stock B 17% 9.4% Stock C Please 8.6% calculate...
- Q CAPM A levered firm has only 2 assets on its balance sheet with the below market values and CAPM betas. The risk free rate is 3% pa and the...
- Q 0 Question 22 Your relative As a teacher and make sound $40.000 per year and has sins of $10.000. He wants to the instant diversi ed...
- Q A stock generated annual returns of 10%, -5%, 3%, 7%, and -2% in the past five years. What is the geometric average annual return of the past five...
- Q How does the need to to achieve profitability juxtapose with the principle of giving?
- Q Question 22 Not yet answered Marked out of 3.125 Flag question Question text Currently, ABC Ltd sell only on credit and do not offer cash discounts. Management is considering offering...
- Q 10. A financial analyst has collected the following information about the machine to be replaced - The purchase price of the new machine is $8,000 Shipping...
- Q When people make classifications based upon relevant past experience, this represents which of the following bias? Question 17 options: a. Confirmation bias. b. Overconfidence bias. c. Availability bias. d. Representativeness...
- Q Assignments to complete this module: Reading: Chapter 11: Project Analysis and Evaluation Submit Course Learning Assessment #1 by Sunday at...
- Q Kimberfee invested $15 million in a hedge fund that has a 2/20 fee structure. The fund had a total of $26 million of assets under management...
- Q If the operating expense ratio, depreciation expense ratio and interest expense ratio are 0.716, 0.152 and 0.028 respectively then what is the net farm income from operation given the gross...
- Q Big Dom's Pawn Shop charges an interest rate of 26 percent per month on loans to its customers. Like all lenders, Big Dom must report an...
- Q Question 49 2 pts Typically, "call center" staffing is the only type of work that is being offshored. True False Question 50 2 pts Hai, a...
- Q Caterpillar Tractors had $20.00 million in sales last year. Cost of goods sold was $8.50 million, depreciation expense was $2.50 million, interest payment on outstanding debt was $1.75 million, and...
- Q Use what you need of the following set of information to answer the question: S0 = $1.1420/ S0 = 0.7776/$ S0 = $1.2860/ E (S1 (3-months)) = $1.1280/...
- Q XYZ company uses the percentage of sales model to expect sales. The company expects sales to increase by 7.5% annually over the next seven years. If costs are proportional to...
- Q finance the remainder with a 30-year monthly payment amortized more54167 montiert with their payment due in one month. What will your monthly payments A 823.15 8. 522.58 OC82169...
- Q Use the Black-Scholes formula for the following stock: Time to expiration Standard deviation Exercise price Stock price Annual interest rate Dividend 6 months 54% per year $54 $53...
- Q Please show all calculations 5.10. Laurel Street, president of Uvalde Manufacturing Inc., is preparing a proposal to present to her board of directors regarding a planned plant expansion that...
- Q At age 18, someone sets up an IRA (individual retirement account) with an APR of 6%. At the end of each month he deposits $95 in the account. How much...
- Q Given a 6 percent discount rate compounded monthly, what is the present value of a perpetuity of $2,400 per month if the first payment does not begin until the end...
- Q Bello, Inc., has a total debt ratio of.51. a. What is its debt-equity ratio? (Do not round intermediate calculations and round your answer to...
- Q Which of the following is false? The Investment Company Act of 1940 and the Securities Acts of 1933 and 1934 are examples of investor protection regulations....
- Q Your new job offers a savings plan that pays 1.00 percent in interest each month. You can't participate in the plan, however, until you have 9...
- Q Adirondack Savings Bank (ASB) has $3 million in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return...
- Q what type of agency problems arise in business firms and how can the issue be resolved? 5 marks 10 marks
- Q A 10 year, $1,000 face value bond with an annual coupon rate of 6% and a yield to maturity of 3% sells for:
- Q Parte II. Preparation of an Income Statement. You are a summer intern at the office of a local tax-preparer John Williams. To test your basic knowledge...
- Q Please finish question 3 or both, Thank you. Suppose that we know that IBM and DELL are going to pay a liquidating dividend in exactly one year, and this is...
- Q The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of \$6.3 million, and the 2018 balance sheet showed long-term debt of $6.5 million. The 2018...
- Q 6. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Green Caterpillar...
- Q Differentiate the following terms/concepts: a . Good company and good stock b . Momentum- chaser and contrarian c . International diversification and domes- tic diversification d. Anchoring and herding
- Q 7) What is the growth rate of Dividends per Share (5h row on the attached financial summary of Cintas Corporation) from 2009 to...
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