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Finance Questions and Answers April 26, 2016

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A borrower can obtain an 80 percent loan with an 8 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90 percent loan at an 8.5 percent rate with the same loan term. The borrower plans to own the property for the entire loan term. a. What is the incremental cost of

Coded WBS Diagram. Three levels of breakdown plus work packages and activities. You can use the diagram or spreadsheet format. Clear breakdown of deliverables, sub deliverables, work packages and tasks - minimum 3 levels. Accurate naming formats. 2. Stakeholder Analysis: Create a matrix and plot all of your stakeholders on it. Chart includes all
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A hindsight bias is a type of cognitive bias that involves favoring information that confirms your previously existing beliefs or biases. utot Select one True Fais
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An insurance company offers policies to protect firms from a major type of business risk. Due to values created by insurance to mitigate issues arising from market imperfections, each $1 received in the event of a loss is worth $1.45 to the insured firm. There are three types of firms: High-risk firms have a 10% probability to have such a loss,
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The MEP company has issued 5,160,000 new shares. Its investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 4,360,000 shares for $52 per share. It charges MEP $1.40 per share sold. a. How much money does MEP receive? (Do not round intermediate calculations. Enter your answer in dollars, not
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Help with Finance and Bonds. I will Thumbs up fast for first answer. No need to Show work. 1.) If a bonds coupon rate exceeds its yield to maturity, the bond is selling at: Group of answer choices Premium Discount Par 2.) A 6 percent bond has a yield to maturity of 6.5 percent. The bond matures in 7 years, has a face value of $1,000, and pays

7 Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent, and the company just paid a dividend of $2.35, what is the current share price? (Do not round intermediate calculations and
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Problem 12-9A Your answer is partially correct. Try again. Condensed financial data of Blue Spruce Corp. follow. Blue Spruce Corp. Comparative Balance Sheets December 31 2018 Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment 2019 $118,300 $47,700 33,900 112,200 102,000 26,000
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This is all the information given QUESTION 1 A strong believer in the Efficient Market Hypothesis would deduce that: O a because professional money managers have information not available to all investors, they consecutively beat market indexes. O b.one is better served investing in a few well-known local securities rather than a broad array of
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1) California became part of the United States after February 1848 with the signing of the Treaty of Guadalupe Hidalgo which ended the Mexican-American War. The first Constitution of California was ratified November 1849. Why did many people in California want to form a state and rushed in completing a state constitution? 2) Describe two rights
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The impact of financial leverage on return on equity and earnings per share Consider the following case of Purple Panda Importers: Suppose Purple Panda Importers is considering a project that will require $350,000 in assets. The project is expected to produce earnings before interest and taxes (EBIT) of $40,000. Common equity outstanding will be
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Why are institutional investors important in todays business world? Why is trend analysis helpful in analyzing ratios? Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilities (labor intensive versus capital intensive). mimim 110 words but no more than 250 words please.

if there is an easier way to do it on calculator please show steps. thank you! :) 3.) Valuing Bonds: Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.7% paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.05%. What is the dollar price of the bond
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Q.1 Which of the following statements is false? A. Lenders must, by law, inform borrowers of the APR, irrespective of the quoted rate. B. The Truth in Lending Law requires that the APR be equal to the quoted interest rate. C. The APR for a declining balance loan is computed as the average annual finance charge divided by the average annual

Consider a company whose current free cash flow to the firm (FCFF 0 ) is $20,000. The FCFF is expected to grow at 6% p.a. for the next two years after which the FCFF is expected to grow at 3% p.a. indefinitely. If the weighted average cost of capital is 12%, the value of the firm is around: a. $235,894 b. $294,023 c. $36,843 d. $241,865 e. None of

A company expects to have sales of $13,400,000. Costs other than depreciation are expected to be 60.0% of sales, and depreciation is expected to be $2,010,000. All sales revenues will be collected in cash, and costs other than depreciation mustbe paid for during the year. Berndt's federal-plus-state tax rate is 20.0%. Berndt has no debt. Suppose

Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $3,480.0 $2,900.0 Operating costs excluding depreciation and amortization 2.6970 2.465.0 EBITDA $783.0 435.0 Depreciation and amortization 30.0 23.0 Earnings before
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3. DETAILS BRECMBC9 13.1.014. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Calculate the average daily balance in $) for October for a revolving credit account with a previous month's balance of $120 and the following activity. (Round your answer to the nearest cent.) Date Activity Amount October 3 Cash advance $50.00 October 7 Payment $75.00
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n = 10 N = 15 How many different samples are possible? Answer: a)3003 b)10897286.400 c)O d)-3001 e)1 f)None of these We want to produce a 95% confidence interval estimate of the campus average study time that was no wider than +/-0.5 hour. The estimated value of s is 2.72 hours. What should the sample size (in units) for this study be? Answer: a)
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Question 5 (continued) Question 5 (C) Based on the strike price found in (B), find the protection level of the portfolio. Calculate it to the nearest whole number. (6 Marks) Consider a manager in charge of a well-diversified portfolio whose beta is 1. Assume that the dividend yield from the portfolio is 5% and the dividend yield from the S&P
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Question 9 1 pts CoolTech Inc. is considering a new refrigerated warehouse which will cost $7,000,000 and is expected to have revenues of $900,000 at the end of each of the next 5 years and expenses of $100,000 for years 1-3 and $250,000 for years 4-5. The warehouse is depreciated for 40 years on a straight line basis and expects to have a salvage
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Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill retum and that the S&P 500 standard deviation has been about 33% per year. Assume these values are representative of investors expectations for future performance and that the
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ompany Bs WACC is 10%. It has three Projects it can choose from: Projects X, Y and Z. The following information is available regarding Project X. Years 0 1 2 3 Project X cash flows -$100 80 60 40 And the following information is available regarding Projects Y and Z. Criteria Project Y Project Z NPV $40 $67 MIRR 10% 20% IRR 2.0% 18.7% Regular

Use Table 1 below to answer the following questions iii, iv, and v, below: Table 1: Limit Order Book iii. iv. V. Price 50.00 49.99 49.98 49.97 49.96 BUY Size 200 400 600 800 400 Price 50.02 50.03 50.04 50.05 50.06 SELL Size 300 500 600 700 300 (3 marks) If you already owned 500 shares of the stock, what order would you place to sell the 500 shares
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New Business is just being formed by 20 investors, each of whom will own 5% of the business. The firm is expected to earn $1,400,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. The firm does not need to retain any earnings, 50 all of its after-tax income will be paid out as
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You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year A B C 1 $ 16,000 $ 16,000 2 16,000 3 16,000 4 16,000 5 16,000 $ 16,000 6 16,000 80,000 7 16,000 8 16,000 9 16,000 10 16,000 16,000 Assuming an annual discount rate of 22 percent, find the present

#3 Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $23.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will
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question1: 1- A manufacturing company has the following income statement items: (a) Revenue 1.090 TL; (b) Gross profit margin %44,22; (c) OpEx 324 TL (excluding 83 TL depreciation expense); (d) Dividends from subsidiaries 56 TL; (e) Financing expenses 52 TL and (f) Income tax 9 TL. What is the net profit? 4-Refer to question 1. Suppose that ROE =
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Moving to another question will save this response Question 7 sans A company expect to receive a foreign currency from the sale of merchandiseBecause it is nervous soutos.binge te moment is content with currency. The appropriate action for them to do is to buy a colection True False AMA
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1. A $10 million interest rate swap has remaining life of 10 months. Uoder the terms of the swap six- month LIBOR is exchanged for 12% per annum (compounded semiannually). The average of the bid-offer rate being exchanged for six-month LIBOR in swaps of all maturities is currently 10% per annum with continuous compounding. The six-month LIBOR was
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What is the burden for the bank (in millions)? Amount (Smillions) Amount (fmillions) Cash 90 Interest Income Iny. Securities 250 Securities 6.175 Net Loans Business Loans 19.250 Business Loans 350 Mortgages 9.140 200 Installment Loans Mortgages Installment Loans 18.225 270 Credit Cards 10.557 Credit Cards 90 Loan Loss Reserve Interest Expense
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Assume that an investor is looking at two bonds. Bond A is a $1000 20-year, 10% bond that pays coupons semi-annually. The bond is priced to yeild 11%, compounded semi-annually. Bond B is a $1000 20-year, 8.5% bond that pays coupons annually. The bond is priced to yeild 8%, compounded annually. Both bonds are callable after 5 years at a price of
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Acme Storage has a market capitalization of $154 million, and debt outstanding of $134 million. Acme plans to maintain this same debt-equity ratio in the future. The firm pays an interest of 8.7% on its debt and has a corporate tax rate of 35%. a. If Acme's free cash flow is expected to be $17.28 million next year and is expected to grow at a rate
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Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? How do you know? S&S Air is planning for a growth rate of 12% next year. Calculate the EFN for the company assuming the company is operating at full capacity. Can the companys sales increase at this growth rate? Explain your reasoning. Most

Company A has a beta of 0.70, while Company B's beta is 0.95. The required return on the stock market is 11.00%, and the risk-free rate is 4.25%. What is the difference between A's and B's required rates of return? Select the correct answer. a. 1.61% b. 1.63% c. 1.65% d. 1.67% e. 1.69%

estions Harmon interpretation WACC perfect capital marts with no Son brow to the oth what return of equity her this and TO Moving to acerowice tions 0.667 points tardman Enterprises is currently a firm with a debt-to-equity ratio of 1/3 and a WACC of 12 It is considering a leverage recapitalisation in which it would borrow and purchasisting
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Use both the TVM equations and a financial calculator to find the following values. ( Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for