Finance question and answers for July 08, 2023
- Q Deep Value, Inc.’s annual stock returns for the last ten yearsare: –5%, 15%, 11%, 18%, –8%, 9%, 16%, –3%, –2%, and 5%. The MarketIndex’s annual returns for the same ten...
- Q PV Years I/YR P/YR FV 30100 ? 6 6 -89900 How would i get theyears?PVYearsI/YRP/YRFV30100?66-89900
- Q If the relevant discount rate for the following set of cashflows is 7 percent, the profitability index is . If the discountrate is 15 percent, the profitability index is ....
- Q Inflation is a concept we have all become familiar with in ourlife. In recent times, inflation has been relatively low. In pastyears, we have seen inflation above the current low...
- Q Proposals A, B, C, D, E, F and G are being considered with moneyflows over 10 years. A B C D E F G Investment $30,000 $10,000$55,000 $54,000 $20,000 $65,000...
- Q Please calculate operating margin % and excess margin % usingthe information below and explain how you arrived at youranswer:2019RevenueClient Services?Gross2,366,410Contractual Allowances72,565Patient Revenue?Net2,293,845Other Revenue?Imaging246,454Total Revenue2,540,299ExpensesSalaries and Wages1,292,372Staff Benefits339,904Administrative Expenses18,330Advertising34,000Collection Fees1,267Computer Support42,668Consultants1,529Equipment...
- Q St. Johns River Shipyard’s welding machine is 15 years old,fully depreciated, and has no salvage value. However, even thoughit is old, it is still functional as originally designed and can...
- Q Question 10Which of the following changes will make the value of a stock godown, other things being held constant?The required return increases.The required return decreases.The growth rate of dividends increases.In...
- Q You will be paying $34,000 a year in tuition expenses at theend of the next two years. Bonds currently yield 10%. (20points)What is the present value and duration of your...
- 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 Identify two (2) pieces of information not included in theprincipal financial statements that you think would be important tosomeone considering whether to invest in your company. Explain yourreasons for believing...
- Q Describe Market efficiency
- Q Long two calls at 115, short a put at 130, short a share ofstock.(Please include a table with at least 50 data points for thegraph. Graph for stock prices between...
- Q You own (are long) a call with an exercise price of 110 and aput at 125.(Please include a table with at least 50 data points for thegraph. Graph the value...
- Q You buy a share of BP stock for 150, and a six-month calloption at 160 for 9.83. You sell a six month put option at 150 for11.12. You hold your...
- Q what is the population variance of the following set of numbers3,5,8,9,10?
- Q Amount financed = 240,000 - 91,088 = $148,912. This is Pv. Nper= 15 years*12 = 180 and rate = 4.5%/12 Amount paid each month =PMT(4.5%/12, 180, -148912) = 1139.07 find...
- Q New project analysisYou must evaluate a proposed spectrometer for the R&Ddepartment. The base price is $270,000, and it would cost another$54,000 to modify the equipment for special use by the...
- Q Replacement analysisMississippi River Shipyards is considering the replacement of an8-year-old riveting machine with a new one that will increaseearnings before depreciation from $24,000 to $48,000 per year. Thenew machine will...
- Q Using a 7% annual cost of capital, what is the discountedpayback period in years of the potential project below? round to 2decimalsYear-----Cash Flows0..............-50001...............16252..............16683..............16164..............16795..............1619can you please let me know how you...
- Q Consider the following table:Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.05–31%–10%Mild recession0.25–11%16%Normal growth0.4016%9%Boom0.3021%–6%a.Calculate the values of mean return and variancefor the stock fund. (Do not round intermediatecalculations. Round "Mean return"...
- Q The fry company has a credit rating of B and 10 year semi annual5% coupon bonds. Current market yield until maturity on the bond is7%.1) What is the expected price...
- Q At year-end 2016,Wallace Landscaping’s total assets were $1.0 million, and itsaccounts payable were $375,000. Sales, which in 2016 were $2.3million, are expected to increase by 30% in 2017. Total assets...
- Q Mention in your own words: The methods used toreduce interest rate risk and credit risk
- Q Currently Nathan deposits $300 at the end of each month into anIRA and his company will match 40% of his deposit amount. He willretire in 45 years. Assuming his account...
- Q 12-CAPITAL BUDGETING CRITERIAA firm with a 14% WACC is evaluating two projects for thisyear's capital budget. After-tax cash flows, includingdepreciation, are as follows:012345Project M-$15,000$5,000$5,000$5,000$5,000$5,000Project N-$45,000$14,000$14,000$14,000$14,000$14,000Calculate NPV for each project. Round...
- Q Suppose we are thinking about replacing an old computer with anew one. The old one cost us $1,260,000; the new one will cost$1,520,000. The new machine will be depreciated straight-line...
- Q We are examining a new project. We expect to sell 6,400 unitsper year at $58 net cash flow apiece for the next 10 years. Inother words, the annual operating cash...
- Q QUESTION 1Based on the information in Table 4-2, and assuming thecompany's stock price is $50 per share, the M/B ratio isTable 4-2Drummond CompanyBalance SheetAssets:Cash and marketable securities$400,000Accounts receivable1,415,000Inventories 1,847,500Prepaid expenses24,000Total current...
- Q It has been stated that ‘Time has value.’ What does this meanwhen we are evaluating a series of cash flows?
- Q We are examining a new project. We expect to sell 6,400 unitsper year at $58 net cash flow apiece for the next 10 years. Inother words, the annual operating cash...
- Q Annuities are one of the most used of the valuation formulas infinance. There are 7 characteristics or factors that we need tolook for when determining the correct formula to use....
- Q The MacDonalds are at the bank in order to negotiate a loan tobuy a farm where they can raise cows, horses, chickens sheep andplant spaghetti trees. They have managed to...
- Q You are currently 25 years old and have decided to start payinginto your registered retirement plan. You will start to deposit$125 at the end of each month starting with this...
- Q Portfolio Beta and Required Return You hold the positions in thetable below. A) What is the beta of your portfolio? B) If youexpect the market to earn 14 percent and...
- Q An investment has an initial cost of $3.2 million. Thisinvestment will be depreciated by $900,000 a year over the 3-yearlife of the project. Should this project be accepted based on...
- Q Broussard Skateboard's sales are expected to increase by 15%from $7.6 million in 2016 to $8.74 million in 2017. Its assetstotaled $5 million at the end of 2016. Broussard is already...
- Q Broussard Skateboard's sales are expected to increase by 20%from $8.2 million in 2016 to $9.84 million in 2017. Its assetstotaled $2 million at the end of 2016. Broussard is already...
- Q You are considering the purchase of an investment that would payyou $66 per year for Years 1-4, $45 per year for Years 5-7, and $98per year for Years 8-10. If...
- Q Motor Homes Inc. (MHI) is presently in a stage of abnormallyhighgrowth because of a surge in the demand for motor homes.Thecompany expects earnings and dividends to grow at a rate...
- Q What are the strategic justifications for your specific firm toundertake a merger (either as acquirer or target) within theeconomic context of the simulation? That is, what are the pros foryour...
- Q The owners’ equity accounts for Hexagon International are shownhere: Common stock ($.50 par value)$42,500 Capital surplus345,000 Retained earnings758,120 Total owners’ equity$1,145,620 a-1.If the company's stock currently sells for $20 per share and a15 percent stock...
- Q Find MIRR for the project with a cost of -$20,000 and subsequentcash flows of 10,000; $40,000; - $5,000; -$30,000. Use WACC of 6%.Will you proceed with this project? Why or...
- Q The Neal Company wants to estimate next year's return on equity(ROE) under different financial leverage ratios. Neal's totalcapital is $15 million, it currently uses only common equity, ithas no future...
- Q Firms HL and LL are identical except for their financialleverage ratios and the interest rates they pay on debt. Each has$28 million in invested capital, has $5.6 million of EBIT,...
- 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 1.30 (givenits target capital structure). Vandell...
- Q Corp. forecasts its dividends to be $2.25 per share next year,$2.75 per share in two years, and $3.60 per share in three years.After the third year, dividends are anticipated to...
- Q Herjavec Enterprises is thinking about introducing a new surfacecleaning machine. The marketing department has come up with theestimate that the company can sell 14 units per year at $299,000net cash...
- Q McGilla Golf is evaluating a new line of golf clubs. The clubswill sell for $1,010 per set and have a variable cost of $455 perset. The company has spent $160,000...
- Q Bond Returns:A 15-year, $1,000 par value bond has an 8.5% annual paymentcoupon. The bond currently sells for $925. After one year, assumingthe the yield to maturity (discount rate) remains the...
- Q I have two really quick ones from anexam review. A small explanation would be great!Some of the factorsthat can affect business risk are:Select one:- Possible variations in the demand for...
- Q Problem 14-30 Project Evaluation [LO3, 4]Suppose you have been hired as a financial consultant to DefenseElectronics, Inc. (DEI), a large, publicly traded firm that is themarket share leader in radar...
- Q Problem 14-8 Calculating Cost of Debt [LO2]Jiminy’s Cricket Farm issued a bond with 30 years to maturityand a semiannual coupon rate of 5 percent 3 years ago. The bondcurrently sells...
- Q Iam doing an exam review and just have some questionsFinancial distresscosts:Selectone:-,May includeimpaired service to customers and suppliers and lost oftrust- Tend to offset theadvantages of debt finance- Might lower thevalue...
- Q Fixed Income Arbitrage is to find mispricing of coupon bondsthrough the system of linear equations where # of equations > #of unknowns. Suppose there are only three treasury coupon bonds...
- Q A business opportunity has presented itself to you and one ofyour classmates. Your opportunity is to enter the fast-growingcraft beer industry. Your projected sales in the first year is 8300kegs....
- Q The internal rate of return (IRR) refers to the compound annualrate of return that a project generates based on its up-front costand subsequent cash flows. Consider this case:Falcon Freight is...
- Q Tocserp is considering the purchase of a new machine that willproduce widgets. The widget maker will require an initialinvestment of $12,000 and has an economic life of five years andwill...
- Q Details of McCormick Plant Proposal McCormick & Company isconsidering a project that requires an initial investment of $24million to build a new plant and purchase equipment. The investmentwill be depreciated...
- Q Loan 1: Amortize a $35,000 car loan at 4.5% over 5 years. Howmuch is the monthly payment? How much will the borrower pay intotal interest?
- Q Anopportunity has presented itself to you and one of yourclassmates. Your opportunity is to enter the fast-growing craftbeer industry. Your projected sales in the first year is 8300 kegs.Your projected...
- Q Answer in 200 words.Explain the various sources of risk in an investmentportfolio. In your opinion, what can an investor do to manageportfolio risk efficiently?
- Q Discuss the significance of the efficient marketshypothesis to your understanding of financialreporting. Discuss the role of financial reporting inan efficient market.
- Q Bob's firm is a retail chain of specialty hardware stores. Thefirm has 21,000 shares of stock outstanding that are currentlyvalued at $68 a share. Just paid a dividend of $5....
- Q Use Excel. A business has a mortgage of £200,000 for a term of 25 years, tobe paid in equal monthly instalments. Assume an interest rate of4.8% p.a. (calculated monthly) throughout the...
- Q What do we mean by “e?cient markets”? Explain the idea behindtesting for market e?ciency
- Q Bob's firm is a retail chain of specialty hardware stores. Thefirm has 21,000 shares of stock outstanding that are currentlyvalued at $68 a share. Bob’s firm stock has a beta...
- Q An investor buys a stock for $40 per share and simultaneouslysells a call option on the stock with an exercise price of $42 fora premium of $3 per share. Ignoring...
- Q Period Jazman Solomom1. $7 $262. $ 10 $ 273 . $8 $ 344. $14 $30a. From the price data, compute the? holding-periodreturns for...
- Q What is the monthly payment for a $800,000 mortgage for thefirst 119 payments that is due in 10 years, has a 25 yearamortization, at 5% interest? What is the amount...
- Q Discuss five main provisions of a mortgage and the rationale foreach
- Q . You are working on a bid to build two city parks a year forthe next three years. This project requires the purchase of$180,000 of equipment that will be depreciated...
- Q in Xiang is single and lives at 2468 North Lake Road inLakeland, MN 56444. Her SSN is 412-34-5670. She worked the entireyear for Lakeland Automotive. The Form W-2 from Lakeland...
- Q You are a Consultant for the professional service firm, BUSI2083 LLP. Your firm specializes in providing a wide variety ofinternal business solutions for different clients. One of thepartners in your...
- Q Variable Growth A fast growing firm recently paid a dividend of$0.50 per share. The dividend is expected to increase at a 20percent rate for the next 3 years. Afterwards, a...
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!