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Finance Questions and Answers April 08, 2016

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The price p (in dollars) and the demand x for a particular clock radio are related by the equation x = 3000 10p. (A) Express the price p in terms of the demand x, and find the domain of this function. (B) Find the revenue R(x) from the sale of x clock radios. What is the domain of R? (C) Find the marginal revenue at a production level of 2500
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CoffeeCarts has a cost of equity of 15%, has an after-tax cost of debt of 4%, and is financed 70% with equity and 30% with debt. The tax rate is 35%. What is the firms WACC?

Calculate the value of a European put option on an index that is 6 months from maturity. The current value of the index is 1050, the strike price is 1000, the risk free interest rate is 6% per annum and the dividend yield on the index is 3% per annum. The volatility of the index is 10% per annum.

The current spot rate between the U.S. dollar and the Swedish krona is $1 = 6.8582 krona. Assume the inflation rate in the United States is 7 percent and in Sweden is 2 percent. What is the expected spot rate in one year? (Do not round intermediate calculations and round your final answer to 4 decimal places.)

5. Approximately how long would it take to quadruple your money if you can earn 10.4% annually? a. 16 years b. 20 years c. 18 years d. 14 year

Below is a table of Cash flow estimates given Turnkey purchases another type of equipment. Complete the table below using the Discounted Payback Period. Assume the wacc=8% Year Cash Flow PV Cash Flows Cumulative 0 -22,000 1 0 2 16,000 3 13,000 4 10,000 What is the Discounted Payback Period? _____ Assume management wants its money back within 3.5

Use the cash budget to answer the following question- What is the cumulative loan at the end of September? MCGEE CAKE COMPANY Cash Budget August September October (10,140) (2,360) (7,520) Net Receipts Beginning Cash 10,400 EOM Cash B4 Borrow Required Minimum Cash Loan Addition (Reduction) 5,000 5,000 5,000 Ending Cash Cumulative Loan
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Assume par value of $1,000. What is the price of a 10-year, semi-annual bond with a coupon of 7.5% if market rates are 6%? What is a price of bond if the coupon rate is zero (i.e., zero-coupon bond)?

12. A pension fund manager is considering three funds. The first is a stock fund with expected return of 20% and standard deviation of 3on. The second is a long-term corporate bond fund with expected return of 12% and standard deviation of 15%. The third is a money market find that yields a rate of 8. The correlation between the stock fund and the
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Explain the extent of obligation to make payment of the March dividend / cash outflow payment. What recourse would Industries shareholders have if management opted not to make the March dividend payments? As the CFO, why would you /would not /make the dividend payment? To what extent might your job be in jeopardy? March Schedule dividend 300,000

please help!! thank you! 9. Marginal Cost of Capital The McGee Corporation finds it is necessary to determine the firm's Marginal Cost of capital. McGee's current capital structure calls for 40% debt, 5% preferred st stock, and 55% common equity. Then costs of the various financing are as follows: ATRI=7.4%, Rp = 10%, Re = 13%. If the firm has to
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0.2 pts Which statement about ROE and PM is INCORRECT? ROE and PM are both higher than the industry average, which is better than the industry. Since PM is better, the company doesn't need to focus on improving PM. The company could still increase ROE by increasing TATO and EM Increasing ROE indicates that the company is increasing profit relative
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QUESTION ONE (1) Unibic India: From Fastest growing Niche Cookie Brand to a Challenger! In 2007, Lighthouse Funds acquired 25% stake in Unibic from Unibic Australia for 300 million in 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market Attiuttime Umibie operated solely in the premium, high-margin cookies
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What is the net present value of a project with the following cash flows if the required rate of return is 9 percent? GH engineering is considering a project with the following cash flows. What is the IRR of this project? What is the profitability index for an investment with the following cash flows given a 14.5 percent required return
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10.1_Bio Tron Medical Inc. Brent Bush, CFO of a medical device manufacturer, BioTron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of 12,500,000 every other month if it were given a 4.5% discount. Numata's current terms are 30 days with no discounts. Using the following
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The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically. qquadAn example of a primary market transaction would be your uncle transferring 1 0 0 shares of Walmart stock to you as a birthday gift.Capital market instruments include both long - term debt and common stocks.If
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Beta measures a stocks sensitivity to market risk. A. True B. False

For this question, I found 2747.05 for new monthly payment, but I didn't get it right. Five years ago, Edward borrowed $400,000 to purchase a house in Sandy Lake. At the time, the quoted rate on the mortgage was 5 percent, the amortization period was 25 years, the term was 5 years, and the payments were made monthly. Now that the term of the

On April 1, 2021, you took out a loan of $ 60,000 from a financial institution at the nominal rate of 6.9%, capitalization monthly. You will need to repay this loan using 84 equal monthly installments. How much will each monthly installment be if the first installment is due on August 1, 2021? A. $ 918.29 B. $ 923.57 C. $ 908.65 D. $ 944.78 E. $

Spherical Manufacturing recently spent $14 million to purchase some equipment used in the manufacture of disk drives. This equipment has a CCA rate of 25% and Spherical's marginal corporate tax rate is 28%. a. What are the annual CCA deductions associated with this equipment for the first five years? b. What are the annual CCA tax shields for the
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Jemisen's firm has expected earnings before interest and taxes of $1,600. Its unlevered cost of capital is 14 percent and its tax rate is 35 percent. The firm has debt with both a book and a face value of $2,400. This debt has a 6 percent coupon and pays interest annually. What is the firm's weighted average cost of capital? Multiple Choice 12 81
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if possible the solution and code in python. if not just the solution A stock price is currently 100. Over each of the next two six-month periods it is expected to go up by 10% (i.e. by a multiple factor of u = 1.1) or down by a multiple factor of d where d = 1/u. The risk-free interest rate is 8% per annum with continuous compounding. What is the

In addition to common-size financlal statements, common-base year financlal statements are often used. Common-base year financlal statements are constructed by dividing the current year account value by the base year account value. Thus, the result shows the growth rate in the account. Construct the common-size balance sheet and common-base year
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1.3 It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterdays stock price ($34.13) and leverage changes to 2.7. Which of the following

Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table: What does the market portfolio consist of what are the portfolio weights)? Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Stock A B Price/Share ($) 9 Number of Shares Outstanding (millions) 10
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Tresnan Brothers is expected to pay a $2.6 per share dividend at the end of the year (i.e., D1 = $2.6). The dividend is expected to grow at a constant rate of 10% a year The required rate of return on the stock, rs, is 20%, what is the stock's current value per share? Round your answer to two decimal places
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Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free

Leo Smith Inc. paid $587260; in 2007 for a used office building. This purchase price represents $440900 for the building and $146360 for the land. Calculate the capital cost allowance ($) over the first five years of ownership Note: Use the 50% rule (Half-year convention) in the first year CCA rate = Class number 1 (Please keep two decimal places)
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The risk-free rate of return is currently 2 percent, whereas the market risk premium is 6 percent. If the beta of WSUFin Inc., stock is 0.9, then what is the expected return on WSUFin stock? 5.60% O 9.00% O none of these O 7.40% O 8.40%
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neck my work mode Problem 16-16 Cash Budget [LO 3] Hurzdan, Inc., has a 50-day average collection period and wants to maintain a minimum cash balance of $40 million, which is what the company currently has on hand. The company currently has a receivables balance of $195 million and has developed the following sales and cash disbursement budgets
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7. In an open-market sale the Federal Reserve government bonds and the supply of bank reserves A. buys - decreases B. sells - increases C. sells - decreases. D. sells - does not change. E. buys - increases
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Refer to the Internet Grocer Case chart below. in the case shows that the company will need a significant amount of capital over the next couple of years, yet the balance sheet balances each year. What assumption is the model making about how the financing need is funded? Profile & 888 BE 29" ? 39. Profile & 888 BE 29" ? 39.
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Additional Problem 10-1 (Algo) A publishing company develops different textbook packages that are downloadable from their servers on the Internet. They need to make sure the download speed of their servers is as planned and adjust the capacity of their servers anytime needed. They measure the download time of their software 6 times a day for 5
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8. How large should a VC fund (10 years) be if there are 8 GPs each investing an average of $15M into 6 startups, ignoring fees? ( note: calling this the original base fund for several questions below). 9.a How large should a VC fund (10 years) be if there are 8 GPs each investing an average of $15M into 6 startups and we ADD a 2% management fee

1. Oasis B-school, operating in the Delhi NCR region, is a private business school offering management education. Inaugurated in 6th June 2010, Oasis offers two-year MBA programme and one-year Executive MBA programme. Since its inception, Oasis had faced constant challenges in successfully placing their MBA students during the final placements.
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1. Critically discuss the consequences of Money Laundering 2. Analyze the possible ways of combating Money Laundering globally and specifically in Ghana. 3. Does a person have any protection -criminal and /or civil indemnity when he reports a suspicious transaction?

It is now the beginning of the year. Assume that, starting at the end of the year, you will make deposits of $709 each year into a savings account. You will make a total of 9 yearly deposits. If the savings account interest rate is 12%, how much money will you have at the end of year 9? (In other words, what is the future value of this annuity?)

Please upload an excel file work out the below project cash flow analysis and clearly layout answers in the excel file. For the eight questions, each worth one point, please highlight the cell containing the answers. Then please also clearly state the answer for each question and reference the cell. e.g., "1. The total project cash flow at year o
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Consider the following date for a married couple filing a joint tax return: Annual Salary = $450,000 Interest income from bonds = $25,000 Dividend income from their stock accounts = $28,000 The couple sold a stock account for $45,000 which they had purchased for $32,000 only 8 months ago The couple also had a $18,000 capital gain on a company

A project has the following activities, with specified precedents and expected durations (in days). How much slack does Activity E have? Activity PrecedentDuration 3 B 3.8 C C A 6 D B 6 E B 4.2 F 4 G D 6.1 H E 8 Answer: A project has the following activities, with specified precedents and expected durations (in hours). What is the expected project
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7 pts 21. An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child's birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following fou payments to the insurance company: First birthday Second birthday Third birthday
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You just opened a brokerage account, depositing $4,500. You expect the account to earn an interest rate of 8.57%. You also plan on depositing $3,000 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return? I have a HP 10bll + Financial Calculator but i dont know

Changes in securities prices are not important when measuring portfolio performance unless gains or losses are realized. True or False

dney and is expecting the following cash flows at the end of each of the next three years, 497, 533 fotowed with a constant return of 358 from year 4 till 6. Using a discount rate of 5% find the PV of th vend. Chek Sone All Answers to save all answers. dney and is expecting the following cash flows at the end of each of the next three years, 497,
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QUESTION 9 A $1000 invoice with terms of 2/10, 1/45 if the payment is made on the 10th Use banker's rule. What is the equivalent interest rate you pay on the 10th ? O 21% 2% 4596 3% QUESTION 10 A $1000 invoice with terms of 2/10, 1/45 if the payment is made on the 10th. Use banker's rule. What amount is paid on the 10th day? O 965 O 1000 970 0980
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Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (c) Calculate the standard deviation for Stock A. (Do not round your intermediate calculations.) (d) Calculate the standard deviation for Stock B. (Do
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TVM Consulting bought new building for its headquarters in the year 2000 . The purchase cost was 773,188 dollars and in addition it had to spend 71,424 dollars adapting the space for its services. The building has been in use since June 21 st, 2000 . TVM Consulting forecasted that in 2030 the building would have a net salvage value of $1,000,000.
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Question 4 = A stock model has the parameters u = 1.6, d = 0.4, So 18. A European call option, expiring at t = 3, has an exercise price K = 21 and the interest rate is 5% over each period. Price this option at t = 0 using the chaining method. Draw the complete 3-period stock tree. [13 marks]
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QUESTION 2 For the past year, Kayla, Inc. had sales of $37,272.36, interest expense of $1,306.49, cost o of $7,073.54, and depreciation of $2,885.65. If the tax rate is 26%, what is the operating cash flow? t goods sold of $15,993.27,selling and administrative expense
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BDJ Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 9.0 percent coupon bonds on the market that sell for $1,130, make semiannual payments, and mature in 20 years. Required: What coupon rate should the company set on its new bonds if it wants them to sell at par? (Do not include the percent
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An arithmetic cash flow gradient series equals $750 in year 1,$850 in year 2 , and amounts increasing by $100 per year through year 10. At i=8.00% per year, determine the present worth of the cash flow series in year 0 . (Round the final answer to three decimal places.) The present worth of the cash flow series in year 0 is $
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Find the future value of the investment. (Round your answer to the nearest cent.) $100 deposited at the end of each month for 3 years at 4.75% Interest compounded monthly $
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A machine manufacturer sells each machine for $6,400. The fixed costs are $250,250 per annum, variable costs are $2,050 per machine, and the production capacity is 78 machines in a year. What is the break-even volume? What is the break-even revenue? What is break-even as a percent of capacity per annum? What is the profit or loss made if 51

Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $216.000. has a four-year life, and requires $69.000 in pretax annual operating costs. System B costs $306.000. has a six-year life, and requires $63.000 in pretax annual operating costs. Both systems are to be depreciated
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Ratio Analysis of Nutrien Ltd (times and %)20182019202020212022Long term Solvency RatioTotal Debt ratio= TA-TE/TA0.460.510.530.530.53Debt Equity Ratio=TD/TE0.861.051.111.111.11Long-Term Debt to Equity0.460.370.450.320.31Long-term Debt to Total Assets0.170.180.210.150,15Total Assets Turnover0.43o.430.440.550.69Ratio Analysis of TeckB

6 Stock which has been issued and subsequently reacquired by the issuing corporation is 6 called "a1 ( (1 ) A) letter stock .B) treasury stock .C) classified stock O .D) book stock E) all of the above
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Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $79,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 5.6% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to

An option pool is used by founders to make payments to employees. The options grant the employees the right but not the obligation to buy shares of the companies shares at a set price before they expire. Using options conserves cash and ties the employee to the long-term success of the venture. True False QUESTION 34 LYFT will offer 30,770,00
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11. Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on n/bkm the margin loan is 8% a. What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to: (i)
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Your parents have $500,000 in an annuity account that earns 7.25% interest. They would like to be able to withdraw $5,000 at the end of each month. How long would it takes them to deplete the account, that is to run the account down to zero? Group of answer choices 7.5 years 12.8 years 10.2 years 8 years 15.3 years

Q1 In the following computations you may assume risk premia are zero and the expectations hypothesis holds a) If the expected (ex ante) real rate of interest is 3% during the next year and nominal short rates for the year are 5% what is the expected rate of inflation? b) Explain in one line yield to maturity in intuitive approximate and simple
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question number three please 1- Make Introduction consist the relationship between employee and employer and the government. 2- List why the employee relationship important for employee and employer. Minimum 3 point 3. Describe the idea of employee relations: Employee: definition (the rights and the responsibility) and short example. Employer:
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Question 1 2.5 pts Your uncle is about to retire, and he wants to buy an annuity that will provide him with $64.000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today? $961.671.80 $871,258.22 $821.941.71 $879,477.63 O $624.675.70
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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,785,000 in annual sales, with costs of $695,000.

A stock is currently priced at $32.6. Its dividend is expected to grow at a rate of 6.5% per year indefinitely. The stock's required return is 7.5%. The stock's predicted price 7 years from now, P7, should be $________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35).

Given the following information for projects X and Y, which one should be chosen and why? Project X Project Y Net present value $2,00,000 $3,000,000 Project life 5 years 8 years Required return 10% 10% Select one: a. Choose Project X, as it has a lower equivalent annual cost than Project Y. b. Choose Project Y, as it has a lower equivalent annual

The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows REQUIRED RATE OF RETURN (Percent 20.0 16.0 12.0 Return orn HC's Stock 4.0 1.0 1.5 2.0 RISK (Beta) 0.0 0.5 CAPM Elements Value Risk-free rate
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Illiquid Industries Inc. (III) is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or take out a loan. They owe the supplier $10,000.00 with terms of 2.2/10 Net 40 , so the supplier will give them a 2.2% discount if they pay by today (when the discount period expires). Alternatively, they can
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Eagle Corp. has the following credit sales in each quarter for the year: Q1: 600 Q2:300 Q3: 450 Q4: 900 Assume the firm has a 60-day Receivables period. How much cash is collected in Q3? Answer to the nearest dollar, use commas when appropriate, but do not include the $ in your
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can anyone solve this question please? Also, show calculation thank you. a. Caloulate the yieid to maturify (YTM) for the bond. b. What relationehip exists between the coupon interest rate and yield to maturity and the par value and market value of a bond? Explain. a. The yield io maturity (YTM) for the bond is 4. (Round to two decimal places.)
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Derek borrows $330,508.00 to buy a house. He has a 30-year mortgage with a rate of 5.86%. After making 123.00 payments, how much does he owe on the mortgage?

Multiply and round to the nearest hundredth. 1.23\times 0.45

Question: Comment and analyze based on the rankings which portfolio has the maximum returns and which portfolio is having the minimum standard deviation. Give the economic reasons. Company Name Closing Price (Share Value) as on 31st December, 2015 2016 2017 2018 2019 2020 1 Dhofar Tourism 2 Oman Refreshments 3 AS Saffa Foods 4 Shell Oman 5 Oman
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The company CapStar Plc has an expected EBIT of E145,000 in perpetuity, and its unlevered cost of captal 10 percent. The firm has 100.000 in outstanding debt at an interest rate of 10 percent And the corporate tax rate is 21 percent. What is the value of the firm according to MRM Proposition i wth corporate taxet? 1.460 million Ofick here if you
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as part of the Question 10 (Mandatory) (8 points) The New Bank of York offers interest on a CD at the rate of 11 35% compounded weekly. If there are 52 weeks in a year, the EAR earned on this CD 18:17 points) a. 136.20% Ob. 11.96 C. 12.00 d. 11.75 Question 11 (Mandatory) (7 points) 7. A firm's financial managers are evaluating the following
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What are some strategies Mary Brown can use to turn their business into a foreign target market

Which of the following financial statements are prepared directly from the adjusted trail balance: Income statement (2) Retained earnings statement (3) Balance sheet (4) Cash flow statement (1), and (4) (1), (2), and (3) (2), (3), and (4) (1), (2), (3), and (4)

1.) You are to inherit a substantial sum from a relative: which you do not wish to spend. A close friend invites you to invest in her start-up business, which has been trading effectively as a micro enterprise for a year: write a 1000 word appraisal of the opportunity, and the factors you should include in coming to a decision as to whether to
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How is a home mortgage an example of Time Value of Money? What would you expect the impact of varying terms (years needed to pay off the loan) and rates to be using TVM rules? Why do homeowners sometimes refinance their mortgages?

Two investments X and Y. X has an expected return of 10% and a standard deviation of 20%. Y has an expected return of 14% and a standard deviation of 25%. if the correlation between X and Y is zero, then the risk minimizing portfolio that is composed of these two investments, will have a weight of in investment O 0.56% b. 39% O C. 44% O d. 61%
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Analyze the liquidity of company C using the cash to assets ratio, the current ratio, and the quick ratio for 2019 and 2020. Has liquidity increased or decreased? 12/31/2019 12/31/2020 3,314.0 363.0 2,289.0 356.0 565.0 6,887.0 5,188.0 558.0 1,878.0 0.0 519.0 8,143.0 24,141.0 235.0 24,628.0 98.0 169.0 226.0 4,527.0 4,670.0 4,769.0 1,307.0 2,300.0
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32. If the volatility of a non-dividend-paying stock is 20% per annum and the risk-free rate is 5% per annum on a continuously compounded basis, which of the following is closest to the risk neutral probability of the stock price going up for a tree with a three- month time step? O a. 0.58 Ob. 0.54 OC. 0.50
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Neptune Corporation's interest expense increases by 60% but all other expenses and revenues stay the same. The firm's degree of combined leverage: Group of answer choices will increase will decrease will not change it's not possible to tell based on the information given

All else being equal, a rise in the risk free rate should cause the value of call options to Rise Fall stay the same depends on whether they are European or American

HK company is considering a project with the following cash flows. What is the IRR of this project? Year 0 1 2 3 Cash Flow -114.600 35.900 50.800 48.500

How to find a company's average interest cost of debt? Please show for Telstra for 2019 and 2020

Suppose Stackpool Inc. had inventory in Britain valued at 240,000 pounds one year ago. The exchange rate for dollars to pounds was 1 = 2 U.S. dollars. This year the exchange rate is 1 = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 pounds. What is the gain or loss in inventory value in U.S. dollars as a result of the

You have a one-year horizon and purchase a 10-year semi- annual bond with 5% coupon at a 4.5% yield. You expect a reinvestment rate of 2.5% and a yield of 4.95% when your holding period is up. What is your expected ROR? HINT: Money Market
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Suppose that the Treasury bill rate is 6% rather than the 2% assumed in earlier examples. Assume that the expected return on the market stays at 9%. Use the betas in Table 8.1. a. Calculate the expected return from Johnson & Johnson. b. Find the highest expected return that is offered by one of these stocks. c. Find the lowest expected return that
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Which of the following statements regarding the relationship between interest rate and risk premium is correct? Select one: O a. Other things equal, the higher the credit rating, the higher the interest rate. b. Other things equal, the longer the maturity, the lower the interest rate. c. Other things equal, the higher the risk, the higher the real
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Read the case study scenario below and answer the questions based on the case study. Based on the information in question 1, below is a summary of all investment options: Details Machine A Machine B Machine C Machine D NPV R520 000 R1 000 000 (R95 000) R750 000 Useful Life 5 years 7 years 4 years 6 years Based on the above, the CFO has decided
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3) D Industries has net income of $4,200,000, and it has 1,255,000 shares of common stock outstanding. D is considering a plan in which it will use available cash to repurchase 12% of its shares in the open market at the current $86.24 stock price. The repurchase is expected to have no effect on net income or the companys P/E ratio. Based on D's

Locate the Treasury bond in Figure 6.3 maturing in February 2044. Assume a $1,000 par value. a. Is this a premium or discount bond? b. What is its current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is its yield to maturity? (Do not round intermediate

Derek has the opportunity to buy a money machine today. The money machine will pay Derek $41,052.00 exactly 12.00 years from today. Assuming that Derek believes the appropriate discount rate is 4.00%, how much is he willing to pay for this money machine? Submit Answer format: Currency: Round to: 2 decimal places
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A company is able to sell 50 000 cans of deodorant per year for the next three years at a price of R4.00 per can. The variable cost per unit is R2.50 while it required R50 000 in research and development to develop the product. The fixed costs associated with the project are R12 000 while the equipment will cost R90 000 including installation

Copiah's Clothes, Inc. Has a 15-year bond outstanding that pays $85 annually. The face value of each bond is $1,000, and the bond sells for $1,120. What is the yield to maturity? 5.84% 6.47% 7.17% 6.15%

Here is the condensed 2019 balance sheet for Sunrise Company (in thousands of dollars): Sunrises earnings per share last year were $3.20. The common stock sells for $55.00, last years dividend (D 0 )was $2.10, and a flotation cost of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow
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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. Time: Cash flow: 2 $2,490 5 $1,490 $1,290 $1,690 $1,690
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2 points Save Answer QUESTION 36 A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions: After Tax Cost Source of Capital Long-term debt Preferred stock Common stock Target Market Proportions 40% 10% 50% 11% 15% The weighted average cost
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3. Tim borrowed $2,500 at effective rate of 7% for 5 years. The loan is to be repaid using a sinking fund. Assume three different interest rates the sinking fund earns: 6%, 7%, and 8% effective per annum. Construct sinking fund schedules for this loan in all three scenarios. Excel Solution Preferred
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