Finance question and answers for July 04, 2023
- Q 1.Columbus Manufacturing's stock currently sells for $ 29.10 ashare. The stock just paid a dividend of $3.50 a share(i.e.,D0). The dividend is expected to grow at aconstant rate of 4...
- 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 The market and Stock A have the following probabilitydistributions:ProbabilityReturn on MarketReturn on Stock A0.1515%18%0.312%15%0.5510%11%a. Calculate the expected rates of return for the market andStock A.b. Calculate the standard deviations for...
- Q 1. In class, we address the importance of maximizingshareholders’ wealth. However, it seems like maximizing stockprices does not make sense, because investors focus on short-termresults and don’t care about long-term...
- Q Calculate free cash flow for 2017 for Monarch Textiles, Inc.,based on the financial information that follows. Assume that allcurrent liabilities are non-interest-bearing liabilities and thatno fixed assets were sold or...
- Q How the company’s financial policy create value to the firm? Howthe company’s financial policy create competitive advantages? Whydo you think the company’s financial policy sustain seniormanagement’s visions?
- Q 1.Consider the Following 10-year project:YearCash Flow0-30000125002500036750470005725066000762508800093750102000Complete the following questions on excel:What is the Payback Period for the project?What is the Discounted Payback Period for the project at 12%required rate of...
- Q why does the gender pay gap exist in banking? (500 words)
- Q Portfolio Project:Exotic Food Inc., Capital Budgeting CaseCASE SUMMARYExotic Food Inc., a food processing company located in Herndon,VA, is considering adding a new division to produce fresh gingerjuice. Following the ongoing...
- Q Please explain what is investment strategies and what is fundingstrategies.I just want a breakdown of what these two concepts are
- Q Give 3 examples of how tax considerations can motivatemergers.
- Q Do mergers create value for the acquirer and the target? If yes,what does research show about the value created? If no, why arefirms interested in M&A?
- Q What is the Big Bang protocol?how a credit event auction work?
- Q A sheep rancher agreed in writing to sell all the wool shornfrom her sheep during the next shearing season to Wool Weavers,Inc. The writing did not include a price or...
- Q A company has annual revenues of $5,000,000, fixed cost of$1,500,000, and variable cost of 30% of annual revenues. A.) Whatare the expected profits? B.) What is the degree of operatingleverage?...
- Q Whats the purpose for each of the following , how can u comparebetween them and give simple example for each of them (In simplewords)Pro Forma Cash FlowPro Forma Income StatementsPro...
- Q what is the minimum-risk (standard deviation) portfolio ofAT&T and Microsoft if the correlation between the two stocks is0? 0.5? 1? -1? what do you notice about the change in theallocations...
- Q Problem 7-28 Make or buy Analysis {LO-7-3} “in my opinion, weought to stop making our own drums and accept that outside acceptsupplier’s offer,” said Wim Niewindt, managing director of AntillesRefining,...
- Q Break-even PointSchweser Satellites Inc. produces satellite earth stations thatsell for $95,000 each. The firm's fixed costs, F, are $2 million,50 earth stations are produced and sold each year, profits total$400,000;...
- Q Exotic Food Inc., Capital Budgeting CaseCASE SUMMARYExotic Food Inc., a food processing company located in Herndon,VA, is considering adding a new division to produce fresh gingerjuice. Following the ongoing TV...
- Q Solve these questions with formula (answer quantitatively) :a. Current earning per share = $6Current dividend per share = $2.4Current market price per share = $35Required return on the stock =...
- Q Capital Structure AnalysisThe Rivoli Company has no debt outstanding, and its financialposition is given by the following data:Assets (Market value = book value)$3,000,000EBIT$500,000Cost of equity, rs10%Stock price, Po$15Shares outstanding, no200,000Tax...
- Q Define forward and futures contracts and explain howthey may be used in hedging and speculation.Explain, using numerical examples, the settlement mechanisms offorward and futures contracts and discuss how these are...
- Q Explain how a plain vanilla interest rate swap isconstructed.Analyse the comparative advantage argument for the popularity ofswaps. Support your analysis with a numerical example.
- Q Which of the following statements are true?A. An increase in inventory is a use of cash that may require ashort term financing arrangement, like a bank line of credit.B. Retained...
- Q Optimal Capital Structure with HamadaBeckman Engineering and Associates (BEA) is considering a changein its capital structure. BEA currently has $20 million in debtcarrying a rate of 8%, and its stock...
- Q State and discuss in detail, the strategy a firm might use tohedge the potential adverse effect (s) of exchange rate changes onthe sale of its buildings and machinery located in...
- Q Megatronics Corporation, a massive retailer of electronicproducts, is organized in four separate divisions. The fourdivisional managers are evaluated at year-end, and bonuses areawarded based on ROI. Last year, the company...
- Q Do you think the US is still considered one of the "Super Power"countries it once was? I feel like we have lost some of our edge soto speak? How could...
- Q Mogoin Gol is a Mongolian coal mining company. The expected freecash during the next three years is listed below, after which thefree cash flow is expected to grow at a...
- Q B. Lonchyna enlisted in the US Air Force at age 17. Hesubsequently applied three times for educational delays to delaythe start of his tour with the Air Force. These were...
- Q The Woolong Company produces high-end vacuum cleanersand sells them to consumers online. They are designing a newproduct, and you have been hired as the project manager to overseeit.Discuss the tools...
- Q Johnson & Johnson (JNJ) Dividend GrowthJNJ’s dividends have grown an average of 7.365% over the past 11years. The rate of dividend growth is likely to slow over time,especially if another...
- Q As owner of Falcon Airlines, you are considering the purchase ofa new de-icing machine. The machine will be used to remove ice fromthe wings of Falcon’s planes during winter. The...
- Q Let’s suppose today is 1/4/2019 and you observe the informationfrom various coupon bonds issued bythe Australian Government. Using the bond information, pleasecomplete the following tasks:1. Construct the pure yield curve....
- Q Please use PV, FV, R, PMT, N when answering.1. Your best friend Frank just celebrated his 30th birthday andwants to start saving for his anticipated retirement. Frank plansto retire in...
- Q 1. Sam borrows $1,000,000 by a mortgage with annual paymentsover 30 years at a rate of 9.75% per annum interest. What are hisannual payments? what is the remaining balance on...
- Q . Some countries restrict foreign ownership in selectedindustries such as banking, media and telecommunications.a. If Australia introduced fresh restrictions on foreignownership in the real estate sector how would this affectAustralian...
- Q Angsana Corporation has bonds on the market with 11.5 years tomaturity, a YTM of 11.4 percent, and a current price of $835.66.The bonds make semiannual payments. The coupon rate on...
- Q Bond J is a 6 percent coupon bond. Bond K is a 10 percent couponbond. Both bonds have 10 years to maturity, make semiannualpayments, and have a YTM of 8...
- Q Your client wishes you to investigate a telecommunicationscompany with the following balance sheet and details (below):Long-term debt $ Bonds: Par $1,000, annual coupon 7% p.a., 3 yearsto maturity 10,000,000 Equity...
- Q We are evaluating a project that costs $744,000, has a six-yearlife, and has no salvage value. Assume that depreciation isstraight-line to zero over the life of the project. Sales areprojected...
- Q Jumpdisk Company writes checks averaging $32,000 a day and ittakes five days for these checks to clear. The firm also receiveschecks in the amount of $35,000 per day, but the...
- Q Lone Star Industries just issued $800 of perpetual 12% debt andused the proceeds to repurchase stock. The company expects togenerate $185 of earnings before interest and taxes in perpetuity.Lone Star...
- Q 1- Currently, data is everywhere and organizations arestruggling with the huge amount of data they have. Discuss howhaving all this data could be beneficial for organizations.
- Q Hello, please 200 words at least, thank you:Q: What is meant by the "cost of capital", as the term pertainsto common shareholders' equity? We can easily determine the cost ofdebt,...
- Q The Trektronics store begins each month with 775 phasers instock. This stock is depleted each month and reordered. Thecarrying cost per phaser is $23 per year and the fixed order...
- Q 2- Banks have all sorts of information about their customers andthey also use credit history of those customers from externalsources when they assess applications eligibility of extend a loan.Suggest how...
- Q Hello, please 200 words at least, thank you:Q: There are several accepted methods of determining themonetary advantage of one investment opportunity over another: Thepayback method; zero discount rate; net present...
- Q Assume you are the CFO of AIFS. Your analyst reports thefollowing information (Use the following information for theremainder of the assignment):• Current exchange rate is $1.16/€.• Forward rate is $1.185/€.•...
- Q Dog Up! Franks is looking at a new sausage system with aninstalled cost of $335,400. This cost will be depreciatedstraight-line to zero over the project's 6-year life, at the end...
- Q A company is planning to build an engineering lab at a nearbyuniversity through a grant. The building should initially cost$50,000,000 and maintenance cost(end of year) are expected to be$200,000 per...
- Q Docompetitive advantage and the forecast period necessarily end atthe same time? Explain.
- Q I. Create a portfolio report of 10 different stocks from 10different industries. Each student is given $100,000 to fullyinvest in the chosen portfolio.II. Portfolio set up and observation is to...
- Q Calculate the times interest earned ratio from 2015 to 2018 andinterpret them.ASX CodeItem06/1506/1606/1706/18TLSOperating Revenue25,845,000,000.0025,834,000,000.0025,912,000,000.0025,667,000,000.00TLSOther Revenue762,000,000.001,216,000,000.002,293,000,000.003,375,000,000.00TLSTotal Revenue Excluding Interest26,607,000,000.0027,050,000,000.0028,205,000,000.0029,042,000,000.00TLSOperating Expenses-15,845,000,000.00-16,103,000,000.00-17,231,000,000.00-18,754,000,000.00TLSEBITDA10,762,000,000.0010,947,000,000.0010,974,000,000.0010,288,000,000.00TLSDepreciation-2,922,000,000.00-2,957,000,000.00-3,058,000,000.00-3,005,000,000.00TLSAmortisation-1,061,000,000.00-1,198,000,000.00-1,383,000,000.00-1,465,000,000.00TLSDepreciation and Amortisation-3,983,000,000.00-4,155,000,000.00-4,441,000,000.00-4,470,000,000.00TLSEBIT6,779,000,000.006,792,000,000.006,533,000,000.005,818,000,000.00TLSInterest Revenue157,000,000.0086,000,000.00138,000,000.0082,000,000.00TLSInterest Expense-846,000,000.00-796,000,000.00-729,000,000.00-631,000,000.00TLSNet Interest Expense-689,000,000.00-710,000,000.00-591,000,000.00-549,000,000.00TLSPreTax Profit6,090,000,000.006,082,000,000.005,942,000,000.005,269,000,000.00TLSTax Expense-1,787,000,000.00-1,768,000,000.00-1,910,000,000.00-1,573,000,000.00TLSNet Profit after Tax...
- Q Big SkyMining Company must install $1.5 million of new machinery in itsNevada moine. It can obtain a bank loan for 100% of the purchaseprice, or it can lease the machinery....
- Q Optimization of Capital BudgetsUniversity Hospital has four capital projects underconsideration with the following investments and projected cashflows. What is their optimal capital budget allocation if theircorporate cost of capital is...
- Q Problem 4-21 Schedule of cash payments [LO4-2] The DenverCorporation has forecast the following sales for the first sevenmonths of the year: January $ 30,000 May $ 30,000 February 32,000June 36,000...
- Q Problem 6-14 Conservative versus aggressive financing [LO6-5]Guardian Inc. is trying to develop an asset-financing plan. Thefirm has $370,000 in temporary current assets and $270,000 inpermanent current assets. Guardian also has...
- Q Problem 13-18 Coefficient of variation and investment decision[LO13-1] Mr. Sam Golff desires to invest a portion of his assets inrental property. He has narrowed his choices down to two apartmentcomplexes,...
- Q i) Explain relative purchasing power parity; and ii) give anexample to support your answer.i) What is political risk; and ii) give an example of asignificant political risk faced by any...
- Q 1. Electric Car expects to have earnings per share of $5 in2020. The firm plans to pay all of its earnings as dividends.Electric Car’s current share price is $50.A. Suppose...
- Q Definea weather related derivative security.Describe the type of company that would most likely use one ofthese securities.Select a company that would use a weather derivative andexplain how it will benefit...
- Q Key West Hospital is considering investing in a new CT scannerwhich has improved images and requires less use of contrast mediafor some scans.The cost of the machine is $1.5 million...
- Q The capital structure irrelevance theory proposed by Modiglianiand Miller (MM) is often criticized to be based on very restrictiveassumptions which are unrealistic in the world today. However, thetheory is still...
- Q Rockville Bank is reviewing its loan portfolios to estimate howdiversified their portfolios are. For internal purposes, the Bankassesses credit risk into four categories – High Quality, AverageQuality, Poor Quality, and...
- Q The nature of the business of Next PLC and relevant informationof the industry. (500 words)This information should be available in the Annual Report and afive-year summary in the annual report...
- Q Virus Stopper Inc., a supplier of computer safeguard systems,uses a cost of capital of 8 percent to evaluate average-riskprojects, and it adds or subtracts 1 percentage points to evaluateprojects of...
- Q Illustrate three main assumptions made by MMand discuss how the problems are tackled by alternative capitalstructure theories.
- Q Which of the following scenarios is inconsistent with asemistrong-efficient market?Multiple ChoiceA. Veeva's CEO sold 100,000 shares of the company on Apr 1, 2017for $56 per share. On Apr 6, Veeva...
- Q For which one of the two parties involved in a forwardcommitment through a forward contract or a futures contract; arethe following market conditions (occurring after inception of thecontract) profitable? Explain...
- Q Problem 3-36 Comparing all the ratios [LO3-2]Using the financial statements for the Snider Corporation,calculate the 13 basic ratios found in thechapter. SNIDER CORPORATIONBalance SheetDecember 31, 20X1AssetsCurrent assets:Cash$53,000Marketable securities26,400Accounts receivable (net)235,000Inventory257,000Total current...
- Q As investors' required rate of return on a bond increases, thevalue of the bond increases also. a. True b. False
- Q How is The Federal Open Market Committee chosen and what istheir job?
- Q Let’s suppose today is 1/4/2019 and you observe the informationfrom various coupon bonds issued bythe Australian Government. Using the bond information, pleasecomplete the following tasks:1. Construct the pure yield curve.Maturity...
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