Finance question and answers for August 20, 2023
- Q One of the ways to reduce economic and transaction exposure isto restructure. This restructuring involves shifting sources ofrevenues and costs to other locations in order to match cashinflows and outflows...
- Q Manufacturing overhead cost was applied to jobs, Rmb ?
- Q Fama's Llamas has a weighted average cost of capital of 11percent. The company's cost of equity is 16 percent, and its pretaxcost of debt is 9 percent. The tax rate...
- Q A company has determined that its optimal capital structureconsists of 40 percent debt and 60 percent equity. Given thefollowing information, calculate the firm's weighted average costof capital. Cost of Debt...
- Q Pantaloon Beer is considering opening a microbrewery nearcampus. To open the brewery, they must purchase $250 in equipment.Shipping of the equipment will cost $40 and installation of theequipment will be...
- Q Ifa sport team/business/entity were facing financial hardship, whatred flags or signs would be visible? What would be first steps asports leader would take in response to these red flags?
- Q please write a brief essay describing the importantconcepts you have learned so far on FIN555. Be as specific aspossible and provide example of things you consider important. 1)present value concept...
- Q Filer Manufacturing has 9 million shares of common stockoutstanding. The current share price is $81, and the book value pershare is $8. Filer Manufacturing also has two bond issuesoutstanding. The...
- Q Consider the following information for Evenflow Power Co., Debt:6,000 8.5 percent coupon bonds outstanding, $1,000 par value,22 years to maturity, selling for 103 percent of par; the bondsmake semiannual payments. Common stock:126,000...
- Q Name one company that benefited and one company that suffereddue to the slump in the British Pound post Brexit. What was thetype of exposure that resulted in the profit or...
- Q Purchasing power parity have merit. What is the Fischereffect?
- Q 1. Which of the following variables does not impact the aftertax cost of debt for a firm??a.The default risk of the firm.b.The marginal tax rate paid by the firm.c.The bottom...
- Q Richard recently inherited $12,000 and is considering purchasing12 bonds of the Lucky Corporation. The bond has a par value of$2,000 with 12 percent coupon rate and will mature in 12...
- Q Lawrence comp paid $2.00 per share in common stock dividendslast year. The company will allow its dividend to grow at 8 percentfor 7 years, and after that the rate of...
- Q Many firms have devised defenses that make it more difficult orcostly for other firms to take them over. How might such defensesaffect the firm’s agency problems? Are managers of firms...
- Q Inyour own words write a paragraph or two about “financial crisis”such as the defination, the importance of it, advantages anddisadvantages, real life examples and etc ...
- Q California Health Center, a for-profit hospital, is evaluatingthe purchase of new diagnostic equipment. The equipment, whichcosts $600,000 has an expected life of five years and an estimatedpre-tax salvage value of...
- Q inyour own words write about “credit rating agencies and thefinancial crisis” and support it with real life example from anyfinancial market or institution
- Q please , in your own words write a brief intorduction about creditrating agencies and the financial crisis
- Q Assume you have a one-year investment horizon and are trying tochoose among three bonds. All have the same degree of default riskand mature in 8 years. The first is a...
- Q You are planning to save for retirement over the next 30 years.To save for retirement, you will invest $800 per month in a stockaccount in real dollars and $400 per...
- Q Wii Brothers, a game manufacturer, has a new idea for anadventure game. It can market the game either as a traditionalboard game or as an interactive DVD, but not both....
- Q Macro Company has thefollowing adjusted accounts and balances at June 30:Macro Company has thefollowing adjusted accounts and balances at June 30:Accounts Payable$370AccountsReceivable620AccumulatedAmortization185AccumulatedDepreciation320Cash1,090CommonStock370DeferredRevenue135DepreciationExpense145Equipment1,470Income TaxExpense145Income TaxPayable40InterestExpense215InterestRevenue60Notes Payable(long-term)1,370OfficeExpenses890PrepaidRent50RentExpense470RetainedEarnings155Salaries andWages Expense730SalesRevenue3,835Software235Supplies780How do you prepare...
- Q The following economic transactions are drawn from acountry's balance of payments for the 2016 in US dollarsbillions.i) Export of civiliansgoods. 224.4ii) imports of civiliangoods 368.7iii) military salesabroad 8.9iv) military purchaseabroad 12.6v) exports of service...
- Q There are three numerical questions, you can answer them usingeither mathematical formula or financial calculator. No matter whatmethod you use, you need to show the calculation steps (for mathformula) or...
- Q C. Prepare a budgeted income statement, assuming 600units to be produced and sold, a per unit selling price of $85, anincome tax rate of 28% and the following information.Cost of...
- Q Richard borrowed 50,000 from a bank at 12% (APR) semiannuallycompounded interest to be repaid in 10 years (12 equalinstallments) . Calculate the interest and principal paid in thefourth year. USE...
- Q Consider an asset that costs $655,000 and is depreciatedstraight-line to zero over its 8-year tax life. The asset is to beused in a 6-year project; at the end of the...
- Q H. Cochran, Inc., is considering a new three-year expansionproject that requires an initial fixed asset investment of$2,300,000. The fixed asset will be depreciated straight-line tozero over its three-year tax life,...
- Q . Suppose that an investor with a five-year investmenthorizon is considering purchasing a seven-year 9% coupon bondselling at par. The investor expects that he can reinvest thecoupon payments at an...
- Q Your best friend Steve just celebrated his 30th birthday andwants to start saving for his anticipated retirement. Steve plansto retire in 30 years and believes that he will have 25...
- Q Seven years ago, Carlos took out a mortgage for $185,000 at anannual 5.6 percent, compounded monthly, for 30 years. He has madeall of the monthly payments as agreed.a) What is...
- Q SSabre is deciding between two new printer supply contracts afterits existing supplier's printers started catching fireUsing the cash flows below ($ millions), which contract is bestbased on the NPV?Which contract...
- Q A proposed new venture will cost $175,000 and should produceannual cash flows of $48,500, $85,000, $40,000, and $40,000 forYears 1 to 4, respectively. The required payback period is 3 yearsand...
- Q Hastings Corporation is interested in acquiring VandellCorporation. Vandell has 1 million shares outstanding and a targetcapital structure consisting of 30% debt; its beta is 1.60 (givenits target capital structure). Vandell...
- Q Green Lumber has - Total sales of $387,200, - Total assets of$429,600, - Current liabilities of $45,000, - Dividends paid of$24,000, - Net income of $57,700.Assume that all costs, assets,...
- Q Starbooks Corporation provides an online bookstore forelectronic books. The following is a simplified list of accountsand amounts reported in its accounting records. The accounts havenormal debit or credit balances. Assume...
- Q A firm has current assets that could be sold for their bookvalue of $32 million. The book value of its fixed assets is $70million, but they could be sold for...
- Q Regarding an IPO, what are different cost factors and how canthose be measured?
- Q Suppose your company needs to raise $54 million and you want toissue 25-year bonds for this purpose. Assume the required return onyour bond issue will be 4.8 percent, and you’re...
- Q PROBLEM 4Masco Oil and Gas Company is a very large company with commonstock listed on the New York Stock Exchange and bonds traded overthe counter. As of the current balance...
- Q Please describe the functions that DEALERS perform in thefunctioning of the commercial paper market. In what market segmentare they most active? Least active?
- Q The Nolan Corporation finds it is necessary to determine itsmarginal cost of capital. Nolan’s current capital structure callsfor 30 percent debt, 20 percent preferred stock, and 50 percentcommon equity. Initially,...
- Q 27. What are the typical components of an LP/GP agreement?28. Explain the key parts of the due diligence process29. What is hurdle rate30. Many times valuations are based on multiples...
- Q invest or not invest in retail stock in the USA
- Q Recently the Fed has been gradually focusing on interest ratesin the US among other things. Discuss and provide an example ofinterest rate risk to a Multinational Corporation (MNC) given anexample...
- Q What types of debt securities has Ross Stores (ROST)issued?What are the current ratings and yields to maturity for thecompany's debt securities?What factors do you think explain the yield levels?* In...
- Q Explain how cash balance and net income can diverge sosignificantly.
- Q Suppose your company needs to raise $55 million and you want toissue 25-year bonds for this purpose. Assume the required return onyour bond issue will be 7 percent, and you’re...
- Q Better Mousetraps has developed a new trap. It can go intoproduction for an initial investment in equipment of $5.4 million.The equipment will be depreciated straight line over 6 years to...
- Q You know the following. ATO, ITO and FATO are 4, 6, and 3.9respectively while for the industry they are 4.4, 19 and 4respectively. The current ratio and quick ratio are...
- Q Discuss money markets. Money market securities are debt offeringswith a maturity of one year or less. They are very liquid and canbe sold in a secondary market. Discuss the contents...
- Q What is the NPV for the following project if its cost of capitalis 15 percent and its initial after tax cost is $5,000,000 and itis expected to provide after-tax operating...
- Q write a one-page paper on how you would conduct a performanceevaluation about an investment into a new market.
- Q Prompt: Bonds are long term debt offerings issued bygovernments and corporations. Many corporate bonds contain a ‘callprovision’. This feature requires the issuer to pay a price abovepar value when the...
- Q Part 1: Financial AcumenKeeping abreast of the financial measures and metrics employedby a company allows employees to better understand its health andposition at any given time. Using Campbellsville University librarylink...
- Q How being tied to a single currency (the Euro) has impacted thedifferent economies of the European Union?
- Q Compare two different public company stocks during the last twomonth, and determinate the risk and returns?
- Q Gary Vaynerchuck is a well known Marketer. He can becontroversial. Review Gary's Facebook, LinkedIn, Newsfeeds and ifYou have Amazon Prime Follow The Leader: Gary Vaynerchuck. TheFollow The Leader Series is...
- Q The Griggs Corporation has credit sales of $826,200.Total assets turnover2.70timesCash to totalassets1.80%Accountsreceivable turnover10timesInventoryturnover20timesCurrentratio1.77timesDebt to totalassets45%Using the above ratios, complete the balance sheet.(Round your answers to the nearest wholenumber.)Cash current...
- Q Dinklage Corp. has 7 million shares of common stock outstanding.The current share price is $68, and the book value per share is $8.The company also has two bond issues outstanding....
- Q 1. Explain, in your own words, characteristics that make a firma good candidate for an LBO.2. Explain, in your own words, what is a contingent payment, whyis it used and...
- Q What aresome reasons for changes in beta and should one should be moreconcerned with a negative versus positive factor.
- Q 6. (Each part is worth 2 pts.) A new project that is beingconsidered requires an initial investment of $375,000. The expectedfuture cash flows are $250,000 per year for four years....
- Q 1. You are considering aproject that will supply an automobile production facility with35,000 tonnes of machine screws annually for five years. To get theproject started, you will need an initial...
- Q based on any capital budgeting journaDiscuss why do managers focus on the impact that an investmentwill have on reported earnings rather than on the investment’s cashflow consequences? please explain in...
- Q How can the DCF method be applied ifthe growth rate was not constant? (detailed explanation needed)I found short answer for this as: "We will find the PV of thedividends during...
- Q How to estimate the DCF cost of equityif dividends are not growing at a constant rate?(detailed explanation needed)I found short answer on Internet for this as: "We will find thePV...
- Q When does it make the most sense for a company to use anaggressive working capital strategy?
- Q Discuss some of the basic issues and theirsignificance in evaluating REITs and their financialstatements.
- Q . If you have $30,000 invested in each of two stocksand $20,000 invested in each of another three stocks and the betason the stocks above are 0.8, 1.1, 1.0, 1.2...
- Q How long does the capital of 4765,65 will amount to 5716,93 euroif we use the compound nominal convention with capitilizationperiod equal to two-months and we know that the interest is...
- Q Suppose your firm is considering investing in Project Q with thecash flows shown in the table. Assume that the required rate ofreturn on projects of this risk class is 10.5...
- Q Suppose your firm is considering investing in Project W with thecash flows shown in the table, that the required rate of return onprojects of this risk class is 10 percent,...
- Q 2. (13 pts.) A factory is considering replacing its existingcoining press with a newer, more efficient one. The existing presswas purchased 4 years ago for $450,000 and is being depreciatedaccording...
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