Finance question and answers for September 14, 2023
- Q You own a car dealership and are trying to decide how toconfigure the showroom floor. The floor has 2000 square feet ofusable space. You have hired an analyst and asked...
- Q Oregon Transportation Inc. (OTI) has just signed a contract topurchase light rail cars from a manufacturer in Germany for€2,500,000. The purchase was made in June with payment due sixmonths later...
- Q Walk me through DCF (Discounted Cash Flows)Please respond very accurately and in detail I need this for aninterview.Thanks! :)
- Q (a) Describe two non-forfeiture options.(b) For each one of the non-forfeiture options you described inpart (a), give a family situation for which you would recommendthat option and explain why.
- Q Country is IndiaDiscuss how regional economic integration hasinfluenced the way your country does business with other nations.Does it create more opportunities for trade or just increase thecompetition? Make some observations...
- Q a)           What are the cash flows associated with a bond?           What are the distinguishing features of debt as compared toequity?           What is the indenture? What are protective covenants. Give someexamples.          Define the following types...
- Q identify two firms one with a beta more than 1.5 and anotherwith a beta of less than 0.7. Report your findings by naming thefirms and their betas, describing their products,...
- Q Katie Homes and Garden Co. has 13,500,000 shares outstanding.The stock is currently selling at $56 per share. If an unfriendlyoutside group acquired 15 percent of the shares, existingstockholders will be...
- Q Discuss the operating indicators used to analyze the financialperformance of an organization.
- Q Reel Fast Charters, based in the Bahamas, runs multi-dayfishing charters for wealthy anglers.  They have beenvery successful in their first five years in operation and Brian(the owner) is considering adding a...
- Q You would like to buy a house that costs $350,000. You have$50,000 in cash that you can put down on the house, but you need toborrow the rest of the...
- Q You are borrowing $26,000 to buy a car. You have a choice of a36 month loan at an annual interest rate of 4.1 percent or a 60month loan where the...
- Q ABC needs $719,000 to take advantage of a special offer fromtheir key supplier. The loan will allow them to reduce theiraccounts payable and begin taking trade discounts. They plan torepay...
- Q Your investment club has only two stocks in its portfolio.$10,000 is invested in a stock with a beta of 0.5, and $75,000 isinvested in a stock with a beta of...
- Q The possible outcomes for the returns on Stock X and the returnson the market portfolio have been estimated asfollows:                                                                                     Scenario         Stock X           Marketportfolio                                                        1                    9%                 10%                                                    2                    21%               13%                                                    3                    13%               11%                  Each scenario is considered to be equally likely to occur.Calculate the...
- Q The following data is provided for a market 500Index:                                                                                                                                                                          Year    Total return    Year    Totalreturn                                        2010   9.0%              2020   2.0%                                       2011   11.0%           2021   3.0%                                       2012   -3.0%             2022   3.0%                                       2013   1.0%              2023   -1.0%                                      2014   5.0%              2024   5.0%                                       2015   -12.0%           2025   4.0%                                       2016   3.0%              2026   -3.0%                                      2017   4.9%              2027   3.5%                                       2018   -7.0%             2028   7.0%                                       2019   0.1%              2029   5.8%                                                                                                    Calculate the 20-year arithmetic average annual rate of return...
- Q 3) A British firm has a subsidiary in the U.S., and a U.S. firm,known to the British firm, has a subsidiary in Britain. Define andthen provide an example for each...
- Q Aerotron Electronics has just bought a used delivery truck for$15,000. The small business paid $1,000 down and financed the rest,with the agreement to pay nothing for the entire first year...
- Q ​(Calculating NPV​) Doublemeat Palace is considering a new plantfor a temporary​ customer, and its finance department hasdetermined the following characteristics. The company owns much ofthe plant and equipment to be...
- Q Quantitative Problem: At the end of last year, Edwin Inc.reported the following income statement (in millions of dollars):Sales $4,150 Operating costs excluding depreciation 3,055 EBITDA$1,095 Depreciation 305 EBIT $790 Interest...
- Q An electric utility is considering a new power plantin northern Arizona. Power from the plant would be sold in thePhoenix area, where it is badly needed. Because the firm hasreceived...
- Q A firm is considering a project that requires an initialinvestment of $180,000. The life of this project is five years.Cash flows for each year are estimated as follows:Year 1Year 2Year...
- Q Please Answer Promptly:- How long does it take normally to get aquestion answered after posting?The EIA reports the composite refinery acquisition price in theRocky Mountain region ( PADD 4) for...
- Q XYZ is now evaluating the purchase of a new machine for $210,000installed with no NWC change. They plan to sell the machine at theend of 3 years for $30,000. MACRS...
- Q write more detailed information about Apple for example: theirline of business, products, customer base, geography, futureinvestments and plans, etc.(you can find more information in theirannual report)
- Q Prepare a budget (one month) for An Internet Startup Advertisingcompany. This Internet company has 3 people: Software developer,sales, website maintenance/accounting. These 3 people founded thiscompany by themselves, they are in...
- Q Broussard Skateboard's sales are expected to increase by 20%from $7.6 million in 2016 to $9.12 million in 2017. Its assetstotaled $5 million at the end of 2016. Broussard is already...
- Q New-Project Analysis The Campbell Company is considering addinga robotic paint sprayer to its production line. The sprayer's baseprice is $850,000, and it would cost another $23,000 to install it.The machine...
- Q Louie’s Leisure Products is considering a project which willrequire the purchase of $1.5 million of new equipment. Shipping andinstallation will be an additional $300,000. For tax purposes, theequipment will be...
- Q A project has an initial cost of $37,875, expected net cashinflows of $12,000 per year for 8 years, and a cost of capital of12%. What is the project's PI? Do...
- Q 1. You work for a nuclear research laboratory that iscontemplating leasing a diagnostic scanner (leasing is a commonpractice with expensive, high-tech equipment). The scanner costs$5,500,000 and would be depreciated straight-line...
- Q You are financing a new car with a three-year loan at 10.5%annual nominal interest, compounded monthly. The price of the caris $14,500. Your down payment is $1,500. What are your...
- Q Talbot Industries is considering launching a new product. Thenew manufacturing equipment will cost $16 million, and productionand sales will require an initial $1 million investment in netoperating working capital. The...
- Q 1.) badBanana co. has an average age of inventory equal to 25days. if its end of year inventory level is $8,500, then what doesthat imply for the cost of goods...
- Q A firm is considering a project that requires an initialinvestment of $250,000. The life of this project is five years.Cash flows for each year are estimated as follows:Year 1Year 2Year...
- Q The company  is deciding on which equipment toacquire. Each is worth 20Million. The company thinking if financingthe 50% equity, 25 % via 5 year term loan at 7.5 % annual effectiveinterest...
- Q After the acquisition, the good doctor was presented by hisFinance Manager the following costs in performing a particularprocedure using the equipment:4.1.      Share in the monthlysalaries of the Adminstaff                   $20,0004.2.      Share in maintenanceCosts                                                   $10,0004.3.      Share in...
- Q the difference between the internal rate of returnmethod and the modified internal
- Q What are the causes of poverty and instability in leastdeveloped countries?
- Q Last year Swensen Corp. had sales of $303,225, operating costsof $267,500, and year-end assets of $163,000. Thedebt-to-total-assets ratio was 27%, the interest rate on the debtwas 8.2%, and the firm's...
- Q Suppose that you are a consultant thatgives advice to small entrepreneurial firms that want to becomecorporations. As you know, becoming incorporated andpublicly-traded (issuing common stock) involves adopting Articlesof Incorporation, which...
- Q Precision Tool is trying to decide whether to lease or buy somenew equipment for its tool and die operations. The equipment costs$55,000, has a 3-year life and will be worthless...
- Q You have $5,000 to invest for the next year and are consideringthree alternatives: A money market fund with an average maturity of30 days offering a current yield of 2.0% per...
- Q A firm just made a $1,000,000.00 sale to a retail chain. Thefirm will be 50.00% in cash today, and then pay the remainder in 30days (a receivable for the firm)....
- Q During the last year, Globo-Chem Co. generated $702 million incash flow from operating activities and had negative cash flowgenerated from investing activities (-$384 million). At the end ofthe first year,...
- Q If a firm’s ROE is low and management wants to improve it,explain how using more debt might help.
- Q A company intends to pay a $1 dividend at the end of each of thenext 3 years. After which it expects its dividends to increase by3% per year forever. The...
- Q What are mutual funds and why do so many investors find mutualfunds a good way to invest money? What are the advantages of owningsuch a fund?
- Q Use the following information to answer the next fourquestions.Your business (US company) will receive a payment of 150,000British pounds. You have decided to fully hedge your company’sforeign exchange risk with...
- Q Job Costs Using Activity-Based Costing Heitger Company is ajob-order costing firm that uses activity-based costing to applyoverhead to jobs. Heitger identified three overhead activities andrelated drivers. Budgeted information for the...
- Q On 1 June, 2019, immediately after payment of the interest duethat day, Tim Shaw bought two bonds each with a face value of$100,000 and a coupon rate of 8% p.a.,...
- Q 1. Premium Pie Company needs to purchase a new baking oven toreplace an older oven that requires too much energy to run. Theindustrial size oven will cost $1,200,000. The oven...
- Q Cash 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 necessitated...
- Q Please Use TI BAII Plus Calculator and Show How You Getthe Answer with it.Management of the SoSadItIsOver Company needs to determine itscost of capital in order to evaluate some large...
- Q The most recent financial statements for Scott, Inc., appearbelow. Interest expense will remain constant; the tax rate and thedividend payout rate also will remain constant. Costs, otherexpenses, current assets, fixed...
- Q Photochronograph Corporation (PC) manufactures time seriesphotographic equipment. It is currently at its target debt-equityratio of .7. It’s considering building a new $75 millionmanufacturing facility. This new plant is expected to...
- Q Earleton Manufacturing Company has $2 billion in sales and$800,000,000 in fixed assets. Currently, the company's fixed assetsare operating at 80% of capacity.a. What level of sales could Earleton have obtained...
- Q Suppose a 65-year-old person wants to purchase an annuity froman insurance company that would pay $21,600 per year until the endof that person’s life. The insurance company expects this person...
- Q I need an answer to question #4 for the business situation -Greetings Inc. stores as well as the Wall Décor division haveenjoyed healthy profitability during the last two years.... In...
- Q The Veblen Company and the Knight Company are identical in everyrespect except that Veblen is unlevered. The market value of KnightCompany’s 4 percent bonds is $2.1 million. Financial informationfor the...
- Q The capital budgeting decision techniques discussed so farall have strengths and weaknesses; however, they do comprise themost popular rules for valuing projects. On the otherhand, valuing an entire business requires...
- Q SAP (a German company) bought Qualtrics for $8 billion in 2018.The deal was to close in 12 months. The current exchange ratebetween USD and Euro was $1.185 at the time...
- Q Ski and Board are two identical firms of identical sizeoperating in identical markets. Ski is unlevered with assets valuedat $14000 and has 700 shares of stock outstanding. Board also has$14000...
- Q Carlsbad Corporation's sales are expected to increase from $5million in 2016 to $6 million in 2017, or by 20%. Its assetstotaled $3 million at the end of 2016. Carlsbad is...
- Q Boeing just signed a contract to sella Boeing 737 aircraft to Air France and will receive €200 millionin six months. The current spot exchange rate is $1.2400/€ and thesix-month forward...
- Q An oil-drilling company must choose between two mutuallyexclusive extraction projects, and each costs $11.8 million. UnderPlan A, all the oil would be extracted in 1 year, producing a cashflow at...
- Q Q2. Company B earned$20 million before interest and taxes on revenues of $60 millionlast year. Investment in fixed capital was $12 million, anddepreciation was $8 million. Working capital investment was...
- Q Carlsbad Corporation's sales are expected to increase from $5million in 2016 to $6 million in 2017, or by 20%. Its assetstotaled $6 million at the end of 2016. Carlsbad is...
- Q Question 20 of 25The most correct purpose of the proposal form is to...A. elicit information, elicit a quotation and establish awarranty.B. elicit information, describe the cover available.Question 21 of 25The...
- Q Question 13 of 25Subrogation implies that...A. the insurer acquires the right to take action against thethird party.B. the insured's rights are placed in the insurer'sposition.Question 14 of 25The proximate cause...
- Q Suppose that many stocks are traded in the market and that it ispossible to borrow at the risk-free rate,rÆ’. The characteristics of two of thestocks are as follows:StockExpected ReturnStandard DeviationA8%40%B11%60%Â Â Correlation...
- Q Prompt: Our course has covered financial markets, instrumentsand institutions and their roles in the economy and financialmanagement. Write a paper that discusses financial markets, theinstruments used in those markets and...
- Q Options - arecontracts that give the holder the right, not obligation to buy orsell the underlining asset at a specific price and time.These canbe used as hedging strategies and speculation....
- Q Consider the following table:Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.10−36%−11%Mild recession0.20−12%13%Normal growth0.3512%4%Boom0.3532%5%a. Calculate the values of mean return andvariance for the stock fund. (Do not round intermediatecalculations. Round \"Mean...
- 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...
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