Finance question and answers for September 13, 2023
- Q (show all workings 60marks)This question relates to material covered in Topics 1-5.This question addresses the 1st, 2nd and 3rd subject learningoutcomes.(a) Bradley hates taking risk with his money; \"I hate...
- Q A(n) eight-year bond has a yield of 9% and a duration of 7.201years. If the bond's yield increases by 25 basis points, what isthe percentage change in the bond's price?...
- Q I have bolded the answers I chose. I just need someone to checkmy work and if I'm wrong possibly explain why, please?1. If a stock pays a dividend, the owner...
- Q You own a coal mining company and are considering opening a newmine. The mine itself will cost $ 118.1 million to open. If thismoney is spent​ immediately, the mine will...
- Q You are considering making a movie. The movie is expected tocost $ 10.7 million up front and take a year to make. After​ that,it is expected to make $ 4.5...
- Q The purpose of this assignment is to allow the student anopportunity to explain what it means to have an efficient capitalmarket. Students will gain an understanding of the different levelsof...
- Q Suppose that the price of the same basket of goods at time 0 isPC0= 100 in country C and PD0= 90 in country D, so that theexchange rate is SCD0=10090....
- Q You are deciding between two mutually exclusive investmentopportunities. Both require the same initial investment of $ 9.6million. Investment A will generate $ 2.06 million per year​(starting at the end of...
- Q If investing in calls or puts is higher risk than investing inthe actual stocks, why would anyone ever want to buy thosethings?
- Q The trustees of a pension fund would like to examine the issueof protecting the bondsin the fund’s portfolio against an increase in interest ratesusing options and futures.Before discussing this with...
- Q analyse and explain Walt Disney company stock price in junedateclosevolumeopenhighlowchange in price6/3/19132.477901387132.02132.95131.490.436/4/19134.828247513133.45134.88132.922.356/5/19135.946842759135.41136134.93991.126/6/19137.216027316136.51137.44135.731.276/7/19138.047026269137.6138.76137.330.836/10/19137.078479526138.88138.88136.071-0.976/11/19135.086352215137.59137.745134.94-1.996/12/19135.725536986135.09136.28134.82450.646/13/19141.7417939540137.95141.85137.616.026/14/19141.6511125200142.05142.95140.53-0.096/17/19140.978542717140.81141.48139.11-0.686/18/19139.2411231410141.99143.51138.97-1.736/19/19140.926877141139.51141.07138.581.686/20/19142.028485793141.975142.2285139.911.16/21/19140.2314150040141.95142140-1.796/24/19139.2210497420140.12140.47137.8-1.016/25/19139.9414675360139.02140.41138.670.726/26/19140.48842136140.36140.74139.51090.466/27/19139.36466261141141.74138.92-1.16/28/19139.6420078800139.41140.21138.610.34
- Q Margaret is engaged in a research project which involves 1,000listed companies. Her research is based on a hypothesis that thereis no significant difference between the discretionary accruals oflarge and small...
- 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 Assume that the average variance of return for an individualsecurity is 50 and that the average covariance is 10. What is theexpected variance of an equally weighted port- folio of...
- Q   Your brother has offered to give you $ 160​, starting next​year, and after that growing at 2.5 % per year for the next 20years. You would like to calculate the...
- Q List some stakeholders for Siemens (company in the same industryas General Electric) and how they benefit.
- Q The Oxford English Dictionary depicts risk as a chance orpossibility of danger, loss, injury or other adverse consequences.Risk is used primarily to signify negative consequences. However,in some cases taking a...
- Q Strickler Technology is considering changes in its workingcapital policies to improve its cash flow cycle. Strickler's saleslast year were $3,130,000 (all on credit), and its net profitmargin was 7%. Its...
- Q 1. How do firms issue securities to the public?2. What are the various types of orders investors can submit totheir brokers?3. Describe trading practices in dealer markets,specialist-directed stock exchanges, and...
- Q analyses and explain amazon stock price in Junedateclosevolumeopenhighlowchange in price6/3/191692.6990987081760.011766.2916726/4/191729.5656791211699.241730.821680.8936.876/5/191738.542397821749.617521715.25148.946/6/191754.3636892721737.7117601726.1315.866/7/191804.0348082461763.71806.25381759.4949.676/10/191860.63537100718221884.87181856.606/11/191863.740426941883.251893.718583.076/12/191855.3226783351853.9818651844.38-8.386/13/191870.327958101866.721883.091862.2214.986/14/191869.672851163186418761859-0.636/17/191886.0326343421876.51895.6881875.4516.366/18/191901.3738957281901.351921.671899.7915.346/19/191908.7928953471907.841919.58071892.477.426/20/191918.1932171531933.331935.21905.89.406/21/191911.339335761916.11925.951907.58-6.896/24/191913.922829691912.661916.861901.32.606/25/191878.2730123471911.841916.3851872.42-35.636/26/191897.8324419101892.481903.81887.3219.566/27/191904.28214172119021911.241898.046.456/28/191893.6330373581909.11912.941884-10.65
- Q List and describe ways managers can create firm value throughfinancing alternatives. 175 words
- Q eBookAdditional Funds NeededThe Booth Company's sales are forecasted to double from $1,000in 2019 to $2,000 in 2020. Here is the December 31, 2019, balancesheet:Cash$Â Â 100Accounts payable$Â Â Â 50Accounts receivable200Notes payable150Inventories200Accruals50Net fixed assets500Long-term debt400Common...
- Q Wendy's boss wants to use straight-line depreciation for the newexpansion project because he said it will give higher net income inearlier years and give him a larger bonus. The project...
- Q Problem 5: Bond A pays 12% coupon annually, has a par value of$1,000 and will mature in 3 years. Using a 10% discount rate(Yield-to-Maturity), what is the value of the...
- Q Two companies have $1M in assets and the same basic earningpower ratio of 25 percent. Neither company owns securities, so eachcompany’s income will be comprised solely of operating income. Theonly...
- Q It is now January 1. You plan to make a total of 5 deposits of$400 each, one every 6 months, with the first payment being madetoday. The bank pays a...
- Q Your division is considering two investment projects, each ofwhich requires an up-front expenditure of $23 million. You estimatethat the investments will produce the following net cash flows:YearProject AProject B1$ 4,000,000$20,000,000210,000,00010,000,000320,000,0008,000,000What...
- Q The earnings, dividends, and stock price of Shelby Inc. areexpected to grow at 4% per year in the future. Shelby's commonstock sells for $23 per share, its last dividend was...
- Q Blunderbluss Manufacturing's balance sheets report $305 millionin total debt, $64 million in short-term investments, and $65million in preferred stock. Blunderbluss has 5 million shares ofcommon stock outstanding. A financial analyst...
- Q You are 25 years old and decide to start saving for yourretirement. You plan to save $5,000at the end of each year​ (so the first deposit will be one yearfrom​...
- Q Show all work. Label and clearly explain your answer. This isvery important. 1) You must explain how you arrived at your answerin order to get full credit. 2) If you...
- Q howcan one tell if a stock may increase in value in the future or whatmay one look for? Give four examples stocks that may increase invalue in the future.
- Q Brook Corporation's free cash flow for the current year(FCF0) was $4.00 million. Its investors require a 15%rate of return on Brooks Corporation stock (WACC = 15%). What isthe estimated value...
- Q Joshua Kelly estimates that taking some classes would result inearning $10,000 more a year for the next 50 years. Based on anannual interest rate of 8 percent, calculate the future...
- 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 If you bought a stock for $53 dollars and could sell it 16 yearslater for three times what you originally paid. What was yourreturn on owning this stock?Include functional formulas...
- Q Name another company in the same industry as General Electric(GE) that provides benefits to multiple stakeholders, and brieflyexplain who those stakeholders are and how they benefit.
- Q What are derivatives? How can derivatives be used to reducerisk? Can derivatives be used to increaserisk? Explain
- Q What is the future value of a 5%, 10 year annuity due that pays$15,000 per year? What is the present value of a 5%, 10 yearannuity due that pays $15,000...
- Q what is 10 percent increase on(a) $25.706B(b) $25.533B(c) $24.536B(d) $24.658B
- Q Problem 12-09Financing DeficitGarlington Technologies Inc.'s 2016 financial statements areshown below:Balance Sheet as of December 31, 2016Cash$Â Â Â 180,000Accounts payable$Â Â Â 360,000Receivables360,000Notes payable156,000Inventories720,000Line of credit0Total current assets$1,260,000Accruals180,000Fixed assets1,440,000Total current liabilities$Â Â Â 696,000Common stock1,800,000Retained earnings204,000Total assets$2,700,000Total liabilities and...
- Q If you borrow $7,000 with an interest rate of 3 percent, to berepaid in five equal yearly payments at the end of the next fiveyears, what would be the amount...
- Q The most recent financial statements for Moose Tours, Inc.,appear below. Sales for 2016 are projected to grow by 20 percent.Interest expense will remain constant; the tax rate and thedividend payout...
- Q 7. Indri runs a soil testing business. He decides to form acompany to take over the business. He is the sole shareholder andsole director. Indri sells his business to the...
- Q 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 customers...
- Q OceanGate sells external hard drives for $280 each. Its totalfixed costs are $30 million, and its variable costs per unit are$230. The corporate tax rate is 30%. If the economy...
- Q Examine the various ways in which a company can grow in terms ofits common stock.
- Q Morgan Stanley and Goldman Sachs are examples of banks thatperform investment banking duties. Analyze the method fortransferring money to firms seeking cash.
- Q The market price of a security is $52. Its expected rate ofreturn is 12.1%. The risk-free rate is 4% and the market riskpremium is 7.3%. What will be the market...
- Q Summarize the basic process for valuing assets
- Q Describe the benefits of the private-equity ownership modelversus public ownership and family-ownership.
- Q Roger issued 40 year bonds six years ago at a coupon rate of4.50 percent, and the bond smake semi-annual payments. If the YTMon these bonds is 4.6 percent, what is...
- Q Why business owners should know about finance?
- Q 3.  Problem 3-11 (Balance Sheet Analysis)Balance Sheet AnalysisComplete the balance sheet and sales information in the tablethat follows for J. White Industries using the following financialdata:Total assets turnover: 1.7Gross profit margin...
- Q Profit Margin and Debt RatioAssume you are given the following relationships for the HaslamCorporation:Sales/total assets1.4Return on assets (ROA)4%Return on equity (ROE)7%Calculate Haslam's profit margin and liabilities-to-assetsratio. Do not round intermediate...
- Q can you please give example and explanation aboutopportunities cost, discount cash flow, discount rates ,prescentvalue, free cash flow, NPV, IRR , stock valuation in financemanagement.
- Q Know what an offshore financial center means and be able todifferentiate between an operational center and booking center
- Q 4.  Problem 3-12 (Comprehensive RatioCalculations)Comprehensive Ratio CalculationsThe Kretovich Company had a quick ratio of 1.3, a current ratioof 4.0, a days sales outstanding of 36.5 days (based on a 365-dayyear), total...
- Q Describe the characteristics and benefits of interestrate swaps compared with other forms of interest rate riskmanagement, such as forward rate agreements and interest ratefutures
- Q what is the difference between idiosyncratic andsystemic risk? please give an example of each. which one can beeliminated through diversification? how do we measure a company'ssystemic risk?
- Q Describe the characteristics and benefits of interestrate swaps compared with other forms of interest rate riskmanagement, such as forward rate agreements and interest ratefutures
- Q Explain how the debt mechanism can be a leverage in thecompany?
- Q Exchange rate movementSuppose a basket of goods in Paris cost 133 euros and the samebasket purchased inNew York cost $153.A. At what exchange rate between euros and dollars isthe cost...
- Q You have $243358 to invest in a stock portfolio (this amount isyour original wealth). Your choices are Stock H, with an expectedreturn of 15.62 percent, and Stock L, with an...
- Q Halliford Corporation expects to have earnings this coming yearof $3.29 per share. Halliford plans to retain all of its earningsfor the next two years. For the subsequent two​ years, the...
- Q Suppose your company needs to raise $43 million and you want toissue 30-year bonds for this purpose. Assume the required return onyour bond issue will be 6 percent, and you’re...
- Q Altman’s original Z-score bankruptcy model takes five key ratiosinto account:a. working capital / total assetsb. retained earnings / total assetsc. earnings before interest and taxes / total assetsd. market value...
- Q How does a cross-currency swap hedge the equity stake?
- Q FINANCIAL LEVERAGE EFFECTSThe Neal Company wants to estimate next year's return on equity(ROE) under different financial leverage ratios. Neal's totalcapital is $16 million, it currently uses only common equity, ithas...
- Q 10-4 Suppose that five years ago Cisco Systems sold a 15 yearsbond issue that had a $1000 par value and a 7 percent coupon rate.Interest is paid semiannually.a- If the...
- Q a). Compute the current value of a share of common stock of acompany whose most recent dividend was RM2.50 and is expected togrow 3% per year for the next 5...
- Q You have the following information about the yield curve – Term1 2 3 4 Rate 4% 4.50% 5% 5.50% What should be the price of a bondwith a face value...
- Q Compare the financial reports from Disney, Hilton Worldwide,Starwood, Intercontinental, Marriott International, and MarriottVacations.Disney Company:Report Date09/29/201809/30/201710/01/201610/03/201509/27/2014Total equity52,832,00045,004,00047,323,00048,655,0048,178,000Hilton Worldwide:Report Date12/31/201812/31/201712/31/201612/31/201512/31/2014Total Equity5582,0755,8495,9514,714Starwood Hotels:Key Financials(In USD as of 06/30/2016)Income StatementRevenue5,517mNet Income81mEPS from Continuing Operations1.84EPS...
- Q Bellwood Corp. is comparing two different capital structures.Plan I would result in 12,700 shares of stock and $109,250 in debt.Plan II would result in 9,800 shares of stock and $247,000...
- Q If the current rate of interest is 8% APR, then the future valueof an investment that pays $500 every two years and lasts 20 yearsis closest to:$11,000$10,661$22,881$20,000
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