Finance question and answers for September 09, 2023
- Q allen is analyzing a project and has determined that the initialcost will be $760,000 and the required rate of return needs to be12 percent. The project has a 60 percent...
- Q Trinity Surgical Supplies, Inc. sells on terms of 2/10, net 30.Gross sales for the year are $1.5 million, and the collectionsdepartment estimates that 25 percent of the customers pay on...
- Q Assume that you decides to buy a housefor $187,600. You will pay 20% down payment by your saving and fundthe remaining amount (i.e., 80% of the house price) using amortgage...
- Q Question 7A retail outlet finds from historic data that it sells anaverage of 220 copies of a newspaper daily; this figure comes witha standard deviation of 35 units. The sales...
- Q A company has the following 2 projects: Projects C0 C1 C2 C3 A-36 20 20 20 B -50 25 25 25 Assume that the discount rate is 10%.How much is...
- Q Long-Term Financing NeededAt year-end 2016, Wallace Landscaping’s total assets were $1.9million, and its accounts payable were $405,000. Sales, which in2016 were $3.0 million, are expected to increase by 30% in...
- Q The​ All-State Mutual Fund has the following​ 5-year record of​performance:   2016  2015  2014  2013  2012Net investment income  0.95  0.91  0.83  0.71  0.66Dividends from net investment income  (0.93)  (0.85)  (0.87)  (0.71)  (0.60)Net realized and unrealized...
- Q 0. A finance company that lends to “high-risk†automobilebuyers, finds the following variables important in classifyingdefault probabilities: time at present residence, prior bankruptcyfiling (yes or no), time in present job,...
- Q 1.You need $1,000,000 to expand yourbusiness. Which method, debt or equity financing would you pursueand why?2.Is now a good time to invest in thestock market? Why or why not?3.You have...
- Q According to your slides, you can do international trade usingone of the following options: Licensing, Franchising, JointVenture, Acquisition of Existing Operation, Establishing NewForeign Subsidiaries. How are these different methods of...
- Q Create a scenario that exemplifies one of the following tax ratestructures:What is Progressive tax rate?Regressive?Proportional?
- Q a 20-years annuity-immediate has annual payments . Thefirst payment is 100 and subsequent payments are increased by 100until they reach 1000. The remaining payment stay at 1000. theannual effective intersst...
- Q You just started a career as a lion tamer in the circus and havedecided that you would like to retire at age 55, before yourreflexes slow down too much. You...
- Q Reflecting on the focus and content of this course, what is animportant challenge facing the financial management oforganizations today, and how would you go about addressing it?Explain.
- Q Calculation of individual costs and WACC   Dillon Labs has askedits financial manager to measure the cost of each specific type ofcapital as well as the weighted average cost of capital....
- Q Ivanhoe, Inc., has just set up a formal line of credit of $10million with First Community Commercial Bank. The line of credit isgood for up to five years. The bank...
- Q Amino Industries common shares sell for $100 per share. Aminoexpects to set their next annual dividend at $4.00 per share. IfAmino expects future dividends to grow at 5 percent per...
- Q Payback, NPV, and IRR   Rieger International is evaluating thefeasibility of investing​$86 comma 00086,000in a piece of equipment that has a55​-yearlife. The firm has estimated the cash inflows associated withthe proposal as...
- Q Paul is in the market for a used car. He has found the samesports car at two different dealerships and is now consideringwhich dealer he should purchase the car from....
- Q Has SOX lived up to its expectations over the last decade, andshould there be a repeal of the act because companies which createdthis problem are no longer with us? please...
- Q SOX designed and passed by Congress to close legal and ethicalambiguities that companies previously exploited. What are the mostimportant lessons learned from SOX legislation concerning securityviolations? please no copy and...
- Q Use the following table of states of the economy and stockreturns to calculate the percentage standard deviation of aportfolio of a portfolio of 40 percent Roll and the rest inRoss.Securityif...
- Q You need $1,000,000 to expand yourbusiness. Which method, debt or equity financing would you pursueand why?Is now a good time to invest in thestock market? Why or why not?You have...
- Q Problem 16-14Cash BudgetingDorothy Koehl recently leased space in the Southside Mall andopened a new business, Koehl's Doll Shop. Business has been good,but Koehl frequently run out of cash. This has...
- Q Please do in excel showing the workWansley Lumber is considering the purchase of a paper company,which would require an initial investment of $300 million. Wansleyestimates that the paper company would...
- Q You are in the 33% marginal tax rate. The stock you purchased atthe beginning of the year has increased in value by $27,000.a. If you sell the stock today, your...
- Q John has received a college scholarship and can choose whetherto receive it as an immediate one-time payment of $10000 or as aseries of four equal payments (at the end of...
- Q Compare the mechanics and investment implications of buying onmargin and short-selling.
- Q What are the three most important financial concerns that thenursing profession faces? Please provide one reference
- Q Johnson Tire Distributors has an unlevered cost of capital of 13percent, a tax rate of 35 percent, and expected earnings beforeinterest and taxes of $1,500. The company has $2,700 in...
- Q Data for Atwill Corporation is shown below. Now Atwill acquiressome risky assets that cause its beta to increase by 30%. Inaddition, expected inflation increases by 2.00%. What is thestock's new...
- Q Manny Co is a listed company that plans to spend K10m onexpanding its existing business. It has been suggested that themoney could be raised by issuing 9% loan notes redeemable...
- Q Please do in excel showing all the work1)The exercise price on one of Flanagan Company's call optionsis $15, its exercise value is $22, and its time value is $5. Whatare...
- Q What is the need for a special area of law for administrativeagencies? Why would the law as it applies to businesses apply notjust as well to administrative agencies?
- Q Your investment firm is offering you payments of $55,000 a year,at a price of $310,000. If your required return is 5.5%, what isthe minimum length of time you must receive...
- Q XYZ is considering a 3-yr project. The initial outlay is$120,000, annual cash flow is $50,000 and the terminal cash flow is$10,000. The required rate of return (cost of capital) is...
- Q ABC purchased $38270 of equipment 2 years ago. The equipment is7-year MACRS property. What is the current book value of theequipment?The MACRS allowance percentages are as follows, starting with Year1:...
- Q PV of a perpetuity of $200 i/rate is 5% ii/ rate is 10% (firstpayment is in one year)200/.05= 4000200/.10=2000PV of a perpetuity of $200 i/rate is 5% ii/ rate is...
- Q A 5-yr project has an initial requirement of $142495 for newequipment and $8859 for net working capital. The installation costis $14729. The fixed assets will be depreciated to a zero...
- Q computers use for business purposes are assigned to what MACRSproperty class
- Q 1.A given bank has the following interestâ€sensitive assets andliabilities on its balance sheet (in $ millions). If the interestrate rises by 1.5%, what is the change of profit?Interest rate sensitive...
- Q Practice Questions:1A. Coolers Light SA/NV (NYSE: BUD) just paid a dividend of$3.50 per share. The company is expected to increase its nextdividend by 8% and pay it out in one...
- Q Assume a bank with the following balance sheet at the end of thefinancial year.Assets Amount Avg Duration (in years) Liabilities Amount AvgDuration (in years)Reserves $100 0 Deposits $2000 1.5T-notes $350...
- Q Question 1What is the accumulated sum of the following stream ofpayments?$924 every year at the end of the year for 11 years at 5.88percent, compounded annually.Round the answer to two...
- Q A Canadian importer has ordered $2,000,000 US worth ofcustomized Microsoft Office 365 to be delivered in six months. Thecurrent spot exchange rate is $1.50 CAD = $1.00 USD. However, theimporter...
- Q The Discover Company (NYSE: DIS) has debt of a par value of $13billion and is currently traded at 98.5% of the par value. Theappropriate cost of debt for Discover is...
- Q Dad has $25,000 in his 401k account and contributes 5% of hissalary ever year. His employer will match up to 10% dollar fordollar. He currently has 100% of his 401k...
- Q Assume a bank with the following balance sheet at the end of thefinancial year.Assets Amount Avg Duration (in years) Liabilities Amount AvgDuration (in years)Reserves $100 0 Deposits $2000 1.5T-notes $350...
- Q Please view the following balance sheet for the Bank of NewProvidence:ASSETS ($1,000,000s) LIABILITIES($1,000,000s)Cash $52 Deposits $650T-Bills and Bonds $257 Long-term Debt $326Loans to Other Banks $95 Equity $88Commercial Loans $364...
- Q 1.On January 1, 2016 Crane Company will acquire a new asset thatcosts $400,000 and that is anticipated to have a salvage value of$30,000 at the end of four years. The...
- Q \"Mortgage Securitization\" Please respond to the following:Critics have suggested that the complexity inherent insecuritization can limit investors' ability to monitor risk.Evaluate the merits of this criticism, indicating your agreement ordisagreement...
- Q Not only can hedging mitigate risks to the financialintermediary, but if done correctly, it is costless.
- Q Definei. Investment Bankerj.Financial intermediaryk. “Securities and Exchange Commission†(SEC).m. Required Performance n. Capital Assets Pricing Model(CAPM)
- Q Alexis Company uses 800 units of a product per year on acontinuous basis. The product has a fixed cost of $50 per order,and its carrying cost is $2 per unit...
- Q Flo's Frozen Yogurt shop is evaluating new dispensingmachines.The Flownator has a first cost of $30126 and annual expenses of$9957 that will increase by $569 per year. It will require anoverhaul...
- Q Potential Answers :A.1) -$645,656; 2) -$661,653; 3) BuyB.1) -$591,793; 2) -$661,653; 3) BuyC.1) -$591,793; 2) -$550,952; 3) LeaseD.1) -$607,696; 2) -$550,952; 3) LeaseAn equipment costs $1,000,000, the loan rate on...
- Q The Canton Corporation shows the following income statement. Thefirm uses FIFO inventory accounting.   CANTON CORPORATIONIncome Statement for 20X1Sales$307,100(16,600 units at $18.50)Cost of goods sold199,200(16,600 units at $12.00)Gross profit$107,900Selling and administrative expense18,426Depreciation11,600Operating...
- Q Suppose you start saving for retirement by depositing $4,000EVERY YEAR into your retirement account. If yourannual return is 8%, how much will you have in 45 years? How muchwould you...
- Q Explain break-even analysis, its purpose, and whether break-evenanalysis can be used in manufacturing and/or service industry.
- Q ​(Cost of debt​) Carraway Seed Company is issuing a $1,000 parvalue bond that pays 11 percent annual interest and matures in 11years. Investors are willing to pay ​$965 for the...
- Q The student will look for one (1) article that presents thetopic of the Primary and Secondary Financial Markets of the UnitedStates.Write a 350-word essay that distinguishes the functions of thesetwo...
- Q Dorothy Koehl recently leased space in the Southside Mall andopened a new business, Koehl's Doll Shop. Business has been good,but Koehl frequently run out of cash. This has necessitated latepayment...
- Q According to the text, maximizing shareholder wealth, maximizingstock price per share, and maximizing the value of the firm are oneand the same. That is, if a manager maximizes the value...
- Q Suppose you have 25 years until you retire, and that you desirea retirement nest-egg of $2,500,000 on the day you retire. Supposealso that you’ve saved $100,000 toward your retirement so...
- Q One of the audit clients Airtel has presented the incomestatement below to the audit firm Earnest and Young where you workas an assistant auditor.Airtel Income Statement for the year ended...
- Q The 501st is exploring the possibility of purchasing a van totransport their Stormtroopers and other members to gigs outside ofthe Memphis area to such events as Weird Al concerts. The...
- Q Your portfolio is comprised of $20,000 in Cyclone Inc. and$30,000 in Blooper Corp. State of Economy Probability of State ofEconomy Returns if State Occurs Cyclone Blooper Boom 15% 18% 12%Normal...
- Q On January 1, 2005, a person’s savings account was worth$250,000. Every month thereafter, this person makes a cashcontribution of $750 to the account. If the fund is expected to beworth...
- Q Section 2: Capital StructureAn unlevered company operates in perfect markets and hasearnings before interest and taxes (EBIT) of $3m. Assume that therequired return on assets for firms in this industry...
- Q A firm has been experiencing low profitability in recent years.Perform an analysis of the firm's financial position using theDuPont equation. The firm has no lease payments but has a $3million...
- Q 1) Home Supply Inc. has paid a constant annual dividend of $2.40a share for the past 10 years. The firm just announced thatdividends will increase by 15% and will stay...
- Q Assume you plan on retiring in 30 years (i.e., in the year2049). Share your estimate of your future financial need, in termsof annual earnings. Share your desired quality of life...
- Q Question 1You are the audit partner of Merit Chartered Accountants(“MCAâ€), working on the audit of Darwin Tourist Buses (“DTBâ€) forthe 2017 financial year. DTB is a provider of luxury bus...
- Q Unemployment among high school graduates is quite high due to arecession. City Community College is considering a new program tohelp young people get the training they need to be more...
- Q Read the Scenario below and answer the questions thatfollow.You are working on a project to implement an online benefitsmanagement portal to enable employees to have a “one stop†locationto view...
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