Finance question and answers for September 25, 2023
- Q A7X Corp. just paid a dividend of $1.45 per share. The dividendsare expected to grow at 25 percent for the next 6 years and thenlevel off to a growth rate...
- Q PhillyDogCare is currently selling at $150 per share. Thefirm’s ROE is 20% and its market capitalization rate is 15%. If thecompany decides to increase its plow back rate from 60%...
- Q CategoryPrior YearCurrent YearAccounts payable??????Accounts receivable320,715397,400Accruals40,50033,750Additional paid in capital500,000541,650Cash17,50047,500Common Stock94,000105,000COGS328,500430,836.00Current portion long-term debt33,75035,000Depreciation expense54,00055,125.00Interest expense40,50042,404.00Inventories279,000288,000Long-term debt339,829.00400,384.00Net fixed assets946,535999,000Notes payable148,500162,000Operating expenses (excl. depr.)126,000162,228.00Retained earnings306,000342,000Sales639,000847,534.00Taxes24,75047,130.00what is the current year's account payable balance?what is...
- Q 13. Project Analysis You are considering a new product launch.The project will cost $760,000, have a four-year life, and have nosalvage value; depreciation is straightline to zero. Sales areprojected at...
- Q A company currently pays a dividend of $2.75 per share(D0 = $2.75). It is estimated that the company'sdividend will grow at a rate of 21% per year for the next...
- Q Choose two companies in the same industry whose financialstatements are available online. Complete several financial ratiosfor each company and compare them. What did your analysis tell youabout these companies? What...
- Q Explain in a paragraph, If a country experiences an increase ininflation relative to other countries, then their current accountwill increase.
- Q Outline the main contents of the International Accountingstandard 33 (IAS33) EPS
- Q Nast Stores has derived the following consumer credit-scoringmodel after years of data collecting and model testing:AccountsReceivable Management | 153 Y = (0.20 × EMPLOYMT) + (0.4 ×HOMEOWNER) + (0.3 ×...
- Q FastTrack Bikes, Inc. is thinking of developing a new compositeroad bike. Development will take six years and the cost is $200,000per year. Once in production, the bike is expected to...
- Q We are examining a new project. We expect to sell 5,200 unitsper year at $66 net cash flow apiece for the next 10 years. Inother words, the annual operating cash...
- 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 Examine yield curve shapes using daily yield curve ratesprovided by U.S. department of treasury .a) Report treasure yield rates (1 month, 3 month, 6 month, 1year, 2 year, 3 year,...
- Q whoare 5 stakeholders in the healthcare payer system and what’s theirpositions ?
- Q Assume that you manage a risky portfolio with an expected rateof return of 14% and a standard deviation of 38%. The T-bill rateis 5%. Your client chooses to invest 85%...
- Q Assignment 3 - Skaggs Manufacturing CaseStudyCASE 5.1Skaggs ManufacturingJohn Andrews arrived promptly for his 10 am meeting with MarthaGillespie, the buyer for Skaggs Manufacturing. At 10:15, when shehadn't arrived, John asked...
- Q McGilla Golf is evaluating a new golf club. The clubs will sellfor $930 per set and have a variable cost of $415 per set. Thecompany has spent $140,000 for a...
- Q You are considering investing in a company that cultivatesabalone for sale to local restaurants. Use the followinginformation:Sales price per abalone=$44.80Variable costs per abalone=$11.35Fixed costs per year=$506,000Depreciation per year=$104,000Tax rate=23%The discount...
- Q The manager for a growing firm is considering the launch of anew product. If the product goes directly to market, there is a 50percent chance of success. For $181,000 the...
- Q Parker & Stone, Inc., is looking at setting up a newmanufacturing plant in South Park to produce garden tools. Thecompany bought some land six years ago for $5.5 million inanticipation...
- Q NPVA project has annual cash flows of $3,500 for the next 10 yearsand then $6,000 each year for the following 10 years. The IRR ofthis 20-year project is 13.14%. If...
- Q The following information is from Andy's Pharmaceutical Inc.’sfinancial statements:Sales (all credit)$245,000Total assets turnover0.80 timesTotal debt to total assets30.83%Fixed asset turnover1.1 timesCurrent ratio4.04 timesAverage collection period29.68 daysInventory turnover7.42 timesPart AUsing the...
- Q The Clifford Corporation has announced a rights offer to raise$15 million for a new journal, the Journal of Financial Excess.This journal will review potential articles after the author pays anonrefundable...
- Q If you currently have$200’000 in your retirement account , andplan to contribute $10,000 per year and can earn 8%(annually) , howlong will it take you to reach your goal of...
- Q Solo Corp. is evaluating a project with the following cashflows: Year Cash Flow 0 –$30,000 1 12,200 2 14,900 3 16,800 413,900 5 –10,400The company uses an interest rate of...
- Q Challenge questionI.Michael is shopping for a special automobile. He finds theexact car he​ wants, a 1966 dark blue Pontiac GTO. This car iscurrently the property of a​ neighbor, so to...
- Q 1. Citing the Digital Millennium Copyright Act (DMCA), Airbnb ischallenging the New York law and others in the United States,arguing that it merely operates a digital marketplace, and thus isnot...
- Q “The most appropriate financing pattern would be one in whichasset buildup and length of financing terms is perfectly matched.â€Discuss the difficulty involved in achieving this financingpattern. Â
- Q Below are numbers from a balance sheet and income statement.Based on these numbers calculate the financial ratios requestedbelow.All answers must be rounded to TWO decimal places includingpercentagesSales421756Operating Costs313053Depreciation Expense10000Interest Expense5000Tax...
- Q Consider the following information about the CMX gold futurescontract:(a) Contract size: 100 troy ounceInitial margin: $1,013 per contractMaintenance margin: $750 per contractMinimum tick size: 10 cents/troy ounce ($10/contract)There are four...
- Q In case of an asymmetric demand shock, which \"tool\" cannot beused ANYMORE by countries that have joined a monetary union?
- Q Discounted Cash Flow Models discussed:The Adjusted Present Value ModelThe Free Cash Flow to Equity ModelWhat are the advantages and shortcomings of each?Which one do you think is generally better to...
- Q Problem 9-13Two firms have sales of $1.5 million each. Other financialinformation is as follows:FirmABEBIT$330,000$330,000Interest Expense30,00060,000Income Tax50,00015,000Debt1,020,000420,000Equity1,250,0002,130,000What are the operating profit margins and the net profit marginsfor these two firms? Round...
- Q Ms. Kathleen Boyd, director of logistics for the Scenic CalendarCompany, wishes to evaluatetwo methods of time series forecasting. She has collectedquarterly calendar sales data from theyears 2003 and 2004.2003 ....
- Q A company currently pays a dividend of $2.25 per share(D0 = $2.25). It is estimated that the company'sdividend will grow at a rate of 15% per year for the next...
- Q 4. Consider two countries: Japan and France. Suppose you saw thefollowing information in the newspaper: Interest rate on one-yearJapanese deposits = 8%; Interest rate on one-year French deposits =6%; Current...
- Q IDENTIFY FORMULAS AND SHOW WORK.Miller Corporation has a premium bond making semiannualpayments. The bond pays an 8 percent coupon, has a YTM of 6percent, and has a 13 years to...
- Q Company A deposit $10,000 now in the bank. Company A will keepdeposits $1500 at the end of each payment period. The interest rateand the payment period information are given in...
- Q You are a homebuilder with excess houses in inventory and thelocal economy heading towards a recession. In order to stimulatehome sales, you offer the following promotion: 1.5% annual interestfor the...
- Q 3. The cost of debtWhat do lenders require, and what kind of debt costs thecompany?The cost of debt that is relevant when companies are evaluatingnew investment projects is the marginal...
- Q Given:Spot: USD/DKK 5.6531/ 5.65426 month-forward outright: USD/DKK 5.7781/ 5.7832US (USD) interest rates (investing, borrowing) 0.25%,0.75%Danish (DKK) interest rates (investing, borrowing) 1.25%,1.75%all interest rates given in annual nominal termsa) calculate the...
- Q As a manager of an MNE( Multinational Enterprise) what are theimplications of a STRENGTHENING DOMESTIC CURRENCY on acompanies?A. ProfitsB. RevenuesC. Exports/Imports
- Q Given certain international transactions, determine if theycause a supply/demand of the U.S. dollar as well as adepreciation/appreciation of the U.S. dollar? \"at least 1 paragraphrequired\"This is all that was given...
- Q 2. Solving for the WACC9.97The WACC is used as the discount rate to evaluate variouscapital budgeting projects. However, it is important to realizethat the WACC is only an appropriate discount...
- Q The material wealth of a society is ultimately determined by theproductive capacity of its economy (the goods and services itsmembers create). Please discern the difference between real andfinancial assets.\"
- Q McGilla Golf is evaluating a new line of golf clubs. The clubswill sell for $920 per set and have a variable cost of $410 perset. The company has spent $137,500...
- Q Textbook Question 3Use what you have learned about the time value of money toanalyze each of the following decisions:Decision #1:Â Â Which set of Cash Flows isworth more now?Assume that your...
- Q Three years from now (now =Year 0) the equipment that Dark StarTechnologies uses to coat and protect the surfaces on its productswill have to be replaced. Dark Star plans to...
- Q Bridgton Golf Academy is evaluating new golf practice equipment.The \"Dimple-Max\" equipment costs $138,000, has a 4-year life, andcosts $13,800 per year to operate. The relevant discount rate is 12percent. Assume...
- Q I need to create a business plan for Johnson & Johnson, itdoes have to fit to their specific financial situations. Maybe justsome examples? please help?A. Financial ProjectionsHow will you fund...
- Q Does your reaction to the announcement suggest in terms ofcreating value not only for PacifiCorp’s acquirer, BerkshireHathaway, but also for the seller, Scottish Power?
- Q Using the FINRA Bond Center search engine, determine if any U.S.government agencies issue preferred stock. If you find a preferredstock issue from a U.S. government agency, create a screen captureof...
- Q Hagar Industrial Systems Company (HISC) is trying to decidebetween two different conveyor belt systems. System A costs$330,000, has a 4-year life, and requires $125,000 in pretax annualoperating costs. System B...
- Q For a typical U.S. (exchange-listed) corporation, approximatelywhat is the cost of equity capital? Explain your reasoning. Whatfirm characteristics (other than leverage) are associated withhigher than average costs of equity capital?
- Q You estimate that a passive portfolio, that is, one invested ina risky portfolio that mimics the S&P 500 stock index, yieldsan expected rate of return of 16% with a standard...
- Q What is Fractional Banking? How does it impact the money supply?What would happen to the money supply size if several large banksall failed at the same time? Should the U.S....
- Q what is financial inclusion? write up 10 pages on theweaknesses of the financial system in Zambia.recommend what should be included in the financial inclusion inZambia
- Q Net present value: Emporia Mills is evaluatingtwo heating systems. Projects are independent. Costs and projectedenergy savings are given in the following table.YearSystem 100System 2000$-1,435,000$-1,489,6711$328,286$763,9502$604,070$619,9733$668,921$678,7834$709,713$471,023The company uses 10.73 percent to discount...
- 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 Strickler Technology is considering changes in its workingcapital policies to improve its cash flow cycle. Strickler's saleslast year were $2,180,000 (all on credit), and its net profitmargin was 7%. Its...
- Q Although the Chen Company's milling machine is old, it is stillin relatively good working order and would last for another 10years. It is inefficient compared to modern standards, though, andso...
- Q Thomson Trucking has $10 billion in assets, and its tax rate is30%. Its basic earning power (BEP) ratio is 20%, and its return onassets (ROA) is 5%. What is its...
- Q statement. From the following income statement accounts in thepopup​ window,Account BalanceCost of goods sold $1,424,000Interest expense $294,000Taxes $220,400Revenue $2,987,000Selling, general, and administrative expenses $453,000Depreciation $265,000a. produce the income statement for...
- Q Derek will deposit $2,994.00 per year for 28.00 years into anaccount that earns 11.00%, The first deposit is made next year. Howmuch will be in the account 39.00 years from...
- Q Factors that result in higher or lower stock prices?What drives stock prices?Important factors that drive stock market prices?500 words minimum
- Q If interest rates rise after a bond issue, what will happen tothe bond’s price and YTM? Does the time to maturity affect theextent to which interest rate changes affect the...
- Q You need $575 in 6 months for your auto insurance bill. If yourinvestments earn 3% APR (compounded monthly), ), how much do youhave to invest each month, starting nextmonth, for...
- Q You are planning to save for retirement over the next 20 years.To do this, you will invest $1,100 a month in a stock account and$800 a month in a bond...
- Q As a winner of a breakfast cereal competition, you can chooseone of the following prizes:$100,000 now.$100,000 at the end of 5 years.$10,000 a year forever (starting from this year).$11,000 a...
- Q Dewey Corp. is expected to have an EBIT of $3,200,000 next year.Depreciation, the increase in net working capital, and capitalspending are expected to be $255,000, $160,000, and $260,000,respectively. All are...
- Q Luca Lucchesi has $10 million today and is setting up a trustfund for his 2 children.If r=4%, how much should the fund pay each child next year?Mr. Lucchesi is also...
- Q magnificent miner is a mining startup.due to development costsof its new mine, no dividends will be paid for the first 5 years,after that they pay a $2 divident which wil...
- Q 1)   When you go through an IPO youraise capital from venture capitalists.raise debt from a bank.sell shares to the general public.issue preferred stock.  2)   In the Principal/Agent relationship theAgent hasthe right to dismiss...
- Q Rafael is an analyst at a wealth management firm. One of hisclients holds a $5,000 portfolio that consists of four stocks. Theinvestment allocation in the portfolio along with the contributionof...
- Q Boeing Corporation has just issued a callable​ (at par)​three-year, 4.7 % coupon bond with​ semi-annual coupon payments.The bond can be called at par in two years or anytime thereafter ona...
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