Finance question and answers for September 22, 2023
- Q BALANCE SHEET ANALYSISComplete the balance sheet and sales information using thefollowing financial data:Total assets turnover: 1.2xDays sales outstanding: 39.5 daysaInventory turnover ratio: 4xFixed assets turnover: 3xCurrent ratio: 2.5xGross profit margin...
- Q Your firm wishes to raise 10,000,000 by either issuing regularcoupon bonds or issuing zero coupon bonds. The regular coupon bondswill have a 10% coupon rate. Both issues are expected to...
- Q A firm is considering investing $10 million today to start a newproduct line. The future of the project is unclear however anddepends on the state of the economy. The project...
- Q Complete the balance sheet and sales information using thefollowing financial data:Total assets turnover: 1.2xDays sales outstanding: 31.5 daysaInventory turnover ratio: 5xFixed assets turnover: 2.5xCurrent ratio: 2.1xGross profit margin on sales:...
- Q The Gilbert Instrument Corporation is considering replacing thewood steamer it currently uses to shape guitar sides. The steamerhas 6 years of remaining life. If kept, the steamer will havedepreciation expenses...
- Q Your client is contemplating changing from a sole proprietorshipto a C corporation. He has heard the terms \"book to taxdifferences,\" \"dividends received deduction,\" and \"differences inthe charitable deduction,\" but would...
- Q Functions of financial management and decision-making [21MARKS]1.1 Identify three primary functions of a financial manager andexplain therelationship between these roles.(9)1.2 Create your own example(s) to illustrate the difference betweensensitivityanalysis, standard...
- Q i dont know what is the Plant Clearing Offset ByBiobanking Agreement, i need the answer in detail
- Q 11. The Standard deviation ofquarterly changes in the price of a commodity is $0.65, thestandard deviation of quarterly changes in a futures price on thecommodity is $0.81, and the coefficient...
- Q Question 1a. How much governmental financial information is used bycitizens? From what sources?b. How is governmental financial information filtered byinformation intermediaries, such as the newspaper and interestgroups? With what effect?In...
- Q S&S Air, INC.2009 Income StatementSales$30,499,420Cost of goods sold$22,224,580Other expenses$3,867,500Depreciation$1,366,680EBIT$3,040,660Interest$478,240Taxable income$2,562,420Taxes (40%)$1,024,968Net income$1,537,452Dividends$560,000Add to retained earnings$977,452Â Â Â Â Â Â Â Â Â Â Â Â Â S&S Air, INC.2009 Balance SheetAssetsLiabilities and EquityCurrent assetsCurrent liabilitiesCash$441,000Accounts payable$889,000Accounts receivable$708,400Notes payable$2,030,000Inventory$1,037,120Total current liabilities$2,919,000Total current assets$2,186,520Long...
- Q Consider an investment that costs $100,000 and has a cash inflowof $25,000 every year for 5 years. The required return is 9%, andpayback cutoff is 4 years.A. What is the...
- Q You want to buy a house that costs $320,000. You have $32,000for a down payment, but your credit is such that mortgage companieswill not lend you the required $288,000. However,...
- Q Dave takes out a 23-year mortgage of 290000 dollars for his newhouse. Dave gets an interest rate of 14.4 percent compoundedmonthly. He agrees to make equal monthly payments, the first...
- Q Identify one quality problem that a bank can be currently facingand discuss the procedures that can adoptedto solve it using appropriate quality tools
- Q Describe in your own words what is the relation between theForward price of oil and the cost of storage. Besides providing thebasic relation (increasing, decreasing, independent), pleaseprovide the economic reasoning....
- Q Describe the relation between the yield curve of spot rates andthe yield curve of forward rates. Besides providing the basicrelation (increasing, decreasing, independent), please provide theeconomic reasoning. You are greatly...
- Q You are considering setting up a software developmentbusiness.  To set up the enterprise you will need to buyequipment costing $100,000. This equipment will be depreciatedstraight line over 5 years to...
- Q Select 3 companies from the same industry that currentlytrade on the ASX, Describe what they do and the competitiveposition they are in.
- Q Your client is 28 years old. She wants to begin saving forretirement, with the first payment to come one year from now. Shecan save $14,000 per year, and you advise...
- Q You own a 25 acre strawberry farm. You currently lease the landto a strawberry farmer for $14,000 per year. Your annualadministrative (or fixed) costs from owning the farm areapproximately $2,000...
- Q Complete an amortization schedule for a $17,000 loan to berepaid in equal installments at the end of each of the next 3years. The interest rate is 6% compounded annually. If...
- Q Discuss your understanding of determining value for a realestate property using the Sale Comparison Approach, the CostApproach and the Income Approach from both the residential(personal home) perspective and the commercial...
- Q Problem 2-36 Income Statement (LG2-1)You have been given the following information for PattyCake’sAthletic Wear Corp. for the year 2018:Net sales = $38,900,000.Cost of goods sold = $22,220,000.Other operating expenses =...
- Q Company H&R BLOCKBe sure to provide a link to the financialstatements. You must use the annual report, from theH &R Block website, or from the SEC database.Quarterly financial statements should...
- Q Double your wealth. Kant Miss Company is promising its investorsthat it will double their money every 3years. What annual rate is Kant Miss​ promising? Is thisinvestment a good​ deal? If...
- Q Bob Tate is the director of strategy for a small truck deliverycompany. The company operates a fleet of 100 trucks. Of these, 36trucks will need to be replaced this year....
- Q Future values for various compoundingfrequencies Delia Martin has $10,000 that she can depositin any of three savings accounts for a 3-year period. Bank Acompounds interest on an annual basis, bank...
- Q Ann and Suzan are classmates who graduated with business degreesfrom Athabasca University. Ann inherited $50,000 from her father.She considers forming a 10-year business partnership with Suzan. Tojoin the partnership, Ann...
- Q DRK, Inc., has just sold 240,000 shares in an initial publicoffering. The underwriter’s explicit fees were $144,000. Theoffering price for the shares was $32, but immediately upon issue,the share price...
- Q (PLEASE MAKE ANSWER CLEAR) Permian Partners (PP) produces fromaging oil fields in west Texas. Production is 1.82 million barrelsper year in 2016, but production is declining at 9% per year...
- Q Blades, Inc. Case Decisions to Use International FinancialMarkets As a financial analyst for Blades, Inc., you are reasonablysatisfied with Blades’ current setup of exporting “Speedos†(rollerblades) to Thailand. Due to...
- Q Contract Manufacturing, Inc., is considering two alternativeinvestment proposals. The first proposal calls for a majorrenovation of the company’s manufacturing facility. The secondinvolves replacing just a few obsolete pieces of equipment...
- Q consider a 20 year ,10% annual pay bond with a fullprice of ksh.112 and can be called n five years at ksh. 102 and canalso be called at par in...
- Q Which of the following is true about real estate pricing?Real estate prices are always the same as the value of the realestate.Real estate prices are a function of the value...
- Q The management team of Accent Group Limited have received aproposal from the manager of Hype DC. This proposal concerns amajor upgrade to Hype DC's stores to improve the customerexperience. Key...
- Q The management team of Accent Group Limited have received aproposal from the manager of Hype DC. This proposal concerns amajor upgrade to Hype DC's stores to improve the customerexperience. Key...
- Q You’ve been asked to evaluate a project. Your estimates say thatthe first cashflow of $120k will occur one year from today. Youbelieve the cashflows will increase by 4% per year...
- Q Edwards Construction currently has debt outstanding with amarket value of $430,000 and a cost of 6 percent. The company hasan EBIT of $25,800 that is expected to continue in perpetuity.Assume...
- Q Asa winner of a breakfast cereal competition, you can choose one ofthe following prizes: a) 11,000 a year (forever) and starting NEXTyear b) 12,000 a year (forever) and starting THIS...
- Q You are thinking of purchasing an annuity with annual paymentsof $400. However, unlike previous annuities you’ve seen, this onepays the initial payment of $400 today (not important, but thetechnical term...
- Q Given the popularity of IRR, you have decided to use it toevaluate a project. The cashflows from the project will be $40k,$42k and $28k in years 1 through 3. After...
- Q A founder owns 100% of their startup. They are offered an equityinvestment by a VC investor, accepts, and eventually, undergoes onemore round of financing, with a new VC investor. The...
- Q You have just started a new job and your employer has enrolledyou in KiwiSaver.This is the first time you have been enrolled in KiwiSaver andyou decide not to “opt outâ€.You...
- Q 2003200420052006Cash andShort Term Investments51.42158.05460.65172.122AccountsReceivable12.39417.25625.15830.919Inventory4.3505.3987.3588.714PrepaidExpenses and Deferred Taxes3.8873.9059.60715.863CurrentAssets72.05284.613102.774127.618Property, Plant and Equipment146.362201.725268.809345.977Goodwilland Other Assets38.42138.33466.08469.014TotalAssets256.835324.672437.667542.609AccountsPayable8.0725.8404.4225.800AcruedExpenses and Deferred Revenue37.57149.86582.443103.810CurrentLiabilities45.64355.70586.865109.610DeferredRent and Other Liabilities13.61627.60433.82435.333TotalLiabilities59.25983.309120.689144.943Equity197.576241.363316.978397.666Total Liabilities and Equity256.835324.672437.667542.609Develop a 5 year Financial Forecast
- Q Graffiti Advertising, Inc., reported the following financialstatements for the last two years.2019 Income Statement  Sales$573,200  Costs of goods sold273,945  Selling & administrative124,717    Depreciation54,560  EBIT$119,978  Interest19,648    EBT$100,330  Taxes40,132  Net income$  60,198    Dividends$11,200  Addition to retained earnings$48,998GRAFFITI ADVERTISING, INC.Balance Sheet as of December 31,...
- Q Questions 12-33 think about what you though you knew about SteveJobs prior to reading this Case Application. How would you havedescribe his leadership style?12-34 After reading this Cane Application, how...
- Q On January 2, you sold short 1,000 shares of ABC stock at $27per share. On March 2, a dividend of $1 per share was paid. OnApril 2, covered the short...
- Q Suppose we are thinking about replacing an old computer with anew one. The old one cost us $1,580,000; the new one will cost,$1,897,000. The new machine will be depreciated straight-line...
- Q An investor buys a 3.8% annual payment bond with 8 years tomaturity. The bond is priced at a yield-to-maturity of 5.6%. Whatis the bond’s Macaulay duration?
- Q Research and discuss the importance of the financial markets inproviding capital, where and when needed for governmental,commercial and personal endeavors.
- Q The December 31, 2018, balance sheet of Whelan, Inc., showedlong-term debt of $1,375,000, $135,000 in the common stock account,and $2,600,000 in the additional paid-in surplus account. TheDecember 31, 2019, balance...
- Q Suppose the prices of one-year, two-year, and three-year zerocoupon bonds each with a par value of $100 are $90,$80, and $70,respectively. Determine the arbitrage-free price of theannuity
- Q Here are simplified financial statements for WatervanCorporation:INCOMESTATEMENT(Figures in $millions)Net sales$888.00Cost of goods sold748.00Depreciation38.00Earnings before interest and taxes (EBIT)$102.00Interest expense19.00Income before tax$83.00Taxes29.05Net income$53.95BALANCE SHEET(Figures in $ millions)End of YearStart of YearAssetsCurrent...
- Q Cooperton Mining just announced it will cut its dividend from $4.14 to $ 2.27 per share and use the extra funds to expand. Priorto the​ announcement, Cooperton's dividends were expected...
- Q What kind of financial decision making models your company usein its capital budgeting process? Have these decisions contributedto the company’s success? Why or why not?the company is WestJet
- Q Bond price: Nanotech Ltd has a bond issuematuring in seven years and paying a coupon rate of 11.39 percent(semiannual payments). The company wants to retire a portion of theissue by...
- Q Realised yield: Josh Kavern bought 10-year,10.76 percent coupon bonds issued by the Australian Governmentthree years ago at $913.44. If he sells these bonds, which have aface value of $1,000, at...
- Q n addition to common-size financial statements, common-base yearfinancial statements are often used. Common-base year financialstatements are constructed by dividing the current year accountvalue by the base year account value. Thus,...
- 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 10 percent to $330 million. Current...
- Q Just Dew It Corporation reports the following balance sheetinformation for 2017 and 2018.  JUST DEW IT CORPORATION2017 and 2018 Balance SheetsAssetsLiabilities and Owners’ Equity2017201820172018  Current assets  Current liabilities      Cash$7,950$11,800      Accounts payable$40,500$45,800      Accounts receivable23,55029,000      Notes payable14,85020,800      Inventory36,75047,000        Total$68,250$87,800        Total$55,350$66,600  Long-term debt$30,000$24,000  Owners’ equity      Common...
- Q Last year Janet purchased a $1,000 face value corporate bondwith an 9% annual coupon rate and a 25-year maturity. At the timeof the purchase, it had an expected yield to...
- Q The most recent financial statements for Bello, Inc., are shownhere:  Income StatementBalance Sheet  Sales$39,600  Assets$145,000  Debt$42,000  Costs27,000  Equity103,000  Taxable income$12,600  Total$145,000  Total$145,000  Taxes (25%)3,150  Net income$9,450  Assets and costs are proportional to sales; debt and equity arenot. A dividend of $3,300 was...
- Q The Optical Scam Company has forecast a sales growth of 25percent for next year. The current financial statements are shownhere:  Income Statement  Sales$32,100,000  Costs26,512,400  Taxable income$5,587,600  Taxes1,955,660  Net income$3,631,940  Dividends$1,452,776  Addition to retained earnings2,179,164  Balance SheetAssetsLiabilities and Owners' Equity  Current...
- Q An electric utility is considering a new power plant in northernArizona. Power from the plant would be sold in the Phoenix area,where it is badly needed. Because the firm has...
- Q The most recent financial statements for Hailey Co. are shownhere:Income StatementBalance Sheet  Sales$78,600Current assets$32,100Long-term debt$69,200  Costs27,000Fixed assets128,500Equity91,400  Taxable income$51,600  Total$160,600  Total$160,600  Taxes (22%)11,352    Net income$40,248Assets and costs are proportional to sales. The companymaintains a constant 25 percent...
- Q Determine the value at the end of five years of a $6,000investment (today) in a bank certificate of deposit (CD) that paysa nominal annual interest rate of 10 percent, compounded...
- Q A project has an initial requirement of $190,151 for newequipment and $11,289 for net working capital. The installationcosts are expected to be $15,824. The fixed assets will bedepreciated to a...
- Q A)You are expecting to receive $300 at the end of each year inyears 3, 4, and 5, and then 500 each year at the end of each yearin years 10...
- Q What is financial management? How does financial managementdiffer in the sport industry as compared to other industries? Whatare key economic factors that influence the sport industry?(400-500 words)
- Q During the past five years, you owned two stocks that had thefollowing annual rates of return:YearStock TStock B10.170.1020.060.023-0.06-0.124-0.040.0450.110.06Compute the arithmetic mean annual rate of return for eachstock. Round your answers...
- Q Debit CreditCash$157,100accounts receivable52,000Â Â interest receivable21,400notes receivable (due in 90 days)171,500office supplies16,000automobiles173,000accumulated depreciation-automobile$85,000equipment138,000accumulated depreciation-equipment25,000land85,000accounts payable96,000interest payable40,000salaries payable17,000unearned fees30,000long term notes payable154,000common stock25,580retained earnings230,220dividends45,000fees earned554,000interest earned36,000interest earned27,000depreciation expense-automobiles18,500depreciation expense-equipment183,000salaries expense45,000wages expense34,000interest expense35,600office supplies...
- Q Discuss the pros and cons of tax-backed and revenue municipalbonds and the advantages and disadvantages of including them in aportfolio.
- Q Some recent financial statements for Smolira Golf Corp.follow.  SMOLIRA GOLF CORP.2017 and 2018 Balance SheetsAssetsLiabilities and Owners’ Equity2017201820172018  Current assets  Current liabilities      Cash$35,485$38,848      Accounts payable$38,612$43,132      Accounts receivable18,35128,756      Notes payable20,10817,025      Inventory3,94043,072      Other20,85425,514        Total$57,776$110,676        Total$79,574$85,671  Long-term debt$120,500$184,214  Owners’ equity      Common stock and paid-insurplus$56,100$56,100      Accumulated retainedearnings267,072305,974  Fixed assets  Net plant...
- Q The Holtzman Corporation has assets of $444,000, currentliabilities of $51,000, and long-term liabilities of $71,000. Thereis $35,500 in preferred stock outstanding; 20,000 shares of commonstock have been issued.  a. Compute book...
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