Finance question and answers for October 07, 2023
- Q An 8% coupon bond with 3 years to maturity has a yield of 7%.Assume that coupon is paid semi-annuallyand face value is $1,000.(a) Calculate the price of the bond. (Keep...
- Q Define the following terms:A- portfolioB- DiversificationC- CorrelationD- Beta
- Q Your firm is considering two? one-year loan options for a $ 489comma 000 loan. The first carries fees of 2 % of the loan amountand charges interest of 3.7 %...
- Q Financial market commentators often argue that it is unwise toinvest in commodities, as they historically have lower averagereturns and higher risk compared to equities. In light of thisevidence discuss whether...
- Q In essay format, discuss the role of employee-owned businessesand shareholder wealth maximization. What are some pros andcons?
- Q 1. Forecasted Statements and RatiosUpton Computers makes bulk purchases of small computers, stocksthem in conveniently located warehouses, ships them to its chain ofretail stores, and has a staff to advise...
- Q Practice Question:It has long been told that the French purchased Manhattan islandin 1626 for the value of 60 guilders ($24). Assuming that theFrench invested this money into an account earning...
- Q Which of the following describes a violation of the semi-strongform of the efficient market hypothesis (EMH)?A) A classmate of yours excels in analyzing the future outlookof firms, but he does...
- Q The Randolph Limited has decided to acquire a new truck. Onealternative is to lease the truck on a 4-year guideline contractfor a lease payment of R10,000 per year, with payments...
- Q Broussard Skateboard's sales are expected to increase by 25%from $7.8 million in 2016 to $9.75 million in 2017. Its assetstotaled $4 million at the end of 2016. Broussard is already...
- Q Suppose an investor would like to buy 200 Treasury notes. Theinvestor wants notes with an annual coupon rate of 7%, a 3-yearmaturity, and semi-annual coupon payments.a. (5 pts) If there...
- Q Personal FinanceFor a $27,000 student loan with a 6% APR, how much of thepayment will go toward the principal and how much will go towardpaying interest for each of the...
- Q 1. Mr. Toriop owns 5,000 shares of stock in YummyCorporation. The company has announced that it will pay a dividendof $5 per share in one year and a liquidating dividend...
- Q Garlington Technologies Inc.'s 2016 financial statements areshown below:Balance Sheet as of December 31, 2016Cash$ 180,000Accounts payable$ 360,000Receivables360,000Notes payable156,000Inventories720,000Line of credit0Total current assets$1,260,000Accruals180,000Fixed assets1,440,000Total current liabilities$ 696,000Common stock1,800,000Retained earnings204,000Total assets$2,700,000Total liabilities and equity$2,700,000Income Statement...
- Q 2. Which of the following is true in relation to a fixed ratelender that wishes to transform its position using an interest rateswap?a. they should enter into a long interest...
- Q At this point, the demand in Mexico is picking up nicely. Yourcompany is currently repatriating 47 million pesos per year fromMexico through the ESL class offering and English learning materialsales....
- Q WaFlo Co is a -based company which has the followingexpected transactions..One month: Expected receipt of 240,000One month: Expected payment of 140,000Three months: Expected receipts of 300,000As the Corporate Finance Manager for...
- Q Can Bankruptcy be considered as a legitimate andethical management vehicle to be used for the benefit of thecompany's stakeholders?
- Q Musical Instruments BusinessA group of musicians have established a company selling medievalperiod musical instruments by mail order and appointed themselvescompany directors. The musicians have raised £750,000 of thecapital required themselves...
- Q What are the three major objectives of technological investmentsat FIs? What are the major risks involved with theseinvestments?
- Q 1. We find the following information on NPNG(No-Pain-No-Gain) Inc. (18 marks total)EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000These numbers are projected to...
- Q Broussard Skateboard's sales are expected to increase by 20%from $8.6 million in 2016 to $10.32 million in 2017. Its assetstotaled $3 million at the end of 2016. Broussard is already...
- Q In 2018, Laureen is currently single. She paid $2,560 ofqualified tuition and related expenses for each of her twindaughters Sheri and Meri to attend State University as freshmen($2,560 each for...
- Q The prices of stocks at any point should reflect, fully, allavailable information. We live in the internet era whereinformation is readily available. Investors react to informationand the price of stocks...
- Q Straight Supply Straight Supply is a major supplier of medicalcomponents to large pharmaceutical corporations. Bonnie Straight isa second generation CEO of the company founded by her father fortyyears ago. Originally...
- Q Consider the following spot rate curve:s1s2s3s4s50.0500.0550.0610.0660.075(a) What is the forward interest rate that applies from period 3to period 5? That is, what is the value off3,5? Assume annual compounding. (Keep...
- Q Mutual funds are managed by an investment company. The ownersof the mutual fund are different from the shareholders. Theinvestment company owners do not, necessarily, invest in the mutualfunds they are...
- Q Blue Lagoon Inc., a publically-traded company, manufactures awide variety of scuba diving equipment and supplies, in addition toowning a chain of retail scuba stores and scuba diving trainingcenters. Eighteen months...
- Q Securities firms are subject to several forms of regulation.The SEC establishes general guidelines for trading on securitiesexchanges. The SEC does not have criminal enforcement authority.The SEC enforces financial disclosure laws...
- Q After-tax cost of debt??Personal Finance Problem??Bella Wans isinterested in buying a new motorcycle. She has decided to borrowthe money to pay the?$30,000purchase price of the bike. She is in the33?%income...
- Q ?PART 11a.?Go to the website of these three companies; ExxonMobil,Walmart & Vista Equity Partners and access the latest 10Kforms, send as an attachment the pdf and excel copies of the...
- Q 8. Santos Limited has expanded its exploration program and hasdecided to fund the expansion through the issue of additionalordinary shares to its existing shareholders on a pro-rata basis ofone new...
- Q Consider the following three bonds:BondCoupon RateMaturity (years)PriceA0%1.0$947.5572B7%1.0$1,014.8980C5%1.5$981.4915Assume that coupons are paid every 6 months and the face values ofall the bonds are $1,000.(a) Suppose that the 0.5- and 1.5-year zero-coupon...
- Q What are the implications of Pecking-order theory?
- Q Consider two 5-year bonds: one has an 5% coupon rate and sellsfor $98; the other has an 8% coupon rate and sells for $109. Whatis the price of a 5-year...
- Q Suppose you have a portfolio thatincludes two stocks. You invested 60 percent of your total fund ina stock that has a Beta equal to 3.0 and the remaining 40 of...
- Q Assume a loan of $30,000, 36 months, 6.5% interest. Generate atable of payments showing the principal payment and the interestpayment for each of the 36 months.
- Q What are the internal and external factors that influence thepricing decisions? Please this is a marketing question
- Q Find an article and critique on a current article related toproject risk management.Instructions:Source must be scholarly in nature:Outline the issueWhy is the article / topic important?What does this article mean...
- Q 9. Woolworths Limited is a publicly listed corporation. Its corebusiness is in supermarkets. Woolworths has decided to set up amajor hardware goods chain in competition with the WesfarmersLimited-owned Bunnings stores....
- Q 7. Suppose your firm is considering investing in a project withthe cash flows shown below, that the required rate of return onprojects of this risk class is 12 percent, and...
- Q 7 (a) It may be argued that information is the life-blood of anefficient stock market. Explain this proposition.(b) Within the context of the ASX, explain the requirements andpurpose of continuous...
- Q 4. Your Company is considering a new project that will require$24,000 of new equipment at the start of the project. The equipmentwill have a depreciable life of 7 years and...
- Q Explain the Capital Asset Pricing Model (CAPM).
- Q ?Lisa Simpson wants to have $1,400,000 in 30 years by makingequal annual? end-of-the-year deposits into a? tax-deferred accountpaying 11.75 percent annually. What must? Lisa's annual deposit?be?
- Q Question 3 [36]Rapid Print CC is a company specialising in 3D printing forcommerce and industry. The management committee is consideringadding an additional 3D printer to its production facilities and isconsidering...
- Q Jumbo Enterprises plans to borrow R1 000 000 for one year. Thestated interest rate is 15% per annum.Required:Use the information provided above to calculate the effectiveinterest rate if:4.3.1 The interest...
- Q You are trying to evaluate a private firm’s potential as a goodinvestment opportunity. Your mentor at the investment bank youinterned during the summer told you to collect information oncomparable firms,...
- Q What are the total return, the current yield, and the capitalgains yield for the discount bond? (Assume the bond is held tomaturity and the company does not default on the...
- Q . What happens to future values as the length of time involvedincreases? What happens to present values as the lengthof time involved increases?
- Q Using a car industry, describe five different brands and howthey have been positioned
- Q 3. (a) Discuss the secondary market role of a stock exchange andits importance to the corporation. Illustrate your answer by usingexamples.(b) What is meant by the liquidity of the share...
- Q 4. (a) As a stockbroker, you have been approached by a clientseeking to establish a diversified portfolio of domestic shares.After identifying the client’s investment needs, you recommend theclient use an...
- Q 6. Two derivative products that may be offered through a stockexchange are an options contract and a futures contract. Brieflyexplain the main features of each of these products. Why might...
- Q QUESTION 5Dolby Enterprises has the option to invest in machinery inProjects M and N but finance is only available to invest in one ofthem.Project M (R)Project N (R)Initial cost450 000450...
- Q Explain the implications of the “Degree of OperatingLeverage”.
- Q ?(?Break-evenpoint and operatingleverage?)Footwear Inc. manufactures a complete line of? men's and?women's dress shoes for independent merchants. The average sellingprice of its finished product is?$85per pair. The variable cost for this...
- Q 1. Suppose you negotiate a selling price of $29,995 for a FordExplorer. You make a down payment of 10% of the selling price andfinance the remaining balance for 5 years...
- Q (1) How is the future, present, and past reflectedin terms of interior and exterior finance?
- Q You are graduating from college at the end of this semester andafter reading the The Business of Life box in this? chapter, youhave decided to invest $5100 at the end...
- Q How long will it take to pay off a loan of $45,000 at an annualrate of 8 percent compounded monthly if you make monthly paymentsof $600? Use five decimal places...
- Q 1. One argument for highdividend payout is the desire of investors for current income.Explain why this argument does/does not work in a perfect capitalmarket with no transaction costs. Explain how...
- Q You are planning to purchase a new car explain whether it is toyour advantage to lease or buy your new car, and why. What did youhave to consider about your...
- Q PLEASE ANSWER J&K :) THANK YOU!1. Q Corporation and R Inc. are two companies with verysimilar characteristics. The only difference between the twocompanies is that Q Corp. is an unlevered...
- Q ?(Operating leverage?) The Quarles Distributing Companymanufactures an assortment of cold air intake systems for?high-performance engines. The average selling price for the variousunits is ?$600 . The associated variable cost is...
- Q (?Break-evenanalysis?)You have developed the income statement in the popup?window,LOADING...?, for the Hugo Boss Corporation. It represents the most recent?year's operations, which ended yesterday. Your supervisor in the?controller's office has just...
- Q Review any current events/transactions that have takenplace and have an opinion about them.Describe 3 Business transactions in DETAIL. (M&A,IPO, stocks)
- Q Bahamas Inc. is experiencing rapid growth. The company expectsdividends to grow at 15 % per year for the next 4 years beforeleveling off at 6% into perpetuity. The required return...
- Q New-Project AnalysisThe Campbell Company is considering adding a robotic paintsprayer to its production line. The sprayer's base price is$1,100,000, and it would cost another $17,500 to install it. Themachine falls...
- Q The twenty-year bond yields 6.1% and has a coupon of 8.1%. Ifthis yield to maturity remains unchanged, what will be its priceone year hence? Assume annual coupon payments and a...
- Q afirm has total debt of $900 an total equity of $1600. the cost ofdebt is 10% and the unlevered rate of return is 13%. The tax rateis 34%. What is...
- Q Carland, Inc., has a project available with the following cashflows. If the required return for the project is 7.5 percent, whatis the project's NPV?Year cash flow0 -$254,0001 $62,5002 $86,4003 $115,8004...
- Q eBook Problem 4-14 Uneven Cash Flow Stream Find the presentvalues of the following cash flow streams. The appropriate interestrate is 6%. Round your answers to the nearest cent. (Hint: It...
- Q The following table lists prices of Alphabet options in December2015 when Alphabet stock was selling for $470.Expiration DateExercise PriceCall PricePut PriceMarch 2016$440$43.66$15.1047026.7527.9047514.7046.40Use the data in the table to calculate the...
- Q Calculate the durations and volatilities of securities A, B, andC. Their cash flows are shown below. The interest rate is 10%.(Do not round intermediate calculations. Round "Duration"to 4 decimal places...
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