Finance question and answers for July 04, 2023
- Q For the company Coca-cola:a. calculate Economic Value Added (EVA) over the most recentannual period. Assume a 10 percent cost of capital and explain yourresults.b. estimate the firm’s expected growth rate...
- Q Draw a chart and explain in words what is expected to happen tothe New Zealand dollar demand and supply curves (USD/NZD) if thereis a forecast increase in New Zealand’s national...
- Q When the coupon rate of a bond is above the current marketinterest rates, a bond will sell at:A. discount.B. its original value.C. premium.D. face value.
- Q When the coupon rate of a bond is below the current marketinterest rates, a bond will sell at:A. discount.B. its original value.C. premium.D. face value.
- Q Multinational Enterprises (MNE) seek to minimise their cost offunding. This has led to the MNEs seeking funding frominternational markets.Explain the factors that determine the efficiency of MNEs’strategies for internationalizing their...
- Q Tom informs you that he is now contemplating hedging his 10,000 shares of Home Depot inc using futures contracts. Precisely explain and specifically detail the steps involved in hedging this...
- Q An Australian Solar Panel manufacturer exports panels to Indiaat a price of 5,000 Indian Rupee (INR). Currently the exchange rateis AUD/INR50.11. The forecast rate of inflation in Australia is2.8% per...
- Q Question 2: Discuss various types of capital budgetingtechniques. Also identify the most appropriate technique andjustify with logical reasoning. Question 3: It is commonlyrecommended that the managers of a firm compare...
- Q Your grandparents have been left a substantial amount of moneyand want to invest in a company. Your grandfather trusts you tomake a recommendation, but he also wants to see the...
- Q GnuYak Industries is considering a new project that will lastfor three years. This project requires an initial investment in amachine that costs £90,000 immediately (year 0) and will bedepreciated in...
- Q If you are retired and not working, what are 3 ways you couldgenerate cash for your spending needs? What are the taxconsiderations for each option?
- Q Swindler Ltd has completed a feasibility study costing $22652 todetermine if there is any benefit in purchasing a new asset. Themachine will cost $298115 and an additional $21316 will need...
- Q Marsha Jones has bought a used Mercedes horse transporter forher Connecticut estate. It cost $50,000. The object is to save onhorse transporter rentals.Marsha had been renting a transporter every other...
- Q How stocks are traded in financial market?
- Q Comment on the following statement regarding whether you agreewith it and why.Accountants make fees from helping to administer an SMSF.Consequently, an accountant providing advice has a potentialconflict of interest. That...
- Q In expectation of stagnate price, you sold a at-the-money putoption and at the same time sold a atthe-money call option withcommon exercise prices of $15. Option premium at $3 each....
- Q Question: BETHESDA MINING COMPANY Bethesda Mining is a midsizedcoal mining company with 20 mines located i... BETHESDA MININGCOMPANY Bethesda Mining is a midsized coal mining company with 20mines located in...
- Q Equity analysts predict Angel will pay its first annual dividendof $0.02 in 2021. The dividend in 2022 is expected to be 25% largerthan the 2021 dividend as the company’s cash...
- Q Option 1: Building a new refineryThe construction and installation of a new refinery will cost$22 million. In addition, a processing plant will also need to beconstructed at a cost $6...
- Q 5. Assume the following interest ratesCurrent Rate on a 1-year bond due in 2019: 4%Expected Rate on a 1-year bond due in 2020: 5%Expected Rate on a 1-year bond due...
- Q 1. What is the role of banks in promoting the flow of funds?2. What is the role of banks in promoting the financial system’sefficient operation and development?
- Q 1.) What is the role of banks in providing opportunities forparticipants in the financial system to manage the risks theyface?2.) What is the role of banks in arranging the settlement...
- Q List and Describe the four coverages of Auto Insurance
- Q What factprs affect the stock market? Will the market rise ordrop in the next three months?
- Q A brief summary about ExxonMobil.year foundedmajor operationsmarket positionmanagementcompany overview
- Q It is often argued that the best people to detect crime arethose who know how to commit the crime. With this in mind, howwould you commit the perfect fraud? You...
- Q DISCOUNTED PAYBACK Project K costs $52,125, its expected cashinflows are $12,000 per year for 8 years, and its WACC is 12%. Whatis the project's discounted payback? Round to TWO decimal...
- Q Consider a chocolate maker that will need 10,000 tons of cocoabeans next year. Suppose the current market price of cocoa beans is$1400 per ton. At this price, the firm expects...
- Q Your assignment consists of different question styles includingdiscussion questions, reports, exercises, problem questions andspreadsheet questions. It assesses learningoutcomes as listed in the assignment rationale below.The purpose of this assignment is...
- Q *****PLEASE SHOW IN EXCEL*****4. Anindustrial grade lazer printer with the retail price is offered for$3,900. If the sale is for 36 months with $135 per monthlypayments, what is the interest...
- Q ****PLEASE SHOW IN EXCEL****2.Western Trans Corporation has 7,500 bonds outstanding with a facevalue of $1,000 per bond. The bonds carry a 7 percent coupon, payinterest semiannually, and mature in 7.5...
- Q A pension fund manager is considering three mutual funds. Thefirst is a stock fund, the second is a long-term government andcorporate bond fund, and the third is a T-bill money...
- Q Analyze and discuss some of the ways in which a hospitalcan raise capital to operate more efficiently,
- Q What is the value today of a money machine that will pay$4,389.00 per year for 21.00 years? Assume the first payment ismade 2.00 years from today and the interest rate...
- Q ]Ilana Industries, Inc., needs a new lathe. It can buy a newhigh-speed lathe for $1.4 million. The lathe will cost $39,000 peryear to run, but it will save the firm...
- Q (M&A): the existing answers for similar questions below arenot clear, please use bullet point and give the overallanswers and reasons why to support them, ( From theperspective of target firms...
- Q The Smith & Warner Company is considering an expansion ofits production facilities which will permit the firm to build andsell a new line of cell phones. The project requires a...
- Q Please answer the following questions. All questions areseparate, not related. ThanksYou just graduated and landed your first job in your newcareer. You remember that your favorite finance professor told youto...
- Q How can I respond to this discussion?Days sales = 365/ Inventory TurnoverIndustry: 365/2.69= 135.69, so days sales for industry is135.69.Company: 365/15.82= 23.07, so days sales for company is23.07.Taking into consideration...
- Q In a Speech given on 16th March 2014 and titled “Reflections onthe Financial Crisis,” former Assistant Governor (Financial System)of the RBA Dr. Edey said: “I am often asked why Australia...
- Q Why is the Dupont identity a valuable tool for analyzing theperformance of a firm?
- Q Assume that the tax rate on capital gains is 15%, while the txrate on dividend income is 20 %. An investor is comparing twooptions for the stock of ABC firm:...
- Q Build a Model 26-11-2018Chapter: 3Problem: 15Joshua & White Technologies: December 31 Balance Sheets(Thousands of Dollars)Assets 2019 2018Cash and cash equivalents $21,000 $20,000Short-term investments 3,759 3,240Accounts Receivable 52,500 48,000Inventories 84,000 56,000Total...
- Q An analyst is trying to estimate the intrinsic value of BurressInc. The analyst has estimated the company's free cash flows forthe following yearsYear Free Cash flow1 $3,0002 $4,0003 $5,000An analyst...
- Q Suppose Corporation F stock is currently trading at $40 pershare. There are 20 million shares outstanding, and the company hasno debt. You are a partner in a firm that specializes...
- Q NPV and maximum return???A firm can purchase new equipment for a$20,500 initial investment. The equipment generates an annual?after-tax cash inflow of $5,000 for 7 years.a. Determine the net present value...
- Q James King bought ahouse three years ago that cost $750,000. James put up 20% depositand borrowed the rest from FC Bank at a rate of 7.2% per annum,compounded monthly, for...
- Q QUESTION 1. You are a recent graduate that has been hired at“Price Family Paper” as their new Assistant to the RegionalManager. You realize how important saving money for retirement is,so...
- Q On 14 March 2013 a company issued a bond with a face value of$100,000 that matures exactly 25 years later. The coupon rate is 6%p.a. compounded half-yearly. What is the...
- Q Morales Publishing's tax rate is 30%, its beta is 1.20, and ituses no debt. However, the CFO is considering moving to a capitalstructure with 30% debt and 70% equity. If...
- Q A formed partnershipbrings with it different obligations to your fellow partner andthird parties.From an ethical perspective, what obligations does one partnerhave toward her fellow partners?Are the ethical obligations of a...
- Q Firms HL and LL are identical except for their financialleverage ratios and the interest rates they pay on debt. Each has$13 million in invested capital, has $1.95 million of EBIT,...
- Q POD has a project withthe following cash flows:YearCash Flows0?$255,0001146,8002164,3003129,400The required return is 9.6 percent. What is the profitability indexfor this project?
- Q You founded your own firm three years ago. You initiallycontributed $200,000 of your ownmoney and in return you received 2million shares of stock . You also sold an additional 1...
- Q Please discuss the Black & Scholes model and thebinomial model approach to option pricing. What are the advantagesand disadvantages of these two approaches? Determine the price of acall and put...
- Q Boeing imported a Rolls-Royce jet engine for £6.5 mil payablein one yearThe US interest rate 4.00% per annumThe UK interest rate 6.50% per annumThe Spot exchange rate $ 1.80/£ todayThe...
- Q A project in France yields a series of Euro cash flows as thefollowing:-6002005003000123The exchange rate of Euro today is $1.25 per Euro. The inflationrate in the euro zone is ?€...
- Q 2) Project K costs $44,657.75, its expected cash inflowsare $10,000 per year for 9 years, and its WACC is 13%. What is theproject's IRR?3) Project K costs $55,000, its expected...
- Q Use the following information to answer questions 23 to 30. Inorder to ascertain clarity on how much cash Musa (Pty) Ltd needseach month, complete the cash budget using the information...
- Q Exercise 3 : A firm has sales of $2,190, net income of $174, netfixed assets of $1,600, and current assets of $720. The firm has$310 in inventory. What is the...
- Q The marketing manager is involved in the long-term sale of aproduct through effective advertising, but what about short-termgrowth through sales promotions? How are advertising and salespromotion similar? How are they...
- Q XYZ’soperating margin is 15%, 14%, 12%, 8% for years 1,2,3,4respectively. Where would you look to see if this is being cause byexternal factors or by internal factors? Be specific.
- Q In the last semester's final finance exam there was thisexercise:(You) got a bit info about a bonds interest yield and the marketinterest rate andbased on that calculate the market value...
- Q What do you need to consider when providing payroll data topayroll processor for calculation within designated timelines? Youwill need to include a brief explanation on each of the elementse.g. Prepare...
- Q Answer the following:A.) Explain how a decline in the foreign exchange value of acurrency affects the decision to merge with another firm.B.)How does diversification (not the tax inversion) affect thedecision...
- Q -doyou think the systematic risk and unsystematic risk is old fashionor currently useful? -make a strong conclusion for explaing ofsystematic risk and unsystematic risk
- Q 1. Which of the following statements is most CORRECT regardingsunk costs?A) An example of a sunk cost is the cost associated with restoringthe site of a strip mine once the...
- Q Yen has a project that requires an investment of $500 at t=0 andthen generates $100, $200, $300, and $400 in the next four years(from t=1 to t=4). What is the...
- Q Bond ABond BTime to maturity (years)56Annual yield to maturity4.00%4.00%Annual coupon payment40.0065.94Current price-1000-1000Face value1000826.02So we start with twobonds of equal price ($1000) and annual yield to maturity(4.00%)a)What is the Macaulayduration (in...
- Q Aaron's Rentals has 58,000 shares of common stock outstanding ata market price of $36 a share. The common stock just paid a $1.64annual dividend and has a dividend growth rate...
- Q Wilson Corp. is considering the purchase of a new piece ofequipment. The cost savings from the equipment would result in anannual increase in net income after tax of $50,000. The...
- Q The White Flour company is considering expanding its operationsinto computer-based basketball games. The managers feel that thereis a 3-year life associated with the project, and it will initiallyinvolve an investment...
- Q ABC has $5 billion in debtoutstanding (carrying an interest rate of 9%), and 10 millionshares trading at $50 per share. Based on its current EBIT of $ 200million, its optimal...
- Q You are considering a new product launch. The project will cost$2,300,000, have a four-year life, and have no salvage value;depreciation is straight-line to zero. Sales are projected at 310units per...
- Q Daddy Warbucks is in the process of adopting Annie from a NewYork orphanage. He pays $7,000 in 2017, and $7,500 in 2018. DaddyWarbucks’ AGI for 2018 is $165,000. ?a. How...
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