Finance question and answers for October 03, 2023
- Q Identify the different types of financial markets and financialinstitutions, and explain how these markets and institutionsenhance capital allocation.
- Q If the DuPont Analysis for Apple (in 2018) is 54.77% and thesame analysis for Microsoft (also in 2018) is 39.88%, then...Explain how the debt has served to influence the ROE...
- Q Debt – 7,000 6 percent coupon bonds outstanding, $1,000 parvalue, 25 years to maturity selling for 106 percent of par; thebonds make semi-annual paymentsPreferred shares – 15,000 shares paying a...
- Q Four classifications of corporate mergers are (1) horizontal,(2) vertical, (3) conglomerate and (4) congeneric. Explain itsmeaning in the context of a merger analysis in relation to the(a) probability of a...
- Q Part A: A project has an initial cost of $60,025, expected netcash inflows of $11,000 per year for 11 years, and a cost ofcapital of 14%. What is the project's...
- Q Dev Industries must choose between a gas-powered and anelectric-powered forklift truck for moving materials in itsfactory. Because both forklifts perform the same function, the firmwill choose only one. (They are...
- Q Return on Equity shows how efficiently the management of acompany puts capital to work to generate a return. Also, ROE is thebasis for the sustainable growth of the company. This...
- Q Briefly discuss some of the services that international banksprovide their customers and the market place.Chapter 12: Describe the differences between foreign bonds andEurobonds. Also discuss why Eurobonds make up the...
- Q K Mautos is offering free credit on a new $110,000 car. You pay$2,0000 down and then $3500 a month for the next 30 months. LemonMotors next door does not offer...
- Q Provide positive feedback:Powerful incentives can cause undesired behaviors. Suggest waysto solve this problem, using something you know a great deal about– academic performance. With incentives come the challenges ofethical, moral,...
- Q (Bonds) A company has an outstanding issue of $1000 face valuebonds with 8.75% annual coupon and 10 years remaining untilmaturity. The bonds are currently selling at a price of 82.50(82.50%...
- Q Problem 11-06New-Project AnalysisThe Campbell Company is considering adding a robotic paintsprayer to its production line. The sprayer's base price is$910,000, and it would cost another $20,500 to install it. Themachine...
- Q The president of the company you work for has asked you toevaluate the proposed acquisition of a new chromatograph for thefirm’s R&D department. The equipment's basic price is $90,000,and it...
- Q True or False?1. The demand for foreign goods implies supplying the domesticcurrency.2. If a nation's currency rises in value, foreigners canpurchase more of that nation's output.3. The devaluation of one...
- Q A project has an initial cost of $54,300, expected net cashinflows of $14,000 per year for 9 years, and a cost of capital of13%. What is the project's payback period?...
- Q The Gilbert Instrument Corporation is considering replacing thewood steamer it currently uses to shape guitar sides. The steamerhas 6 years of remaining life. If kept, the steamer will havedepreciation expenses...
- Q 1. Discuss the tools that you have learned for analyzingfinancial statements. Be sure to discuss what information is foundon the Income statement and Balance sheet, and how this informationcan be...
- Q You purchase a boat for $35,000 and pay $5,000 down. You alsoagree to pay the rest over the next 10 years in 10 equal end of theyear payments plus 13...
- Q . Consider the following interest-rateswap:•the swap starts today, January 1 of year 1 (swap settlementdate)•the floating-rate payments are made quarterly based on actual /360•the reference rate is 3-month LIBOR•the swap...
- Q The expected rate of return on a Treasury Bill is 0.020, theexpected rate of return on the Bud 5000 is 0.08 and the requiredrate of return of a stock is...
- Q In?finance,?discountedcash flow?(DCF) analysis is a common technique of placing value ona project or company. All of the future?cash flows are projectedand?discounted?by using cost of capital to determine their?presentvalues?(PVs). Adding up...
- Q Question 1.Determine the future worth in year 10 of a cash flow series thatstarts in year 0 (today) at $25,000 and decreases by 6% per year(through year 10). Use an...
- Q Identify a party (other than stockholders) that can beclassified as a stakeholder for a corporation. What obligation doesthe corporation have to this party? Describe a situation wherestockholder claims on the...
- Q During the summer and fall of 2008, the U.S. financial systemand financial systems around the world appeared to be on the vergeof collapse. How did we get into this condition?...
- 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 Wen-Ching is working to develop a preliminary cost-benefitanalysis for a website to support the leasing department at a majoruniversity. She developed the following estimates.Development costs – Personnel2 Systems Analysts ...
- Q Suppose the Schoof Company has this book value balance sheet:Current assets $30,000,000 Current liabilities $20,000,000 Fixedassets 70,000,000 Notes payable $10,000,000 Long-term debt30,000,000 Common stock (1 million shares) 1,000,000 Retainedearnings 39,000,000...
- Q You buy a $2,000 bond on August 15, 2014, paying bond interestat j2 = 6% and redeemable at par on August 15, 2024.a) How much did you pay for the...
- Q Suppose the School Company has this book value balance sheet:Current assets $30,000,000 Current liabilities $20,000,000 Fixedassets 70,000,000 Notes payable $10,000,000 Long-term debt30,000,000 Common stock (1 million shares) 1,000,000 Retainedearnings 39,000,000...
- Q The VP of the company you work for has asked you to evaluate theproposed acquisition of a new chromatograph for the firm’s R&Ddepartment. The equipment's basic price is $90,000, and...
- Q The G Corporation is considering replacing the wood steamer itcurrently uses to shape guitar sides. The steamer has 6 years ofremaining life. If kept, the steamer will have depreciationexpenses of...
- Q Calculate selling prices, using alternative approaches tocosting and pricing..and to think about the circumstances where each approach mightbe appropriate. This will illustrate the impact that different waysof measuring ‘cost’ can...
- Q Red Hat stock sells for 93. Three-month call options on Red Hatat 88 sell for 6.616. Three-month put options at 88 sell for 4.177.You can go long or short 175...
- Q The Robinson Corporation has $43 million of bonds outstandingthat were issued at a coupon rate of 12.550 percent seven yearsago. Interest rates have fallen to 11.750 percent. Mr. Brooks, theVice-President...
- Q St. Johns River Shipyards' 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 state lottery payout provides 1.4 million to be paidin 25 installments of 56,000 per payment. the first 56,000 paymentis immediate and the remaining 24 payments of 56,000 each willoccur at...
- Q How are international banks different from domestic banks?
- Q One of the challenges of strategy analysis for an organisation in asmaller economy is finding sufficient competitors in its sameindustry. Apart from being in the same industry, offering the sameproducts...
- Q In early January 2010?, you purchased ?$19 comma 000 worth ofsome? high-grade corporate bonds. The bonds carried a coupon of 74/8% and mature in 2024.You paid 95.463 when you bought...
- Q UBTECH Robotics is expected to generate the following free cashflows over the next five years. After which, the free cash flowsare expected to grow at the industry average of 3%...
- Q Discuss why financial managers in organizations need to know thefull cost of producing goods and/or providing services.
- Q In December Beth bought a boat for $100,000 &payed $16,000 down & agreed to pay the balance In 5 equalannual installments that include both the principal & 9%interest on the...
- Q Complete the questions below. Submit only an Excel spreadsheetwith your name, one tab for each question, and your Excel Solversolution; ensure that you clearly identify each answer.A local pastry shop...
- Q EPSDPSSTOCK PRICEROEROABlue Ribband Motors Corp.$ 1.24$ 0.39$ 20.1011.00%14.00%Bon Voyage Marine, Inc. 1.55 0.47 16.8514.00%17.00%Nautilus Marine Engines (0.25) 0.67 31.60 N/A 13.00%Industry average 0.85 0.51 22.8512.50%14.67%The company is equally owned by Carrington and Genevieve. Theoriginal agreement between the siblings gave each 125,000 shares...
- Q Elliot Karlin is a? 35-year-old bank executive who has justinherited a large sum of money. Having spent several years in the?bank's investments? department, he's well aware of the concept ofduration...
- Q Without? leverage, Impi Corporation will have net income nextyear of $ 8.0 million. If? Impi's corporate tax rate is 21 % and itpays 9 % interest on its? debt, how...
- Q Rogot Instruments makes fine violins and cellos. It has ?$1.7million in debt? outstanding, equity valued at ?$2.1 million andpays corporate income tax at rate 36 % . Its cost of...
- Q Consider the following balance sheet (in millions) for anFI:Assets LiabilitiesDuration = 10 years $950 Duration = 2 years $860Equity 90a)What is the FI's duration gap?b)What is the FI's interest...
- Q True or False?5. In general, if interest rates rise, the prices of existingbonds rise.6. If a company defaults on its bonds, interest continues toaccrue but may not be paid.7. Current...
- Q Which amount will be worth more in the future?(1) $300 invested monthly for 35 years with anaverage annual return of 10% compounded monthly.or(2) $1,000,000 lottery you win 35...
- Q Rentz Corporation is investigating the optimal level of currentassets for the coming year. Management expects sales to increase toapproximately $3 million as a result of an asset expansionpresently being undertaken....
- Q 1. To gain thebenefit of _______________, a bank makes various types of loans, tovarious types of borrowers.A. guaranteedincomeB. diversificationC. more firm-specific riskexposureD. reduced operational riskE. reduced off-balance-sheet risk2. Argentinaunilaterally told...
- Q length 1200 words:Question; What is your opinion of e-business and e-commerce andtheir roles in today’s world of business? Analyse a case study tosupport your ideas.
- Q Your firm currently has $ 116 million in debt outstanding with a9 % interest rate. The terms of the loan require the firm to repay$ 29 million of the balance...
- Q Research, define, describe, and explain the above-mentioned(Minimum 250 words answer for each questions)Explain what the money market is and market efficiency
- Q Research, define, describe, and explain the above-mentioned(Minimum 250 words answer for each questions)What is an operating budget?
- Q Research, define, describe, and explain the above-mentioned(Minimum 250 words answer for each questions)Explain what financing instruments are and discuss options,futures, derivatives and securities valuation.
- Q If a company has a very risk averse, cautious manager, what ishis/her approach to managing the working capital? (Include adiscussion of the level of current assets vs. level of currentliabilities...
- Q Provide Sue with financial advice on which option has thepotential to yield the highest monetary value. Support yourrational with calculations using time value of money and comment onthe risk return...
- Q You are contemplating an investment in the stock of Apple.Youknow that the price of apple stock is estimated using theconstant-growth dividend discount model and its required return(cost of equity) is...
- Q How would you respond to this post?Ratio analysis provides a lot of information on a companyregarding debt, liquidity, profitability, efficiency, per-sharemetrics, and relative value (Byrd, Hickman, & McPherson, 2013).However, there...
- Q The growing strength of India’s BoP observed in the post reformperiod since the crisis of 1991 continued in 2017-2018. Thisgrowing strength was in spite of a widening current account deficitto...
- Q According to Modigliani and Miller and the dividend irrelevanceargument which of the following statements is true?a.Only firms with temporary excess cash should pay a dividend.b.Regardless of the tax treatment of...
- Q India witnessed the launch of its biggest tax reform sinceIndependence, the Goods and Services Tax (GST) characterized as'The Good and Simple Tax' on July 1, 2017. While the Goods andServices...
- Q Research, define, describe, and explain the above-mentioned(Minimum 250 words answer for each questions)Explain capital structure.
- Q A portfolio is a group of assets in which investors prefer todeposit. The portfolio gives an opportunity to diversify risk.Diversification of risk does not mean that there will be anelimination...
- Q A company is considering a 5-year project that opens a newproduct line and requires an initial outlay of $81,000. The assumedselling price is $96 per unit, and the variable cost...
- Q The Harris Company is the lessee on a four-year lease with thefollowing payments at the end of each year:Year 1:$11,000Year 2:$16,000Year 3:$21,000Year 4:$26,000An appropriate discount rate is 7 percentage, yielding...
- Q Business class3. Interrogatories, Depositions, Requests for Production ofDocuments are all forms of: a. discovery; b. pleadings; c. alternative dispute resolution(ADR); d. jury instructions.4. A party asks the court to make a ruling by making...
- Q Describe and describe the stock corporation. in your responseset forth the manner in which a corporation is created as well asthe advantages of conducting business in a corporation format.Finally, list...
- Q Business class13. Avdeyeva is the owner of a commercial building in Vancouver,which has an ordinance requiring non skid material on steps leadinginto such buildings. A visitor is injured when he...
- Q 30. Borzosh hires Hasso ( a professional painter) to paint herhouse. They agree on the type of paint to be used, date to paintthe house, but they never agree on...
- Q The Peg Ratio appears to be a refinement that allows us to dowhat?Is the ratio aptly named? Explain and discuss...
- Q Mullet Technologies is considering whether or not to refund a$225 million, 14% coupon, 30-year bond issue that was sold 5 yearsago. It is amortizing $9 million of flotation costs on...
- Q Nancy would like to accumulate $10,000 by the end of 3 yearsfrom now to buy a sports car from her friend, Jim. She has $2,500now and would like to save...
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