Finance question and answers for August 06, 2023
- Q A mining company is deciding whether to open a strip mine, whichcosts $1.5 million. Cash inflows of $12.5 million would occur atthe end of Year 1. The land must be...
- Q A firm's balance sheethas the following entries:Cash$6,000,000Total liabilities25,000,000Common stock ($5 par; 3,000,000shares outstanding)15,000,000Additional paid-in capital3,000,000Retained earnings40,000,000What will be each ofthese balance sheet entries after:a two-for-one stocksplit? Round the par value...
- Q An asset costs $830,000 and will be depreciated in astraight-line manner over its three-year life. It will have nosalvage value. The lessor can borrow at 6.6 percent and the lesseecan...
- Q Firm A had thefollowing selected items on its balance sheet:Cash$32,000,000Common stock ($60 par; 2,400,000shares outstanding)144,000,000Additional paid-in capital14,400,000Retained earnings68,000,000How would each ofthese accounts appear after:a cash dividend of $2per share? Round...
- Q ?(Related to Checkpoint 9.2 and Checkpoint? 9.3)???(Bondvaluation)???Fingen's 14?-year, ?$1,000par value bonds pay 15percent interest annually. The market price of the bonds is $940andthe? market's required yield to maturity on a?...
- Q AssetsLiabilities and EquityCash$25,000Accounts payable$25,000Accounts receivable156,000Long-term debt103,000Inventory79,000Common stock ($7 par;21,0003,000 shares outstanding)Plant and equipment190,000Additional paid-in capital155,000Retained earnings146,000$450,000$450,000Construct a new balance sheet showing the impact of atwo-for-one split. If the current market...
- Q Gary Levin is the chief executive officer of MountainbrookTrading Company. The board of directors has just granted Mr. Levin38,000 at-the-money European call options on the company’s stock,which is currently trading...
- Q Bruce and Anna Wayne3 children living at home under the age of 17$78,000 gross annual combined salaries$2,000 invested in Bruce's IRA during the year$580 in a savings account interest$400 in...
- Q Consider the followingtwo projects:CashflowsProject AProject BC0?$280?$280C1120148C2120148C3120148C4120a.What are the internal rates of return on thetwo projects?b. If the opportunity cost of capital is 11%,what is the profitability index for each project?
- Q In a paragraph of at least 6 sentences, please respond to thecase below.The City of Minerva, a municipality of 25,000 residents, hasbeen struggling financial for some years and recently cut...
- Q The Bell Weather Co. is a new firm in a rapidly growingindustry. The company is planning on increasing its annual dividendby 11% per year for the next 6 years and...
- Q what environmental factors must internationalmarketers consider when entering foreign markets? provide anexample
- Q What effect will afour-for-one stock split have on the following items found on afirm's financial statements?Earnings per share$5.00. Round your answer to the nearest cent.InitialamountNew amountEffect$5.00$ -Select-increasedecreasenochangeTotal equity$9,000,000. Round your answer...
- Q Problem 10-08A firm has the following balance sheet:AssetsLiabilities and EquityCash$25,000Accounts payable$25,000Accounts receivable156,000Long-term debt103,000Inventory79,000Common stock ($7 par;21,0003,000 shares outstanding)Plant and equipment190,000Additional paid-in capital155,000Retained earnings146,000$450,000$450,000Construct a new balance sheet showing the impact...
- Q Gary Levin is the chief executive officer of MountainbrookTrading Company. The board of directors has just granted Mr. Levin42,000 at-the-money European call options on the company’s stock,which is currently trading...
- Q Discuss how you would expect the financing choices of thefollowing firms to differ and explain the reasons for thedifferences. (Include international and Caribbean examples wherepossible) ( for example internal or...
- Q Gasworks, Inc., has been approached to sell up to 3.4 milliongallons of gasoline in three months at a price of $2.80 per gallon.Gasoline is currently selling on the wholesale market...
- Q Suppose the? risk-free interest rate is 5%?, and the stockmarket will return either be +21% or ?10% each? year, with eachoutcome equally likely. Compare the following two investment?strategies: (1) invest...
- Q Hi I am doing an intro to finance the the present value andfuture values are a little bit confusing so my question is:How is the difference between an ordinary annuity...
- Q Compute the discounted payback statistic for Project C if theappropriate cost of capital is 7 percent and the maximum allowablediscounted payback period is three years. (Do not roundintermediate calculations and...
- Q Bagel Pantry Inc. is considering two mutually exclusiveprojects with widely differing lives. The company's cost of capitalis 12%. The project cash flows are summarized as follows: ProjectA ProjectB C0 ($25,000) ($23,000) C1 $14,742 $ 6,641 C2 $14,742 $ 6,641 C3 $14,742 ...
- Q Under the terms of a contract, the following payments areguaranteed: $100? 000 payable immediately. $75? 000 per year for 5years, payable in equal monthly instalments of $6250 at the end...
- Q The price of Ervin Corp. stock will be either $90 or $116 at theend of the year. Call options are available with one year toexpiration. T-bills currently yield 5 percent. a.Suppose...
- Q Reacher Technology's EBIT was $40 million last year and isnot expected to grow (g=0) and pays out 100% of earnings asdividends annually. The firm is currently financed with all equityand...
- Q Sardano and Sons is a large, publicly held company that isconsidering leasing a warehouse. One of the company’s divisionsspecializes in manufacturing steel, and this particular warehouseis the only facility in...
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