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Finance Questions and Answers April 27, 2016

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17. Neptune Corporation has fixed costs of $123,974. The firm's sales are expected to be $1,777,253 this year if the firm sells 35,745 units. Variable costs amount to 32 percent of sales. What is the breakeven point in units? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND THEN ROUND OFF THE FINAL ANSWER TO THE NEAREST WHOLE NUMBER. FOR EXAMPLE, IF

Mayo plc is financed by 31 million shares of equity with a market capitalisation of 74.4 million, and debt with a face value and market value of 30 million. The interest rate on the debt is 7.5% and debt interest is tax deductible. The firm's most recent earnings before interest and tax is 16.25 million. The corporate tax rate is 21%. There are no
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Which of the following statements is correct? When interest rate is expected to rise in US, we should short USD as USD is expected to depreciate. When interest rate is expected to rise in US, we should short USD as USD is expected to appreciate. When oil price is expected to go up, we should long currencies of oil-dependent countries. When oil
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The following information is available for two bonds DEF Bond LMO Bond Mean Return 6% 18% Standard Deviation 1% 8% A) Calculate the 95% Confidence Interval for both bonds. Assume the 95% confidence is 1.96 standard deviations from the mean. (4 Marks) Please answer as a decimal to 4 decimal

EMERGENCYYYYYYYYY A company produces spare parts for automobiles. If the sales revenue is $6000000, the cost of the goods sold(Direct material, direct labor, and overhead) is $4000000 and the inventory turn ratio is 2, find the annual average inventory? (If the answer is 10000, just enter 10000 without any comma or $)
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THIS IS A QUESTION WHICH REQUIRES AN ESSAY STYLE ANSWER Explain in your own words, what is meant by the statement that "a company is an artificial legal person". Does this mean that it is different from the owners of the company? Does it have to pay tax
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An industrial robot that is depreciated by the MACRS method has an initial asset value of P=$60,000 and a 5-year depreciable life. Based on the recovery rate provided in Table 16.2, what is the depreciation you can take on the third year? The five year MACRS recovery rates are: 20.00, 32.00, 19.20, 11.52, 11.52, 5.76. O A. $12,000 OB. $19,200 OC.
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Jillian is a self-employed resident of California. She had a net profit of $225,000 for the tax year. Based on her high-income level, what percentage of additional self-employment tax will she be required to pay on her California state return? a) 0% b) 1.45% c) 7.65% d) 0.9% Federal law requires the use of MACRS for most tangible depreciable

Question 6 6 pts ABC Enterprises needs to have a lump sum deposit of $75336 for the purchase of an equipment in 9 months. They wish to immediately deposit a sum of cash into a short-term account paying 7 percent interest per year, compounded on a monthly basis. How much will they need to deposit into this account to have enough to purchase the
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Company A primarily sells coffee. It recently introduced a new coffee-flavored liquor. Suppose the firm faces a tax rate of 36% and collects the following information. Beta %Debt Company A 1.12 82% A standard coffee liquors company 0.25 88% If it plans to finance 88% of the new liquor-focused division with debt and the rest with equity, what WACC

4 - 1 1 2 What is the present worth of cash flows that begin at $ 2 5 , 0 0 0 and
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Carl Patterson likes investing in stocks that pay dividends. Carl owns 65 shares of a local utility company. The stock pays a regular annual dividend in the amount of $2.75 per share, and the company has indicated that the dividend will stay the same for a long time. If Carl reinvests his dividends each year and the dividends earn a return of 6
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3. How long will it take $4,500 to grow to at least $6,500 at 2.5% compounded quarterly? Give your answer in terms of years and months, rounded to the nearest quarter
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1 pts Neptune Comoration is planning a business expansion and currently has a capital structure consisting of common stock of $5 million (250.000 shares and det of 10 million with do rate. The firm has two different hancing plans they need to decide between the two plons are as follows: Plan A lequity) Selladditional shares at the current price
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Which one of the following is NOT correct? A characteristic line with a positive intercept means positive alpha for the stock. Positive alpha implies positive excess return. Positive excess return implies under pricing. None of the above
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You have a company that produces a certain high tech product. Currently you produce only in the United States employing all U.S. resources. China is a major customer making up 40 percent of your market. For several years your firm has been returning 20 percent on invested capital. Due to the trade war between China and the United States, China has
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Emily just received a tax-free life insurance payment of $100,000. She also has $245,000 tucked away in a savings account. She has a child that will attend college in 4 years from today and will require tuition payments twice per year over each of the childs four years in college. The payments must be made at the beginning of the year and midway

3. Zomato Media Private Limited ("Zomato") is a leading food-tech company based in Gurgaon, India Being a rapidly growing company with negative profitability, Zomato needs to raise external funds to invest in its growth and market leadership position. Consequently, Zomato is looking to raise capital to the tune of $100 Mn. Your Venture Capital
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Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 74 units of pretzels or 15 units of cars per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with Germany at a trade price of 0.38 units of cars for one unit of pretzel. For every 4810

Suppose AMEX, Inc. is considering a project that has a weighted average cost of capital (WACC) at 8%. Estimated cash flows for the project are as follows: Year 1 2 0 -400 3 120 Cash Flow 210 230 Use the NPV method to determine whether the firm should accept or reject this project. REJECT O ACCEPT
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Question 2 New company is considering whether to call either of the two perpetual bond issues the company currently has outstanding. If the bond is called, it will be refunded, that is, a new bond issue will be made with a lower coupon rate. The proceeds from the new bond issue will be used to repurchase one of the existing bond issues. The
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Britton Carter is interested in building a new hotel in Queenstown, New Zealand. His company estimates that the hotel would require an initial investment of $20 million, would produce positive cash flows of $6.5 million a year at the end of each of the next 15 years and can be salvaged (after-tax) for $10 million at t=15. The company recognizes

(Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 12,000 of these per year for 10 years (after which time this project is expected to shut down with solar-powered skateboards
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expenses are unchanged, and taxes are the same percentage of pretax income as in 2018. (See Table 2.2 ) a. What is Global's EBIT in 2019 ? b. What is Global's income in 2019 ? c. If Global's P/E ratio (25.2) and number of shares outstanding (3.6 million) remains unchanged, what is Global's share price in 2019 ? a. What is Global's EBIT in 2019?
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7. Account A has 100 dollars at time 0 and grows at a simple interest rate of 0.05. Ac- count B has x dollars at time 0 and grows at a compound interest rate of 0.03. At time t = 9, accounts A and B are equal. Solve for r. (111.13]
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SECTION A Answer ALL the questions in this section. QUESTION ONE Table 1 Index Statistic Code Date Instrument Dividend FTSE Yield SIL J 100 Closing Price 2019/01/31 Accentuate Gross MCAP Free Portfolio Float Factor Het CRD 8,08% 88% 420 880 090 R 7,95 R 3 345 996 716 1.00000 R2944 0.07% J100 477 110 2019/02/28 Accentuate 7,22% R 7,61 R 3 202 897
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5. The lessor's lease evaluation There are two parties in any lease contractthe lessee and the lessor. To a lessor, a lease analysis involves a capital budgeting analysis of the property or equipment to be leased. The lessor's decision is either to purchase and lease-out the asset, or not make the investment at all. Like any capital budgeting
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If you want to load sales.txt file without headings under C, you write Ltfen birini sein: a. data
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Question 2 The board have approached you to get your opinion of their expansion plan, which includes a chain of factory outlet stores. Below are the figures for the first one that is planned for a central Birmingham location next year. Company policy dictates that any decision should be based on the results of calculating Net Present Value (NPV)

Now consider Entergy Corp.s common stock. Value Line estimates Entergy Corp.s 5- year dividend growth rate to be 6.0 percent. Assume that Entergy Corp.s stock traded on January 1, 2003 for $22.26. Assume for now that the 6.0 percent growth rate is expected to continue indefinitely. What was Entergy Corp.s expected rate of return at the beginning
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You purchase 110 shares of stock for $49 a share. The stock pays a $5 per share dividend at year-end. What is the rate of return on your investment for these end-of-year stock prices? What is your real (inflation-adjusted) rate of return? Assume an inflation rate of 3%. (Round your answers to 2 decimal places. Use the minus sign for negative

There are 10 questions listed to ask your Financial Advisor. Please list them and comment on why you think each is important. 1. What experience do you have? 2. What are your qualifications? 3. What financial planning services do you offer? 4. What is your approach to financial planning? 5. What types of clients do you typically work with? 6. Will

You are given the following information. Stockholder's equity as reported on the firm's balance sheet = $850,000,000, Price/Earnings ratio = 8, common shares outstanding = 800,000,000, and market/book ratio = 3. Calculate the price of a share of the company's stock. $3.19 $2.94 $5.00 $8.00
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The table below is an extract of the Balance Sheet of Esther Bakery Enterprise for the year ending 2019 and 2021. Use table to answer questions 14-17. Item 2019 2021 Salles 1,500,000 1,800,000 Cost of Goods Sold 1,000,000 1,200,000 Inventory 300.000 350,000 Account Receivable 350.000 375,000 Account Payable 150.000 180,000 12. What is Esther
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Problem 2 (6 pts) On July 9, 2006, Twoven Ltd. Purchased a used spindle machine at a bankruptcy sale for machine at a bankruptcy sale for 34,000 . They finally installed it in their factory on January 12,2009 . Calculate the CCA and UCC for this Class 43(d=30%) machine for five years, starting in the year wen it first became available for use
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please answer 4,5,6 Question 4 B0/1 pt 100 99 Details You deposit $500 in an account earning 7% interest compounded annually. How much will you have in the account in 10 years? Question Help: Video 1 Video 2 Post to forum Submit Question Question 5 B0/1 pt 100 99 Details You deposit $3000 in an account earning 4% interest compounded monthly. How
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please write the equations and use the IRR method. not the PW method. 6-15. You are the president of AMT Enterprises. You have the opportunity to expand your product line to include a new semi-conductor wafer fabrication line. In order to produce the new wafer, you must invest in a new production process. In addition to doing nothing, two mutually
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What is the estimated current price of a share of ABC Company stock based on the Dividend Discount Model? The annual required rate of return is 19.4%. ABC just paid their annual dividend of $2.22 a share and the expected growth rate of the dividend is 6.4% per year. Answer to the nearest penny
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Maria Gonzalez and Ganado. Ganadothe U.S.-based company discussed in this chapterhas concluded another large sale of telecommunications equipment to Regency (U.K.). Total payment of 3,900,000 is due in 90 days. Maria Gonzalez has also learned that Ganado will only be able to borrow in the United Kingdom at 14.699% per annum (due to credit concerns

An oil-drilling company must choose between two mutually exclusive extraction projects, and each requires an initial outlay at t = 0 of $12.8 million. Under Plan A, all the oil would be extracted in 1 year, producing a cash flow at t = 1 of $15.36 million. Under Plan B, cash flows would be $2.2744 million per year for 20 years. The firm's WACC is