Finance question and answers for September 11, 2023
- Q AMT, Inc., is considering the purchase of a digital camera formaintenance of design specifications by feeding digital picturesdirectly into an engineering workstation where computer-aideddesign files can be superimposed over the...
- Q Wilbur and Orville are brothers.​ They're both serious​investors, but they have different approaches to valuing stocks.​Wilbur, the older​ brother, likes to use the dividend valuationmodel. Orville prefers the free cash...
- Q Debt: 4,000, 7% semiannual coupon bonds outstanding, $1,000 parvalue, 18 years to maturity, selling for 102 percent of par; thebonds make semiannual payments.Preferred Stock:Â Â 10,000 outstanding with par value of$100 and...
- Q Question 3The salesman from SuperFast Machines claims that if you trade-inyour old machine for one of his new machines, you could save yourcompany $60,000 a year. As his new machine...
- Q Angel Inc. recently hired you as a consultant to estimate thecompany’s WACC. You have obtained the following information. (1)The firm's noncallable bonds mature in 20 years, have an 8.00%annual coupon,...
- Q ^AORDRIOANZWESTLSDateAdj CloseAdj CloseAdj CloseAdj CloseAdj Close31/1/135120.466.3619.8480619.571023.21275428/2/134979.967.0519.7167519.692553.25518731/3/135168.657.222.0042521.245463.59441930/4/13491455.819.0325719.222323.42119531/5/134775.455.1820.220519.398673.44284730/6/135035.752.3721.0553619.868913.60163731/7/135125.357.5121.0058319.917943.53667731/8/135217.758.321.7770120.862893.68845330/9/135420.361.7423.9419821.796243.84430331/10/135314.363.9922.5694221.500873.75524630/11/135353.166.0623.4338122.061933.89625431/12/135205.168.1821.9069421.040043.81461831/1/145415.465.6423.3683721.515953.74782428/2/14540366.8424.0372921.202433.87717331/3/145470.863.5525.0624721.984853.98402430/4/145473.861.724.3499322.319414.07561131/5/14538259.324.8511121.536993.97639230/6/145623.159.3125.3207122.659174.19009431/7/145624.666.3824.918222.293694.2435231/8/145296.862.6323.0472922.428184.15362730/9/14550559.5824.9703823.481554.41224931/10/145298.160.4123.7926721.653354.45927130/11/145388.659.124.6153521.989984.67870731/12/145551.65825.3133922.97565.0940731/1/155898.557.5627.1083423.11274.99218828/2/155861.964.4128.1055423.808035.06034931/3/155773.757.2326.0727923.672654.99619230/4/155774.957.1525.4591423.645564.98817331/5/155451.258.225.3604421.138054.92401630/6/155681.753.7525.7384922.990265.20470131/7/155222.152.8621.9974322.020824.62729231/8/155058.650.2921.3279822.101674.62078530/9/155288.648.621.4303622.208734.44781531/10/155218.250.6521.383121.464874.41486830/11/155344.645.9122.8105623.448514.62078531/12/155056.644.7119.7479223.764064.63725931/1/164947.939.1318.2941822.028424.32426529/2/165151.840.2819.1598924.123154.39015931/3/16531642.6919.8214224.891364.54917730/4/165447.851.5520.8096323.645984.74438431/5/165310.444.6920.3463823.337524.71892330/6/16564445.521.7972824.98454.89715531/7/165529.449.5622.6914424.699354.46430531/8/165525.247.623.3072226.46234.52413630/9/165402.451.6123.4928124.608114.3494631/10/165502.454.1823.9651925.070164.41059730/11/165719.157.7526.4072225.286184.45426631/12/16567559.925.4262824.158134.36692831/1/17576166.6826.823925.634244.20971828/2/175903.861.9927.6225427.984264.06997631/3/175947.660.4628.4385426.698953.80814830/4/175761.360.4424.3151326.512683.97058131/5/17576462.8125.5996524.910763.88034130/6/175773.963.2726.4107825.289493.69985931/7/175776.365.7926.2057726.463033.31182631/8/175744.967.8426.3840426.719633.28186430/9/175976.466.5326.6692727.02353.32888231/10/176057.269.4525.367928.394123.22544230/11/176167.370.9526.3114828.717333.41351431/12/176146.575.8126.16528.322993.45112931/1/186117.376.8526.5952926.719633.15021328/2/185868.981.1624.5903427.814883.01758531/3/186071.672.724.5720329.293973.05602530/4/186123.579.8624.9107730.491972.6908431/5/186289.782.9726.6099733.035242.51785730/6/186366.283.4427.6087833.10212.7292831/7/186427.881.227.7972434.434022.97914431/8/186325.572.7426.5534334.46963.13968530/9/185913.378.7624.433332.236173.0314231/10/185749.376.425.2530830.693072.88378530/11/185709.473.2823.7484431.305182.80504731/12/185937.378.4724.3018631.295463.06094631/1/196252.787.0527.1854632.237923.08063128/2/196261.796.1625.2727634.653.3231/3/196418.497.9126.4087336.013.3830/4/196491.895.3727.0689537.053.6531/5/196699.2100.328.2136.163.85Using historical prices of the Australian All Ordinaries Index(AORD) and the following four companies traded on the AustralianStock Exchange: Rio Tinto Limited (RIO.AX), ANZ Ltd...
- Q Debt: 4,000, 7% semiannual coupon bonds outstanding, $1,000 parvalue, 18 years to maturity, selling for 102 percent of par; thebonds make semiannual payments.Preferred Stock:Â Â 10,000 outstanding with par value of$100 and...
- Q 1.. Suppose $2000 is invested at 6% annual interest rate for 10years and the interest is compounded monthly. How much will theinvestment be worth at the end of the 10...
- Q ^AORDRIOANZWESTLSDateAdj CloseAdj CloseAdj CloseAdj CloseAdj Close31/1/135120.466.3619.8480619.571023.21275428/2/134979.967.0519.7167519.692553.25518731/3/135168.657.222.0042521.245463.59441930/4/13491455.819.0325719.222323.42119531/5/134775.455.1820.220519.398673.44284730/6/135035.752.3721.0553619.868913.60163731/7/135125.357.5121.0058319.917943.53667731/8/135217.758.321.7770120.862893.68845330/9/135420.361.7423.9419821.796243.84430331/10/135314.363.9922.5694221.500873.75524630/11/135353.166.0623.4338122.061933.89625431/12/135205.168.1821.9069421.040043.81461831/1/145415.465.6423.3683721.515953.74782428/2/14540366.8424.0372921.202433.87717331/3/145470.863.5525.0624721.984853.98402430/4/145473.861.724.3499322.319414.07561131/5/14538259.324.8511121.536993.97639230/6/145623.159.3125.3207122.659174.19009431/7/145624.666.3824.918222.293694.2435231/8/145296.862.6323.0472922.428184.15362730/9/14550559.5824.9703823.481554.41224931/10/145298.160.4123.7926721.653354.45927130/11/145388.659.124.6153521.989984.67870731/12/145551.65825.3133922.97565.0940731/1/155898.557.5627.1083423.11274.99218828/2/155861.964.4128.1055423.808035.06034931/3/155773.757.2326.0727923.672654.99619230/4/155774.957.1525.4591423.645564.98817331/5/155451.258.225.3604421.138054.92401630/6/155681.753.7525.7384922.990265.20470131/7/155222.152.8621.9974322.020824.62729231/8/155058.650.2921.3279822.101674.62078530/9/155288.648.621.4303622.208734.44781531/10/155218.250.6521.383121.464874.41486830/11/155344.645.9122.8105623.448514.62078531/12/155056.644.7119.7479223.764064.63725931/1/164947.939.1318.2941822.028424.32426529/2/165151.840.2819.1598924.123154.39015931/3/16531642.6919.8214224.891364.54917730/4/165447.851.5520.8096323.645984.74438431/5/165310.444.6920.3463823.337524.71892330/6/16564445.521.7972824.98454.89715531/7/165529.449.5622.6914424.699354.46430531/8/165525.247.623.3072226.46234.52413630/9/165402.451.6123.4928124.608114.3494631/10/165502.454.1823.9651925.070164.41059730/11/165719.157.7526.4072225.286184.45426631/12/16567559.925.4262824.158134.36692831/1/17576166.6826.823925.634244.20971828/2/175903.861.9927.6225427.984264.06997631/3/175947.660.4628.4385426.698953.80814830/4/175761.360.4424.3151326.512683.97058131/5/17576462.8125.5996524.910763.88034130/6/175773.963.2726.4107825.289493.69985931/7/175776.365.7926.2057726.463033.31182631/8/175744.967.8426.3840426.719633.28186430/9/175976.466.5326.6692727.02353.32888231/10/176057.269.4525.367928.394123.22544230/11/176167.370.9526.3114828.717333.41351431/12/176146.575.8126.16528.322993.45112931/1/186117.376.8526.5952926.719633.15021328/2/185868.981.1624.5903427.814883.01758531/3/186071.672.724.5720329.293973.05602530/4/186123.579.8624.9107730.491972.6908431/5/186289.782.9726.6099733.035242.51785730/6/186366.283.4427.6087833.10212.7292831/7/186427.881.227.7972434.434022.97914431/8/186325.572.7426.5534334.46963.13968530/9/185913.378.7624.433332.236173.0314231/10/185749.376.425.2530830.693072.88378530/11/185709.473.2823.7484431.305182.80504731/12/185937.378.4724.3018631.295463.06094631/1/196252.787.0527.1854632.237923.08063128/2/196261.796.1625.2727634.653.3231/3/196418.497.9126.4087336.013.3830/4/196491.895.3727.0689537.053.6531/5/196699.2100.328.2136.163.85Using historical prices of the Australian All Ordinaries Index(AORD) and the following four companies traded on the AustralianStock Exchange: Rio Tinto Limited (RIO.AX), ANZ Ltd...
- Q Having a sound business plan is essential for securing finance,regardless of the type of loan sought. Explain. (100–150 words)
- Q Financial ManagementQuestion 1John met his insurance agent to discuss the purchase of aninsurance plan to fund his 8 year-old daughter's universityeducation in 11 years' time. The payout from the insurance...
- Q The MoMi Corporation’s cash flow from operations before interestand taxes was $3 million in the year just ended, and it expectsthat this will grow by 5% per year forever. To...
- Q protective put, covered calls, straddle, spreads,and collars. explain how these strategies work, andprovide a specific example.
- Q explain how forward contracts differ from futures contracts? Asit relates to future contracts, explain your understanding ofmarking to market.
- Q Suppose that an US airlinereceives a considerable portion of its revenues in euros, and isconcerned about exchange rate risk. Two hedging choices the firm isconsidering are (i) futures contracts on...
- Q MGM Co. has decided to sell a new line of golf clubs. The clubswill sell for $850 per set and have a variable cost of $400 perset. The company has...
- Q A firm has an outstanding debt with a coupon rate of 55​%, sevenyears​ maturity, and a price of​ $1000 per​ $1000 face value. Whatis the​ after-tax cost of debt if...
- Q MGM Co. has been approached to bid on a contract to sell 5,000voice recognition (VR) computer keyboards per year for four years.Due to technological improvements, beyond that time they will...
- Q MGM CO. has been approached to bid on a contract to sell 500voice recognition(VR) computer keyboards per year for four years.Due to technological improvements, beyond that time they will beoutdated,...
- Q Explain the return and risk relationship concept in finance.Describe a situation whereby a department’s attitude is: Riskneutral, risk-averse or risk-seeking.Explain and critically analyse the distinction between decisiontree, expected value and...
- Q Describe the advantages and disadvantages of using a regulatedlender such as a bank or credit union.
- Q Describe three sources of finance and outline their advantagesand disadvantages (150 to 180 words).
- Q Problem 11-06New-Project AnalysisThe Campbell Company is considering adding a robotic paintsprayer to its production line. The sprayer's base price is$980,000, and it would cost another $22,000 to install it. Themachine...
- Q Gringotts is currently one of the few Australian listedcompanies that have not published an annual corporatesustainability report. Since the sustainability report is voluntaryand no executive team member is keen on...
- Q Please describe a ethical issue recently reported on thefinancial media. And write a normative approach to ethicaldecision-making by helping managers understand and correct ethicalviolations in their own departments.
- Q Based on the data below, what is the AFN for Pear Computer atthe end of next year?Sales growth rate12%S0$7,500A0*$3,550current operating assetsA0*/S047.330%required assets per $ in salesL0*Â Â Â Â Â Â Â Â Â Â Â Â Â 500current spontaneous liabilitiesL0*/S06.670%spontaneous liabilities per...
- Q You are the chairman of the board of directors for aninnovative technology company, and you are looking to hire a newCEO. Your shareholders require an 8% return.Your firm has 1,200...
- Q I do not understand what PVIFA stands for in this problem andhow you are getting the S5(Yen/$) figure (INternational FinancialManagement Eun & Resnick Chapter 12 Problem 3). A five-year, 4...
- Q Projects SS and LL have the cash flows shown below. If a10% cost of capital is appropriate for both of them, what are theirNPVs?  0123SS-700500300100LL-700100300600What project or set of projects would...
- Q Problem 10-10Capital Budgeting MethodsProject S has a cost of $9,000 and is expected to producebenefits (cash flows) of $2,700 per year for 5 years. Project Lcosts $26,000 and is expected...
- Q Attached is a spreadsheet showing the most recent financialstatements for Wall Enterprises. Please do your calculations on thespreadsheet. Using the percent of sales method forecast thefinancial statements for the next...
- Q Q–7. An American investor purchased 100 shares of a Frenchbeyond meat company on January 1, 2018 at €93.00 per share. eFrench company paid an annual dividend of €0.72 on December...
- Q (Calculating free cash flows​) At​ present, SolartechSkateboards is considering expanding its product line to include​gas-powered skateboards;​ however, it is questionable how well theywill be received by skateboarders. Although you feel...
- Q The last dividend paid by Coppard Inc. was $1.25. The dividendgrowth rate is expected to be constant at 12.5% for 3 years, afterwhich dividends are expected to grow at a...
- Q ​(Replacement chains​) Destination Hotels currently owns anolder hotel on the best beachfront property on Hilton Head​ Island,and it is considering either remodeling the hotel or tearing itdown and building a...
- Q Sully contributed $750,000 to an irrevocable trust. He did notretain any right to the trust’s assets. The income beneficiary wasSully's sister, Kate, and the remainder beneficiary was aUniversity. When Sully...
- Q (Calculating free cash flows​) You are considering newelliptical trainers and you feel you can sell 6,000 of these peryear for 5 years​ (after which time this project is expected toshut...
- Q Assume you are giventhese mutually exclusive investments with the expected net cashflows as in the table:YearProject AProject B0-400.00-6701-528.002102-219.002103-250.0021041100.002105820.002106990.002107-325.00210Respond to thequestions:Question1:What is each project’sIRR?If each project’s cost ofcapital were 10%, which...
- Q A​ bond's market price is ​$1 comma 150. It has a ​$1 comma 000par​ value, will mature in 8 ​years, and has a coupon interest rateof 9 percent annual​ interest,...
- Q value investing, and growth investing. Intrinsic investing .moat analysis with pnc Bank I am writing a five page paper onintrinsic Value and how to view a company's worth for investing...
- Q  For the project shown in the following​ table,LOADING...​,calculate the internal rate of return​(IRR).Then​ indicate, for the​ project, the maximum cost of capitalthat the firm could have and still find the...
- Q If an asset costs $240,000 and is expected to have a $40,000salvage value at the end of its ten-year life, and generates annualnet cash inflows of $40,000 each year, the...
- Q A rancher is considering the purchase of additional land toexpand operations. He can operate an additional 1000 acres withpresent labor and machinery. The land is selling for $750 per acre.This...
- Q Change Corporation expects an EBIT of $39,000 every yearforever. The company currently has no debt, and its cost of equityis 14 percent. The corporate tax rate is 24 percent.  a.What is...
- Q The John Deer Company is evaluating the replacement of one ofits machines. The machine was originally purchased ten years ago ata cost of $35,000 and has been depreciated to a...
- Q Bellinger Industries is considering two projects for inclusionin its capital budget, and you have been asked to do the analysis.Both projects' after-tax cash flows are shown on the time linebelow....
- Q FCOJ, Inc., a prominent consumer products firm, is debatingwhether to convert its all-equity capital structure to one that is20 percent debt. Currently, there are 12,000 shares outstanding,and the price per...
- Q You are trying to determine the total cost for XYZ's monthlycash collection system. Your firm receives an average of 4000remittances per month with an average face value of 7500. Totalfloat...
- Q You are UK company, 200,000 US$ payable to US in one year.Answer in terms of BP (British Pound). Round at four decimal placesExamples: 1.23487 ---> 1.2349; 1.23533 --> 1.2353 Informationfor...
- Q You (US company) imported Earth Moving Equipment (EME) fromAustralia. You imported EME at US$ 300 (with Cash) on Dec 1, 2018.On Dec 15, 2018, you sold EME to Australia at...
- Q A mining company is considering a new project. Because the minehas received a permit, the project would be legal; but it wouldcause significant harm to a nearby river. The firm...
- Q Jetta production cost in 2002 and 2003 was 14,000 Euro perJetta. Jetta sold in US at $15,000 in 2002 and 2003. Forward hedgeexchange rate was 1 $/Euro in 2003. Rate...
- Q 15. Marvin’s Interiors issued 9-year bonds 2 years ago. Thebonds have a face value of $1,400, a 9.0 percent, semiannualcoupon, and a current market price of $1,189. What is the...
- Q Generally reinvest dividends since they are nominal.Holding stock is generally done for the price fluctuations ratherthan the dividends. However, dividends are a key measure forstocks. What do dividends tell investors?...
- Q You are the budget director of a small school district that hasa budget of $10 million and serves 2,500 children in six schools:three elementary schools, two middle schools, and one...
- Q Consider a stock with a price of $120 and a standard deviationof 30 percent. The stock will pay a dividend of $5 in 40 days and asecond dividend of $5...
- Q What are some of the advantages and disadvantages of investingin a mutual fund? Explain why the vast array of mutual fundsavailable may be a partial drawback for investors. How caninvestors...
- Q Your client is 29 years old. She wants to begin saving forretirement, with the first payment to come one year from now. Shecan save $13,000 per year, and you advise...
- Q Your client is 33 years old. She wants to begin saving forretirement, with the first payment to come one year from now. Shecan save $5,000 per year, and you advise...
- Q You plan to make five deposits of $1,000 each, one every 6months, with the first payment being made in 6 months. You willthen make no more deposits. If the bank...
- Q PV AND LOAN ELIGIBILITY You have saved $5,000 for a down paymenton a new car. The largest monthly payment you can afford is $300.The loan will have a 12% APR...
- Q You must evaluate a proposal to buy a new milling machine. Thebase price is $128,000, and shipping and installation costs wouldadd another $20,000. The machine falls into the MACRS 3-year...
- Q A factory costs $860,000. You reckon that it will produce aninflow after operating costs of $176,000 a year for 10 years.a. If the opportunity cost of capital is 12%,what is...
- Q Jamie Peters invested ​$126,000 to set up the followingportfolio one year​ ago:AssetCostBeta at purchaseYearly incomeValue todayA​$40,0000.79​$1,400​$40,000B​$37,0000.97​$1,600​$38,000C​$35,0001.55​$0​$41,500D​$14,0001.27​$300​$14,500a. Calculate the portfolio beta on the basis of the originalcost figures.b. Calculate the percentage...
- Q how I can do the Operational feasibility for the new business asa  retail store
- Q A Day in the Life of a Contracts Analyst atCargillGlynis Gallagher works as a contracts analyst at Cargill RiskManagement, which is a business unit within Cargill. Based inWayzata, Minnesota, Cargill...
- Q After completing your feasibility report a bout your newBusiness as a retail store what is your biggest THREAT and why doyou think you can overcome it? explain in detail
- Q Dahlia Colby, CFO of Charming Florist Ltd., has created thefirm’s pro forma balance sheet for the next fiscal year. Sales areprojected to grow by 12 percent to $350 million. Current...
- Q Loss control activities of abusiness focus on finding and implementing solutions to reducethe probability of loss (loss prevention) and/or reduce the actualamount of loss (loss reduction), and therefore reduce thetotal...
- Q Phil and Jill bought a fishing lodge for $750,000. They paid$75,000 down and agreed to make payments at the end of every monthfor fifteen years. Interest is 6% compounded quarterly.a)...
- Q Better Mousetraps has developed a new trap. It can go intoproduction for an initial investment in equipment of $6.3 million.The equipment will be depreciated straight - line over 6 years...
- Q What is the financial health of Costco Wholesales using 2 ratiosin each category:LIQUIDITYCAPITAL STRUCTUREEARNINGSWhat did those ratios tell you (what do they measure)?Can you tell if the ratio is good...
- Q 1. Explain the Safe Harbor rule for delaying an employeebonus.2. What is the issue in Employee Benefits when Unions arepresent?3. Explain why an employee census is important for EmployeeBenefits planning?4....
- Q 5.You decide that you need $88,000 in 10 years in order to makea down payment on a house. You plan to make annual deposits toachieve your goal. If interest rate...
- Q Betas and risk rankings   Personal Finance Problem   You areconsidering three stocks A, B, and C — for possible inclusion inyour investment portfolio. Stock A has a beta of 1.5, stock B has...
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