Finance question and answers for September 02, 2023
- Q based on any capital budgeting journalDiscuss why do managers focus on the impact that an investmentwill have on reported earnings rather than on the investment’s cashflow consequences?
- Q Distinguish between cash flows and revenues and expenses. Whyshould a nurse manager or executive be concerned with issues suchas cash flow and inventory levels?
- Q You must evaluate the purchase of a proposed spectrometer forthe R&D department. The base price is $60,000, and it wouldcost another $12,000 to modify the equipment for special use by...
- Q As you've read about, businesses exist and operate inmany different environments. This has always been the case, butmany consumers don't realize the different environments or howbusinesses must adapt to operate...
- Q What is the relationship between interest rate (I) and presentvalue (PV)? Are they moving in the same direction, or the oppositedirection?Using your answer in part 1 to explain how financial...
- Q 5. Eastview’s police department hires a new class of 50 traineesevery quarter to begin the 3-month police academy program. Fournearby communities have struggled in running their own policeacademies, partly due...
- Q Global Logistics just announced it is increasing its annualdividend to $1.68 next year and establishing a policy whereby thedividend will increase by 3.25 percent annually thereafter. Howmuch will one share...
- Q g. Determine the PI for each of these projects. Should eitherproject be? accepted?PROJECT APROJECT BInitial outlay-110,000-110,000Inflow year 1?????10,000?????? 40,000Inflow year 2?????? 30,000?????? 40,000Inflow year 3?????40,000?????? 40,000Inflow year 4?????? 60,000?????? 40,000Inflow...
- Q Profitability IndexNPV/Initial InvestmentCan you please give me a breakdown how to figure outNPV/Intitial investment. If you cab please just show me an examplehow to figure it out.
- Q 3. Passbook savings accounts and NOWaccounts (part of checkable deposits) are both interest bearingbank deposits, but NOW accounts have checkable privileges andpassbook savings accounts have no checkable privileges. Then whywould...
- Q Respond to the following in a minimum of 175words: Are cultural, business, or political risk morechallenging to overcome than one of the others? Why or why not? Howshould American standards influence...
- Q 6. Solving for the WACCThe WACC is used as the discount rate to evaluate variouscapital budgeting projects. However, it is important to realizethat the WACC is an appropriate discount rate...
- Q You just received your annual performance statement from yourinvestment advisor. The statement indicates that your portfolioreturn for the past year was up 12%. In addition, you noticed,within the statement, that...
- Q Gio's Restaurants is considering a project with the followingexpected cash? flows: LOADING.... If the? project's appropriatediscount rate is 11 ?percent, what is the? project's discountedpayback? period?YEAR PROJECT CASH FLOW ???0...
- Q Describe the three (3) primary methods of cost allocation anddescribe how they differ.
- Q A common stock has just payed a dividend of $2.32/share. Thedividend is expected to grow by 16% for the coming 28 years. Afterthat, the growth rate in dividend is expected...
- Q Davis Industries is considering two alternative machines.Machine A has an expected life of 4 years, will cost $10 million,and will produce net cash flows of $3 million per year. Machine...
- Q When it comes to School Finance, based on income and revenues,what are the key elements one should look for when critiquing itsbudget?
- Q Profitability Index NPV/Initial InvestmentCan you please give me a breakdown how to figure outNPV/Intitial investment. If you cab please just show me an examplehow to figure it out.On an sheet,...
- Q Graffiti Advertising, Inc., reported the following financialstatements for the last two years. 2016 Income Statement Sales $568,700 Costs of goods sold 273,990 Selling and administrative124,726 Depreciation 54,569 EBIT $ 115,415...
- Q The Evanec Company's next expected dividend, D1, is$3.05; its growth rate is 7%; and its common stock now sells for$39.00. New stock (external equity) can be sold to net $31.20...
- Q You have just been offered a contract worth $ 1.24 million peryear for 7 years.? However, to take the? contract, you will need topurchase some new equipment. Your discount rate...
- Q reportedly was paid $ 9.8 million to write his book The Fork inthe Road. The book took three years to write. In the time he spent?writing, Jack Smith could have...
- Q Fabulous Fabricators needs to decide how to allocate space inits production facility this year. It is considering the following?contracts:contractNPVUse of FacilityA$2.05 Million100%B$1.0153%C$1.4547%a. What are the profitability indexes of the? projects?b....
- Q You need a particular piece of equipment for your productionprocess. An? equipment-leasing company has offered to lease theequipment to you for $ 10,000 per year if you sign a guaranteed5?-year...
- Q The Churgin Corp. had sales of $310 million this year, costswere $185 million and net investment was $55 million. Each of thesevalues is project to grow at 10% per year...
- Q 5. The cost of new common stockA.True or False: The following statement accurately describeshow firms make decisions related to issuing new common stock.If a firm needs additional capital from equity...
- Q When we observe interest rates in the financial press, do we seenominal or real rates? Suppose you are in the process of applyingfor a 30-year fixed-rate mortgage. Which rate is...
- Q When performing comparable analysis the ideal comparable firmwill have each of the following characteristics EXCEPT:it has similar risk as measured by variance.it has similar growth of cash flow prospects.these are...
- Q A project has annual cash flows of $8,000 for the next 10 yearsand then $10,500 each year for the following 10 years. The IRR ofthis 20-year project is 13.47%. If...
- Q Adela borrowed $10,500 at 12% ordinary interest for 170 days.After 40 days, she made a partial payment of $3,000. After another80 days, Adela made a second partial payment of $2,000....
- Q An oil-drilling company must choose between two mutuallyexclusive extraction projects, and each requires an initial outlayat t = 0 of $12.8 million. Under Plan A, all the oil would beextracted...
- Q A store has 5 years remaining on its lease in a mall. Rent is$2,000 per month, 60 payments remain, and the next payment is duein 1 month. The mall's owner...
- Q Harold Blank, Vice President of Manufacturing for Herr Foods,Inc., was contemplating a capital investment that could improveproduction; however, this operations decision would force severalof his recently hired employees into new...
- Q I am looking for the answer to question 30 of ch.19 of FInancialInsitutions Management by Cornett and Saunders. It is regarding therisk category in addition to the dollar value of...
- Q The ____ approach takes into account both the magnitude andtiming of cash flows over the entire life of a project in measuringits economic desirability.payback periodaverage rate of returnaccounting rate of...
- Q Ratio analysis is an important tool used by investors, creditors,and management when assessing the health of a company. However,ratio analysis has some problems and issues. What do you think arethe...
- Q home / study / business / finance / finance questions andanswers / question 11 the taxing and spending policies of thefederal government designed to promote ...Question: QUESTION 11 The taxing...
- Q QUESTION 14The Lead Underwriter, in an IPO, prepares the issueing firm'sapplication that is made to the SECTrueFalse3 points QUESTION 15Insurance is the business of risk shifting.TrueFalse3 points QUESTION 16A Treasury...
- Q What is the annual operating cash flow for a 10 year projectthat has annual sales of 590,000, its variable costs are 80% ofsales and has annual fixed costs of $100,000....
- Q XYZ company has a capital structure made up of 35 percent debtand 65 percent common equity. Their bonds have a $1,000 par value,a 12 percent coupon, paid semiannually, a current...
- 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 An investor buys a 5-year bond with a coupon rate of 6.5% at aprice that reflects a yield to maturity of 10.9%. Interest is paidsemiannually. Exactly one year later, after...
- Q The Wagner Corporation has a $20 million bond obligationoutstanding, which it is considering refunding. Though the bondswere initially issued at 16 percent, the interest rates on similarissues have declined to...
- 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 (Divisional costs of capital and investment decisions?) In Mayof this year Newcastle Mfg.? Company's capital investment reviewcommittee received two major investment proposals. One of theproposals was put forth by the?...
- Q What is capital market efficiency? What are its implications forinvestment performance in general? What are the implications forfund managers if we assume markets are semi-strong formefficient?
- Q General Finance ConceptsIntegrative Problem:Samantha Sampson retired a few years ago at the age of 55.Because she is bored with retirement and still relatively young,Samantha has considered starting a business of...
- Q he following tablerepresents the cost to ship from Distribution Center 1, 2, or 3 toCustomer A, B, or C. The demand for customer A and customer Cshould be at least...
- Q Please, i need Unique answer, Use your ownwords (don't copy and paste). Please, don't usehandwriting, Use your keyboard. Q3. Choose two accounting assumptions andexplain in your word.
- 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 Rounded Depreciation Percentages by Recovery Year Using MACRSforFirst FourProperty ClassesPercentageby recovery year*Recovery year3years5years7years10years133%20%14%10%245%32%25%18%315%19%18%14%47%12%12%12%512%9%9%65%9%8%79%7%84%6%96%106%114%Totals100%100%100%100%Afirm is considering renewing its equipment to meet increased demandfor its product. The cost of equipment modifications is...
- Q Explain the logic underpinning the assertion in Merton’s modelthat the equity holders of an indebted firm can be considered ashaving a call option on the assets of the firm, with...
- Q Integrated Potato Chips paid a $1.50 per share dividendyesterday. You expect the dividend to grow steadily at arate of 6% per year.a.What is the expected dividend in each of the...
- Q ?(Individual or component costs of capital?) Compute the cost ofthe? following:a. A bond that has ?$1 comma 000 par value? (face value) and acontract or coupon interest rate of 8...
- Q New City BandAs the volunteer business manager for the New City Band (CityBand), you are responsible for preparing the operating budget forthe organization’s upcoming summer concert season. Each year, CityBand...
- Q The market capitalization rate on the stock of AberdeenWholesale Company is 8%. Its expected ROE is 10%, and its expectedEPS is $3. If the firm's plowback ratio is 65%, its...
- Q Crook is planning a $100 million expansion to be financed with20% debt, 5% preferred stock and the rest by retainedearnings.• The debt consists of 15-year bonds with a coupon rate...
- Q a. Do you think it is important to save for retirement, andwhy?b. What is your strategy of achieving your goal to save forretirement?c. What is your opinion about 401(K) and...
- Q Please provide specific Excel functions =NPV(…),=IRR(…), =AVERAGE(…), =YIELD(…) etc......Given the following information for Bajor Co.:Debt: Bajor’s long-term debt capital consists of bondswith 6.250 percent coupon rate (semiannual coupon payments), 9years...
- Q How is delta useful in determining the potentialprofitability of an options strategy?
- Q Project L costs $40,121.71, its expected cash inflows are $9,000per year for 8 years, and its WACC is 11%. What is the project'sIRR? Round your answer to two decimal places.
- Q Project L costs $65,000, its expected cash inflows are $14,000per year for 8 years, and its WACC is 14%. What is the project'spayback? Round your answer to two decimal places.
- Q A company is analyzing two mutually exclusive projects, S and L,with the following cash flows:01234The company's WACC is 10.0%. What is the IRR of the better project?(Hint: The better project...
- Q Explain why the position of a buyer of a credit default swap issimilar to the position of someone who is long a risk-free bond andshort a corporate bond.
- Q You will be paying $10,700 a year in tuition expenses at the endof the next two years. Bonds currently yield 10%.a.What is the present value and duration of your obligation?(Do...
- Q Halliford Corporation expects to have earnings this coming yearof $ 2.71 per share. Halliford plans to retain all of its earningsfor the next two years. For the subsequent two? years,...
- Q Railback Battery Systems Following is the seven-year forecastfor a new venture called Railback Battery Systems:Year2020202120222023202420252026EBIT($1,000)($900)$200$1,200$2,500$3,000$3,050CapitalExpenditures$550$350$200$175$175$160$150Changesin Working Capital$400$300$200$100$100($100)($100)Depreciation$40$80$125$150$150$150$150Part 1:Beginning after year 2026 the annual growth in EBIT is expectedto be 1.5%,...
- Q The Business School at Eastern College is collecting data as afirst step in the preparation of next year's budget. One cost thatis being looked at closely is administrative staff as...
- Q Most corporations pay quarterly dividends on their common stockrather than annual dividends. Barring any unusual circumstancesduring the year, the board raises, lowers, or maintains the currentdividend once a year and...
- Q Cash Flow Data for Interceptors, Inc.2005200620072008 Cash$40$50$60$70 Cash from operations$132$130$127$122 Net capital spending$150$145$150$155 Cash from financing$28$25$33What must cash flow from financing have been in 2008 forInterceptors, Inc.?$33$43$10$40
- Q Davis Stores sells clothing in 15 stores located around thesouthwestern United States. The managers at Davis are consideringexpanding by opening new stores and are interested in estimatingcosts in potential new...
- Q The Centers for Disease Control reported the percentageof people 18 years of age and older who smoke (CDC website,December 14, 2014). Suppose that a study designed to collect newdata on...
- Q The Bowman Corporation has a bond obligation of $24 millionoutstanding, which it is considering refunding. Though the bondswere initially issued at 13 percent, the interest rates on similarissues have declined...
- Q The Ellis Corporation has heavy lease commitments. Prior toSFAS No. 13, it merely footnoted lease obligations in thebalance sheet, which appeared as follows: Use Appendix D for anapproximate answer but...
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