Finance question and answers for July 28, 2023
- Q Flora, Inc., reported an EPS of $5.0 this year (t0).Flora is expected to maintain a retained earnings ratio of 0.5 andROE of 0.18 for the next five years. After the...
- Q 2. What are the five C’s involved in a bank’s decision to make aloan. Please provide a brief explanation of each.
- Q idividually students will develop a formal response to theproblem(s) posed in the case, addressing the following areas withinthe analysis, and using the same headings. (Numbers in brackets donot necessarily correspond...
- Q Problem 15-05 (Algorithmic)Consider the following time series data.Week123456Value161318111514Develop a three-week moving average for this time series.Compute MSE and a forecast for week 7. Round your answers to twodecimal places.WeekTime SeriesValueForecast116213318411515614MSE:...
- Q Problem 12-09 (Algorithmic)A project has four activities (A, B, C, and D) that must beperformed sequentially. The probability distributions for the timerequired to complete each of the activities are as...
- Q Round all answers to the 2 decimal placea. Derek will deposit $5,859.00 per year for 11.00 years into anaccount that earns 5.00%, The first deposit is made next year. Howmuch...
- Q 1. ABC Limited will pay a $2.76 dividend next year (t=1) on itsordinary shares. The shares are currently selling at $64.01 pershare. What is the market's required return on this...
- Q The Bigbee Bottling Company is contemplating the replacement ofone of its bottling machines with a newer and more efficient one.The old machine has a book value of $625,000 and a...
- Q You must evaluate the purchase of a proposed spectrometer forthe R&D department. The base price is $70,000, and it wouldcost another $17,500 to modify the equipment for special use by...
- Q You must evaluate a proposal to buy a new milling machine. Thebase price is $119,000, and shipping and installation costs wouldadd another $16,000. The machine falls into the MACRS 3-year...
- Q Suppose that Calloway golf would like to capitalize on PhilMichelson winning the Open Championship in 2013 by releasing a newputter. The new product will require new equipment for $414,452.00that will...
- Q In your firm, what benefits does leasing offer, compared to thepurchase of an asset? Provide examples. 300 Words please provide anexample (company)
- Q Using the following information to answer the followingquestions?Both Bond A and Bond B have 8 percent coupons, make semiannualpayments, and are priced at par value. Bond A has 3 years...
- Q Which of the following offers thehighest return? A. 12% nominalrate compounded monthly B. 12.4% nominalrate compounded quarterly C. 12.8% nominalrate compounded semi-annually D. 13.0% nominalrate compounded annually E. Moreinformation is needed to determine the best...
- Q Assuming in twenty years after graduating from ERAU you becomeextremely wealthy. You want to give back to your school andestablish a scholarship endowment that will pay $200,000 per yearin perpetuity...
- Q 1. You have taken out a loan of $300 000 at an interest rateof 3% per annum compounded quarterly. You plan to repay the loan in240 reducing-principal payments made at...
- Q TCO C, D) In the absence of express agreement to the contrary,partners in a general partnership _______________________ .share profits and losses equallyshare profits and losses in proportion to their equityinvestmentare...
- Q How do corporations treat start-up expenditures?
- Q Cover-to-Cover Company is a manufacturer of shelving for books.The company has compiled the following cost data, and wants yourhelp in determining the cost behavior. After reviewing the data,complete requirements (1)...
- Q Grominetis expected to pay an annual dividend of $2.8 one year from now.Analysts also expect this dividend to grow at 10% per yearthereafter until the fifth year. After then, growth...
- Q Your firm is contemplating the purchase of a new $688,800computer-based order entry system. The system will be depreciatedstraight-line to zero over its 5-year life. It will be worth$61,500 at the...
- Q Dog Up! Franks is looking at a new sausage system with aninstalled cost of $834,600. This cost will be depreciatedstraight-line to zero over the project's 9-year life, at the end...
- Q Winnebagel Corp. currently sells 39,000 motor homes per year at$58,500 each, and 15,600 luxury motor coaches per year at $110,500each. The company wants to introduce a new portable camper to...
- Q What is the company’s after-tax cost ofdebt? Rollins Corporation is estimating its WACC. Its target capitalstructureWhat is the company’s cost of preferred equity? premium is 5percent. The firm's marginal tax rate...
- Q Braun Industries is considering the following mutually exclusiveprojects. Braun’s cost of capital is9%. YearProject AProject B0($86,000)($86,000)1$42,000$63,0002$32,000$28,0003$12,900$8,0004$12,200$3,0005$12,000$2,000a. Calculate eachproject’s NPV and IRR.b. Find the Payback Periodfor each project.c. Find the MIRR for...
- Q Bania Inc. has annual sales of $17 million, inventory levels of$2.5 million, receivables of $3.5 million, and payables of $1.25million. The firms cost of goods sold is 80% ofsales.What is Bania’s...
- Q Identify and explain the acronym S.M.A.R.T. as used in goalsetting theory. Give an example of a S.M.A.R.T. goal from your ownlife.
- Q Describe the personality types from Holland's RIASEC model.
- Q Define emotional abilities. Identify anddescribe the four abilities related to emotional intelligence.
- Q Discuss the steps an organization can take to foster learning.Provide an example of each.
- Q Get hold of financial statements of any company or project.Perform financial analysis – see measures of profitability,solvency and efficiency
- Q Assume that annual interest rates are 4 percent in the UnitedStates and 3 percent in Turkey. An FI can borrow (by issuing CDs)or lend (by purchasing CDs) at these rates....
- Q Scenario: Jim Logan, the owner of an American based smallbusiness, Sports Exports, Inc., specializes in exporting footballsto Great Britain. In return, he receives payments in British poundsevery month which need...
- Q Relate the primary and secondary markets in investment bankingprocess to General Motor’s new car dealerships and used carmarkets. (Highlight the similarities when a firm wants to issuesecurities using an investment...
- Q Suppose that a firm’s recent earnings per share and dividend pershare are $2.50 and $1.30, respectively. Both are expected to growat 8 percent. However, the firm’s current P/E ratio of...
- Q Better Mousetraps has developed a new trap. It can go intoproduction for an initial investment in equipment of $6.3 million.The equipment will be depreciated straight line over 6 years to...
- Q Edison iscurrently an all-equity firm with an expected return of 12%.Edison's firm value is $500m. It is considering a leveragedrecapitalization in which it would borrow and repurchase existingshares. Assume that...
- Q *Discuss the regulation of the financial sector. You may focuson one or more of the Basel banking accords. You may focus onsignificant present or past legislation of the financial sector,with...
- Q Lisa is considering and investment into the z ltd. The companyhas following capital structure:5 million value 12% coupon bond paying interest semi-annually.The bonds have face value of $1000 and will...
- Q A) A bond that has ?$1,000 par value? (face value) and acontract or coupon interest rate of 7 percent. A new issue wouldhave a floatation cost of 8 percent of...
- Q The law firm of Saul Goodman and Associates must choose betweentwo different leases for their new space. The first lease, Lease A,is a 5-year gross lease with a base rent...
- Q What are the fundamental principles of financial leverage?
- Q 8. A $75,000 deposit earns 5.65 percent for eight years. If theaccount loses 2.25 percent per year after that fortwo years, what is the value of the account at the...
- Q You borrow a GPM (graduate payment mortgage) of $10,000 withannual payments and 3-year term. The interest rate is 10% with $100origination cost. The payment factors from year 1 to year...
- Q 1. Explain M&M proposition 12. What is Profitability Index and its pros and cons?3. What is Payback Period? And its pros and cons?4. What is NPV? And is it pros...
- Q Assume the following information180 day US interest rate = 8%180 day British interest rate = 9%180 day forward rate of British pound = 1.50Spot rate of British pound = 1.48Assume...
- Q Discuss the use and limitations of Beta and how it is applied asa tool for risk measurement.
- Q The G. Rod Electronic Components Corporation is consideringreplacing a 10-year old machine that originally cost $37,500, has acurrent book value of $12,500 with five years of life left, and isbeing...
- Q Discuss how debt financing is different from equity financing.How does debt financing effect cash flow, taxation expenses, andthe balance sheet of a firm?
- Q what are the sources of risk in an organization
- Q Answers go in the yellow boxesUse the following information to complete the income statement forcompany A for the year ending December 31, 201XRevenue$ 120,000,000Gross margin50.0%SellingGeneral and Administrative (SG&A)20.0%ofrevenueResearchand Development (R&D)15.00%ofrevenueDepreciation...
- Q Dog Up! Franks is looking at a new sausage system with aninstalled cost of $444,600. This cost will bedepreciated straight-line to zero over the project's 3-yearlife, at the end of...
- Q You have been promoted to Assistant Director of your LaboratoryDepartment. One of your first assignments is to prepare arecommendation for the replacement of one of your CoulterCounters.Your Department Director has...
- Q Please use excelIf you deposit $5,000 in a savings account that pays 8% annualinterest compoundedmonthly,and make no other deposits to the account, how much will youhaveafter 5years?$7,449.23In addition to the...
- Q Sunrise, Inc., has no debt outstanding and a total market valueof $369,600. Earnings before interest and taxes, EBIT, areprojected to be $51,000 if economic conditions are normal. If thereis strong...
- Q The table below shows the closing monthly stock prices for IBMand Amazon. Calculate the simple three-month moving average foreach month for both companies. (Input all amounts aspositive values. Do not...
- Q The 2017 financial statements for Growth Industries arepresented below.INCOME STATEMENT, 2017Sales$240,000Costs170,000EBIT$70,000Interestexpense14,000Taxableincome$56,000Taxes (at35%)19,600Net income$36,400Dividends$18,200Addition toretained earnings18,200 BALANCE SHEET, YEAR-END, 2017AssetsLiabilitiesCurrentassetsCurrentliabilitiesCash$7,000Accountspayable$14,000Accountsreceivable12,000Total currentliabilities$14,000Inventories21,000Long-termdebt140,000Total currentassets$40,000Stockholders’equityNet plant andequipment180,000Common stockplus additional paid-in capital15,000Retainedearnings51,000Totalassets$220,000Totalliabilities and stockholders' equity$220,000 Sales and...
- Q Ross Co., Westerfield, Inc., and Jordan Company announced a newagreement to market their respective products in China on July 18(7/18), February 12 (2/12), and October 7 (10/7), respectively.Given the information...
- Q The table below shows the closing monthly stock prices for IBMand Amazon. Calculate the exponential three-month moving averagefor both stocks where two-thirds of the average weight is placed onthe most...
- Q Covariance and Correlation Based on the following information,calculate the expected return and standard deviation of each of thefollowing stocks. Assume each state of the economy is equallylikely to happen. What...
- Q Seth Bullock, the owner of Bullock Gold Mining, is evaluating anew gold mine in South Dakota. Dan Dority, the company’s geologist,has just finished his analysis of the mine site. He...
- Q The Brenmar Sales Company had a gross profit margin (grossprofits / sales) of 28% and sales of $8.3 million lastyear. 73% of the firm's sales are on credit, and the remainder...
- Q Lena Tucker contributed $20,000 in cash and land with anadjusted basis of $100,000 and a fair market value of $140,000 to anewly formed corporation in return for 1,000 shares of...
- Q A pizza delivery vendor has a goal of delivering all orderswithin 50 minutes. A sample was taken and found a mean of 40minutes and a sample standard deviation of 6...
- Q Consider a corporation who recently filed Chapter 11 bankruptcy(reorganization). Under the reorganization, the company has beenallowed to reorganize their debt structure with a consolidated newdeferral bond issue with more favorable...
- Q A bond issued by Vodafone has a coupon rate of 6.15% withsemiannual payments, a par value of $1,000, and remaining maturityof exactly 25 years. The bond is currently trading at...
- Q what are the advatages and disadvatages of governemnt safety net?
- Q which one isnot market securities a) capital market b) primary market c) moneymarket d) secondary market e) dow jones
- Q 1. (a) A football club is considering buying a player on 1January for K10 million. The player's wages will be K20,000 permonth higher than those of the man he will...
- Q The 2017 financial statements for Growth Industries arepresented below.INCOME STATEMENT, 2017Sales$240,000Costs170,000EBIT$70,000Interestexpense14,000Taxableincome$56,000Taxes (at35%)19,600Net income$36,400Dividends$18,200Addition toretained earnings18,200 BALANCE SHEET, YEAR-END, 2017AssetsLiabilitiesCurrentassetsCurrentliabilitiesCash$7,000Accountspayable$14,000Accountsreceivable12,000Total currentliabilities$14,000Inventories21,000Long-termdebt140,000Total currentassets$40,000Stockholders’equityNet plant andequipment180,000Common stockplus additional paid-in capital15,000Retainedearnings51,000Totalassets$220,000Totalliabilities and stockholders' equity$220,000 Sales and...
- Q Pelzer Printing Inc. has bonds outstanding with 10 years left tomaturity. The bonds have a 9% annual coupon rate and were issued 1year ago at their par value of $1,000....
- Q Explain the concept of WACC. When calculating a company’s WACC,should book value, market value, or target weights be used?Explain.Post a follow-up question to further the discussion.
- Q The shareholders of Flannery Company have voted in favor of abuyout offer from Stultz Corporation. Information about each firmis given here:FlanneryStultzPrice–earnings ratio12.835Shares outstanding96,000350,000Earnings$210,000$840,000Flannery’s shareholders will receive one share of Stultz...
- Q 4. Rebate Versus Low Interest Rate. Kyle Parker of Concord, NewHampshire, has been shopping for a new car for several weeks. Hehas negotiated a price of $34,000 on a model...
- Q 1. Deciding to Buy. Dave and Diane Starr of New Orleans,Louisiana, both of whom are in their late 20s, currently arerenting an unfurnished two-bedroom apartment for $1,200 per month,plus $230...
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