Finance question and answers for September 19, 2023
- Q You are the director of operations for your company, andyour vice president wants to expand production by adding new andmore expensive fabrication machines. You are directed to build abusiness case...
- Q SUBJECT is FINANCEFree Cash FlowsRhodes Corporation’s financial statements are shown below.Rhodes Corporation: Income Statements for Year EndingDecember 31(Millions of Dollars)20202019Sales$13,000$11,000Operating costs excluding depreciation11,5889,682Depreciation and amortization400370    Earnings before interest and taxes$1,012$948Less interest240200    Pre-tax...
- Q At 6.5​% ​APR, what is the present value of ​$2263 per year​forever, if the first payment will be received 16 years from​today? ​ (Rounded to the nearest 10​ cents.)
- Q Discuss a short and long-term plan for a perennially losing teamand identify specific steps that could be taken to increase incomeor generate victories.
- Q Exercise Example - Capital Budgeting Project Analysis - Chapter5As director of capital budgeting, you are reviewing threepotential investment projects with the following cost and cash flowprojections.  Cash FlowProject AProject BProject CInvestment...
- Q You are the director of operations for your company, andyour vice president wants to expand production by adding new andmore expensive fabrication machines. You are directed to build abusiness case...
- Q You want to borrow $60,000 for a new tricked-out Hummer H2 foryour high school basketball star son.  If you can somehowqualify for an outrageously low interest rate of 4.5%, compoundedmonthly for...
- Q Growth for the sake of growth is not always in the best interestof the firm and shareholder value. What are some of the things thefirm can do to increase its...
- Q All else constant, an increase in the days inventory held periodwill have what effect on the net present value (NPV) of workingcapitala. it dependsb. decrease in NPVc. increase in NPVd....
- Q Which do you​ prefer: a bank account that pays 5.1 % per year​(EAR) for three years orA. An account that pays 2.8 % every six monthsfor three​ years?B. An account...
- Q A project has an initial requirement of $195,422 for newequipment and $14,626 for net working capital. The installationcosts to get the new equipment in working condition are 2,873. Thefixed assets...
- Q Derek currently has $13,896.00 in an account that pays 6.00%. Hewill withdraw $5,447.00 every other year beginning next year untilhe has taken 5.00 withdrawals. He will deposit $13896.0 every otheryear...
- Q What is the essential idea underlying Risk - adjusted return onCapital Models and how does this model relate to the concept ofduration?
- Q Healthcare FinancingExplain the meaning of corporate status in relation tohealthcare organizations, and the advantages corporate statusprovides.
- Q A bicycle manufacturer currently produces 274 000 units a yearand expects output levels to remain steady in the future. It buyschains from an outside supplier at a price of $...
- Q Suppose the company just paid dividend of $1. The dividends areexpected to grow at 25% in Year 1 and 20% in Year 2, and 15% inYear 3. After that, the...
- Q Arnold Inc. is considering a proposal to manufacture​ high-endprotein bars used as food supplements by body builders. The projectrequires use of an existing​ warehouse, which the firm acquiredthree years ago...
- Q You are a manager at Percolated​ Fiber, which is consideringexpanding its operations in synthetic fiber manufacturing. Yourboss comes into your​ office, drops a​ consultant's report on your​desk, and​ complains, \"We...
- Q 9. Compute the average annual return and standard deviation ofan evenly weighted portfolio of stocks and 10-year government bondsover the past five years ended December 31, 2018?
- Q Suppose that you wish to save enough to fund $4,500 per month(in today's purchasing power) for 30 years of retirement. The fundyou invest in during your working (or saving) years...
- Q A Chinese steelmaker is considering its strategy to expandglobally. It is considering two possible choices. Choice A involvesacquiring mining assets in Canada. Choice B involves acquiring amining company in Australia....
- Q You wish to purchase a new pickup truck. The dealership offersto finance $40,000 at a 2% annual rate (AR) with 36 monthlypayments. The first payment starts 6 months from now....
- Q 1) A bank with a leverage ratio of 15 has a cost of debt of 2%paand a portfolio of assets with an expected yield of 4%pa. What arethe expected ROA...
- Q Please explain the below answer in simple terms:Q: Explain how are nominal and real returns of equity investmentrelated with inflationA: Nominal returns of equities are positivelyrelated to inflation (0.31) where...
- Q Purchase Price$33,500.00Finance Rate TablelessTermNo RebateRebate    Down Payment$3,500.00112.50%19.70%    Trade-in Value$4,500.00214.90%20.90%    Rebate$1,000.00317.30%22.10%418.50%23.30%Loan Amount$24,500.00519.70%24.50%--------------------Term ofLoan-----------------------12345Finance Rate19.70%20.90%22.10%23.30%24.50%Monthly Payment$2,266.03$1,257.75$936.93$789.29$711.94Total Payment$27,192.35$30,185.89$33,729.63$37,886.09$42,716.61Finance Charge$2,692.35$5,685.89$9,229.63$13,386.09$18,216.61Please answer the following below using your Automobile LoanCalculator workbook along with the following information:Purchase...
- Q Purchase Price$33,500.00Finance Rate TablelessTermNo RebateRebate    Down Payment$3,500.00112.50%19.70%    Trade-in Value$4,500.00214.90%20.90%    Rebate$1,000.00317.30%22.10%418.50%23.30%Loan Amount$24,500.00519.70%24.50%--------------------Term ofLoan-----------------------12345Finance Rate19.70%20.90%22.10%23.30%24.50%Monthly Payment$2,266.03$1,257.75$936.93$789.29$711.94Total Payment$27,192.35$30,185.89$33,729.63$37,886.09$42,716.61Finance Charge$2,692.35$5,685.89$9,229.63$13,386.09$18,216.61Please answer the following below using your Automobile LoanCalculator workbook along with the following information:Purchase...
- Q Company Y wants to deposit money in a bank account in order tobe able to withdraw €50,000 after the first three years, and€60,000 after additional two years. The bank offers...
- Q 9. Profitability index Estimating the cash flow generated by $1invested in a project The profitability index (PI) is a capitalbudgeting tool that is defined as the present value of a...
- Q Can someone please give details on how you solved themplease!Your firm just received an order from a customer for $50,000 ofwidgets. You have been tasked with evaluating the effect of...
- Q When buying a house most buyers focus on the real estate and notthe real property. First what does this mean and how can it createany potential problems.
- Q Call PremiumsPut PremiumsStrikeJan.Feb.Jan.Feb.1057.507.75.50.601106.256.50.65.751151.151.203.253.62120.75.958.108.85Suppose that you decided to set up a short strip position usingthe Jan. 105 options. Find your profit/loss if the stock trades for$110 when the options expire. Round...
- Q Tucker Inc. common stock currently trades for $90/share. 6-monthEuropean put options on the stock have an exercise price andpremium of $93 and $4, respectively. The annual risk free rate is2%....
- Q Question 4The stock of ABC Inc is trading at $50. You short sold 350shares of ABC at this price. However, price increased to $55, atwhich point you decided to close...
- Q Richards Inc. stock currently trades for $40, but you believethe company's earnings will decrease dramatically in the next sixmonths which in turn will cause the company's stock to depreciate.Six-month European...
- Q compare and contrast capital asset model to the free cash flowmodel?
- Q You analyzed the returns of a sample of stocks. You found that,on average, the ï¬rms with high E/P ratios have higher subsequentreturns.(i) Discuss an explanation for this pattern that is...
- Q Clever tests to discriminate between alternative explanations.LaPorta, Lakonishok, Shleifer, and Vishny (“Good News for ValueStocks,†Journal of Finance, June 1997) study the returns on stockson the few days surrounding their...
- Q Use thefollowing information for Taco Swell, Inc., (assume the tax rate is21 percent):Â Â 20172018Â Â Sales$21,049$19,038Â Â Depreciation2,4662,574Â Â Costof goods sold6,1406,821Â Â Other expenses1,4061,223Â Â Interest1,1551,370Â Â Cash8,7219,517Â Â Accounts receivable11,57813,752Â Â Short-term notes payable1,7641,731Â Â Long-term debt29,33035,454Â Â Netfixed assets72,97677,880Â Â Accounts payable6,3236,910Â Â Inventory20,57721,952Â Â Dividends2,4292,404For 2018, calculate the cash flow from assets, cash...
- Q You have been given the following return​ data,Expected ReturnYearAsset FAsset GAsset H201817%16%13%201918%15%14%202019%14%15%202120%13%16%AlternativeInvestment1100%of asset F255%of asset F and45%of asset G355%of asset F and45%of asset HF, ​G, and H over the period...
- Q The founder of Alchemy Products Inc. discovered a way to turngold into lead and patented this new technology. He then formed acorporation and invested $1,500,000 in setting up a productionplant....
- Q What is a loan amortization schedule, and what are some waysthese schedules are used?
- Q Jim wants to buy a property and needs to borrow 195,000. He canget a loan at 7% for 25 years. Loan origination fees will be$4,700. Assume the lender also imposes...
- Q Use the following financial statements for Lake of Egypt Marina,Inc.LAKE OF EGYPT MARINA, INC.Balance Sheet as of December 31, 2021 and2020(in millions of dollars)2021202020212020AssetsLiabilities and EquityCurrent assets:Current liabilities:Cash and marketable...
- Q 1. Dana needs to make some house repairs in three years thatwill cost $8,000. She has some money in an account earning 6%annual interest. How much money needs to be...
- Q Finance is exciting! In this course, we learned how money cangrow through the use of compounding and interest rates and yourgrowth strategies may now be different. What are your new...
- Q Being Human, Inc., recently issued new securities to finance anew TV show. The project cost $35 million, and the company paid$2.2 million in flotation costs. In addition, the equity issued...
- Q 4. A small town has been cryogenically frozen since 2014.Whenthey thaw out, they want to know how their tax rates have changedafter the Tax Cuts and Jobs Act of 2017....
- Q Please discuss the two most common traditional valuationmethods: Earnings Multiple, and Discounted Cash Flow Method. Howcan they be applied to various actual situations? How effective arethese methods?
- Q In practice, a common way to value a share of stock when acompany pays dividends is to value the dividends over the next fiveyears or so, then find the “terminalâ€...
- Q S&S Air was founded 10 years ago. The company hasmanufactured and sold light airplanes over this period, and thecompany’s products have received high reviews for safety andreliability. The company has...
- Q Many firms have been under pressure to declassify their boardsof directors. Why would investors want a board to be declassified?What are the advantages of a classified board?
- Q NPVs, IRRs, and MIRRsfor Independent ProjectsEdelman Engineering isconsidering including two pieces of equipment, a truck and anoverhead pulley system, in this year's capital budget. The projectsare independent. The cash outlay...
- Q Problem 21-12 Black–Scholes modelUse the Black–Scholes formula to value the followingoptions:a. A call option written on a stock selling for$68 per share with a $68 exercise price. The stock's standarddeviation...
- Q Statement of the Assignment:Please prepare a comprehensive list of financial ratios asintroduced in Chapter 3 of the textbook. Write a brief explanationbelow each financial ratio, e.g. what does the financial...
- Q Calculate the Macaulay duration of a 9%, $1,000 par bond thatmatures in three years if the bond's YTM is 14% and interest ispaid semiannually. You may use Appendix C to...
- Q (Future value)  You are hoping to buy a house in the future andrecently received an inheritance of ​$16,000. You intend to useyour inheritance as a down payment on your house. a.  If...
- Q Q2 2016:The use of derivatives by banks for hedging, trading andspeculation has beenthe subject of great debate by regulators, customers and otherstakeholders.Critically evaluate a bank’s use of financial derivatives and...
- Q 1. An investor puts $2,000 into an investment that will pay$2,500 one-fourth of the time; $2,000 one-half of the time, and$1,750 the rest of the time. What is the investor's...
- Q 1. An investor deposits $400 into a bank account that earns anannual interest rate of 8%. Based on this information, how muchinterest will he earn during the second year alone?...
- Q Why is the NPV method considered by finance specialists to bethe best method for capital budgeting? What does the NPV of aproject tell managers?
- Q Question 2: You are to calculate the price a European calloption considered “at the money†on a stock index with a currentlevel of 300, a risk free rate of interest...
- Q 1) A 7%, 60-day note is discounted 15 days before the maturitydate. If the discount rate is 5.5% and the proceeds received areRM997.77, find:a) The amount of discount charged.b) The...
- Q A portfolio to the right of the market portfolio on theCML is ___________.  a lending portfolioa borrowing portfolioan inefficient portfolionot possiblenone of the aboveWhich of the following statements about CML and...
- Q A corporate bond matures in 14 years. The bond has an 8 percentcoupon and a par value of $1,000. Interest is paid semiannually.The bond is priced to yeild 6.0%. What...
- Q A newly issued bond pays its coupons once annually. Its couponrate is 8%, its maturity is 20 years, and its yield to maturity is10%.a. Find the holding-period return for a...
- Q 10. What are some concerns you might have about owning stocksand 10-year government bonds over the next 12 months? Support youroutlook and concerns with citations from primary sources such aseconomist’s...
- Q Doug​ Klock, 56 just retired after 31 years of teaching. He is ahusband and father of three​ children, two of whom are stilldependent. He received a $140,000​lump-sum retirement bonus andwill...
- Q What is the current level of annualized inflation, unemploymentrate, and annual real GDP growth in the U.S.? What is the five-yearhistorical high and low for each variable? What is the...
- Q Answer all the questions belowI have select a business topic which is based on cycling retailshop we sell bicycles in following shop and do repairing as well sothats the business...
- Q Valuation is considered as science or art ? Explain in detail andillustrate with a senerio.(1500words)
- Q Whyvaluation is considered scientific as well as an art?(1500words)
- Q Answer all the questions belowI have select a business topic which is based on cycling retailshop we sell bicycles in following shop and do repairing as well sothats the business...
- Q our division is considering two investment projects, each ofwhich requires an up-front expenditure of $17 million. You estimatethat the investments will produce the following net cash flows:YearProjectAProjectB1$ 4,000,000$20,000,000210,000,00010,000,000320,000,0006,000,000What are the...
- Q What are the 4 critical success factors related to financialstatement analysia of an airline business like Tiger Air anddiscuss it.(1000words)
- Q What is it is about the banking and finance industry thatattracts so many talented people to commit so many fraudulent orunethical acts and what can be done to prevent this?
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