Q: 1. Pfd Company has debt with a yield to maturity of 7.8%, a cost of equity of 14.2%, and a cost of…
A: Yield to maturity of debt (rd) = 0.078 Cost of equity (re) = 0.142 Cost of preferred stock (rp) =…
Q: ROBLEM N0.3 r. Bolen needed P27,000 as a down ayment on a new lesla car. He borrowe
A: The loans are taken to purchase the car but these are to be paid by the periodic payments that carry…
Q: For an interest rate of 12% per year, compounded quarterly, the effective interest per six months is…
A: APR = 12% Number of compounding per year (m) = 4
Q: Question 40 The rate of interest that banks charge when they lend money to other…
A: Given, Meaning of federal funds, It is the rate which the bank charge on the other institutions for…
Q: Calculate the mean (that is, calculate the arithmetic mean) of the following set of values. Round to…
A: Answer - Formula of Arithmetic Mean - AM = Sum of Observation ÷ Total numbers of Observations A…
Q: After spending $10,400 on client-development, you have just been offered a big production contract…
A: Here, Cost of New Equipment is $28,000 Depreciation is 5 year MACRs Depreciation Depreciation Rate…
Q: Suppose a firm has a retention ratio of 60 percent, net income of $8 million, and 4 million shares…
A: Retention ratio = 60% Net income = $8 million Number of shares = 4 million
Q: yback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Ne
A: Step 1 A huge budget is a method through which a company assesses possible substantial projects or…
Q: 5. Given the following cost expenditures (see Table P6.3) for a small bridge job to include direct…
A: The cost identified in the cost baseline is defined as the total funding requirement. The management…
Q: BUS 038 : Business Computations 8. An invoice for $75.20 has terms of 3/10, 1/30, n/60. If you make…
A: Invoice amount = $75.20 Discount rate if payment within 10 days = 3% Discount rate if payment within…
Q: You want to start to save for a major purchase. You can invest P320 every three months for 3 years…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Does a firm's social presence need to be considered before an individual decides to invest? Why, or…
A: Investment means engaging your funds to generate income for the future. Before investing, various…
Q: 12- Florida Construction Equipment Rentals (FCER) purchases a new 10,000-pound-rated crane for…
A: Given, Here we have to find out the net present worth of the project. Meaning of net present worth:-…
Q: The Fed's action did not affect the forecasted cash flows. Вy how much did the change in the…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: 8. Growth Company's current share price is $20.00 and it is expected to pay a $1.30 dividend per…
A: Cost of capital is the cost of raising new funds from the market. The cost of equity is higher since…
Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…
A: We will apply the formula for calculating the future value of the money so that we can calculate the…
Q: Question 23 $900 is due at the end of 5 years and $700 at the end of 10 years. If money is worth 6%…
A: Payment due in 5 years (P1) = $900 Payment due in 10 years (P2) = $700 Interest rate = 6%…
Q: Business _____ is the systematic process of collecting, interpreting, and presenting numerical data…
A: Given statement the systematic process of collecting, interpreting, and presenting numerical data…
Q: You may use your financial calculator or excel for calculations but be sure to show your work (i.e.…
A: Part 1: Future Value = $400,000 Rate = 2% Time period = 18 months - 12 months = 6 months Present…
Q: 1. Only the sole proprietorship and partnership forms of business organization can resort to…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 1. Develop a revenue plan that will allow VGU to pay the interest and principal of the bonds. (How…
A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…
Q: Discuss at least three differences between investing in common stocks and investing in bonds.
A: Common stocks are the equity securities issued by the companies to the investors whereas bonds are…
Q: Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It…
A: Given: Contract NPV Use of facility A 1.95 100% B 0.95 58% C 1.47 42%
Q: A flood insurance rate map Specifies a designated floodplain management program for a…
A: In the world of finance in general and insurance in particular flood insurance rate map is an…
Q: 14. Determine the numerical value of the factor (F/A, 5%, 10). A 0.1295 B 0.0795 12.5779 D 7.7217
A: Future value is the value of a certain sum of money in the future. The future value of the annuity…
Q: You would like to have $53,000 in 13 years. To accumulate this amount, you plan to deposit an…
A: Amount to accumulate is $53,000 Interest rate is 6% Time period is 13 years To Find:- Annual…
Q: Alberta Royalty Trust Inc. is projecting it will pay the following dividends (assume paid at the end…
A: Two-stage dividend discount model: Investors and analysts sometimes examine a company's dividend…
Q: Apple Corp. had the following portfolio of financial instruments of the December 31, 2020. All…
A: Realized gain on the sale of the bond When a bond is sold before its maturity, the realized gain…
Q: What is the bid-ask spread? What are the components of the bid-ask spread. Use an original example…
A: The greatest amount a buyer will pay for a security is referred to as the bid price and the lowest…
Q: Suppose you make a down payment of 6% of $27,600 for a car and finance the rest at 1.5% compounded…
A: Given that: Total Amount=$27600 Down Payment=6% of $27600=$1656 P=$27600-$1656=$25944 t=48= 4 years…
Q: On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly…
A: Quaterly deposit in investment fund is $400 Interest rate of quaterly fund is 4.6% payable quaterly…
Q: True or False 1. One of the company's sources of funds is its own accumulated earnings. 2. In a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Directions: Determine whether each of the following situation is Simply Annuity or General Annuity.…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: A couple has decided to purchase a $180000 house using a down payment of $20000. They can amortize…
A: Here,
Q: BrightLine Medical Products delivers medical supplies to small offices across the metro area. The…
A: The churn rate indicate that how much is the amount of customers lost during the given period of…
Q: he level of financial risk to which a firm is exposed is dependent on the firm's: (a) tax rate (b)…
A: Financial risk can be defined as the risk of availing of finance and not being able to return it. It…
Q: what will be the new loan maturity (IN YEARS) assuming that loan payments are not reduced?
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…
Q: 19. A company manufacturing calculators has a capacity of 200 units a month. The variable costs are…
A: The quantity of units sold by your company within a given reporting period is referred to as sales…
Q: Joan Raft had taken out an $80,000 fire insurance policy for her new shop at a rate of $0.81 per…
A: Given, The fire insurance guidelines says that the person is only eligible for the refund only…
Q: n the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…
A: Future Value(FV) is ascertained to know the expected value of current amount that will be invested…
Q: A new family who wants to purchase a home with a price of $250,000 has $50,000 for a down payment.…
A: Here, Purchase price = $250,000 Down payment = $50,000 Interest rate = 3.50% Term of loan = 15 years…
Q: What is the Rate of Interest?
A: Given P= 10000 A=5000 n=1year r=?
Q: Assume that Domino's Pizza Enterprise is a constantly growing company with a 5\% growth rate. Today…
A: The last year dividend (D0) can be calculated with the help of dividend discount model
Q: A company has profits of $38,982 this year and expects profits to decrease by $1,728 dollars per…
A: Given: Profit = $38,982 Decrease in profit = $1,728 Year = 12 APR = 6.2%
Q: How long does it take for an investment to double in value if it is invested at 5% compounded…
A: We assume that:Investment = 100 Future Value = Double of investment = 200 Interest Rate = 5%…
Q: How long will it take money to double if it is invested at 5% compounded weekly?
A: Compound interest takes into account the interest accrued on a principal and thereby it is called as…
Q: A technology company deposited $93,900 into an account for quarterly scholarships to be awarded to…
A: The present value method is used to measure the profitability of a project by adding up discounted…
Q: Pompeii's Pizza has a delivery car that it uses for pizza deliveries. The transmission needs to be…
A: Present Car New Car Purchase cost new $32,000.00 Transmission and other repairs $…
Q: Daily Enterprises is purchasing a $9.8 million machine. It will cost $47,000 to transport and…
A: Free cash flow Free cash flow is the net earnings plus the depreciation as cashflow considers only…
Q: If total debt and total asset are RM3,050,000 and RM3,460,000 respectively, calculate Debt-to-assets…
A: Long-term Solvency: Long-term solvency shows the strength and the ability of the company to pay its…
Learn your way
Includes step-by-step video
Step by step
Solved in 4 steps
- Balance sheet Assets (in KD) Liabilities (in KD) 80000 Accounts payable Accrued expenses Cash 20000 100000 100000 Accounts receivable Inventory 210000 Notes payables 180000 Property, Equipment, Plants 1500000 Long-term borrowings 50000 400000 Less Amortization Total liabilities Total equity Total assets Total Liabilities and Total Equity Income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Taxes 20000 Net Income Consider the above balance sheet and income statement. The account payable deferral period is equal to: (Note: Show calculation details in the reasons box) Oa 52.40 days Ob 365 days Oc 32 44 days 73 daysAssume the following information is given:Income statementNet sales sh. 200,000Operating income 10,000 Balance sheetCurrent assets 95,000Total assets 150,000 Current liabilities 80,000Total liabilities 125,000Retained earnings 25,000 The market value of equity is sh. 300,000Required:Evaluate the credit worthiness of the borrower using Altman ZBalance sheet Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 Accounts receivable 100000 Accrued expenses 100000 Inventory 210000 Notes payables 180000 Property, Equipment, Plants 1500000 Long-term borrowings 400000 Less: Amortization 50000 Total liabilities Total equity Total assets Total Liabilities and Total Equity Income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Taxes 20000 Net Income Consider the above balance sheet and income statement. The account payable deferral period is equal to: (Note: Show calculation details in the reasons box) Oa 52.40 days Ob 365 days Oc 32 44 days Cd 73 days
- Balance sheet Liabilities (in KD) Assets (in KD) 20000 Accounts payable 80000 Cash Accounts receivable 100000 Accrued expenses 100000 Inventory 210000 Notes payables 180000 Property, Equipment, Plants 1500000 Long-term borrowings 50000 400000 Less: Amortization Total liabilities Total equity Total assets Total Liabilities and Total Equity Income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Тахes 20000 Net Income The fixed asset turnover ratio can be explained as follows: (Note: Show calculation steps in the reasons box) Oa Each dinar of fixed assets is generating $0.6 in sales. Ob Each dinar of fixed assets is generating $0.62 in sales. Oc Each dinar of sales is generating $0.6 in fixed assets. Od Each dinar of sales is generating $0.62 in fixed assets.Consider the Föllowing balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1900 7% %$4 1300 9% Fixed rate $ 500 9% %$4 1900 6% Non earning $ 2700 %$4 800 Equity 1100 Total $ 5100 $ 5100 What is the Net Interest Income (NII)Assets (in KD) Liabilities (in KD) 20000 Accounts Cash 80000 payable Accrued Accounts receivable 100000 100000 expenses 210000 Notes payables 180000 Inventory Property, Equipment, Plants Less: Amortization 1500000 Long-term borrowings 400000 50000 Total liabilities Total equity Total Liabilities and Total Equity Total assets Income statement Sales COGS 900000 400000 Gross profit Operating expenses200000 EBIT Interest expenses EBT 50000 Taxes 20000 Net Income Consider the above balance sheet and income statement. The average collection period is equal to: (Show calculation steps in reasons box) a. 100.55 days b. 54.50 days C. 55.40 days d. 40.55 days
- Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 Accounts receivable 100000 Accrued expenses 100000 210000 Notes payables Property, Equipment, Plants 1500000 Long-term borrowings Inventory 180000 400000 Less: Amortization 50000 Total liabilities Total equity Total assets Total Liabilities and Total Equity Income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Taxes 20000 Net Income The fixed asset turnover ratio can be explained as follows: (Note: Show calculation steps in the reasons box) Oa Each dinar of fixed assets is generating $0.6 in sales. Ob Each dinar of fixed assets is generating $0.62 in sales Oc Each dinar of sales is generating $0.6 in fixed assets 04 Each dinar of sales is generating $0.62 in fixed assets.ACCOUNTING ASAP Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10. Calculate the cash coverage ratio. Select one: a. 7.0x b. 4.7x c. 14.0x d. 5.0xBalance sheet Assets (in KD) Liabilities (in KD) Cash 154674 Accounts payable 80000 Accounts receivable 100000 Accrued expenses 100000 Inventory 210000 Notes payables 180000 Property, Equipment, Plants 1500000 Long-term borrowings 400000 Less: Amortization 50000 Total liabilities Total equity Total assets Total Liabilities and Total Equity Income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Taxes 20000 Net Income Consider the above balance sheet and income statement. Calculate the retun on assets of this company In the reasons box, explain your answer in a sentence. Note Use three decimal poants in your answer (0.023 0.058 Answer Give your reasons
- Balance sheet Liabilities (in KD) Assets (in KD) 80000 20000 Accounts payable Cash 100000 Accrued expenses 100000 Accounts receivable 180000 208231 Notes payables Inventory 400000 Property, Equipment, Plants 1500000 Long-term borrowings Less: Amortization 50000 Total liabilities Total equity Total assets Total Liabilities and Total Equity income statement Sales 900000 COGS 400000 Gross profit Operating expenses 200000 EBIT Interest expenses 50000 EBT Taxes 20000 Net Income Consider the above balance sheet and income statement. Calculate the inventory turnover ratio of this company In the reasons box, explain your answer in a sentence Note Use two decimal points in your answer (2.54, 4.26,) Answer Give your teasonsConsider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% %$4 1700 8% Fixed rate $500 9% $1500 5% Non earning $ 5100 $. 1800 Equity 1900 Total $ 6900 $6900 What is the Net Interest Margin (NIM)Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 800 7.0% 500 3.0% Fixed rate $ 400 9.0% 300 5.0% Non earning $ 200 200 $ 1,000 Equity 400 Total $ 1,400 $ 1,400 What is the Net Interest Margin (NIM) Select one: O a. 4.5% O b. 6.2% O c. 5.17% O d. 7.12% %24 %24 %24