Showing 331 to 340 of 4969 Questions
  • An investor in Treasury securities expects inflation to be 2.5% in Year 1, 3.2% in Year 2, and 3.6% each year thereafter. Assume that the real risk-free rate is 2.75% and that this rate will remain constant. Three-year Treasury securities yield 6.25%, while 5-year Treasury securities yield 6.80%. What is the difference in the maturity ris

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    301
  • An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell and each then had a new YTM of 7%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the follow

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    678
  • An MNC has total assets of $100 million and debt of $20 million. The firm’s before-tax cost of debt is 12 percent, and its cost of financing with equity is 15 percent. The MNC has a corporate tax rate of 40 percent. What is this firm’s weighted average cost of capital?

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    142
  • An office of the IRS acquired some used computer equipment. Installation costs were $10,000. Repair costs prior to use were $15,000. The purchasing manager, with a salary of $56,000 per annum, spent 1 month evaluating equipment and completing the transaction. The invoice price was $450,000. The seller paid its salesman a commission of 5%

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    1
  • Analysis of accounts receivable and allowance for bad debts—determine ending balances. A portion of the current assets section of the December 31, 2013, balance sheet for Gibbs Co. is presented here:The company’s accounting records revealed the following information for the year ended December 31, 2014:Sales (all on account) . . . .

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    60
  • Analysis of Operating Assets At December 31, 2010, a company has the following amounts on its financial statements: Property, plant, and equipment ………………….$10,000 Accumulated depreciation …………………………5,000 Total assets at January 1, 2010 ……………………30,000 Total assets at December 31, 2010 …

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    112
  • Analyze each of the following independent scenarios:a. A machine that cost $22,000 had an estimated useful life of three years with salvage value of $1,000. After two years of using straight-line depreciation, the company sold the machine for $8,000.b. A van that cost $40,000 had an estimated useful life of 10 years and a salvage value of

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    7
  • Analyze each of the following independent scenarios:a. Equipment that cost $44,000 had an estimated useful life of six years and a salvage value of $2,000. After five years of using straight-line depreciation, the company sold the equipment for $9,500.b. A computer system that cost $95,000 had an estimated useful life of four years and no

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    12
  • Anderson Cabinets began operations during 2005. During the initial years of operations, the company invested primarily in fixed assets to promote growth. During 2011, H. Hurst, the company president, decided that the company was sufficiently stable that it could now invest in short-term marketable securities, classified as trading securit

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    105
  • Anderson Cabinets began operations during 2008. During the initial years of operations, the company invested primarily in fixed assets to promote growth. During 2014, H. Hurst, the company president, decided that the company was sufficiently stable that it could now invest in short-term marketable securities, classified as trading securit

    0
    5
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