Finance question and answers for October 20, 2023
- Q Anna makes her investment into one risk-free asset and two risky securities: stock G and stock H. Stock G has expected return of 8% and standard deviation of...
- Q A firm has current assets of $100,000, long term assets of $150,000, long term liabilities of $75,000, and $100,000 in shareholders' equity. What is its net working capital: ...
- Q Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the inventory purchases and sales of chairs for the month of April. Seifs...
- Q Bob Inc. has $1 million revenue and $850,000 expenses. If the company invest in a new equipment, the revenue will increase by 20% while expenses will increase by 8%. Calculate...
- Q Assume a par value of $10,000. a. Calculate the ask price of the T-bill maturing on September 22, 2016 as of May 16, 2016. b. Calculate the bid price of...
- Q A project has a total up-front cost of $435.44. The cash flows are $100 in the first year, $200 in the second year, and $300 in the third year....
- Q Which one of the following statements is correct concerning inventory costs? Multiple Choice The cost to set up a production run a carrying cost. Lost sales...
- Q A owes B $1100 at the end of one year and is required to set up an investment fund in order to meet this obligation. The only investments...
- Q Happiness Corp. ("Happy") is a manufacturer of stress relief products that improve mental health. Given the recent success of IPOs, Happy is looking to take itself public and is trying...
- Q 19. Which of the following scenarios best illustrates bundling? a. Clean Brush Inc. sells its electric toothbrushes for a low cost, but charges a high price...
- Q Consider the graph below, and assume the CAPM and SML are valid. If a stock has a Beta of 1.50, its expected return should be %....
- Q The following table contains observed frequencies for a sample of 240 . Test for independence of the row and column variables using =.05. Compute the value of the...
- Q Q1. Why is some risk diversifiable and other risk is not (non-diversifiable)? Q2. Yes or no, are industries that have a high standard deviations (wide fluctuation...
- Q Question 3 2 pts An investment offers the following cash flows: $464 today, $661 one year from now, $611 in 2 years, and $442 in 3 years. If...
- Q AU.S. investment in India represents a foreign factor of production located in lndia and the income from such investment adds to: FDl of india. GDP of...
- Q The purpose of this case study is to give you practice visualizing the different options for short-term financing. 1. Assume you are trying to find short-term financing options for $100,000...
- Q An asset has on average return of 10.79 percent and a standard deviation of 20.78 percent. What range of returns should you expect to see with...
- Q What is the bond equivalent yield on a $1 million T-bill that currently sells at 99.75 percent of its face value and is 60 days from maturity?...
- Q equipment costing $50,000. Mark spends $50,000 to do more researching on the DNA-testing equipment and 10,000 for installation. Suppose that 6 percent inflation in savings from labor costs is expected...
- Q 28) What is the covariance of security A to the market given the following information? YearSecurity A Returns Market Return 2 A) 75.0 B)...
- Q Suppose the market portfolio is equally likely to increase by 30% or decrease by 10%. a. Calculate the beta of a firm that goes up on average by 43% when...
- Q Use the following information concerning Pittsburgh Steel Inc. for questions 1 through 6: Debt: 7,000, 7.5% coupon bonds outstanding, with 20 years to maturity, and quoted price of 108. These...
- Q Nicholas Industries can issue a 20-year bond with a 6% annual coupon. This bond is not convertible, is not callable, and has no sinking fund. Alternatively, Nicholas could issue a...
- Q According to Emanuel Derman, writing in the Journal of Derivatives, Winter, 2000, p. 64 he says Good theories, like Black-Scholes-Merton, provide a theoretical laboratory in which you can explore the...
- Q Calculate the percentage yield to maturity of a coupon bond face value $20, 000, purchased for $12000.00 with a coupon rate of 8% per annum that has 20 years to...
- Q Question 5 3.45 pts The MIRR for these cash flows if the WACC is 8.25% is closest to Year: 0 1 2 3 4 5 Cash...
- Q Which of the following is not true? Group of answer choices Bonds that are traded at a lower price than face value are sold with discounts. The bonds yield to...
- Q From the Big Mac Index: A Big Mac is selling on average for $3.06 in the USA and on average for EUR2.92 in European member countries. If the actual exchange...
- Q Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 2.5% + 0.60RM + eA RB =...
- Q You want to buy a new sports coupe for $49,759, and the finance office at the dealership has quoted you an 8.4% APR loan for 4 years with monthly payments....
- Q Identity a true statement about an S corporation An S Corporation is required to have no more than 100 stockholders. The income of an 5 Corporation...
- Q In the table, the stock earned % more/less than it should have according to CAPM. a. 0.86% b. 7.00% c. 8.60% d. 5.20% e. 0.52% Total...
- Q If H2 were copied and pasted into H5 what formula would be in H5?
- Q alita is 2 times as old as jiro. jiro is 4 years younger than erik. erik is (1)/(3)as old as dawn. the sum of all their ages is 72. what...
- Q Charlie invests $3,000 in a mutual fund. The account earns 9.5% annually. He leaves the money in the account for 13 years. How much money will Charlie have in the...
- Q It is estimated that the free cash flows to equity (FCFE) from 2023 will be as 2023 2,800 TL 2024 3.300 TL 2025 5,000 TL 2026 5.700 TL If FCFE's...
- Q QUESTION 5 Omnicom and Paccar are all-equity firms. Omnicom has 35,000 shares outstanding at a market price of $17.60 a share while Paccar has 58,000 shares outstanding at...
- Q Problem 6-18 Depreciation and project NPV Suppose that Sudbury Mechanical Drifters is proposing to invest $10.9 million in a new factory. It can depreciate this investment straight-line over...
- Q WACCMarket value weights The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table: a. Calculate the firm's...
- Q 1. Consider Swire properties is planning to invest in a building project using debt and equity. After some time, they decided to invest in two more projects. However,...
- Q Bribery of foreign government officials to obtain business is not allowed by: O Basel III The Department of Labor O None of the above cyber Security...
- Q Problem 5-12 Present Values (LO2) Compute the present value of a $190 cash flow for the following combinations of discount rates and times. (Do not round...
- Q You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $82,000 immediately. If your cost of...
- Q Given the following information about a CMO: - $5 million of mortgage pool principal assigned to the floater class. $2 million assigned to the inverse floater class. -...
- Q Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $65,...
- Q In the personal provincial tax rates are 16% on the first $40,100; 20% on the next $40,100; and 24% on any income after that. If a...
- Q how would estimated average cost of capital(5%) differ if a recession were to occur?
- Q Question 5 The "tequila effect" is a slang term used to describe a form of financial panic called 1. Speculation 2. Contagion in currency markets 3....
- Q If a $10,000 par T-bill has a 5 percent discount quote and a 180-day maturity, what is the price of the T-bill to the nearest...
- Q 30. Masters Corp. issued two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond was issued at a deep discount with a coupon rate...
- Q Hatch Corporation's target capital structure is 40% debt, 50% common stock, and 10% preferred stock. Information regarding the company's cost of capital can be summarized as follows: The company's bonds...
- Q A recently married couple are interested in purchasing a home and have an annual (stabilized) income of $90,000. Current loan terms for a 3/1 adjustable rate mortgage on an owner-occupied...
- Q 4 Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an aggressive stock A, and a defensive stock...
- Q In an insurance policy, the covered and excluded perils are described in the insuring agreement. Which of the following are examples of perils, as opposed to hazards? (1)...
- Q AllCounty is financed with 25% debt and the rest equity. It has an equity beta of 1.13 and a debt beta of 0. AllCounty's tax rate is 25%. If AllCounty...
- Q 5. The Excel file Correlation Matrix Data contains monthly return data for four (4) stocks. Compute the Correlation Matrix for the four (4) stocks....
- Q a. Consider a six-year maturity, $100,000 face value bond that pays a 5 percent fixed coupon annually 9-79 What is the price of the bond if...
- Q Medical Research Corporation is expanding its research and production capacity to introduce a new line of products. Current plans call for the expenditure of $100 million on four projects of...
- Q Problem 11-6 Scenario Analysis [LO2] We are evaluating a project that costs $691,200, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to...
- Q 7. Ethic Traps include which of the following items? A.Following Orders B. Going with the flow C.Turning a blind eye on issues D.Using Euphemisms to describe unethical behavior E.All of...
- Q Free Response Problems: Lucky Industries is issuing the following Callable Convertible Bond: A 20 year, S1000 par, 6.5% semi-annual coupon bond priced at 89.725%...
- Q A bond's market price is $775. It has a $1,000 par value, will mature in 8 years, and has a coupon interest rate of 11 percent annual interest, but makes...
- Q ZZZ inc. would like to implement a new project. It is estimated that the projects costs at t=0 will be $1,000,000, it will generate the following cash flows: C1=$500,000; C2=$300,000;...
- Q Suppose the own price elasticity of demand for good X is -3, its income elasticity is -2, its advertising elasticity is 4, and the cross-price elasticity of demand between it...
- Q It is important in fundamental analysis to study business cycles. Select one: O True O False
- Q Intro You've collected the following historical rates of return for stocks A and B: Year (t) Rat RB, 2016 0.02 0.02...
- Q 2 points Question 7 Describe some of the key elements of a bank's organizational structure required to manage credit risk TTT Arial (1200T.. Path Words
- Q is the risk that remains after no further diversification benefits can be achieved B 1 Multiple Choice Unsystematic Risk Superfluous Diversification O...
- Q QUESTION 18 Kingston is considering investing in one of several mutual funds, all of which have various permutations and combinations of from end loads, back-end loads, and/or expense...
- Q Investment A You are 25 years old, having just started working. You are considering a retirement plan for a retirement at the age of 65. You want to be able...
- Q Youve observed the following returns on ABC Corporations stock over the past five years: 22.4 percent, 12.3 percent, 21.8 percent, 3.4 percent, and 18.2 percent. The average inflation rate over...
- Q Question 20 (2 points) On February 1, 2013, Salim Inc. issued 6-year, $2.0 million bonds with a coupon rate of 5.0%. Interest on similar risk investments earns 6.5%....
- Q Common stock valueVariable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.25 per share and...
- Q Using Cost of Goods Sold when determining the average time it takes a company to pay its trade creditors is appropriate for all of the following types of business EXCEPT:...
- Q how is microsoft's "capital expenditure" listed on its financial statements?
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