Finance question and answers for July 15, 2023
- Q The assets of Dallas& Associates consist entirely of current assets and net plantand equipment. The firm has total assets of $2.6 million and netplant and equipment equals $2.1 million. It...
- Q The Canton Corporation shows the following income statement. Thefirm uses FIFO inventory accounting.CANTON CORPORATIONIncome Statement for 20X1Sales$239,400(12,600 units at $19.00)Cost of goodssold126,000(12,600 units at$10.00)Grossprofit$113,400Selling andadministrative expense11,970Depreciation14,600Operatingprofit$86,830Taxes (30%)26,049Aftertaxincome$60,781a. Assume in 20X2...
- Q RATIO ANALYSISData for Barry Computer Co. and its industry averagesfollow.Barry Computer Company:Balance Sheet as of December 31, 2016 (InThousands)Cash$63,480Accounts payable$103,155Receivables238,050Other current liabilities71,415Inventories198,375Notes payable to bank39,675 Total current assets$499,905 Total current liabilities$214,245Long-term debt$166,635Net...
- Q Green Lake Corp. has 10 million shares outstanding with a marketprice of $25 per share and no debt. The company marginal tax rateis 40%. The CFO of Green Lake plans...
- Q Albatross Airline’s fixed operating costs are $5 million, andits variable cost ratio is 0.30. The firm has $1.3 million in bondsoutstanding with a coupon interest rate of 7 percent. Albatross...
- Q Halliford Corporation expects to have earnings this coming yearof $2.65 per share. Halliford plans to retain all of its earningsfor the next two years. For the subsequent two? years, the...
- Q Marley's Plumbing Shops has found that its common equity capitalshares have a beta equal to 1.5 while the risk-free return is 8percent and the expected return on the market is...
- Q 9. a) What must be the interest rate in order for an investmentof $1,000 to produce proceeds of $2,000 in 20 years?b) If a cash flow of $2,000 in 20...
- Q What is the significance and importance of sound businessdecision-making in risk and risk management in business?
- Q Balance Sheets:20132012Cash and equivalents$100 $85 Accounts receivable275 200 Inventories375 250 Total current assets$750 $635 Net plant and equipment2,000 1,490 Total assets$2,750 $2,125 Accounts payable$150 $85 Accruals75 50 Notes payable150 75 Total currentliabilities$375 $210 Long-term debt450 290 Common stock1,225 1,225 Retained earnings700 400 Total liabilities and equity$2,750 $2,125 Income Statements:20132012Sales$2,000 $1,500 Operating costs excluding depreciation1,250 1,000 EBITDA$750 $500 Depreciation and amortization100 75 EBIT$650 $425 Interest62 45 EBT$588 $380 Taxes (40%)235 152 Net income$353 $228 Dividends paid$53 $48 Addition to...
- Q Solve for the unknown interest rate in each of the following:(Do not round intermediate calculations and enter youranswers as a percent rounded to 2 decimal places, e.g.,32.16.)Present ValueYearsInterest RateFuture Value$7854%$1,52197551,85822,00016148,83277,30019326,815
- Q ICU Window, Inc., is trying to determine its cost of debt. Thefirm has a debt issue outstanding with seven years to maturity thatis quoted at 110 percent of face value....
- Q Chapter 4:3. Fire Corp financial statements:Pro forma income statementPro forma balance sheetSales$ 32,000Assets$25,300Debt$ 5,800Costs$ 24,400________Equity$ 19,500Net income$ 7,600Total$25,300Total$ 25,300It expects 15% sales increase. It also predicts every item onthe balance...
- Q Which is better from the perspective of the company seekingfunding, debt financing or equity financingHow are interest rates determined on business loans?
- Q ICU Window, Inc., is trying to determine its cost of debt. Thefirm has a debt issue outstanding with nine years to maturity thatis quoted at 117 percent of face value....
- Q Consider the following information for Evenflow Power Co., Debt:3,000 8 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 104 percent of par; the bonds makesemiannual payments. Common stock:60,000...
- Q Theauditors are in the best position to evaluate a company becausethey have prepared the financial statements. Do you agree or ordisagree? Support your 450 word response with reputablesources.
- Q The Mann Company belongs to a risk class for which theappropriate discount rate is 10 percent. The company currently has240,000 outstanding shares selling at $150 each. The firm iscontemplating the...
- Q how can i put in the financial calculatorCheck My Work (1 remaining)Click here to read the eBook: Uneven Cash FlowsPV OF CASH FLOW STREAMA rookie quarterback is negotiating his first...
- Q Check My Work (1 remaining) Click here to read the eBook: UnevenCash Flows PV OF CASH FLOW STREAM A rookie quarterback isnegotiating his first NFL contract. His opportunity cost is...
- Q 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 detection systems (RDSs). The companyis...
- Q A Treasury bond with 7 years to maturity is currently quoted at117:7. The bond has a coupon rate of 9.7 percent. What is the yieldvalue of a 32nd for this...
- Q Consider the following two mutually exclusive projects:YearCash Flow (A)Cash Flow (B)0–$300,239 –$15,047 125,500 4,045 254,000 8,810 356,000 13,421 4416,000 9,629 Whichever project you choose, if any, you require a 6...
- Q Capital Structure AnalysisPettit Printing Company has a total market value of $100million, consisting of 1 million shares selling for $50 per shareand $50 million of 10% perpetual bonds now selling...
- Q A local restaurant would like to put its businessonline, and you are in charge of this project.Discuss how you should you approach developing thescope of this Web-based project.Share how your...
- Q Additional Funds Needed The Booth Company's sales are forecastedto double from $1,000 in 2016 to $2,000 in 2017. Here is theDecember 31, 2016, balance sheet: Cash $ 100 Accounts payable...
- Q Your company is considering a machine that will cost $1,000 atTime 0 and which can be sold after 3 years for $100. To operate themachine, $205 must be invested at...
- Q Astock had annual returns of 5.6%, 10.4%, -6.7%, 8.1%, and -5.9%.What was its arithmetic average annual return during that period?Answer in percentage, rounded to two decimal places.Same stock as in...
- Q AA corporation has a capital structure consisting of 40% debt,10% preferred stock, and 50% common equity. Assume the firm has asufficient retained earnings to fund the equity portion of itscapital...
- Q A company has 2 investment opportunities with the following cashflows: Year 1 Year 2 Year 3 InvestmentA $1,500 $1,250 $1,800 InvestmentB $1,500 $1,500 $1,500If a company can earn 5% in other investments, what is thepresent value of investments A...
- Q Over the past six months, Six Flags conducted a marketing studyon improving their park experience. The study cost $3.00 millionand the results suggested that Six Flags add a kid's only...
- Q Aiello, Inc. had the following inventory in fiscal 2016.Beginning Inventory, January 1, 2016: 130 units @ $15.00Purchase 200 units @ $18.00Purchase 50 units @ $13.50Purchase 110 units @ $15.75Total units...
- Q Dog Up! Franks is looking at a new sausage system with aninstalled cost of $530,400. This cost will be depreciatedstraight-line to zero over the project's 9-year life, at the end...
- Q Just Dew It Corporation reports the following balance sheetinformation for 2017 and 2018. JUST DEW IT CORPORATION 2017 and2018 Balance Sheets Assets Liabilities and Owners’ Equity 2017 20182017 2018 Current...
- Q Home Depot has been presented with an investment opportunitythat will yield end-of-year cash flows of $45,000 per year in years1 through 4, $38,000 per years 5 through 9, and $42,000...
- Q A Treasury bond with 8 years to maturity is currently quoted at110:12. The bond has a coupon rate of 8.3 percent. What is theyield value of a 32nd for this...
- Q Maria has about $200,000 to invest for 5 years. Given hercurrent investments, her adviser has recommended that she investthe money in corporate bonds. Her adviser has suggested twoalternatives. Alternative 1...
- Q Corriedale Ltd plan to introduce a new line of organicallyproduced wool for textile production. The new wool will generateincremental revenues of $57,000 per year for 8 years. Theincremental operating costs...
- Q Three distinct capital budgeting tools are referred to includingNPV, payback and IRR, but all three need to be used simultaneouslyas the advantages of one are disadvantages to the other.What are...
- Q Winning one of the big national lotteries provides achoice of how to receive the money. You can receive a much-reducedlump sum (like half or so) today, or the full amount...
- Q Dill owns five percent of the outstanding shares in PickleLtd,which has just announced a one for five rights issue with asubscription price of $1.90.The current 'cum rights' price forPickle shares...
- Q Why would the U.S. government, local governments, andcorporations issue bonds?As owners, what rights and advantages do shareholdersobtain?
- Q Q1. You plan to purchase a $100,000 house using a 30-yearmortgage obtained from your local credit union. The mortgage rateoffered to you is 8.25%. You will make a down payment...
- Q Scare Train, Inc. has the following balance sheet statementitems: current liabilities of $847,569; net fixed and other assetsof $1,542,574; total assets of $3,360,467; and long-term debt of$704,043. What is the...
- Q eBookProblem Walk-ThroughYou are given the following information: Stockholders' equity asreported on the firm’s balance sheet = $6.75 billion,price/earnings ratio = 10.5, common shares outstanding = 140million, and market/book ratio =...
- Q Question 10. You want to figure out the risk aversion for yourclient. After showing him a number of investment alternatives youfind that the two alternatives below, A and B, give...
- Q “You are a $tockholder (and/or perhaps, a manager)in a large U.S. multinational company (MNC) that manufactures toysin several different countries in Southeast Asia, and sells thesetoys both here in America,...
- Q Please write 3-4 paragraphs to discuss whether you agree ordisagree with the following statement:Markets are efficient and most mutual fund managers and analystscannot help investors improve returns to their portfolios.Your...
- Q 4. Analysis of a replacement project At times firms will need todecide if they want to continue to use their current equipment orreplace the equipment with newer equipment. The company...
- Q 3. A client of Mr. Richards wants to purchase one of threebonds: a) 10-year corporate bond with a 2.00% coupon, payingannually, and par value of $1,000. b) 7-year corporate bond...
- Q How is the global foreign exchange market structured? Aredigital telecommunications replacing people?Please try to respond with 450 words if possible please. Thankyou so much.
- Q Assume the following informationCurrent spot rate of New Zealand dollar=$0.41Forecasted spot rate of New Zealand dollar 1 year from now=$0.43One-year forward rate of the New Zealand dollar=$0.44Annual interest rate on...
- Q In your own words, based on external research, tell us youropinion of "How effective is the U.S. Securities and ExchangeCommission as a regulator of the IPO fund raising process?" Discussand...
- Q Discuss managing interest rate by using loan sales andsecuritisation.(Minimum 300 words and no plagiarism , please)
- Q For the 3 companies, what conclusions can you make about thetrends?20142015201620172018Stock PriceFord$15.50$10.95$10.61$11.62$7.52General Motors$29.67$29.49$32.16$42.66$33.46Honda$26.70$29.40$27.70$22.89$26.44PE RatioFord15.506.939.236.028.17General Motors17.984.995.36n/a6.05Honda8.6711.9512.314.417.07EPSFord$1.00$1.58$1.15$1.93$0.92General Motors$1.65$5.91$6.00-$2.60$5.53Honda$3.08$2.46$2.25$5.19$3.74
- Q 1.Lohn Corporation is expected to pay the following dividendsover the next four years: $17, $15, $10, and $5. Afterward, thecompany pledges to maintain a constant 4 percent growth rate individends...
- Q Please write 3-4paragraphs to discuss whether you agree or disagree with thefollowing statement:Markets are efficient andmost mutual fund managers and analysts cannot help investorsimprove returns to their portfolios.Your discussion shouldalso...
- Q Consider two mutually exclusive new product launch projects thatNagano Golf is considering. Assume the discount rate for bothproducts is 14 percent. Project A: Nagano NP-30. Professional clubsthat will take an...
- Q The Blossom City Ice Cream Company management has just completedan assessment of the company’s assets and liabilities and hasobtained the following information. The firm has total currentassets worth $620,000 at...
- Q How should you determine whether to take or reject a project?What measure should you use to figure out the dollar value of theproject today?If the rate of return is positive,...
- Q Review and narrow your list of business ideas to the one youwill use for your pitch in Week 8. Utilizing the discussion onsales forecasting in chapter 10, prepare a 6-month...
- Q You must evaluate a proposal to buy a new milling machine. Thebase price is $142,000, and shipping and installation costs wouldadd another $6,000. The machine falls into the MACRS 3-year...
- Q Consider the following information about three stocks: Rate of Return If State Occurs State ofProbability of EconomyState of EconomyStock AStock BStock C Boom.20.28.40.56 Normal.45.22.20.18 Bust.35.00?.20?.48 a-1.If your portfolio is invested 30 percent each in A and B...
- Q Please show work.......thanks!Fixed Income HW due 6/29/19Assume today is June 19, 2019 and that all bonds pay interestannually with a face value of $1,000.YTM = Current yield + Capital Gains...
- Q Find a journal article online about the convergence ofInternational Financial Reporting Standards (IFRS). Post a link tothat article and provide a summary (approximately 250 words) and areaction (approximately 150 words)...
- Q 1) Quantitative Problem 1: You plan to deposit $2,000 per yearfor 6 years into a money market account with an annual return of3%. You plan to make your first deposit...
- Q Assuming thata. you can buy a euro call with strike price of $1.50 for 3centsb. you can sell a euro put at the same strike price for 4centsc. the prevailing...
- Q You are 30 years old today. You wish to retire at age 65. Howmuch money must you deposit at the end of each year so that whenyou retire at age...
- Q Suppose today two-year US treasury bill is 2.15% and thetwo-year UK treasury bill is 1.0%. Further suppose today spotexchange rate is USD 1.25 per Euro and you know you will...
- Q List five types of transaction that might be entered into anaccounting system.
- Q Suppose you have the following 4 option contracts that expirein exactly 1 year from today.PremiumStrike PriceCall 1$9.89$75Call 2$4.98$85Put 1$3.41$75Put 2$8.30$85You establish an option positioncombining the purchase of Call 1 and...
- Q Opening a restaurant is risky. Its success or failure depends onwhether customers like it. Often, success does not occur overnight.It may take several years before a robust clientele of neighborhoodregulars...
- Q One year? ago, your company purchased a machine used inmanufacturing for $ 100,000. You have learned that a new machine isavailable that offers many? advantages; you can purchase it for...
- Q The Canadian Musician/Artist Aubrey Drake Graham, known by hisstage name “Drake “ has invested 70% of his money in share A andthe remainder in share B. He assesses their prospects...
- Q A stock just paid an annual dividend of $1.6. The dividend isexpected to grow by 9% per year for the next 4 years. The growthrate of dividends will then fall...
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