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Finance Questions and Answers May 4, 2016

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What is the operating cash flow for year 5 of project A that Orange Valley Shipping should use in its NPV analysis of the project? The tax rate is 15 percent. During year 5, project A is expected to have relevant revenue of 70,000 dollars, relevant variable costs of 28,000 dollars, and relevant depreciation of 16,000 dollars. In addition, Orange

Jean Jacque is evaluating Pharmet by using the FCFF valuation approach. Jean has collected the following information (currency in dollars): Pharmet has a net income of $277 million, depreciation of $91 million, capital expenditures of $167 million, and an increase in working capital of $40 million. Pharmet will finance 40 percent of the increase
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I only need F). Thanks 8-5 On January 1, 2005, the total assets of the Dexter Lompany were S 270 million. he firm's present capital structure, which follows, is considered to mal. Assume that there is no short-term debt. S135,000,000 Long-term debt Common equity Total liabilities and equity 135,000,000 S0, S270,000,000 New bonds will have a 10
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A local dental practice decides to run a Groupon campaign. The campaign offered $365 worth of dental services (such as teeth whitening) for $155. For the total campaign, 250 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers

6 A manager of a $100,000,000 portfolio uses a future with a value of $1,000,000. The beta of the portfolio is 1.4 and the beta of the future is 1.2. What would be the number of futures contracts needed if the manager wanted to reduce the portfolio beta to
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Date Dividend O Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $33.41 $31.49 $29.21 $33.45 $36.62 $43.11 $0.19 $0.21 $0.21 $0.22 Return for the entire period is %. (Round to two
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Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 22 % Normal 0.55 9 % Weak 0.30 -6 % What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. 6.45% What is the stock's standard

Which one of these can be used as a definition of an efficient market? Securities market where stocks are traded free of cost Securities market where prices accurately value the risk - return relationship of each security given all available information Securities market where stock prices are unaffected by changes in a firm's level of risk
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Liquidity Premium Hypothesis One-year Treasury bills currently earn 6.10 percent. You expect that one year from now, one-year Treasury bill rates will increase to 6.35 percent. The liquidity premium on two-year securities is 135 percent. If the liquidity theory is correct, what should the current rate be on two-year Treasury securities? Multiple
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Rogers, J . L . ( 2 0 2 3 ) . McCance & Huether s Pathophysiology: The basis For Disease in Adults and Children, 9 th ed . St . Louis, MO . Elsevier

Question 5: In 2019, Almafraq Toys Manufacturing Company started making and selling a new toy for kids. The new toy was a hit, and sales soon increased and exceeded the planned level of sales. Consequently, the company faced a problem with space, so the president of the company decided to lease more space to meet the increasing demand on the new
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See the cash flow statement a. What were the company's cumulative earnings over these four quarters? What were its cumulative cash flows from operating activities? b. What fraction of the cash from operating activities was used for investment over the four quarters? c. What fraction of the cash from operating activities was used for financing
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BBC has just issued a new annual coupon bond that has 5 years to maturity, a coupon rate of 5% and trades at par at a price of $1000. You may assume that the yield-curve is flat. C) The government has recently issued five series of zeroes (zero-coupon bonds) with 6 month, 1 year, 18 month, 2 year and 30 month maturity horizons. If the bonds have
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Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $275,000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. The machine is currently priced at $1.8 million. The cost of
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Projected Operating Assets Berman & Jaccor Corporation's current sales and partial balance sheet are shown below. This year Sales $1,000 Balance Sheet: Assets Cash Short-term investments $ 150 $ 135 $ 150 Accounts receivable Inventories $ 300 Total current assets $ 735 $ 550 Net fixed assets Total assets $1,285 Sales are expected to grow by 14%
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2. You are the market maker in Southwest Airlines options. You purchase 200 call options with a strike price of $65 and 6 months until expiration. The risk free interest rate is 7%. You employ a delta hedging strategy for 2 days. Use the following information and show all work. LUV C(65,6 months) after t Days 0 Stock Price Call Price Call Delta
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Please present the formula in excel Example 4.24: Infrequent Annuities Ann Chen is going to receive the following annuity payments. What is the value of the payments today? We can answer this problem in two steps. First, we need to find the effective rate for the years between the annuity payments, which is: Effective multiyear rate Now we can use
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1) The current rate method translates almost all line items from the foreign subsidiary to the parent consolidated statements at the current exchange rate. This is the most commonly used method in the world today. True or False 2) With the current rate method, gains or losses do not go through the income statement and do not increase the

Investors invest in a firm because they are motivated by the potential return on their investment. In evaluating a firm's potential for delivering that rate of return, what do they most look for in a firm's projections? 1) The firm's plans to stock up on inventory in order to never run out of stock 2) The firm's plans to extend credit terms to
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Calculate operating cash flow in Year 5 for a product as follows: 1,500 units sold for 20 apiece; fixed costs are 21,500, variable costs are 7.50 a unit; fixed assets of 20,000 are depreciated on a straight-line basis over the 5-year life with salvage value of 6,000. As usual, the tax rate is 21%. (Please use excel) Calculate operating cash flow
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3) if your investment portfolio had a retum of 6% the risk-free asset return was 3%, and the standard deviation of the portfolio's excess returns was 17 period, Your Fund or your Competor Fund?I %, whose portfolio performed better over this time splain and defend yourrsonine (3 points) Investment Your Fund Competitor Fund ReturmStandard 60% 8.5%
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Consider two ASSETS, O and P. Asset O has an expected return Erol = 12% and a standard deviation 0o = 40%. Asset P has an expected return E(rp) = 8% and a standard deviation Op = 80%. The two stocks are uncorrelated (Pop= 0). The matrix of expected returns e and the variance covariance matrix Vfor the two assets are given by e = (ECO) - (197%) and
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- X Data table pt (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Discount rate Project Q $600,000 $600,000 $600,000 $600,000 $600,000 8% Project R $800,000 $800,000 $800,000 $800,000 $800,000 12% Project S $1,200,000 $1,000,000 $800,000 $600,000 $400,000 18% Print Done
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Save Homework: Chapter 8. Learning Objective 3. Topic Homework 1 Score: 0 of 1 pt 8 of 9 (6 complete) HW Score: 51.85%, 4.67 of 9 pts X Problem 8.LO3.19 (similar to) Question Help Teal Corp. has been having trouble. The last dividend was $2.95, and it's projected to fall 4% per year indefinitely. If the required return is 8%, what is Teal Corp.'s
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Britannia Company is considering opening a new production line in South England on 5,000 acres of land purchased 10 years ago for $4 million. Opening the new production line will cost the company $100 million to purchase the necessary equipments, which will be depreciated to zero based on the straightline method for ten years. The company

QUESTION 4 Miss Bajadu is one of your cherished customers who has maintained a satisfactory account for the past 12 years. She has been promoted and wants to relocate to an area that befits her current status. Her monthly salary amounts to GHC 12000.00. Today you saw her loan application request among day's collections. She indicates that she
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Assignments Fin 325, Spring 2018 Mohammed Alyahya& Homework: Ch 18B HW, How Much Should a Corporation Borrow?, Save Score: 0 of 2 pts 4 of 6 (4 complete) HW Score: 50%, 6 of 12 pts P15-8 (similar to) Question Help B Bay Transport Systems BTS currently has S40 milion in de outstanding n addition to 9.5% interest it plans ay of the rem a ning
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Crops & feed revenue $ 245,400 Livestock and livestock product revenue 315,000 Total nonfarm income 11,000 Total farm operating expenses 440,700 Depreciation expense 55,500 Income tax expense 10,730 Interest expense 85,962 Withdrawals for family living 30,000 Principal payments on unpaid operating debts 0 Principal payments on current portions of

Problem 1 (30 marks) Gamma Medical Company is currently an un-levered firm with a beta of 1.3925. Government of Canada T-bills are yielding 3% and the market risk premium is 8%. You expect the company will be able to earn the required rate of return forever on an expected before tax earnings of $800,000 per year. 1. Assume that the tax rate is 40%

3. This problem looks at problem 2 from another angle. Again, there are 100 acres in a jurisdiction, depicted below. The land can be used as subdivided residential land, or for farming. The value of land in each use is as follows. Residential Development: 1,000 10D Farming: 250 The notation D indicates developed acres and the notation F indicates

Please show work. 14. Suppose the prices of Stock A and B change over time as follows. t+1 t+2 Pt $100 Pt $100 There are two investment scenarios Stock A Stock B +1$200 Pt+1$50 Pt+2- $100 Pt+2 -$100 a) Invest S100k in stock A and $100k in stock B at time t. Then sell them at time t+2 b) Invest $100k in stock A and $100k in stock B at time t. Then
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(Related to Checkpoint 9.4) (Bond valuation) A bond that matures in 18 years has a $1,000 par value. The annual coupon interest rate is 7 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid
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28)You are saving money to buy a car. If you save $300 per month starting one month from now at an interest rate (APR) of 4%, how much will you be able to spend on the car after saving for 4 years? 28) A) $41,77896 B)s15,5878 C)15,287 27 D)$13,286.65 24) Since you were one month old, your grandparents have been depositing S1 $100 into a savings
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Question 6 5 pts a You work for a firm that reports sales of $125,000, net income of $4,500, costs of goods sold of $80,000, and depreciation of $15,000. What is the common-size statement value of EBIT? M O 64.00 percent 0 24.00 percent O 15.60 percent O 36.00 percent
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Starting on his 25 th birthday and continuing through his 60 th birthday, Fred deposits $7,400 each year on his birthday into a retirement fund earning an annual effective rate of 5%. Immediately after the last deposit, the accumulated value of the fund is transferred to a fund earning an annual effective rate of j. Five years later, a twenty-five
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You are evaluating a project with the following expected cash flows: an initial investment of $10 million, followed by cash flows of $3,$7 and $25 million in years 1,2 and 3 , respectively. If the company's discount rate is 9%, what is this projects NPV? Enter your answer in millions of dollars (rounded), with no decimals. For example if the
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