Finance question and answers for July 24, 2023
- Q a. What is Sustainable Finance? b. How is Corporate Sustainability usually measured? List threefactors and give an example of each c. How reliable do you think reporting by companies is...
- Q company XYZ in 2015 is given : sales €500000, costs €332000depreciation expense €120000 Interest expense €60000 dividends€16000 tax rate 35 percenta) given this information prepare XYZ income statementb) calculate XYZ...
- Q Mackmyra Whisky AB needs additional funds for further expansion.The problem with their business of producing and selling whisky isa long cash conversion cycle, which means that cash comes in only9,...
- Q Suppose you purchase a? 30-year, zero-coupon bond with a yieldto maturity of 8%. You hold the bond for five years before sellingit.a. If the? bond's yield to maturity is 8%...
- Q Innovation Company is thinking about marketing a new softwareproduct. Upfront costs to market and develop the product are$5,200,000. The product is expected to generate profits of$1,000,000 per year for ten...
- Q Modern Kitchens specializes on sell prefabricated kitchens.The company has stores in all major capital cities throughoutAustralia. It’s been established since 2001 and has seen tremendousgrowth but more recently has seen...
- Q Consider the following two mutually exclusive projects:Year Cash Flow (A) Cash Flow (B)0 –$289,995 –$26,0621 27,700 10,8322 58,000 9,0083 51,000 8,8004 419,000 8,595Whichever project you choose, if any, you require...
- Q Modern Kitchens specializes on sell prefabricated kitchens.The company has stores in all major capital cities throughoutAustralia. It’s been established since 2001 and has seen tremendousgrowth but more recently has seen...
- Q Pacific Cruises provides standard riverboat cruises for tourists onthe Hawkesbury River. The average cruise has 90 passengers onboard. Each passenger pays $100 for a day’s cruising. The riverboatcruises 120 days...
- Q QUESTION THREEEasy Spread Ltd is a food processing company whose mainproduct is margarine. The CEO, Grant, is contemplating expandingthe business by selling its margarine products into the growingIndonesian market. He...
- Q Which of the following situations would cause a shift in thedemand curve, as opposed to a change in the quantity demanded?Vegetable prices rise as the majority of the population nolonger...
- Q Consider the following realized annual returns:Year EndMarket RealizedReturnStock BRealized Return200021.2%88.3%200130.3%56.4%200222.3%114.6%200325.3%68.4%2004-11.0%-62.8%2005-11.3%52.7%2006-20.8%-22.0%200733.1%6.9%200813.0%9.2%20097.3%-0.9%Consider the following realized annual returns:Q1 : Suppose that you want to use the10 year historical average return on the Market...
- Q –M Inc. issued 2,000 convertible bonds in 2009 at a coupon rateof 8% and a par value of £1,000. Each bond is convertible into MInc.’s common stock at £25 per...
- Q Epiphany Industries is considering a new capital budgetingproject that will last for three years. Epiphany plans on using acost of capital of 12% to evaluate this project. Based on extensiveresearch,...
- Q Consider a portfolio consisting of the following threestocks:Portfolio WeightVolatilityCorrelation with Market PortfolioHEC Corp0.2613%0.35Green Midget0.2928%0.52Alive And Well0.4511%0.54The volatility of the market portfolio is 10% and it has anexpected return of 8%....
- Q Bond prices. Price the bonds from the following table withannual coupon payments.Par ValueCoupon RateYears toMaturityYield toMaturityPrice?$1,000.006?%2510?%???$1,000.008?%3012%???$5,000.0012?%1511?%???$1,000.007?%56%??a. Find the price for the bond in the following? table: ?(Roundto the nearest? cent.)Par...
- Q Bond prices and maturity dates. Les Company isabout to issue a bond with semiannual coupon payments, an annualcoupon rate of 11?%, and a par value of ?$5,000. The yield tomaturity...
- Q Considering discount rate of 14%, calculate NPV, Benefit CostRatio, and Present Value Ratio for the following investment andexplain if it is a good investment.C=10,000C=8,000C=6,000I=7,500I=7,500...I=7,500L=10,00001234...10C: Cost, I:Income, L: Salvage value
- Q Stefan Ingves, governor of the Swedish National Bank(Riksbanken), reportedly was paid 14 million SEK in advance towrite his book How we boosted inflation. The book tookthree years to write. In...
- Q Yield to maturity. What is the yield of each ofthe following bonds if interest? (coupon) is paidsemiannual?ly? (Round to two decimal? places.)Par ValueCoupon RateYears toMaturityYield toMaturityPrice?$1,000.0012?%15??______?$1,000.00?$5,000.0011?%10??______?$6,010.00?$5,000.008?%25??______?$7,120.00?$1,000.007?%30??______?$700.00
- Q QUESTION THREEEasy Spread Ltd is a food processing company whose mainproduct is margarine. The CEO, Grant, is contemplating expandingthe business by selling its margarine products into the growingIndonesian market. He...
- Q According to the Static Tradeoff Theory, issuing debt has costsand benefits. Describe these costs and benefits associated withdebt financing.Based on this theory, explain how the new tax law, that lowerscorporate...
- Q The premium on a June 17 British pound call option with a strikeprice of $1.2560 when the spot rate is $1.2620 is quoted as $0.02.The time value of this option...
- Q Joseph's Company has just issued a20-year, 9 percent coupon rate, $1,000-par bond that pays interestsemiannually. Two years later, if the going rateof interest on the bond falls to 8 percent,...
- Q Stock trading apps, which allow participants to makecommission-free trades, are drawing millions of users. The apps,which include Robinhood, Webull and MI Finance, attract users whoare typically young, new to the...
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