Finance question and answers for July 19, 2023
- Q Given the following information about your firm’s capitalstructure, calculate your firm’s WACC (assume the corporate taxrate is 35%). Debt Number of bonds outstanding = 12,000 price perbond = $1,165 par...
- Q Assume that the average firm in your company's industry isexpected to grow at a constant rate of 5% and that its dividendyield is 8%. Your company is about as risky...
- Q c- The check-cashing store also makes one-month add-on interestloans at 8 percent discount interest per week. Thus if you borrow$100 for one month (four weeks),the interest will be ($100 ×...
- Q ?OpenSeas, Inc. is evaluating the purchase of a new cruise ship.The ship will cost $ 495 ?million, and will operate for 20 years.OpenSeas expects annual cash flows from operating the...
- Q All questions below analyze the same company. The informationbelow will be needed to answer all questions. Consider thefollowing information regarding ABC Corporation.20092010Sales ($ millions)10001112Cost of Goods Sold ($ millions)500556Other Expenses...
- 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 You are the investment manager for the Stevens Life InsuranceCompany (SLIC) that specializes in Guaranteed Investment Contracts.A pension plan, which is a customer of your company, deposits$1,000,000 with you, in...
- Q In your opinion what other two companies (non-bank) in the U.S.today are also too big to fail? Providereasons why you selected these twocompanies. 2pts
- Q ?(NPV with varying required rates of return?) GubanichSportswear is considering building a new factory to producealuminum baseball bats. This project would require an initial cashoutlay of 4,000,000 and would generate...
- Q A company is considering two mutually exclusive expansion plans.Plan A requires a $41 million expenditure on a large-scaleintegrated plant that would provide expected cash flows of $6.55million per year for...
- Q Given the following information about your firm’s capitalstructure, calculate your firm’s WACC (assume the corporate taxrate is 35%). Debt Number of bonds outstanding = 12,000 price perbond = $1,165 par...
- Q Suppose News Corporation shares have a beta of 1.55?, whereasCBA shares have a beta of 0.85. If the? risk-free interest rate is4.8 % and the expected return of the market...
- Q Parole Co. has 77,910 bonds outstanding that are selling at parvalue. The bonds yield 8.5 percent. The company also has 5.4million shares of common stock outstanding. The stock has a...
- Q The price of Tara, Inc., stock will be either $82 or $104 at theend of the year. Call options are available with one year toexpiration. T-bills currently yield 3 percent. a.Suppose...
- Q A small café is considering replacing one of its waitstaff witha ‘robot’ – a device that will take orders, deliver food andinteract with customers in an entertaining way. The cost...
- Q 7. Mr. Thaggert is trying to decide whether to invest in stocksor in CD's(Certificate of deposit). If he invests in stocks and theinterest rates go up, his stock investments go...
- Q Acquisitions Inc is a brick and mortar retail company.Acquisition’s management believes that the company needs toestablish an on-line presence in order to remain viable. For thatreason, Acquisition would like to...
- Q You were appointed the CFO of a firm with 2 divisions:Div. 1 -- produces regular telephonesDiv. 2 -- produces specialty micro-chips which areused in cell phonesGiven Information:Market value of your...
- Q A bakery buys sugar from a big distributor to use in bakingcakes. Typically, they use 3663 bags of sugar in a year. The priceof sugar is typically $14 per bag....
- Q Question: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 million. This...
- Q This topic will cover the ethical debate that occurs within thepractice of whistle blowing and the sometimes contrasting virtue/value of loyalty. Therefore, imagine that you and your wife orhusband own...
- Q Jenna purchased a house for $325,000. She made a down payment of25.00% of the value of the house and received a mortgage for therest of the amount at 5.72% compounded...
- Q A firm is 65% equity and 35% debt. The firm's marginal tax rateis 40%. Their bonds trade for $990, mature in nine years, have apar value of $1,000, a coupon...
- Q Complex finance problems using Excel.Compost International issued $1000 bonds on May 12, 2000 inorder to finance world-wide expansion. The bonds have a coupon rateof 8.4% with payments on a semi-annual...
- Q Why do the vast majority of sophisticated option investors usecombination strategies such as straps, strangles, straddles,collars, butterfly spreads, iron condors and iron butterflies? Pickone of these combination strategies and explain...
- Q What is FinTech? Give some examples. Is the U.S. ahead or behindin the FinTech revolution. How do you think FinTech will changefinancial transactions in the next decade in the U.S.?
- Q For this discussion post:Define the term finance, in your own words.Describe areas in which you currently make financialdecisions.Share an example or two of both good and bad financialdecisions you have...
- Q "What are the seven different types of financial institutions?Include a description of the main services offered by each."(Cornett, Adair, & Nofsinger, 2016). Distinguished-level:Provide a definition of the term, liquidity.
- Q Explain the ice-cream theory of Bank resolution and how it isimportant in the workout of a bank that is troubled?
- Q It is December 2018. You are analyzing YKNOT Inc., a companyheadquartered in Waukesha, WI, which is manufacturing sailingropes. You look at managerial projections of earnings, and in 2019,the company is...
- Q Consider the split of an unviable bank into a Good Bank and abad bank in a country called FinBankLandand. At this stage you havenot offered the Good Bank to any...
- Q Answers are provided but need step by step solutionswithout excel just basic step by step with formulas1. John invested $20,000 fifteen years ago with an insurancecompany that has paid him...
- Q Explain how accounting and financial analysis course will aid inan accounting/ finance career.
- Q You have $20,000. After the “success” of the sequel of the“Hunger Games”, you want to know if Lions Gate EntertainmentCorp. (NYSE:LGE) is a good buy. The firm’s total risk is...
- Q Hybrid cars are touted as a "green" alternative; however, thefinancial aspects of hybrid ownership are not as clear. Considerthe 2014 Edsel 550h, which had a list price of $5,500 (includingtax...
- Q 1. Suppose that an ETF trades at a price below its net assetvalue. Describe what authorized participants (APs) could do to takeadvantage of this discrepancy. What would be the likely...
- Q McGilla Golf has decided to sell a new line of golf clubs. Theclubs will sell for $830 per set and have a variable cost of $430per set. The company has...
- Q McGilla Golf has decided to sell a new line of golf clubs. Thecompany would like to know the sensitivity of NPV to changes in theprice of the new clubs and...
- Q If you are an entrepreneur who has decided to use franchising asa means of growing your venture, what are the steps you need totake to develop a franchise system? Q6
- Q You are considering how to invest part of your retirementsavings.You have decided to put $ 600 000 into three? shares: 68 %of the money in Minerva? (currently $ 25?/share), 9...
- Q Bellinger Industries is considering two projects for inclusionin its capital budget, and you have been asked to do the analysis.Both projects' after-tax cash flows are shown on the time linebelow....
- Q What is the manager’s responsibility regarding ethicalfinancial reporting?Managers must consider ethics on adaily basis when it comes to being ethical in financial reporting.Understanding what those ethics are and how they...
- Q What are the benefits of financial sensitivity analysis and howcan we apply for firms long-term value?
- Q Brook’s Window Shields Inc. is trying to calculate its cost ofcapital for use in a capital budgeting decision. Mr. Glass, thevice-president of finance, has given you the following informationand has...
- Q Discuss active bond portfolio management. Given an inefficientmarket, is such portfolio management appropriate? Explain oneactive bond management strategy.
- Q Explain the relationship between the possibility of lending andborrowing at a risk free rate and the Markowitz Efficient Frontier(MEF)
- Q list and describe the key features of 3 finance reports
- Q The Andrea S. Fault Seismometer Company is anall-equity-financed firm. It earnsmonthly, after taxes, $24,000 on sales of $880,000. The tax rate ofthe company is 40 per-cent. The company’s only product,...
- Q 1)explain the importance of systematic risk and unsystematic risk inrisk managament? 2) Discuss the positive and negative aspects ofsystemstic risk and unsystematic risk?
- Q It is December 2018. You are analyzing YKNOT Inc., a companyheadquartered in Waukesha, WI, which is manufacturing sailingropes. You look at managerial projections of earnings, and in 2019,the company is...
- Q Cash flow and netincome are both important. If the cash flows are ignored, a companycould miss that they are cash poor and unable to attain businessstrategies and improvements that could...
- Q You want to invest ?$40 000 in a portfolio with a beta of nomore than 1.46 and an expected return of 13.4?%. Bay Corporationhas a beta of 1.08 and an...
- Q In 1 paragraph explain why Roosevelt’s bank holiday was sosuccessful in averting further bank runs for the remainder of theGreat Depression.
- Q I need a Journal Entry for two weeks of Accounting Internship.It can be any type of work done. Please more than 500 words
- Q Porter Plumbing's stock had a required return of 11.00% lastyear, when the risk-free rate was 5.50% and the market risk premiumwas 4.75%. Then an increase in investor risk aversion caused...
- Q Phillips Rock and Mud is trying to determine the maximum amountof cash dividends it can pay this year. Assume its balance sheet isas follows: Assets Cash$410,000 Accounts receivable806,000 Fixed assets1,007,000 Totalassets$2,223,000 Liabilities and Stockholders'Equity Accounts payable$542,000 Long term...
- Q IN EXCEL PLEASE!!! Thank you!E(rM)7.50%rf3.00%Stock price53.92Stock beta, bE0.72Cost of debt6.22%Percentage of equity75.70%Percentage of debt24.30%Boeing's tax rate, TC24.96%Boeing's debt beta, bDBoeing's asset betaBoeing's WACC
- Q Worst Buy Company has had a lot of complaints from customers oflate, and its stock price is now only $5 per share. It is going toemploy a one-for-six reverse stock...
- Q A-Rod Manufacturing Company is trying to calculate its cost ofcapital for use in making a capital budgeting decision. Mr. Jeter,the vice-president of finance, has given you the followinginformation and has...
- Q Bay Properties is considering starting a commercial real estatedivision. It has prepared the following? four-year forecast of freecash flows for this? division:year 1year 2year 3year 4Free Cash Flow-132,00015,00085,000239,000Assume cash flows...
- Q Winston Sporting Goods is considering a public offering ofcommon stock. Its investment banker has informed the company thatthe retail price will be $17.80 per share for 660,000 shares. Thecompany will...
- Q Oneof the largest, and most expensive, factors in deciding on whatcollege to attend is how to pay for it. In recent years, the costof college has steadily increased which has...
- Q Explain how the increase in the supply of money affects the realand nominal interest rates.
- Q Please write 2-23 paragraphs providing a scientific andthoughtful opinion about this Behavioral Finance question.One could argue that neither the classical finance assumption ofrationality of investors is correct nor are the...
- Q Discuss the courses of action that JPMorgan can take to maintainprofitability that JPMorgan might loss due to the Volcker Rule
- Q Your company has earnings per share of $5. It has 11millionshares? outstanding, each of which has a price of $40. You arethinking of buying? TargetCo, which has earnings of $3...
- Q Calculate the equity value for the following company. EBITDA inyear 1 is expected to be $100M and is expected to grow by 1% foreach of the next 5 years. Cap...
- Q The traditionalbusiness of banking comprised lending, deposit-taking and theprovision of transaction services. Through the first half of thetwentieth century, banking was a regulated, local, low riskbusiness based on a customer’s...
- Q You have been asked for your advice in selecting a portfolio ofassets and have been given the following data:Expected returnYear Asset A Assest B Assest C2019 12% 16% 12%2020 14%...
- Q United Pigpen is considering a proposal to manufacturehigh-protein hog feed. The project would make use of an existingwarehouse, which is currently rented out to a neighboring firm. Thenext year’s rental...
- Q Find the price (per $100 face value, rounded to 3 decimalplaces) of a 12% Treasury bond, 145 days before maturity, at ayield of 6.26% p.a. 1
- Q Great Lakes Packing has two bond issues outstanding. The firstissue has a coupon rate of 3.62 percent, a par value of $2,000 perbond, matures in 8 years, has a total...
- Q Discuss the status of income tax and sales tax incontext of leasing in india ? ( 10 points )
- Q (1)(2)(3)(4)Face value$190,000(d)$280,000$1,950,000Stated rate12%4%6%(i)Interest payment periodQuarterlySemiannuallyQuarterlyQuarterlyInterest payment(a)$10,400$4,200$19,500Maturity (in years)10 years3 years6 years4 yearsMarket rate8%(e)16%8%Bond issue price(b)(f)(g)(j)(Discount)/premium(c)$(60,837)(h)(k)Fill in the missing items for each of the cases? below:
- Q Assume that today is December 31, 2018, and that the followinginformation applies to Abner Airlines:After-tax operating income [EBIT(1 - T)] for 2019 is expected tobe $550 million.The depreciation expense for...
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