Finance question and answers for September 18, 2023
- Q If you borrow $40,000 today and agree to repay the loan in 24annual payments, how much do you owe every year? Assume this is anamortized loan with 10% interest rate,...
- Q Whycan closed-end funds sell at prices that differ from net valuewhile open-end funds do not? Book- Essential of investment bybodie
- Q I have 8 million at 9% per annum payable over next five years .The tax rate is 28%. How do I determine the value of the taxshield?I am doing corporate...
- Q 2.Assume that the export price of a Toyota Corolla from Osaka,Japan is ¥1,950,000. The exchange rate is ¥110/$. The forecast rateof inflation in the United States is 2.0% per year...
- Q AlternativeDividend PoliciesBoehm Corporation hashad stable earnings growth of 7% a year for the past 10 years, andin 2019 Boehm paid dividends of $2 million on net income of $5million. However,...
- Q East Side Corporation is expected to pay the following dividendsover the next four years: $16, $12, $11, and $6.50. Afterward, thecompany pledges to maintain a constant 5 percent growth rate...
- Q 4.UIA .Susan Prescott, using the same valuesand assumptions as in the previous question, now decides to seekthe full 2.600% return available in US dollars by not covering herforward dollar receipts...
- Q Use the following information for Taco Swell, Inc., (assume thetax rate is 21 percent):Â Â 20172018Â Â Sales$25,049$19,278Â Â Depreciation2,5462,654Â Â Cost of goods sold6,5406,901Â Â Other expenses1,4621,263Â Â Interest1,1951,410Â Â Cash8,7619,757Â Â Accounts receivable11,65813,992Â Â Short-term notes payable1,8441,811Â Â Long-term debt29,57035,654Â Â Net fixed assets73,16078,120Â Â Accounts payable6,3717,150Â Â Inventory20,71322,032Â Â Dividends2,8292,484For 2018, calculate the cash flow...
- Q Given a 4% required return, what is a $100 cash flow today, a$1,000 cash flow at the end of 1 year, and a $100,000 cash flow atthe end of five...
- Q 3.CIA Susan Prescott is a foreign exchangetrader for a bank in New York. She has $1 million (or its Swissfranc equivalent) for a short term money market investment andwonders if...
- Q Reason:A table tennis team won 21 games and lost 12 games, what isthe reason between wins and losses?B.Maria and Karla are sisters. The ratio of their ages is 4:7. If...
- Q assignments for the correspondingassignment.Use the following balance sheet and cash flow information todetermine the net worth and net surplus for an individual in arecent month:Liquid Assets $15,000Home Value $220,000Investment assets:...
- Q Some accountants think that the Statement of Cash Flows is themost important financial statement. Do you agree or disagree withthis? Why or why not? Hint - consider a business that...
- Q 1. You work on a FX trading desk. A client calls and asks youthe deposit rate you can guarantee them in the Malaysian Ringgit(MYR) currency for one year. You have...
- Q Problem 2-17 Accounting Values versus Cash Flows [LO2]During 2018, Raines Umbrella Corp. had sales of $710,000. Costof goods sold, administrative and selling expenses, anddepreciation expenses were $500,000, $125,000, and $170,000,respectively....
- Q Problem 2-21 Financial Statements [LO1]Use the following information for Taco Swell, Inc., (assume thetax rate is 21 percent):Â Â 20172018Â Â Sales$16,073$15,636Â Â Depreciation1,7511,826Â Â Cost of goods sold4,4294,797Â Â Other expenses991869Â Â Interest840971Â Â Cash6,2026,736Â Â Accounts receivable8,1309,697Â Â Short-term notes payable1,2601,237Â Â Long-term debt20,59024,861Â Â Net fixed assets51,08654,543Â Â Accounts payable4,5284,914Â Â Inventory14,43615,378Â Â Dividends1,4001,708Â Â Prepare a...
- Q As an investor, what would you look for in an annual report? Whyare the notes to the financial statements so important?
- Q Nonannual CompoundingIt 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...
- Q Amanda, who is in the 32% marginal tax bracket, must decidebetween two investment opportunities, both of which require aninitial cash outlay of $150,000 at the beginning of year 1.Investment A:...
- Q A Restaurant is open only for 25 days in a month. Expenses forthe restaurant include raw material for each sandwich at $6.00 perslice, $1,004.00 as monthly rental and $470.00 monthly...
- Q Good day, I trust you are well. Kindly assist with below... The company is an online retailer of books, CDs and DVDs. Thecompany was set up five years ago by...
- Q For both questions, please show what you typed into the TVMsolver.N:I:PV:PMT:FV:Time of month: End or beginning1. Rachel, who just turned 18, deposits a $15,000 gift into aninterest-bearing account earning a...
- Q A bond issued for the purpose of building a tunnel between NewJersey and New York in which tolls are expected to pay the couponand principal payments to the bondholders is...
- Q You currently have $620k in savings. You plan on living off of agrowing perpetuity which grows at 3% per year (and passing it on toyour kids). You plan on retiring...
- Q I included the chart I would develop to identify theproblem's time value of money variables for the calculation. Pleaseuse a financial calculator or financial calculator application forall problems. To receive...
- Q You are planning on buying $100,000 face value of AustralianCommonwealth Government Bonds. The bonds mature on 15 February 2027and have a coupon rate of 4.75%. If your purchase will settle...
- Q Topperton Company has developed a new industrial product. Anoutlay of $8 million is required for equipment to produce the newproduct, and additional net working capital of $400,000 is requiredto support...
- Q The Securities and Exchange Commission (SEC) has the legalauthority to regulate the form and content of financial statements.However, the SEC relies on the following organizations forimplementation:Financial Accounting Standards Board (FASB)....
- Q Consider the following stock price and shares outstandinginformation.DECEMBER 31, Year 1DECEMBER 31, Year 2PriceSharesOutstandingPriceSharesOutstandingStock K$23110,000,000$34110,000,000Stock M822,100,000504,200,000aStock R3629,000,0003829,000,000aStock split two-for-one during theyear.Compute the beginning and ending values for a price-weightedindex and...
- Q Acompany needs $48,000 in 4 years to replace two trucks. Find theamount it must deposit at the end of each quarter in a fund earning6% compounded quarterly.
- Q You need to accumulate $10,000. To do so, you plan to makedeposits of $1,400 per year - with the first payment being made ayear from today - into a bank...
- Q 1.PRICESHARESCompanyABCABCDay 1$14$21$55500390270Day 2Â Â 11Â Â 22Â Â 60500390270Day 3Â Â 15Â Â 42Â Â 58500195a270Day 4Â Â 10Â Â 44Â Â 27500195540bDay 5Â Â 12Â Â 43Â Â 29500195540aSplit at close of day 2.bSplit at close of day 3.Calculate a Standard& Poor's Index for days 1 through 5using a beginning index value of...
- Q McGilla Golf is evaluating a new line of golf clubs. The clubswill sell for $1,000 per set and have a variable cost of $450 perset. The company has spent $157,500...
- Q We are evaluating a project that costs $1,140,000, has a life of10 years, and has no salvage value. Assume that depreciation isstraight-line to zero over the life of the project....
- Q Bridgton Golf Academy is evaluating new golf practice equipment.The \"Dimple-Max\" equipment costs $140,000, has a 5-year life, andcosts $10,100 per year to operate. The relevant discount rate is 10percent. Assume...
- Q Down Under Boomerang, Inc., is considering a new 3-yearexpansion project that requires an initial fixed asset investmentof $2.37 million. The fixed asset falls into the 3-year MACRS class(MACRS schedule). The...
- Q Current Position AnalysisThe following data were taken from the balance sheet of NiloCompany at the end of two recent fiscal years:Current YearPrevious YearCurrent assets:Â Â Cash$334,400$249,600Â Â Marketable securities387,200280,800Â Â Accounts and notes receivable(net)158,40093,600Â Â Inventories798,600585,600Â Â Prepaid expenses411,400374,400Â Â Total current...
- Q Down Under Boomerang, Inc., is considering a new 3-yearexpansion project that requires an initial fixed asset investmentof $2.18 million. The fixed asset will be depreciated straight-lineto zero over its 3-year...
- Q What additional strategies might a firm employ to send money toanother part of the company if the firm is operating in a countrythat blocks funds? In otherwords, Subsidiary A wants...
- Q Explain your understanding of how business goals are influencedby the form of organization and ownership.
- Q Calligraphy Pens is deciding when to replace its old machine.The machine's current salvage value is $3,050,000. Its current bookvalue is $1,800,000. If not sold, the old machine will requiremaintenance costs...
- Q LO, Inc., is considering an investment of $454,000 in an assetwith an economic life of five years. The firm estimates that thenominal annual cash revenues and expenses at the end...
- 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 Able writes to Baker: “I will mow your lawn for $20.†If Bakeraccepts, is this an express or implied contract?Able telephones Baker: “I will mow your lawn for $20.†Is...
- Q 1. You have decided to purchase 1,000 shares of Caterpillar andshort 600 shares of Home Depot. Complete these transactions onStock-Trak.2. Stock Transactions The next day, you decide that you wantonly...
- Q Consider three bonds with 5.20% coupon rates, all making annualcoupon payments and all selling at face value. The short-term bondhas a maturity of 4 years, the intermediate-term bond has amaturity...
- Q The following table shows the prices of a sample of Treasurystrips. Each strip makes a single payment at maturity.Years to MaturityPrice, (% of face value)197.752%294.251390.444486.380a. What is the 1-year interest...
- Q IBM just paid a dividend of $1.6 per share. You expect IBM'sdividend to grow at a rate of 9%per year for the next three years, and then you expect constantdividend...
- Q Why might a student who is claimed as a dependent on anotherperson's tax filing (e.g. that of their spouse or their parents) beprohibited from taking the student loan interest deduction?...
- Q What are the facts involved in Danske Bank's Estonian Branchmoney laundering activities?
- Q The rate of return on Cherry Jalopies, Inc., stock over the lastfive years was 15 percent, 11 percent, -1 percent, 4 percent, and13 percent. Over the same period, the return...
- Q How do you resolve unethical bussiness behavior at abeer distribution company you work at and what would be yourrecommendations to management to deal with these issues.
- Q Please discuss the independence of the Fed.
- Q Why is a home a good inflation hedge? Should a home be includedas an asset if its occupants aren’t sure they could sell it?
- Q Stock C is expected to pay a dividend of $5.80 next year.Thereafter, dividend growth is expected to be 19.00% a year forfive years (i.e., years 2 through 6) and zero...
- Q Chapter 3 HomeworkYou are considering an investment in the common stock of Target(Ticker: TGT). Calculate the missing ratios (Current Ratio, DebtRatio, and Profit Margin). Discuss the company’s strengths andweakness in...
- Q Question #2:You own a property on Main Street on which a small, vacanttake-out pizza stand sits.  There are other vacant take-out pizza stands in the same locale(i.e. Main Street) as well...
- Q Submitting your assignment  1. Please collate your assignment as a single document in aMicrosoft Word format.2. Save the assignment as your candidate ID number, e.g.CON-000123456.3. All marking is anonymous, which means...
- Q Assume that John own a company with fx exposure, how John usingforward contract to hedge the foreign exchange rate risk.Illustrate it with a scenario.
- Q a) Explain the concept of time value of moneyb) Distinguish between risk and uncertainty in the context offinancec) Discuss the objective of working capital managementd) Distinguish between overtrading and overcapiatlisatione)...
- Q 3.        MelaniaK. is in possession of a check signed and issued by Donald T. thatsays, “Pay to the order of Melania K. $5,000†and a note signed andissued by Donald...
- Q Required:Return on Equity (ROE) is used, and some say “abused†whenmeasuring the financial performance of a firm. What are yourthoughts on ROE specifically, as well as other financial ratiosgenerally, when...
- Q Please research and then discuss the aspects of thebankruptcy process. Also, discuss capital structure and how acompany's structure impacts its progress through the bankruptcyprocess.
- Q Let us say that long-term debt has an interest rate andshort-term debt does not. Then why not finance your entireoperation with non interest bearing short-term payables? Could saveyou money! What...
- Q We will do one more quick retirement account analysis problem tosee the impact of: (1) trying to save either a fixed amount eachyear or a constant percentage of your salary...
- Q Hedge Transaction TypesBriefly explain, in your own words, three of the hedge transactiontypes. Describe in which situations each would be used and why.Reminder: Your initial posting should be 250-500words
- Q P.8. Opportunity cost of capital. F&H Corp.continues to invest heavily in a declining industry. Here is anexcerpt from a recent speech by F&H’s CFO:        We at F&H have ofcourse noted the...
- Q When creating a budget, how much should you factor variancesinto such an analysis?
- Q A corp is considering paying dividends to shareholders.The corphas a $2.00 of per share earnings before taxes. Corp tax rate is21%, personal dividend income tax rate is 15%, personalnon-dividend income...
- Q Discussion board:Risk, Return, and the Capital Asset Pricing ModelAs a first dayintern at Tri-Star Management Incorporated the CEO asks you toanalyze the following in-formation pertaining to two common stockinvestments, Tech.com...
- Q a) A call option with a strike price of $68 on a stock sellingat $82 costs $15.3. What are the call option’s intrinsic and timevalues?b) A put option on a...
- Q The current spot price of Copper is $2.7445 per pound. Thestorage costs are $0.05 per pound per year payable monthly.Physical holding of copper now can yield $0.13 per pound per...
- Q A loan of $100,000 is made today. This loan will be repaid by 10level repayments, followed by a final smaller repayment, i.e.,there are 11 repayments in total. The first of...
- Q Write a note on the salient features of a corporation explainingthe benefits and limitations to the firm and to the investors withthis form of business organization.
- Q Laquita deposits $5500 in her retirement account every year. Ifher account pays an average 6% interest and she makes 38 depositsbefore she retires, how much monet can she withdraw in...
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