Finance question and answers for October 09, 2023
- Q You must evaluate the purchase of a proposed spectrometer forthe R&D department. The base price is $270,000, and it wouldcost another $67,500 to modify the equipment for special use by...
- Q Project K requires an initial investment of $450,000, isexpected to last for 7 years, and is expected to produce after-taxnet cash flows of $92,000 per year. Project L requires $3000initial...
- Q Discuss the different types of mutual funds offered by financialinstitutions, and the types of investors they attract based oninvestment risks. What are some inherent risks and opportunitiesmutual funds face?
- Q Financial ratios can be divided into four categories, dependingupon the purpose of the analysis. Discuss the four categories:internal liquidity, operating performance, risk analysis and growthanalysis.Requirements: 250 words
- Q There are different types of risk involved in foreign exchange.One type of risk is risk involved in forward markets. There arevarious factors involved in the fluctuation or the rate of...
- Q Sandford Brokers is trying to promote investments in the sharesof two stocks, A and B.Their quantitative analysts have uncovered the followingfacts:Stock A has an average return of 7% and a...
- Q Follow up question to the recommendations made toJerry , how do I get to $44.96? I'm confused
- Q You are evaluating a project with a 4 year life. Sales revenueis projected to be $320,000 in year 1, $400,000 in year 2, $424,000in year 3, and $475,000 in year...
- Q Redesigned Computers has 10 percent coupon bonds outstandingwith a current market price of $898.06. The yield to maturity is11.34 percent and the face value is $1,000. Interest is paidsemiannually. How...
- Q You must evaluate a proposal to buy a new milling machine. Thebase price is $140,000, and shipping and installation costs wouldadd another $14,000. The machine falls into the MACRS 3-year...
- Q KADS, Inc. has spent RM300,000 on research to developa new computer game. The firm is planning to spend RM250,000 on amachine to produce the new game.Shipping and installation costs of...
- Q Consider a project with a 5-year life. The initial cost to setup the project is $100,000. This amount is to be linearlydepreciated to zero over the life of the project...
- Q Which of the following is not commonly used in discounted cashflow valuation to calculate the value of the firm?a.Dividends.b.Free Cash Flow to the Firm.c.Free Cash Flow to Equity.d.Share Buy BacksWhich...
- Q Using a spreadsheet, prepare a cash budget for New Tech for thenext year (January through December) based on the followinginformation.OCT NOV DEC Sales revenue (previous year) 325.0 325.0 325.0Purchases 59.2...
- Q What is Originate-To-Distribute approach? Discuss.
- Q Choose one of the financial statements that were covered in thismodule: The Balance Sheet, The Statement of Operations, TheStatement of Changes in Net Assets, or the Statement of Cash Flows.In...
- Q Looking for assistance with the "sketch/graph" part of the belowquestion:Consider the following projects, X and Y where the firmcan only choose one. Project X costs $600 and has cash flows...
- Q Discuss the future of Omni-channel banking in the face ofnumerous technological developments including "mobile" and "cloud",and "Blockchain " applications, and numerous disruptive start-upFin Tech Firms. What banking model in your...
- Q A company has lower sales volume than expected and is operatingat a loss. What can the company do to reach the breakeven pointgiven a set volume of sales possible?
- Q Question 7 8 MarksA company has 1,000,000 shares outstanding, and each share iscurrently worth R20. The shares have beta of 1.2. The company alsohas 10-year bonds outstanding with a par...
- Q How do agencies such as Fannie Mae and Freddie Mac allowindividual mortgage holders to collectively benefit from theagencies’ access to the capital markets? Does this access result inlower mortgage rates...
- Q Time value Personal Finance Problem You have ?$1,800 to investtoday at 8?% interest compounded annually.a. Find how much you will have accumulated in the account at theend of? (1) 3...
- Q Business risk is comprised of (a) price risk, (b) credit riskand (c) pure risk Defined these terms and give an example ofeach.
- Q The following questions are true or false1. Since commercial bank loans are cheaper than trade credit,few firms use trade credit._______________2. The smaller the trade discount, the more expensive is thetrade...
- Q (a) List the six coverages provided in the Homeowner's 3policy.(b) Describe the difference between "named perils" and "openperils" coverage basis.
- Q In a rising interest rate environment, how would bond valueschange over time? As a bond investor, what measures would you taketo manage rate risk?
- Q Financial ratios are the principal tool of financial analysis.Ratios standardize the financial information of firms socomparisons can be made between firms of varying sizes. Choose twofirms in the same sector;...
- Q Broussard Skateboard's sales are expected to increase by 15%from $8.0 million in 2016 to $9.20 million in 2017. Its assetstotaled $4 million at the end of 2016. Broussard is already...
- Q Broussard Skateboard's sales are expected to increase by 15%from $8.8 million in 2016 to $10.12 million in 2017. Its assetstotaled $4 million at the end of 2016. Broussard is already...
- Q you just received an inheritance and are trying to decidebetween 3 options. your required return is 10.4%. please find thepresent value for each option. which option should you choose?A. $7,700...
- Q Assume that you are considering developing a nationwide chain ofwomen's clothing stores. You have contacted a Seattle-based firmthat specializes in financing new business ventures andenterprises. Such firms, called venture capital...
- Q Here are forecasts for next year for two stocks:Stock AStock BReturn on equity12%10%Earnings per share$3.00$2.50Dividends per share$2.00$2.00a. What are the dividend payout ratios for eachfirm? (Do not round intermediate calculations....
- Q Consider the following two banks: Bank 1 has assets composedsolely of a 10-year, 14.00 percent coupon, $3.0 million loan with a14.00 percent yield to maturity. It is financed with a...
- Q 1.-Evolving into Multinationalism. As a firmevolves from purely domestic into a true multinational enterprise,it must consider (1) its competitive advantages, (2) its productionlocation, (3) the type of control it wants...
- Q 3.-Competitive Advantage. In deciding whether to invest abroad,management must first determine whether the firm has a sustainablecompetitive advantage that enables it to compete effectively in thehome market. What are the...
- Q What should be the resource for asset allocation? Should it be60/40 a reasonable allocation strategy?
- Q How would you advise your parents or grandparents regardingtheir asset allocation?
- Q What is the advantage of RRSP over TFSA? What is the advantageof TFSA over RRSP? What is the advantage of each (RRSP and TFSA)over a regular taxable investment account?
- Q 5.-Competitiveness of the Home Market. A strongly competitivehome market can sharpen a firm’s competitive advantage relative tofirms located in less competitive markets. Explain what is meant bythe “competitive advantage of...
- Q You have been asked to assess the expected financial impact ofeach of the following proposals to improve the profitability ofcredit sales made by your company. Each proposal is independent ofthe...
- Q Elsa is a data analytics intern at a financial firm.Her company has obtained their customers bank transaction recordsrecently. Elsa has been asked by her manager to find out all theattributes...
- Q A company that makes shopping carts for supermarkets and otherstores recently purchased some new equipment that reduces the laborcontent of the jobs needed to produce the shopping carts. Prior tobuying...
- Q audit procedure that the audit may use in providing assuranceengagement
- Q A new pediatric clinic is opening in your communityand has hired you as a consultant to help them get started. Theyhave been debating if they really need a Mission Statement,...
- Q List the objectives of financial accounting as outlined in SFACNo 1: “Objective of Financial Reporting by Business Enterprises."Financial Accounting
- Q Investment diversification is a principle that investors follow. Isthe principle of investment diversification that is used byinvestors in our society based upon biblical principles or arethere other motives for investment...
- Q Discuss the major stock-market indexes used in the United Statesand globally. What are their characteristics?
- Q Uses of security-market indexes – Please write a paper aboutthe uses of security-market indexes. How are they constructed anddifferentiated? How are they used as benchmarks? Why shouldinvestors examine numerous security-market...
- Q Owners and managers have cited three reasons for the creation oflarge financial firms or universal banks. What are thesereasons?
- Q 4. What is a stranded asset? Provide an example of a strandedasset and be prepared to explain why you believe it is a strandedasset – your example may be an...
- Q 6. Moody’s Investors Service and Standard and Poor’s adjustedthe way they graded securities after Goldman Sachs Group Inc., UBSAG and at least six more banks pressured them, according to a...
- Q One of the basic financial principles is that the value of anyasset (whether it be a stock, a bond, or a firm as a whole) is thepresent value of that...
- Q An independent orthopedic clinic is consideringexpanding by opening a small surgery center instead of rentingspace in a local hospital. They ask their financial department(you) for methods of calculating whether or...
- Q Consider the following information:State ofEconomyProbability ofState of EconomyRate of Returnif State OccursStock AStock BRecession.04.097.102Normal.72.114.133Boom.24.156.148The market risk premium is 7.4 percent, and the risk-free rate is3.1 percent. The beta of Stock...
- Q Chapter 1, 2.17Smith wishes to buy a TV set and is offered a time payment planwhereby he makes 24 monthly payments of 30 each starting now. Smithwants the payments to...
- Q Question 2. Upon starting your new job after college, you'vebeen confronted with selecting the investments for your 401(k)retirement plan. You have four choices for investing yourmoney:a money market fund that...
- Q whywould traders enter a long box strategy? (options)
- Q A young couple borrow $5,000 on the 1st September, agreeing torepay it as well as the interest charged over 36 months with 36equal repayments, at the interest rate of 3%....
- Q Define the Average Cost of Capital (Weighted Average Cost ofCapital) and explain why a company should earn at least itsweighted average cost of capital in new investments.What are the financial...
- Q fortax purposes, interest on corporate dept is:
- Q What are the advantages and disadvantages of the residualpolicy? (Hint: Don’t neglect signaling and clientele effects.)Discuss the advantages and disadvantages of a firm repurchasingits own shares.
- Q (Future value of an ordinary? annuity)??You are graduating fromcollege at the end of this semester and after reading the TheBusiness of Life box in this? chapter, you have decided to...
- Q Problem 6Exchange rate is currently $1.85 US per 1 British pound.Interest rate is 4% in the US and 3% in the UK. A bank is short afutures contract on 1,000,000...
- Q Integrated Waveguide Technologies (IWT) is a 6-year-old companyfounded by Hunt Jackson and David Smithfield to exploitmetamaterial plasmonic technology to develop and manufactureminiature microwave frequency directional transmitters andreceivers for use in...
- Q Layla's Distribution Co. is considering a project which willrequire the purchase of $1.6 million in new equipment. Theequipment will be depreciated straight-line to a zero book valueover the 5-year life...
- Q (Calculating the geometric and arithmetic average rate of?return)??The common stock of the Brangus Cattle Company had thefollowing? end-of-year stock prices over the last five years andpaid no cash? dividends: Time...
- Q Consider the following data.S27.8X25r0.02T0.5sigma0.17Calculate the Black-Scholes value of the call optionCalculate the deltaHow many units of the underlying stock should you hold to hedgea short position in 100 call option...
- Q Refunding AnalysisMullet Technologies is considering whether or not to refund a$250 million, 13% coupon, 30-year bond issue that was sold 5 yearsago. It is amortizing $9 million of flotation costs...
- Q S&P 500 Index is at 2780. A European June 21, 2019 SPX calloption struck at 2500 is trading at $316.94. An identical put istrading at $55.15. A T-bill with 200...
- Q You are planning on retiring the moment that you accumulate$1,000,000 in your mutual fund. Currently, you have $226,619 in theaccount, and you pay 1,000 into it monthly. If your account...
- Q As of 2015, ranches were taxed at 13 percent for income up to$42,000; at 20 percent for income ranging from $42,000 to $71,000;at 26 percent for taxable income $71,000 to...
- Q ?(Percentof salesforecasting?)Which of the following accounts would most likely vary directlywith the level of a? firm's sales? Discuss each briefly.YesNoYesNoCash?____?____Notes payable?____?____Marketable securities?____?____Plant and equipment?____?____Accounts payable?____?____Inventories?____?____Is cash likely to vary directly...
- Q Profit or Loss on NewStock Issue Security Brokers Inc. specializes in underwritingnew issues by small firms. On a recent offering of Beedles Inc.,the terms were as follows:Price to public: $5...
- Q xternal FinancingWe examined two important topics in finance during this unit:external financing requirements and agency conflicts. Address theprompts below in your essay.Include an introduction that summarizes the main points with...
- Q You are considering the purchase of a new industrial pump thatyou will use for three years, and it will cost you $40,000 to buy.It will be depreciated using the 3-year...
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!