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Finance Questions and Answers February 03, 2024

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I got that answer but it says its wrong! Plz Help! Thank you! A $1,000,000 issue of ten-year bonds redeemable at par offers 9% coupons payable semi-annually. What is the issue price of the bonds to yield 7.9% compounded quarterly? The issue price of the bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values
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1. The following business transaction occurred in the first quarter of 2022 in Turkey; - Turk Auto sold cars to Young Turk Auto (which is also located in the Turkey) with the total value is 5 Million TRY. Young Turk Auto paid it from its deposit account at AA Bank in Turkey. The transaction is accounted in for balance of payment as following; If
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NPV and EVA A project cost $1.3 million up front and will generate cash flows in perpetuity of $220,000. The firm's cost of capital is 14%. a. Calculate the project's NPV. b. Calculate the annual EVA in a typical year. c. Calculate the overall project EVA. NPV and EVA A project cost $1.3 million up front and will generate cash flows in perpetuity
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Is this solution right? Why should they do an interesting rate agreement like this? They are paying more in the end aren't they?? When do I know when to see it from the return perspective and when I should see it from the payign perspective?? Companies A and B have been offered the following rates per annum on a $5 million 10-year investment :
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Bavarian Sausage just paid a $1.50 dividend and investors expect that dividend to grow by 5% each year forever. In the required return on the stock investment is 12%, what should be the price of the stock today? Your Answer: Answer Hide hint for Question 30 Constant growth model stock price= past dividend*(1+g)/(r-g) = expected dividend/(r-g)
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BERKSHIRE INSTRUMENTS Statement of Financial Position December 31, 2015 Assets Current assets: Cash ................................................................................................................... $ 400,000 Marketable securities ......................................................................................... 200,000

Which of the following is the best way to state a problem? Multiple Choice I need to have a car. I need transportation. I need a motorcycle.
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Nine months ago, the price of a share of Walt Disney Company (DIS) stock was $95, the price of a nine-month European put option on the DIS stock with a strike price of $90 was $8, and the price of a nine-month European call option on the DIS stock with a strike price of $130 was $35. Suppose that an investor bought 100 shares, shorted 100 call

Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 76,600 2 89,600 3 109,500 4 102,400 5 69,100 Production of the implants will require $2,400,000 in net working capital to start and additional net working capital investments each year equal to 20 percent of the projected

2. Shiller CAPE ratio Robert Shiller of Yale University argues that a better measure is the cyclically-adjusted P/E ratio, or CAPE ratio, which is also known as the Shiller P/E a) Explain why this measure should be superior to a trailing 12-month P/E ratio. 2 marks b) Graph the CAPE ratio for the S&P 500 for the last 100 years. Comment on the
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(Capital asset pricing model) Grace Corporation is considering the following investments. The current rate on Treasury bills is 1 percent and the expected return for the market is 8.5 percent. Stock Beta K G 1.05 1.29 0.72 0.97 B U (Click on the icon in order to copy its contents into a spreadsheet.) a. Using the CAPM, what rates of return should
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The Kingdom of Wakanda is undergoing tremendous economic growth. Last year, its GDP grew by 11.45%. Wakanda's central bank - the Bank of Wakanda - is, however, worried about inflation, which has been hovering near double digits for the last two years. T'Challa, the country's ruler, says that he wants to sit down with Nakia, the Governor of the

Cargill's Cost of Capital. Cargill is generally considered to be the largest privately held company in the world. Headquartered in Minneapolis, Minnesota, the company has been averaging sales of over $113 billion per year over the past five-year period. Although the company does not have publicly traded shares, it is still extremely important for
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Problem 4-14 Present Value with Different Discount Rates (LG4-4) Compute the present value of $4,800 paid in two years using the following discount rates: 8 percent in the first year, and 7 percent in the second year. ( Do not round intermediate calculations. Round your answer to 2 decimal places. )

eBook References Stock W Stock X Stock Y Stock Z Dividend yield Stock W Stock X Stock Y Stock Z % % % % Consider four different stocks, all of which have a required return of 17% and a most recent dividend of $4.50 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10%, 0%, and

Lush Gardens bought a new truck for $79,000. It paid $9,000 as a down payment and financed the balance at 5.50% compounded monthly. If the company makes payments of $1,650 at the end of every month, how long will it take to pay off the loan? year(s) + month(s) Round up to the next payment period. Give your answer in years and months.

Jen Louzon has sufficient employment income that she is in the 29 percent federal tax bracket and the 14 percent provincial tax bracket for any additional income. The provincial dividend tax credit is 27 percent on eligible dividends. If she receives a $24,000 eligible dividend from a taxable Canadian corporation, how much will she retain after

Halcyon Lines is considering the purchase of a new bulk carrier for $8.6 million. The forecasted revenues are $6.0 million a year and operating costs are $5.0 million. A major refit costing $3.0 million will be required after both the fifth and tenth years. After 15 years, the ship is expected to be sold for scrap at $2.5 million. a. What is the
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Changes in exchange rates can directly raise or lower costs and earnings from international transactions, creating potential exchange - rate risk in microfinance transactions. Why is exchange - rate risk potentially exacerbated in the context of microfinance lending? Many microfinance borrowers live in markets with volatile currencies and that

On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Amortization Balance Date Cash Interest 67,221 66,930 66,630 January
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Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. Year 1 2 3 4 5 FCF -$22.72 $39 $43.4 $51.2 $55.1 The weighted average cost of capital is 10%, and the FCFs are expected to continue growing at a 5% rate after Year 5. The firm has $25 million of market-value debt, but it has no preferred stock or any other outstanding

A corporation can elect to pay dividends to its shareholders. Which of the following dividends is NOT a type of dividend that a corporation can pay to its shareholders? Question content area bottom Part 1 A . Deferred dividend B . Eligible dividend C . Non - eligible dividend D . Capital dividend

SOLVE BOTH IF NOT DO NOT ATTEND. WILL DISLIKE FOR WRONG ONE AND IF ANSWERED ONE. IF GOING TO SOLVE ONLY ONE, JUST SKIP THE QUESTION. The mortgage on your house is five years old. It required monthly payments of $1,422, had an original term of 30 years, and had an interest rate of 9% (APR). In the intervening five years, interest rates have fallen
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Please answer all parts and follow blue parentheses rules. Please and thank you! (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $12,000 resulting in a free cash flow of $1,998 at the end of each year for the next 9 years b. An initial outlay of $12,000 resulting in a free cash flow of $2,005 at the end of
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A company is expected to pay a dividend at the end of the year of $7.39. The dividend is expected to grow at 4% per year. The stock's cost of equity is 6.5%. What is the intrinsic value of this stock? Show your answer in pennies without the dollar sign. Eg 9.99
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A couple received a $108,000 inheritance the year they turned 48 and in-vested it in a fund that earns 6.5% compounded semiannually (every six months). They leave the money in the account for 12 years (until they retire), and then want to get regular payments from the account, so that all the money is paid during the next 20 years. How much will

Company Buy Bye Downbay BlueWater Volume 6,890,765 56,983,412 11,987,546 Close 102.15 20.18 46.56 Chg -0.05 0.01 -0.11 High 105.3 30.18 54.12 52 Week Law 89.98 17.76 44.17 a How many round lots of Buy Bye were traded today? b. What is today's closing price per share of Blue Water
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Golding Manufacturing has four new jobs that must be assigned to any of four available machines. The cost of doing each job on each machine is as follows: Job Machine 1 2 3 4 A $85 $70 $60 $10 B 6 15 90 76 C 50 80 5 75 D 75 84 82 25

A stock trades today at $70. After one year, the stock's price will be either $50 or $90. A European derivative will expire after one year. At that time, it will pay $8 if the stock price at that time is $50 and $19 if the stock price at that time is $90. The risk-free rate is 5% per annum compounded annually, but not continuously compounded. What

You may have seen time value of money problems before, but they form the foundation of many areas of finance including financial planning, capital budgeting, and valuation. It is essential to understand not just how to perform the calculations but also why they work and how changes to the variables such as time, payment frequency, or interest rate

3) Courtney purchased 5 call options with a $47.50 strike price and a call premium of $1.10. On the expiration date, the underlying stock was priced at $50.60 per share. What is her percentage return on this investment? 4) All else the same, if a company increases its retention ratio: a) the sustainable growth rate will increase. b) the stock
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1. Emily plans to save $5,000 a year for the next four years and use the money as a down payment on a house. If Emily can earn an interest rate of 2 percent annually, how much will Emily have for a down payment after the four years? Explain your answer.

You purchase a 3.50% coupon bond that pays interest semi-annually and has a par value of $1,000. It matures in 12 years and is selling today for $958. Calculate the yield to maturity: On a spreadsheet that you email to me, show your work for this calculation using either the YIELD or RATE formula in Excel. a. 3.9427% O b.3.8786% O c. 3.5624% O d.
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please help with # 3 Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.50 per case, has not had the market success that managers expected, and the company is considering
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Which one of the following variables influences the value of put options? I Level of interest rates Il Time to expiration of the option III Dividend yield of underlying stock IV Stock price volatility O I, II and IV only O 1, II, III, and IV O I and IV only O II and Ill only
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Today is June 30 2021, and on this date you have already accumulated $4,000 in your Sunsuper superannuation account, and you have already accumulated $1,000 in your Australian Super account. Today you are going to transfer the $4,000 in your Sunsuper account to your Australian Super account, so that Australian Super can manage all of your

Problem Set #15 Strickler Technology Inc., a Texas-based manufacturer of computer equipment, is considering the establishment of a manufacturing plant in Nepal, a small South Asian country with a population of about 28.1 million. The countrys currency is the Nepalese rupee (NPR), and it is traded against most foreign currencies including the U.S.

= 4. An investor has decided to save $5,000 every year growing at a rate of 4.9% per year. The investor will make the first deposit in one year (t = 1). (a) How much would the investor have deposited in total after ten years (t = 10)? [3 Marks] (b) If the interest rate is 10% p.a. what is the present value of each deposit? (What is the formula?)
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Problem 6-25 Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will
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The nominal risk free rate is equal to 10%. The inflation rate is 2%. At t = 0 a hamburger costs $1. Consider the following desired consumption stream: At t = 30 you want to spend $5,000. Then you want to consume 4% more hamburgers until t = 50, and then 5% more hamburgers until t = 65. Assume that you are using the real approach to calculate the
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A preferred stock will pay a dividend of $6.00 in the upcoming year and every year thereafter; i.e., dividends are not expected to grow. You require a return of 10% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock.

(Capital Asset Pricing Model) The expected return for the general market is 11.5 percent, and the risk premium in the market is 6.9 percent. Tasaco, LBM, and Exxos have betas of 0.849, 0.676, and 0.559, respectively. What are the appropriate expected rates of return for the three securities
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What is the PV of an ordinary annuity with 7 annual payments of $4,898 if the appropriate interest rate is 9%
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In stage 3 of Kohlberg's model, ethical reasoning is motivated by Multiple Choice upholding the rights, values, and legal contracts of society. acting based on universal principles. satisfaction of one's needs. acting in the best interests of others.
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1. Insurance companies utilize the law of large numbers to reduce the chance of loss for their insureds. true oR FALSE 2. Which of the following is not a peril? a ) car collision b) vandalism c) earthquake d) faulty wiring e) none of the above are correct, on other words: all of the above are perils 3.From an annuitant's perspective, tax deferral

Case study A smartphone manufacturer is considering introducing the model new smartphone to market, the manufacturer wanted to understand the potential impact of various marketing strategies on the success of the new model. To do this, factory wants to create an influence diagram to represent the relationship between various factors that can

please answer. Thank you. Sneaker 2013 The business case team had compiled the following baseline information surrounding the Sneaker 2013 project: 1. The life of the Sneaker 2013 project was expected to be six years. Assume the analysis took place at the end of 2012. 2. The suggested retail price of the shoe was $190. Gross margins for high-end
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1. Creek Co. Ltd has launched a project has an initial cost of $3,000. The cash inflows are $500,$900,$1,200, and $1,800 over the next four years, respectively. What is the payback period? If the discount rate is 10%, what is the discount payback period
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Which of the following statements hold for the CAPM model? A. A stocks expected return is a linear function of its standard deviation B. Every stock whose standard deviation is higher than the markets has a positive beta C. Some stocks have a lower expected return than the risk-free asset D. Stocks with a negative beta must have a negative

increase or decrease ?? Cost of goods sold for the year amounted to $130,000, and during the year, accounts payable by $8,000 and inventory by $7,000 resulting in cash paid to suppliers of $115,000. eTextbook and Media
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Prepare Proforma Income Statement for 2021, calculate dividends and addition to retained earnings in 2021 IN EXCEL PLEASE The most recent financial statements for Megan Corporation follow. Sales for 2021 are projected to increase by 20 percent. Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The
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If the growth rate of a constant set of nominal cash flows is 0%, then the real growth rate is equal to the inflation rate. True False Question 14 (1 point) If the growth rate of a constant set of nominal cash flows is equal to the inflation rate, then the real growth rate is equal to zero. True False
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Pet SOCK dividend, now wouid tn 3. Stock Splits [LO3] For the company in Problem 2, show how the equity accounts s are outstanding now? many shares are outstanding will change if: What is the new par value per share? b. Freya declares a one-for-five reverse stock split. How now? What is the new par value per share? Common stock (.50 par value)
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After spending $10,200 on client development, you have just been offered a big production contract by a new client. The contract will add $204,000 to your revenues for each of the next five years and it will cost you $104,000 per year to make the additional product. You will have to use some existing equipment and buy new equipment as well. The
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Can you Analysis this two statement around 100 words limits. Pacific Island Countries have largely focused on accessibility to climate finance in the past decade. Countries are accessing significant amounts of climate finance, but difficult to track the tangible impact of those funds accessed.

You have $1,933.91 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $220,000 You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. years
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Spartan Credit Bank, tasarruf hesaplarnda gnlk bileik yzde 8,1 teklif ediyor. Bugn 6.500$ yatrdnz. A. 5 yl sonra hesabnzda ne kadar olacak? (Ylda 365 gn kullann. Ara hesaplamalar yuvarlamayn ve cevabnz 2 ondalk haneye yuvarlayn, rnein 32.16.) b. 10 yl sonra hesabnzda ne kadar olacak? (Ylda 365 gn kullann. Ara hesaplamalar yuvarlamayn ve cevabnz 2

bethesda mining company reports the following balance sheet information for 2018 and 2019. Perpare the 2018 and 2019 common-size balance sheets for Bethesda Mining. (2 decimal places) 2018 2019 Assets Current assets Cash $ %$ % 52,990 62.781 122,559 % 67,084 83,139 188,119 338,342 % % $ 239,330 % $ % $ % 658,247 896,577 % % $ $ 589,728 928.070 es
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Question 29 1 pts Assume the foreign exchange rate quotes are such that $1 is equal to 7.8802 units of HK dollars and 0.8131 units of Euros. Also, those quotes can be expressed as HK dollars 7.8802/$ and Euros 0.8131/$. How many HK dollars is needed to buy 1 unit of Euro? O HK dollars 5.1968/Euro none of the answers is correct Euros 0.932/HK
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For a callable bond, the option-adjusted spread is ____ with higher expected interest rate volatility. A. increasing B. decreasing C. unvarying D. cannot decide

Wei Sun is considering an investment that pays $31,000, 7 years from now. If his required return is 3.4 percent per year compounded semiannually, what is the maximum price he should pay for this investment today?

The Argentina Fund has $755 million in assets and sells at a discount of 5.5 percent to NAV. If the quoted share price for this closed-end fund is $12.30, how many shares are outstanding?

What is the value (to the nearest cent) of a 4 year 4.5% coupon bond with a face value of $1,000. The yield-to-maturity on the bond is 14.7% and the bond makes semi-annual coupon payments.

critically evaluate the following statement if market are semi strong effecient then CAPM alpha produced by an active fund manager can only be explained by either random luck fraud or insider activity.

Question 32 (1 point) Bavarian Sausage just paid a $1.50 dividend and investors expect that dividend to grow by 4% each year forever. If the required return on the stock investment is 10%, what should be the price of the stock today? Your Answer: Answer uestion 33 (1 point) Find the price of a stock today that is expected to pay dividends of $2.10
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Under the Fisher hypothesis, if a one point increase in the inflation rate is anticipated: Group of answer choices nominal rates on short-term securities would rise by one point. nominal rates on short-term securities would fall by one point. nominal rates on short-term securities would fall by less than one point. nominal rates on short-term

Strengthen capital efficiency (objective of PWC framework) Once youve steered through the immediate capital and liquidity stresses of the crisis, it will be important to focus on the longer-term capital management impact of lower interest rates, greater hedging costs, heightened market volatility and defaults, and increasing tax rates. The markets

You have been presented with two financing options for a $26 000 new vehicle. Option 1: One company is offering 0% financing. Option 2: Another company is offering $2500 discount with 5.9% financing. You plan on paying bi-weekly payments to pay off the loan. Which company would you select if you planned on financing the loan over 4 years? Explain.

DQuestion 7 5 pts Weaver Brothers expects to earn $3.50 per share (Es), and has an expected dividend payout ratio of 60%. Its expected constant dividend growth rate is 7.4%, and its common stock currently sells for $30 per share. New stock can be sold to the public at the c incurred. What would be the cost of equity from new common stock? Your
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A bond that sells at par value must have a duration that equals the time to maturity. True False

explain (in words) the concept of operating cycle and cash cycle. do you want these cycles to be high or low relative to the industry and why?

How much preffered stock has been issued for UnitedHealth

What is a future currency contract and when may the future currency contract be most appropriately used and compare and contrast the currency futures and forward contract?

Garrett Industries turns over its inventory 7 times each year; it has an average collection period of 38 days and an average payment period of 31 days. The firm's annual sales are $3.2 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365-day year. a. Calculate the firm's

Question 1 O pts Bob and Allie Katz are a married couple with three children. Their wages for 2018 totaled $105,400 with an additional $200 in interest income. They have calculated their itemized deductions to be $33,200 and also realized a short-term capital gain of $2,600. They sold stock for $13,000 in 2018 which had been purchased in 2014 for
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Bond A has a coupon rate of 10.28 percent, a yield-to-maturity of 14.34 percent, and a face value of $1,000.00; matures in 8 years; and pays coupons annually with the next coupon expected in 1 year. What is (X + Y + Z) if X is the present value of any coupon payments expected to be made in 3 years from today, Y is the present value of any coupon

Question 3 2 pts Builtrite is considering purchasing a new machine that would cost $60,000 and the machine would be depreciated (straight line) down to $0 over its five vear life. At the end of five vears it is believed that the machine could be sold for $15,000. The current machine being used was purchased 3 years ago at a cost of $40,000 and it
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Amy Lou Young purchased a health insurance policy with a $650 deductible and 30 percent coinsurance. If Amy Lou incurs $7,750 in covered medical expenses, her policy will pay?

Question Help Tk Weston Enterprises is an equity firm with two divisions. The soft drink division has an asset beta of 0.59 expects to generale tree cash row of 570 million this year and anticipates a 45 perpetual growth rate. The industrial chemicals division has an asset beta of 1.17. expects to generate free cash flow of 547 million this year
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You look in the newspaper and see the following FX rates for the British pound (): 1.6 (in US $) and 0.625 (Per US $). If you had $100, how many pounds could you exchange this for? Enter your answer to two decimal places

Problem 8-21 NPV and Payback Period [LO 1, 4] Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 12 percent. Year Project F Project G 0 $ 141,000 $ 211,000 1 57,000 37,000 2 53,000 52,000 3 63,000 93,000 4 58,000 123,000 5

per question will save the response BC bank decides to purchase a note and convert ities can be created DOLL 2. Tout Thisted Save and sweaters all the time. 5 minutes, 1 minute and 30 seconds en can only be taken once. d and resumed at any point untime has expired. The times with you saved automatically. minutes, 19 seconds. atus: 170 oving to
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Question 8 1 pts You currently have $23,934.96 in a bank account that pays you 5 percent interest annually. You plan to withdraw $752 (starting 1 year from now) every year for the next 11 years in the same account. How much are you going to have in that account at the end of 11 years? Round your answer to the nearest integer
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Select the TWO examples of direct bankruptcy costs: Group of answer choices incentive to take on risky projects distribution of funds to stockholders prior to bankruptcy administrative costs of liquidation or reorganization lawyer and accountant fees True/False. The optimal amount of debt produces the highest weighted average cost of capital.

What is the price of a 11-year bond paying 5 % annual coupons with a face (par) value of $1,000 if the market rates for these bonds are 6.4 %? Answer to the nearest cent. A firm issues a 20-year semi-annual payment bond, which is priced at $1213.55. The coupon rate of the bond is 9.00%. The tax rate is 38 percent. What is the after-tax cost of

Open-end Fund A has 195 shares of ATT valued at $50 each and 45 shares of Toro valued at $90 each. Closed-end Fund B has 90 shares of ATT and 87 shares of Toro. Both funds have 1,000 shares outstanding a. What is the NAV of each fund using these prices? (Round your answers to 3 decimal places. (e.g, 32.161) b. If the price of ATT stock increases
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Company sells its products through Direct salesforce and indirect channels. its fixed cost per salesperson runs $50K/year and it gives commissions at the rate of 20% of sales revenue. The fixed cost of managing indirect channel runs $20K/year and the commissions it gives them runs on the average 40% a year. Above what level of Sales volume do the

Lexington predicts that this year's sales will total $6,085,130. The selling price for their software is $122 per unit. Variable costs amount to $70 per unit. The firm also has $5,000,000 in bonds outstanding with a coupon interest rate of 10%. Net income is projected to be $148,492. The firm's marginal tax rate is 21%. What is the firm's total
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You are evaluating the following two projects. Use the incremental IRR to determine the range of discount rates for which each project is optimal to undertake. You should also include the range in which it does not make sense to take either project. Year-End Cash Flows ($ thousands) Project 0 1 2 X -25 18 17 Y -70 36 54 The answer is the

Jodys financial affairs are not in good shape and she is concerned that if she should lose her job for even a short period of time, her creditors would force her into bankruptcy and take over her assets. She wants to try and preserve the value of her inheritance for Fred particularly if she invests it in a GIC or deferred annuity. Which statement

Which of the following statements is correct? a A 10-year bond would have more interest rate price risk than a 5-year bond, but all 10-year bonds have the same interest rate price risk. b A 10-year bond would have more reinvestment rate risk than a 5-year bond, but all 10-year bonds have the same reinvestment rate risk. c If their maturities were

Hello, I was wondering if you could help me with Cumulative Comprehension Problem from Chapter 5: Echo Systems. Can you help with the ledger and trail balance? CHAPTER 5 Accounting for Merchandising Activities critical Thinking Mini Case ve just graduated with a business diploma in management and have been hired as the inven r for a local sporting
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Payments of $1,250 in 1 year and another $2,000 in 4 years to settle a loan are to be rescheduled with a payment of $1,050 in 22 months and the balance in 32 months. Calculate the payment required in 32 months for the rescheduled option to settle the loan if money earns 5.85% compounded monthly during the above periods. Round to the nearest cent

Phil purchases a segregated fund contract for $100,000. The contract provides 96% guarantee. Phil's contract allows him to reset once a year, and he takes advantage of that when the market value of his contract has increased by 7%. Upon maturity, the market value of his contract is $64782. What is the value of Phil's guarantee? Please provide your

Suppose a five-year, $1,000 bond with annual coupons has a price of $904.28 and a yield to maturity of 6.1%. What is the bond's coupon rate? The bond's coupon rate is %. (Round to three decimal places.)
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Your bank is offering you an account that will pay 17% interest (an effective two-year rate) in total for a two-year deposit. Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) a. Six months The equivalent

Depreciation: 4 year, straight line of the full purchase amount Expected Salvage Value: $3 million Yearly lease payment (made at the beginning of the year): $2 million Tax rate: 35% Cost of Equity: 10% Cost of Debt: 6.15% Debt/Equity Ratio: 1:1 What is the after-tax cost of debt? 6.15% 10% 4.00% 2.15% What is the WACC? 10% 7% 14% 8.075% What is

Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. Aa Aa 2. Introduction to the future value of money Under the concepts of the time value of money, you can determine the future value of an amount invested today that will earn a given interest rate over a given amount of time. This technique
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Exercise 3 A resort company is looking at expanding in 2 different regions and is valuing each project: Initial investment Cash flow year 1 Cash flow year 2 Cash flow year 3 Cancun Project -500,000 150,000 175,000 250,000 Lanzarote Project -300,000 75,000 150,000 90,000 Advise where the company should expand according to the discount pay back
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Assume that a firm has sales of $11,700,000, total assets of $4,500,000, total common equity of $1,500,000, and an ROE of 37.4985 percent. Given this information, and using the DuPont equation, determine the profit margin for this firm. 4.81% 5.24% 6.02% 6.41% 5.63%
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