Finance question and answers for August 31, 2023
- Q Exhibit 1 Company Share Beginning of year price Dividend pershare End of year priceSprucer 200 $48.00$ 2.50 $47.00Holly Bush500$ 9.00$ 1.00$ 9.25 Birchdale 400 $20.00 None $22.00 Oakview 300$27.00 $1.25...
- Q The Hastings Sugar Corporation has the following pattern of netincome each year, and associated capital expenditure projects. Thefirm can earn a higher return on the projects than the stockholderscould earn...
- Q Please explain conventional and nonconventionalcash flows in capital budgeting.Which investment evaluation criteria is the best forunconventional cash flows and why?Provide a example and apply the NPV, IRR, and MIRRmethods to...
- Q General Motors GM- Biblical WorldviewInclude comments regarding Biblical integration on financialstewardship.
- 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 Marcel Thiessen purchased a home for $206,200 and obtained a15-year, fixed-rate mortgage at 10% after paying a down payment of10%. Of the first month's mortgage payment, how much is interestand...
- Q It is now January 1, 2019, and you are considering the purchaseof an outstanding bond that was issued on January 1, 2017. It has a9% annual coupon and had a...
- Q An investor has two bonds in his portfolio that have a facevalue of $1,000 and pay a 12% annual coupon. Bond L matures in 20years, while Bond S matures in...
- Q A company is considering two mutually exclusive expansion plans.Plan A requires a $39 million expenditure on a large-scaleintegrated plant that would provide expected cash flows of $6.23million per year for...
- Q Current Situation:Stefano, Giuseppe’s third grandchild, was now running RomanManufacturing, while his cousin, Guido, was director ofmanufacturing operations. Guido presented to Stefano and the othermanagers his research into the costs of...
- Q What considerations should the capital structure decision bebased on? Provide an example of how you would structure a capitalinvestment and why you choose that finance structure.
- Q A large retailer obtains merchandise under the credit terms of1/15, net 40, but routinely takes 55 days to pay its bills.(Because the retailer is an important customer, suppliers allow thefirm...
- Q In the first four months of 2017, a company realized monthlyreturns of 1.1percent, 1.7percent, 1.5percent, and 2.1percent. Whatis the standard deviation for those four monthly returns?A.0.32%B.0.42%C.0.52%D.0.64%E. 0.75Year-to-date, Blue Co. had...
- Q 5.You bought 300 shares of Apache (APA) at $46.50 per share, 200shares ofDelta Airlines (DAL)for $58.75a share and 400 shares ofNielson Holdings (NLSN)for $27.25per share. What is the portfolioweight on...
- Q Parramore Corp has $14 million of sales, $3 million ofinventories, $4 million of receivables, and $1 million of payables.Its cost of goods sold is 70% of sales, and it finances...
- Q Compare and contrast (Advantages and disadvantages) the threedifferent forms of company ownership. For each, recommend the typeof company that should use that form of ownership.
- Q Angel Enterprise was going public in 2018. You were wonderingwhether the $30 per share offer price is a fair price. You decidedto use discounted cash flow approach to value the...
- Q Please explain those terms in detail.1) Corporate finance2) Financial statements3) Taxes and Cash Flows.
- Q The going rate of interest on a 5-year treasury bond is 4.25%.You have one that will pay $3,000 five years from now. How much isthe bond worth today?Select the correct...
- Q We are evaluating a project that costs $832,000, has aneleven-year life, and has no salvage value. Assume thatdepreciation is straight-line to zero over the life of the project.Sales are projected...
- Q A firm needs new copy machine. You can purchase a new one for$30000, or you can lease one for three years for a monthly leasepayment of $800 (paid at the...
- Q You are thinking about buying a piece of art that costs $20,000.The art dealer is proposing the following deal: He will lend youthe money, and you will repay the loan...
- Q A proposed project has fixed costs of $43,000 per year. Theoperating cash flow at 8,000 units is $78,000.Required:(a) Ignoring the effect of taxes, what is the degree ofoperating leverage?(b) If...
- Q You just got your first job and are buying a new car. Aftermaking a sizeable down payment, you are borrowing the remaining$12,000 from your credit union at a loan rate...
- Q InterTune, Inc., just paid a dividend of $3.00 per share. Youexpect the dividend to increase by 15% next year, 10% the followingtwo years, and then 4% indefinitely thereafter. If you...
- Q FINANCIAL MANAGEMENT (END 462) SUMMER SESSION TWO ASSIGNMENTNotes: Read any book (s) in Financial Management or Accounting.You may also read textbooks in Economics and Journal Articles. Thenrespond to the statements...
- Q Please give me the correct answer with necessarycalculations2. Doggie company has the following production budgetfor one of the products for the first quarter of 2016:Month productionJanuary 18300February 15500March 12000Each units...
- Q Possible outcomes for three investment alternatives and theirprobabilities of occurrence are given below. Alternative 1Alternative 2 Alternative 3 Outcomes Probability OutcomesProbability Outcomes Probability Failure $ 30 0.20 $ 80 0.40...
- Q What are common capital project financial measurements, and howdo they affect a business decision?
- Q 3. Measuring stand-alone risk using realized(historical) dataReturns earned over a given time period are called realizedreturns. Historical data on realized returns is often used toestimate future results. Analysts across companies...
- Q Pear Orchards is evaluating a new project that will requireequipment of $247,000. The equipment will be depreciated on a5-year MACRS schedule. The annual depreciation percentages are20.00 percent, 32.00 percent, 19.20...
- Q Too Young, Inc., has a bond outstanding with a coupon rate of7.1 percent and semiannual payments. The bond currently sells for$1,891 and matures in 17 years. The par value is...
- Q 1) What type of orders—market, limit, or buy stop—do you intendto use when purchasing stocks? Do you intend to pay with cash orbuy on margin? Why?2) What type of brokerage...
- Q What is Economic Value Added? Why is it used?
- Q Five years ago you took out a 10-year amortizing loan topurchase an apartment. The loan has 4.0% APR with monthly paymentsof $1,800. How much do you owe on the loan...
- Q Comment this discussion :Sources of long term finances for Genesis Energy may be moneymarket securities, capital market securities, bonds, valuing commonstock, or valuing preferred stock. A benefit of money marketsecurities...
- Q Assume a $62,000 investment and the following cash flows for twoalternatives.YearInvestment XInvestment Y1$20,000$35,000215,00015,000315,00022,000415,000—525,000—a. Calculate the payback for investment X and Y.(Do not round intermediate calculations. Round your answersto 2 decimal...
- Q Aproject requires an initial investment or $9 million. the targetD/E ratio is 0.60. Flotation costs for equity are 7% and flotationcosts for debt are 3%. whag is the true cost...
- Q You plan on starting a retirement fund at the end of the year.The fund earns 11% per year. You will invest X dollars into thefund. You plan to retire at...
- Q Jason wishes to be able to receive $50,000 a year uponretirement, and he expects to live for 25 years after retirement.if he can earn an average rate of return of...
- Q Debby’s Dance Studios is considering the purchase of new soundequipment that will enhance the popularity of its aerobics dancing.The equipment will cost $20,900. Debby is not sure how many membersthe...
- Q Defense Bugeting.What are some problems that appear with the house or senatearmed services committee agenda?Thanks
- Q upon graduatingschool you must repay $20,000 in student loans your interest rateis 6.8% how much will your payment be if you make monthly paymentsover the standard 10 year payment term
- Q what type of research thesis in business? I am doing thesisresearch of feasibility framework for parent finance company, whatmust I do in my research?
- Q youcan afford a 1350$ per month mortage payment. youve found a 30 yearloan at 7% interest.a)!how big of a loan can you affordb) how much total money will you pay...
- Q You are planning to make monthly deposits of $70 into aretirement account that pays 14 percent interest compoundedmonthly. If your first deposit will be made one month from now, howlarge...
- Q New-Project Analysis The Campbell Company is considering addinga robotic paint sprayer to its production line. The sprayer's baseprice is $960,000, and it would cost another $25,000 to install it.The machine...
- Q Answer all the items. To submit your exam you can either uploadthe file or upload images of the pages with the handwritten answers(take photos or scan them).1. T / F...
- Q The IFE suggests that the percentage change in the exchangerate over the investment horizon will equal the interest ratedifferential between the two countries. ef = ih-if (textbooksection 8-2d.) Implying that...
- Q Assume $1 is currently equal to $19.47 Mexican peso in the spotmarket. Assume the expected inflation rate in Mexico is 5.98percent while it is 3.21 percent in the U.S. What...
- Q Hastings Corporation is interested in acquiring VandellCorporation. Vandell has 1 million shares outstanding and a targetcapital structure consisting of 30% debt; its beta is 1.50 (givenits target capital structure). Vandell...
- Q A corporate bond with 6.75 percent coupon has ten years left tomaturity. It has had a credit rating of BB and a yield to maturityof 8.2 percent. The firm has...
- Q 20) A project has annual cash flows of $7,500 for the next 10years and then $10,000 each year for the following 10 years. TheIRR of this 20-year project is 12.04%....
- Q A closed-end fund’s NAV is $25 at the beginning of the year and$39 at the end of the year. At the beginning of the year the fundwas selling at a...
- Q BALANCE SHEETThe assets of Dallas & Associates consist entirely ofcurrent assets and net plant and equipment. The firm has totalassets of $2.5 million and net plant and equipment equals $2million....
- Q STATEMENT OF CASH FLOWSHampton Industries had $53,000 in cash at year-end 2015 and$14,000 in cash at year-end 2016. The firm invested in property,plant, and equipment totaling $280,000. Cash flow from...
- Q STATEMENT OF CASH FLOWSYou have just been hired as a financial analyst for BarringtonIndustries. Unfortunately, company headquarters (where all of thefirm's records are kept) has been destroyed by fire. So,...
- Q The most recent financial statements for Zoso, Inc., are shownhere (assuming no income taxes): Income StatementBalance Sheet Sales$4,500 Assets$15,300 Debt$10,400 Costs3,440 Equity4,900 Net income$1,060 Total$15,300 Total$15,300 Assets and costs are proportional to sales. Debt and equity arenot. No dividends are...
- Q You deposit $1,400 at the end of each year into an accountpaying 9.6 percent interest. Required: (a) How much money will youhave in the account in 21 years? (b) How...
- Q Consider a fund that charges 5% front-end load. In an averageyear, the fund's reported return is 11.5%. What is the averagerealized annual return to an investor investing in the fund...
- Q XYZ is a company located in Italy, the company manufacturesmachine parts. It is currently involved in making a decisionconcerning the acquisition of new machining tool. Two differentversions of the tool...
- Q 15)A stock is expected to pay a dividend of $3.00 at the end of theyear (i.e., D1 = $3.00), and it should continue to growat a constant rate of 9%...
- Q in 200 words How does budgeting household expenses differ frombudgeting business expenses? What are the similarities?
- Q Your boss, the chief financial officer (CFO) for Southern Textiles,has just handed you the estimated cash flows for two proposedprojects. Project L involves adding a new item to the firm’s...
- Q A company has $107 million in outstanding bonds, and 10 millionshares of stock currently trading at $40 per share.The bonds pay anannual coupon rate of 5% and is trading at...
- Q Please Identify & evaluate effectiveness of current corp.business strategies for Amazon in one page. Thecurrent.
- Q You are planning to save for retirement over the next 30 years.To save for retirement, you will invest $800 per month in a stockaccount in real dollars and $400 per...
- Q A $1,000 par value bond was issued 30 years ago at a 12 percentcoupon rate. It currently has 25 years remaining to maturity.Interest rates on similar obligations are now 8...
- Q Hi,my homework assignment is to explain what wokld happen if we onlyused WACC (Weighted Average Cost of Capital) to decide on projects,no matter how risky they are?Any help would be...
- Q 17)Computech Corporation is expanding rapidly and currently needsto retain all of its earnings; hence, it does not pay dividends.However, investors expect Computech to begin paying dividends,beginning with a dividend of...
- Q Given the following information:ItemBank ABank BLoan Amount(1)$860.74$860.74Contractual Rate(2)15.74%17.40%Conversion Periods(3)41Life of Loan (years)(4)44Method of Payment(5)Fully Amort.Fully Amort.Fee(6)NoNoStock Requirement(7)NoNoCalculate the APR at Bank A. a. 2.73% b. 15.74% c. 14.07% d. 2.56%Enter Response Here:(ii) Calculate theeffective rate at Bank A. a. 3.11% b. 16.69% c. 2.59% d. 14.83%Enter Response...
- Q Assume that you use Purchasing Power Parity (PPP) to forecastexchange rates. Suppose you expect that inflation in the UK thenext year will be 1.0%, and inflation in the US will...
- Q You are evaluating a project for The Ultimate recreationaltennis racket, guaranteed to correct that wimpy backhand. Youestimate the sales price of The Ultimate to be $440 per unit andsales volume...
- Q Assume the inflation rate in the U.S. is 1.59 percent. The spotrate for a foreign currency is 1.412 while the 1-year forward rateis 1.419. What is the approximate rate of...
- Q Question WorkspaceCheck My Work (3 remaining)eBookAssume that today is December 31, 2019, and that the followinginformation applies to Abner Airlines:After-tax operating income [EBIT(1 - T)] for 2020 is expected tobe...
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