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Finance Questions and Answers April 21, 2016

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Refer to the attached financial statements of Joshua & White Technologies and answer the following questions. What is Josua and White Tech.'s Economic Value Added (EVA) in 2018? Joshua \& White Technologies: December 31 Balance Sheets (Thousands of Dollars) Joshua \& White Technologies December 31 Income Statements (Thousands of Dollars)
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You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given this information, fill in the rest of the following table: (Do not round intermediate calculations. Round the final answers to the nearest whole number. Do not leave any empty spaces; input a 0 wherever it is required. Omit $ sign in your
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ABC Company plans on increasing its annual dividend by 6% percent, 5%, and 4% at the end of the next three years. After that, growth is expected to slow to a constant rate of 2% per year. The company just paid its annual dividend in the amount of $3.00 per share. What is the current value of one share of this stock if the required rate of return
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Consider a $1,000 par value bond issued by T-Mobile with 18 years left to maturity and a stated coupon rate of 9.5 percent that pays interest on an annual basis. Markets required yield to maturity for similarly rated debt was 8.5 percent. What is the value of the bond? A. $1,090.56 B. $1,190.56 C. $1,290.56 D. $1,390.56 E. $1,490.56

Fiber, which is You are a manager at consultant's report on your desk, and complains, "We owe these consultants $1.5 million for this report, and I am not sure their analysis makes sense. Before we spend the $24.5 million on new equipment needed for this project, look it over and give me your opinion."You open the report and find the following
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HW question 14 Question 14 3 pts Suppose you invest $15,000 by purchasing 200 shares of Abbott Labs (ABT) at $40 per share, 200 shares of Lowes (LOW) at $20 per share, and 100 shares of Ball Corporation (BLL) at $30 per share. The weight of Ball Corporation in your portfolio is 0 20.00% O 30.00% O 50.00% 0 40.00%
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Consider the following yield curve: A 3-year $1000 par bond has an annual coupon rate of 3.5%. Use the yield curve to find the price of this bond. Year 1 Forward Rate 2.0% 2.5% 3.0% WN
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Establishing how people differ in the way they spend their money is: Of crucial importance to financial planners. Generally not of concern to advisors. The first step of the financial planning process. The second step of the financial planning process. The third step of the financial planning process.

Question 1: Mercer Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three years ago for $1.2 million and which it currently rents out for $140,000 (before tax). Rental rates are not expected to change going
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a. 26. A bull market is characterized by investor optimism. b. governmental stimulus. economic slowdown. d. falling stock prices. investor pessimism. C. e
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Of the following choices regarding the time value of money, which one is accurate? Of the following choices regarding the time value of money, which one is accurate? Increasing the initial cost of a project increases the project's NPV . Decreasing the PV decreases the FV . Increasing the FV decreases the PV . Increasing the discount rate,

i need help with this 14. Aluworks has a market value equal to its book value. Currently, the firm has excess cash of GHc45,000, other assets of GHc10,800, and equity valued at GHc55,800. The firm has 20,000 shares of stock outstanding and net income of GHc150,000. What will be the number of shares repurchased if Aluworks uses 25 percent of its
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HOUSE Venture capital required rate of return. Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 21.5% for its portfolio oflending, and the average length on its loans is 6 years. If you were to apply to Blue Angel for a $106,000 loan, what is the annual percentage rate you would have
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Assets INCOME STATEMENT DATA Interest Income 444,902 Cash 336,500 Non Interest Income 227,550 Fed Funds 72,000 Interest Expenses 280,850 Treasury Securities 1,498,000 Non Interest Expenses 165,000 Muncipal Bonds 248,000 Provision for loan losses 5,950 Corporate Bonds 48,000 TAX RATE 21% Gross Loans and Leases 4,500,000 Reserve for loan losses

Which firms are less sensitive to business cycle? A. Only firms with low financial leverage B. Firms with high operating and financial leverage C. Only firms with high financial leverage D. Firms with low operating and financial leverage E. Only firms with high operating leverage F. Only firms with low operating leverage

Pioneer's preferred stock is currently selling for $33 in the market and pays a $3.60 annual dividend. O If the market's required return is 10%, what is the value of the stock to investors? Should investors acquire the stock? 3 What is the value of the stock in 5 years and in 100 years from now? 4 What would the promised required rate of return be
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Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment of $11,500 at t = 0. Project S has an expected life of 2 years with after-tax cash inflows of $6,200 and $8,500 at the end of Years 1 and 2, respectively. Project L has an expected life of 4 years with after-tax cash inflows of $3,894 at the end of each

Companies X and Y have been offered the following rates on a 3-year $1 million loan Company Fixed Rate Floating Rate X 6.0 % treasury + 0.3% Y 6.8 % treasury + 0.5% Company X requires a floating-rate loan and company Y a fixed-rate loan. Design a swap (clearly list every payments each company will make and receive) that is equally attractive to
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please give detailed explanations a) Calculate the portfolio standard deviation for the portfolio containing two currency exchange pairs; JPYUSD and CHFUSD. JPYUSD is represented for 24% in the portfolio and has a standard deviation of 6.78% while CHFUSD is represented for 76% in the portfolio and has a standard deviation of 5.54%. Their
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Future value (with changing interest rates). Jose has $6,000 to invest for a 6-year period. He is looking at four different investment choices. What will be the value of his investment at the end of 6 years for each of the following potential investments? a. Bank CD at 4.5%. b. Bond fund at 7%. c. Mutual stock fund at 12%. d. New venture stock at
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I need help wth B and C please Homework: 4-2 MyFinanceLab Assignment Score: 0 of 4 pts P4-8 (similar to) Save 6 of 12 (5 complete) HW Score: 37.33%, 18.67 of 50 pts -Question Help * Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $60 million, total assets of $48 million, and total liabilities of $22
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The interest rate in the U.K. is 7%, while the interest rate in the U.S. is 5%. The spot rate for the British pound is $1.50. According to the international Fisher effect (IFE), the British pound should adjust to a new level of: $1.47 O $1.53 O $1.43 O $1.57
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30. NASDAQ is a network of Select one: a. securities dealers and investors b. securities brokers c. insitutional investors only O d. investment banks 27. Bid-ask spread is the main revenue source for dealers. However, sometimes bid-ask spread can be negative. Select one: a. True O b. False 29. Which of the following statements about financial
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1. How does taxes affect the cost of Capital? 2. What are the tax advantages of taxes on each type of Capital; Debt, Common Stock, Preferred Stock, and Internal Equity? 3. What is meant by the double taxation of dividends
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3. A convertible bond has the following features: Conversion Ratio 20.83 shares Market Price of Underlying Stock $28.00 Annual Division $1.20 Market Price of Bond $77.50 Maturity 15 June 2030 Coupon 5.25% What is the conversion premium of this bond? (3 Points)
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Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $ 375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities & equity $3,750,000 The trustee's costs total $232,000, and the firm has no
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The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,187. The firm has 576
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Individual Assignment 2 Workforce Planning (1)-Saved Eloy Gonzalez File Home nsert Draw LayouteviewView 8 ~ Share Times New Ro 12 Heading 2 Normal Individual Assignment 2 2016 BranchAssistant Loan Tellers/Custome Exit the Managers Managers Officers Service Agents company 3 (9%) 2015 10 Branch Managers 24 Assistant Managers 48 Loan officers 120
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Estimate with the help of the attached information the purchase price 2021 for a centrifugal fan whose gas flow is 25,000 m 3 /hrs. Answer in to thousand dollars The fan is made of carbon steel and is used under wood atmospheric pressure. Assume that the cost index from 2001 to 2021 increased by a factor of 2.5 and one dollar exchange rate of 9

Question 3 (13 marks) a. The maturity of a futures contract on a stock market index is 1 year. The multiplier for the futures contract $50. The current level of the index is 30,000. The risk-free rate is 0.5% per month and dividend yield on the stock market index is 0.3% per month. The initial margin requirement is 10%. 1. What is the parity value
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(Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $20,000 at the end of 11 years. To do this, you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 8 percent compounded annually, how much must you deposit each year to reach your goal? To reach your
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Problem 11-28 Question Help Suppose the risk-free return is 4.9% and the market portfolio has an expected return of 10.9% and a standard deviation of 16%. Loblaw Companies Limited stock has a beta of 0.29. What is its expected return? The expected return is %. (Enter your response as a percent rounded to two decimal places.)
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Problem 1 (Cost of common equity from outstanding and new common shares) The Y'ellowknife Crafts Comporation has just paid a dividend, D0. of $4 per share. Based on the market forecests, it is expected that the dividend per share will steadily grow at 8% per year for the foresecable future. The company's shares are trading at $100 per share. a)
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Assume today is June 1, 2023, and that all bonds pay interest annually with a face value of $1,000. YTM = Current yield + Capital Gains yield; CY = Annual Interest/Current Price Apple is AA rated; AAA Treasuries yield 1-year is 4.25%, 10-year 3.75% 2 years ago, Apple issued 2.0% coupon-paying bonds with a face value of $1000 set to mature on June

You are given the following exchange rates: Spot rate Where: USD = U.S. Dollar GBP = British Pound CAD = Canadian Dollar MXN = Mexican Peso ZAR = South African Rand USD1.9618 / GBP CAD 1.1145 / USD MXN 10.4943 / USD ZAR 6.9493 / USD You observe that the South African Rand is trading for CAD 0.2000 / ZAR in Toronto. Is there an exploitable

Assume your company is looking at project that will have cash flows of year 1 650,000.00, year 2 1,200,000. And year 3 1,450,000.00. Your equipment cost is 2,300,000.00 and your working capital will be 20% of that amount. Your tax rate is 20% and your company cost of capital is 7%. If your equipment can be salvaged for 100,000.00 what is your NPV
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