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Finance Questions and Answers March 02, 2024

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A car dealership is currently offering interest rates of 20% per year compounding daily. What is the effective monthly rate? 1.5298% 1.6802% O 0.0548% 1.6667% 0 0.0544% Question 8 1 pts A financial asset promises the holder $100 every 2 months and the first payment starting in 2 months and ending in 12 months, with a nominal interest rate of 12%
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3 1noint You are evaluating a project for your company. You estimate the sabes price to be $560 per unit and sales volume to be 2,600 anits inyear 1:3,600 unitsin year 2, and 2,100 units in year 3. The project has a threeveycar life. Variable costs amount to $360 per unit and fued costs are $230.000 per year. The project requires an initial
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A subscription to a live-streaming program normally costs $27 but is on sale for 25% off. A 7% tax is added at checkout. What is the total cost

The yearly cash flows of an investment are -836, -600, 800, 200, 600. Is this a worthwhile investment for someone who can both borrow and save money at the yearly interest rate of 7%?

Describe a scenario where a private investor might find option trading to be a beneficial investment strategy

I need steps 3. A hedger takes a long position in a futures contract on a commodity on November 1, 2020 to hedge an exposure on March 1, 2021. The initial futures price is $60. On December 31, 2020 the futures price is $61. On March 1, 2021 it is $64. The contract is closed out on March 1, 2021. Each contract is on 1,000 units of the commodity.
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1.All of the following are goals of finance. Rank them from most important to least important : A.Keeping your employees happy. B.Enhancing the value of owners equity. C.Making a profit. a.A, B, C b.A, C, B c.B, C, A d.B, A, C e.C, B, A 2.Each ratio has a specific formula which is used consistently by all analysts is a.Incorrect because a single

Please solve for all required boxes (A, B, C, D, E) and show work. I will give a thumbs up if correct! You are an employee of University Consultants, Limited, and have been given the following assignment. You are to present an investment analysis of a small retail income-producing property for sale to a potential investor. The asking price for the
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1) A stock has an expected return of 15 percent, its beta is 0.4, and the risk-free rate is 5.25 percent. What must the expected return on the market be? A) 29.62% B) 24.38% C) 30.81% D) 31.11% E) 28.14% 2. You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 15 percent in Stock S, and 35 percent in Stock T. The betas

20 D) balance of paymernts 20). (I Point). The ch states that the exchange rate is determined by the supply and demand for national currency as sef las ther e pected future levels and rates of growth of monetary stock. A) balance of payments B) monetary C) asset market D) law of one price
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Use the following information to calculate the expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Inc., and 50 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
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You are purchasing a house, and you have fallen in love with the seller's living room furniture. You ask the seller if you can purchase the furniture. You and the seller agree that you will pay the seller $1800 for the furniture. Because you are purchasing personal property valued at over $500, it is required that this furniture be listed on a
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Portfolio return and beta Personal Finance Problem Jamie Peters invested $99,000 to set up the following portfolio one year ago: EEB a. Calculate the portfolio beta on the basis of the original cost figures. b. Calculate the percentage return of each asset in the portfolio for the year. c. Calculate the percentage return of the portfolio on the
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Question 4 Southwest Airlines purchases a large number of commercial aircraft from Airbus to replace aging planes in their fleet. These are a completely different type of plane than the Boeing planes they've purchased before and this is their first purchase from Airbus. What type of purchase is this? straight rebuy system selling new task / new
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You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a common practice with expensive, high-tech equipment). The scanner costs $6,300,000 and would be depreciated straight-line to zero over six years. Because of radiation contamination, it will actually be completely valueless in six years. You

Market risk can accurately be described by which one of the following statements? a) It is one important source of an investors total variability of return. b) It causes price fluctuations which can be diversified away. c) It affects virtually all shares in the same way and to the same degree. d) It is less important during rising as opposed to

Which of the following statements regarding financial statement analysis is incorrect? A. The profit margin can be viewed as a measure of expense control. B. The two most popular measures of company size are net sales revenue and total assets C. A profitability ratio provides a comparison of an income measure and a size measure. D. In DuPont
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Find the equity value for a company with the following information: Free cash flow in 2024 is expected to be $19,000 Free cash flow in 2025 is expected to be $19,500 Free cash flow in 2026 is expected to be $20,800 You are not given growth rates beyond 2026, so you plug in 2.1% which is what GDP tends to grow at The companys WACC is 7.5%, and they

An investor bought a call option on Mexican pesos for \\( \\$ 0.0005 \\) per unit. The option has a strike price of \\( \\$ 0.056 \\) and covers 100,000 pesos. Assume that the option can only be exercised on its expiration date. Part 1 \\( \\square \\) Attempt \\( 5 / 6 \\) for 10 pts. What will be the net profit (or loss) to the investor if the
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Estimates of Pear, Inc.'s free cash flows and EBITDA are presented for each of the next 3 years in the table below. Year 1 Year 2 Year 3 FCF $15,000 $21,000 $31,000 EBITDA $10,000 $19,000 $29,000 You are performing a Discounted Cash Flow analysis using an exit multiple to estimate terminal value. If the appropriate TTM EV/EBITDA multiple for Pear

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $10,000 of income a year for 30 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?

The Ellis Corporation has heavy lease commitments. Prior to SFAS No. 13, it merely footnoted lease obligations in the balance sheet, which appeared as follows: Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods In $ millions In $ millions Current assets Current liabilities
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Calculate the Macaulay duration of the bond below: Face value: $100 Term to maturity: 5 years Coupon rate: 6%, paid semi-annually Yield-to-maturity: 5% Review Later 4.34 4.47 4.41 4.30

(Annuity number of periods) You've just bought a new flat-screen TV for $2,800 and the store you bought it from offers to let you finance the entire purchase at an annual rate of 12 percent compounded monthly. If you take the financing and make monthly payments of $150, how long will it take to pay off the loan? How much will you pay in interest
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You would like to buy a stock of Navana Motors. You are trying to find out the intrinsic value of Navana's stock. Recently, you have subscribed to Value Front (a stock market research firm) and it provides you the following information: Expected dividend is $0.65 in 2017 and will be $0.98 in 2020 . Beta and risk-free rate are 0.95 and 2.90%,
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Find the equity value for a company with the following information: Free cash flow in 2024 is expected to be $19,000 Free cash flow in 2025 is expected to be $19,500 Free cash flow in 2026 is expected to be $20,800 You are not given growth rates beyond 2026, so you plug in 2.1% which is what GDP tends to grow at The companys WACC is 7.5%, and they

Oranlar zme 1.800$'lk bir yatrm dokuz yl iinde 4.100$'a ykseldiinde yllk getiri oran nedir? %1,28 %2,28 %9,58 %8,58

A firm wishes to issue a perpetual callable bond. The current interest rate is 7%. Next year, the interest rate will be 6.5% or 8.25% with equal probability. The bond is callable at $1,075, and it will be called if the interest rate drops to 6.5%. What is the value of the callable bond today?

To supplement your retirement in exactly 35 years, you estimate that you need to accumulate $250,000 for your retirement date. You plan to make equal deposits at the end of each of those 35 years in a mutual fund that promises you 10% compounded annually. Determine the amount of annual deposits. (please use the formula method)

Atticus US, a corporation organized in the U.S., owns 100% of the stock of Atticus SAS (France), Atticus Plc (Ireland) and Atticus Ltd. (China). Atticus US filed an Entity Classification Election, effective 12/31/2018, to treat Atticus SAS as a disregarded entity for all U.S. tax purposes. For 2019, Atticus SAS generated pre-tax book income of

UBS buy-side analyst Christopher Dixon is following a mature telecommunications company TFI Inc in 2016. TFI is expected to increase its current dividends of $0.75 by 15% during the following 3 years (2016-2019) as the firm keeps a fixed dividend payout ratio. TFI's main competitors are forecasted to launch a new product line in 2019 that would
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Suppose we regress the return of UAL (United Airlines) on the stock market return and the return of an oil index. The coefficient in front of the oil index is -0.3. We have $1M invested in UAL and want to completely hedge our exposure to oil. To do that: a) We have to buy a position worth $300,000 of the oil index. b) We have to sell a position

After receiving the above rental increase, your tenant responds with a 28 day Notice to vacate the premise. Draft an email to your tenant explaining the bond refund process, including any timelines that must be adhered too.

a. Find the FV of $1,000 invested to earn 12% after 5 years. Round your answer to the nearest cent. $ b. What is the investment's FV at rates of 0%, 4%, and 25% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Interest Rate Year 0% 4% 25% 0 $ $ $ 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $ 5 $ $ Choose the correct graph of future
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Suppose you need $10,000 in two years for the down payment on a new car. If you can earn 7% annually, how much do you need to invest today?

8. An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 19% and a standard deviation of return of 20.0%. Stock B has an expected return of 15% and a standard deviation of return of 5%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 11%. The
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You are the CFO of Tom Petty Memorial Hospital (TPMH). The hospital is located in the rural community of Free Fallen, MS and is a not-for-profit organization. The capitalization of TPMH has a cost of capital of 5% and cash reserves on the balance sheet of $20,000,000. The management team has been considering expanding the hospitals service mix to
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Insulation is to be installed onto a machine part. The following are the three alternatives available. After the initial installation, if the insulation fails in any future year it is replaced by an identical one at a cost equal to the initial installation cost. The probabilities of failure in any year are given in the table Initial Replacement
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XYZ Company, a 'for-profit' business, had revenues of $12 million in 2016. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation

Gasworks, Incorporated, has been approached to sell up to 4.2 million gallons of gasoline in three months at a price of $3.30 per gallon. Gasoline is currently selling on the wholesale market at $3.10 per gallon and has a standard deviation of 58 percent. If the risk-free rate is 4 percent per year, what is the value of this option? Use the

What is the value of an $2.67 perpetual preferred stock to an investor who requires a 7% annual rate of return? Assume the par value is $60.00. Show work.

Chapter4 - Lesson3 Quality, Quantity and Packing of Commodity Case Study A Chinese export company exported some boxes of apple to Japan, according to the contract two parties concluded, the apple should be Grade Two. But when the seller made the shipment, they found some of the apple were corrupt because of damp weather, so in order to deliver the
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DataPoint Engineering is considering the purchase of a new piece of equipment for $260,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $160,000 in nondepreciable working capital. $40,000 of this investment will be recovered after the sixth year and will provide
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5 of 10 (6 complete) Hou have just purchased a home and taken out a $450,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR (with semi-annual compounding) of 7.5% a How much will you pay in interest, and how much will you pay in principal, during the first year? b. How much will you pay in interest, and how much will
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Suppose the corporate tax rate for Company A is 39%. Consider a firm that earns $1473 before interest and taxes each year with no risk. The firms capital expenditures equal its depreciation expenses each year, and it will have no changes to its net working capital. The risk-free interest rate is 5.34%. Suppose the firm has no debt and pays out its

Hailey Corporation pays a constant $7.40 dividend on its stock. The company will maintain this dividend for the next 8 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,
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QUESTION FOUR The CFO of Octavia Ltd, a mining company, has long wanted to enter the market for rhodium, a scarce precious metal. It has the option of starting mining in one of the locations where it owns mining rights, but the CFO is worried that the current price does not justify starting mining immediately. The CFO wants a report on the
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If you exhibit less risk tolerance in your saving account, which is dedicated to your retirements, compared with your other investments, this bias is called O a. representativeness bias O b. mental accounting O c. regret avoidance O d. conservatism bias
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An investor buys a property for $679,000 with a 25-year mortgage and monthly payments at 6.7% APR. After 18 months the investor resells the property for $741,897. How much cash will the investor have made from the sale, once the mortgage is paid off? .. O A. $63,591 OB. $158,978 O c. $79,489 OD. $111,285
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Review the various ratios used to evaluate Smart Touch Learning on pages 813 through 824. Provide an analysis of which of these ratios have any of the red flags discussed on page 825. Explain what Smart Touch should do to ensure they reduce the number of red flags you identified. Review the various ratios used to evaluate Smart Touch Learning on
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Lily Co. paid a dividend of $4.50 on its common stock yesterday. The company's dividends are expected to grow at a constant rate of 4.5% indefinitely. Your required rate of return on this stock is 12%. How do you solve for the intrinsic value

1. The city council is conducting a cost-benefit analysis for a new bridge. The construction materials for the bridge will cost $80 million. The maintenance costs are estimated at $7 million per year. The hourly wage for construction workers on this project is $19.50 per hour. These workers could have earned $15.50 in other jobs in the community

undefined Suppose Capital One is advertising a 60-month, 5.27% APR motorcycle loan. If you need to borrow $8,900 to purchase your dream Harley-Davidson, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.)
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Consider the following portfolio: - Long o puts with strike price 126.0 Short 1 puts with strike price 126.0 Long 1 calls with strike price 148.5 Short O calls with strike price 148.5 - Long 3 shares of stock Complete the following payoff table. What choice corresponds to the last row of the table Positions, s 126.0126.0 148.5 Portfolio ? ? O 25T
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A ______________________ is the profit from an investment in an asset, such as stocks, bonds, mutual funds and ETFs. Preferred Dividend Ordinary Income Capital gain Assets

A firm has a profit margin of 3.8% and an equity multiplier of 3. Its sales are $115 million, and it has total assets of $85 million. What is its ROE? four decimal places

Suppose a seven-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading with a yield to maturity of 6.52%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.01% (APR with semiannual compounding), what price will the bond trade for? a. Is this
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The Tesla, Inc invests $300,000 in new AI-driven auto-assembly robots and machinery that yields net after-tax cash flows of $75,000 at the end of each of the next five years. The required rate of return (or the opportunity cost of capital) is 12%. What is the net present value (NPV) of the project? Is this project profitable? Please draw a

Argentina commonly has a much higher nominal interest rate than the U.S. Even though the Argentinian rates are higher, some large institutional investors do not invest in Argentine money market securities, even when they believe the securities have low credit (default) risk. Use the international Fisher effect (IFE) to explain why Argentine money

Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$27 $13 $17 $8 Project B -$25 $14 $11 $2 What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a

The Porter's Five Forces Model comprises which of the following options? a. Existing rivalry within a sector b. Broad cost processes c. Hardware, software, data, procedures, people d. Information systems business processes, value chains, operational structure

Which of the following statements about risk is false? In a portfolio context, an assets risk can be divided into market risk and diversifiable risk Stand-Alone risk refers to the risk an investor would face if he or she held only one asset. Market risk can be eliminated through proper diversification all of the above are true. Question 24 (4
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In an effectively functioning economy, funds flow from ________ to _________. a.) the government; banks b.) the stock market; brokers c.) savers-lenders; spenders-borrowers d.) financial markets; financial institutions

Score! U pl Question Help P12-16 (similar to) work /Test (Calculating project cash flows and NPV) The Guo Chemical Corporation is considering the purchase of a chemical analysis machine. The purchase of this machine will result in an increase in earnings before interest and taxes of $80,000 per year. The machine has a purchase price of $300,000,
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A large profitable corporation bought a small jet plane for use by the firm's executives in January. The plane costs $1.5 million and,

Transponder PLC has a net cash consumption of 195,000 per year and it replenishes its cash reserves by selling 40,000 tranches of marketable securities when the cash balance reaches zero. Each sale incurs transaction costs of 25. The securities yield a return of 2.5% pa. REQUIRED: The annual trading costs incurred by Transponder each year amount

2- The auditors' report consists of three paragraphs. Identify the three paragraphs and describe the purpose and the elements of each? And what is the significance date of the auditor's standard report? (4 points) 2- The auditors' report consists of three paragraphs. Identify the three paragraphs and describe the purpose and the elements of each?
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The system in an energy conservation option has a first cost of $25,000. It requires $2,000 per year maintenance and saves $5,000 per year in utilities. This option will last 15 years with no salvage value. What is the 15-year life cycle cost assuming energy cost escalation of 4% annually, maintenance cost escalation 2% annually, and a 5% discount
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Everything else remaining the same, the cheapest source in the calculation of WACC is: A) after tax cost of debt B) preferred stock C) cost of external equity D) cost of internal equity

Mevcut iini geniletmeyi deerlendiren bir firmaya danmansnz. Proje iin nakit ak tahminleri (milyon dolar olarak) aadaki gibidir: yl Nakit akm 0 100 1 - 10 + 15 Firmann hisse senedi davranna dayanarak, firmann betasnn 1,49 olduuna inanyorsunuz. Risksiz yatrmlarn getiri orannn %4 ve piyasa portfynn beklenen getiri orannn %13 olduunu varsayalm. A.

True of false and please explain why Question 1: Consider the following statement: The Capital Asset Pricing Model (CAPM) implies that every risky asset must have a positive risk premium." (8 %)
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mtiyazl hisse senedinin bir pay, yllk 3,00 ABD dolar temett der. Mevcut piyasa fiyat 28 $ ise, hisse senedinin gerekli getiri oran nedir? Bir hisse senedinin gelecek yl 2,50 dolar temett demesi bekleniyor. Temettlerin yllk %6 orannda artmas bekleniyor. Gerekli getiri oran %14 ise hisse senedinin fiyat nedir? Bir hisse senedi az nce 1,00 $ temett

[-/1 Points) DETAILS BRECMBC9 13.11.004. MY NOTES ASK YOUR TEACHER Note: Round all answers to the nearest cent when necessary. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan. Purchase (Cash) Price Down Payment Amount Financed Monthly Number of Payment Payments
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Given a set of attractive investment opportunities, managers must choose the project that maximizes shareholder wealth, subject to the constraint of limited funds. The discount rate for the project cash flow is 7%. Prior to the selection of the investment option, the profitability index needs to be calculated. What is the profitability index of
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Use the following data for Question#1 to Question#3. The index model is estimated for the following stock. Beta Firm-specific Stock Expected Return Standard Deviation 13% 0.8 A 30% The market index has an expected return of 10% standard deviation of 22%. The risk-free rate is 4%. What is the standard deviation of stock A? Your answer should be in
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In 2020, Pua, who owns a gas station, spends $52,000 investigating the acquisition of a second gas station a mile down the road from her existing gas station. All costs are ordinary and necessary. Pua acquires the second gas station and begins business on Nov. 1, 2020. What amount can Pua deduct in 2020 for the expenses incurred in investigating
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Assume the market is in equilibrium and that the risk-free rate (Rf) is 2.70%. If a stock has a beta of 1.10 and a required rate of return of 13.10%, what is the return on the market portfolio (Rm)? Show your answer to the nearest 0.1% using whole numbers; do not use the % symbol (e.g., enter 14.1% as 14.1 rather than .141 or 14.1%).

Apple, inc (2022). Annual Report https:/5s atcdncom/470004039/6les/doc financials/2022/04/10-K-2022-14s Fied] podf Board of Governors of the Federal Reserve System, (2022). Monetary Policy Report - June 2022. https//Wmw federalreserve gov/monetarypolicy/2022-06 mpr-summary him Apple, inc (2022). Annual Report https:/5s atcdncom/470004039/6les/doc
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Which of the following is not true? A simple NPV analysis without scenario or sensitivity analysis is by itself NOT sufficient to address the forecasting risk. The average accounting return is defined as the possibility that we could make bad decision because of erroneous projection in future cash flows. Scenario analysis is one of the tools used
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Could someone do both and show the process 7. Patton Paints, Inc. maintains a capital structure of 40% debt and 60% common equity; all of the latter is external equity. The company's before-tax cost of debt is 12% and its tax rate is 36%. The current stock price is $22.50, the last dividend paid was $2.00, the dividend growth rate is expected to
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Q2

(Replacement project cash flows) The Minot Kit Aircraft Company of Minot, North Dakota, uses a plasma cutter to fabricate metal aircraft parts for its plane kits. The company currently is using a cutter that it purchased four years ago that has a book value of $60,000 and is being depreciated $15,000 per year over the next 4 years If the old
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o Stein and Company has established a sinking fund to retire a bond issue of $100,000, which is dun in ten years. How much is the quarterlyng hand payment the account pays 16% annual interest compounded quarterly? TD Click the icon to view the $1.00 sinking fund payments table TH The sinking fund payments (Round to the nearest cent as needed)
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Sunburn Sunscreen has a zero coupon bond issue outstanding with a $13,000 face value that matures in one year. The current market value of the firm's assets is $13,200. The standard deviation of the return on the firm's assets is 45 percent per year, and the annual risk-free rate is 4 percent per year, compounded continuously. Based on the
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You are a financial advisor and offer two risky funds A and B, and a risk-free money market fund. Fund A has an expected return of 18% and standard deviation of 21%. Fund B has an expected return of 8% and a standard deviation of 12%. The correlation between the two funds is 0.1. The risk free rate is 4%. Your client Derek wants to earn 9% on his

Your friend needs to deposit money in a savings account. Bank X offers a rate of 10.200% compounded monthly; Bank Y offers a rate of 10.100% compounded quarterly; Bank Z offers a rate of 10.350% compounded annually. Which bank is best for her? O Bank X O Not enough information to answer Bank Y Bank Z
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A stock pays a $2 dividend in year zero. Investors think the dividends will grow at 3% rate per year. This investor wishes to earn 15% on any stock investments (required return). Compute the common stocks current market value. [constant growth model CH 8]

Which of the following is NOT one of the costs or benelits that firm managers trade off when choosing their capital structures? Outside equity holders share profits and dilute the ownership of existing shareholders The use of debt introduces the possibility of bankruptcy if the firm does not generate adequate cash flows The use of debt reduces the
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a $1,000 par value bond is issued with an 8 percent coupon rate. In three years the yield to maturity on the bond is 6.75 percent and the bond is selling for 1068.83. What was the otiginal mataurity of the bond? Assume semi-annual coupon payments.

estion 3 1 points Save Answer Taking test counts of the year-end inventory is most likely to be considered a risk assessment procedure relating to Internal control True O False
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what are these payments worth to you when you first start college? O$7,080.00 O$7,758.83 $7,597.8:3 o $9,000.00 O $7,969.83
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Related to Checkpoint 15.2) (EBIT-EPS analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum cleaners and accessories. These stores would be located
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Find the proceeds of a promissory note with a maturity value of $2500 due on July 31, 2022, discounted at 8.3% compounded semi-annually on January 31, 2020. The proceeds are 50 (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Find the future value of the following investment Principal S5500.00
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Your firm has an average receipt size of $125. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days days. You typically receive 5,600 cheques per day. The daily interest rate is 0.016 percent. The bank charges a lockbox fee of $175 per day. a-1. What is the NPV of accepting the lockbox

ABC common stock trades at a market price of $100 There are traded European and American put and call options on ABC common stock with times to expiration of 1 year and exercise prices ranging from $80 to $120 in steps of $10. The risk tree rate is 5% continuously compounded Consider the following statements Statement 1. If the market price of a
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I don't understand why if the Price in P0 = (D1 +P1)/(1+rE) that in the below question In mid-2018, some analysts recommended that General Electric (GE) suspend its dividend payments to preserve cash needed for investment. Suppose you expected GE to stop paying dividends for two years before resuming an annual dividend of $1 per share, paid 3

Which statement is false? a) If you expect interest rates to fall, you would prefer a variable-rate over a fixed- rate mortgage. b) The maximum withdrawal under the Home Buyers Plan is $35,000 per couple. c) CMHC mortgage loan insurance costs can be added to the mortgage loan. d) AhomeinspecAonisusuallyacondiAoninanoffertopurchase.

Six years from today you need $10,000. You plan to deposit $1,600 annually, with the first payment to be made a year from today, in an account that pays a 5% effective annual rate. Your last deposit, which will occur at the end of Year 6, will be for less than $1,600 if less is needed to reach $10,000. How large will your last payment be? Do not

A fifteen - year - old girl from an elite ( and expensive ) private school applies for a credit card to fund her expenses during an international study tour of Europe organised by her school. She is asking for a credit limit of $ 2 , 0 0 0 and has a part - time job at her father s business that she is willing to use to repay the credit card. What

2. The Herrera Co. has $80,000 in taxable income. Using the tax rates from the following table, calculate the company's income taxes. Taxable Income Tax Rate 0-50,000 15% 50,000-75,000 25% 75,000-100,000 34% 100,000- 39% a. What are the tax liabilities? b. What is the average tax rate? c. What is the marginal tax rate
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