Q: Hedging translation exposure with forward contracts can backfire if the currency being hedged deprec...
A: The answer and the explanation can be seen below:
Q: MNC's and domestic companies both try to optimize their weighted cost of capital.
A: The answer is given below with explanation:
Q: Floral Fantasia has annual sales of $61,888, depreciation of $8,100, interest paid of $970, cost of ...
A: Sustainable Growth Rate: The sustainable growth rate (SGR) is the maximum rate of development that a...
Q: What is the 'UNLEVERED PROFIT AFTER TAX' in the year 2019? Rs. 0.41 million Rs. 0.51 million Rs. 0....
A: Given, For 2019 Profit before interest and taxes = Rs 0.76 Mn Corporate tax = Rs 0.25 Mn
Q: )high total costs per unit. high fixed costs in its production process. ) high variable costs in its...
A: Operating leverage is the results from existence of fixed costs that the firm must pay to operate.
Q: hen comparing the forward hedge to the money market hedge, the MNC can easily determine which hedge ...
A: Forward hedge hedge and money market hedge are two different methods of hedging.
Q: Money-market covered hedges can have variable outcomes while options are certain. Group of answer ...
A: Money market hedge is the hedging technique of locking the future value od exchange rate using money...
Q: A COMPANY WILL BE FINANCING ITS OPERATIONS WITH AND A CAPITAL BUDGET IS 40,000,000 AND DEBT-TO-EQUIT...
A: WACC is the cost a firm would have to pay to the providers of its capital. It equals the sum of the ...
Q: • From the banker’s point of view, when the banker quotes a floating interest, in doing so, the bank...
A: Interest Rate Risk - The impact on the earning, decrease in value of the assets or increase in liabi...
Q: Create a step by step process in getting the Present Value of Deferred Annuity. Step 1 Step 2 Step 3
A: An annuity is a periodic payment of the same amount. The Deferred annuity is a special case of annui...
Q: Browning's has a debt-equity ratio of .47. What is the equity multiplier?
A: The ratio that shows the portion of the assets that are financed by equity is term as the equity mul...
Q: What is the weighted average cost of capital (WACC) and its significance?
A: Weighted average cost of capital (WACC): When a firm's weighted average cost of capital (WACC) is ca...
Q: Decide on the following problems by determining the fair market value. Show your solutions in a shee...
A: The fair market value: The fair market value is the price that one can expect to purchase the cash s...
Q: or the writer of a put option, if the underlying share price: a. moves above the strike price, the p...
A: Options give the buyer the right to purchase but not the obligation to execute the contract. The opt...
Q: Suppose that the initial dividend on a stock is £1. The interest rate is 3 percent and the growth ra...
A: Initial dividend (D1) = £1 Interest rate (r) = 3% Growth rate (g) = 2%
Q: 6. Jasper Brown deposited $743.20 in a savings account at the Suburban Trust Com- pany on May 1. At ...
A:
Q: Cost of debt with fees. Kenny Enterprises will issue a bond with a par value of $1,000, a maturity o...
A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are ...
Q: Chronos Time Pieces. Chronos Time Pieces of Boston exports watches to many countries, selling in loc...
A: Case 1: 1)Amount to be received in 90 days in case of 100% hedge = Amount covered under hedging * Fo...
Q: wer should be in two decimal only, i will auto
A: The given problem can be solved using RATE and FV function in excel. RATE function computes rate of ...
Q: Financial intermediaries provide which of the following?
A: Financial Intermediaries: They are intermediaries or middlemen between the two parties for financial...
Q: Given that F=P75,000 , r=6%, t=3 years and m=12, how much is the present value?
A: a) F = P 75000 Interest rate = 6% per annum Periodic rate (r) = 6/12% = 0.5% t = 3 years = 36 perio...
Q: (Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $35.33 a...
A: Cost of capital of preferred stock = Annual dividend / Share price
Q: what will be the withdrawal amount at the end of the 12th year
A: Interest for 1st 6 years Given present value pv =5000 Rate i = 8% Fv= pv*(1+r)^n = 5000*(1+8%)^6 =...
Q: An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a f...
A: YTM is 9.3% Time to maturity is 4 years Par value is $1000 To Find: Bond Price
Q: Give an example of a breakeven point in a business
A: Break even point is an important economic point in business activity.
Q: In an option the "strike" price and "exercise" price have two completely different meanings.
A: The answer and the explanation is provided below:
Q: Agency Theory suggests: A) The interests of the managers are aligned with the interest of stockhold...
A: Agency theory tries to emphasize on solving the conflicts between management and shareholders of a f...
Q: Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The prefe...
A: Par value = $ 79 Dividend rate = 8.7% Dividend amount (D) = 79*0.087 = $ 6.873 Stock price (P) = $ 6...
Q: A certain sum of money P draws interest compounded continuously. If at a certain time there are Po d...
A: FV in case of continuous compounding is: FV = PV * e^rt
Q: Solve the following problem on Mortgages. (Round amounts to the nearest centavo) A man obtained a mo...
A: Mortgage amount = P 560,000 Monthly payment = P 7957 Period = 20 Years Number of monthly payments = ...
Q: Use the following information for the next 8 questions. UCD (U.S. based MNC) will receive 250,000 e...
A: Forward market is made of Forward contract which is an over the counter derivative instrument which ...
Q: A certain sum of money P draws interest compounded continuously. If at a certain time there are Po d...
A: Future value in case of continuous compounding is: FV = PV * e^rt
Q: 1) Inadequacies of the existing system of financial ratios signify a need for a different approach t...
A: Financial ratios involve analyzing the financial information provided in the financial statements.
Q: You ase determing your organizations MARR using the oPPortunity cost aPpronch. Your organization has...
A: The question is related to Capital Budgeting and cost of capital. First we will calculate the weight...
Q: how much will Maria’s payment be?
A: EMI = loan / PVAF(r%,n) PVAF = sum of PVF (r%,n) n= 12months to 60 months
Q: How to 'Cross the chasm'- considering mobile money tranferring business?
A: The chasm exists since, at a certain point of selling a product to early adopters, revenues plateau ...
Q: On October 31st, David signed a 4-month, $5,000 simple interest loan earning 7. Find the maturity da...
A: Loan signed on October 31st for principal "P" is $5000. Rate of interest "r" is 7% and number of mon...
Q: In determining the optimal weighted average cost of capital, an MNC can never have too much debt. Gr...
A: The Weighted Average Cost of Capital is always post tax. It is calculated with the help of following...
Q: p. Deferred Taxes Aylmer has a corporate tax rate of 28%. There are two differences that have been i...
A: Deferred Tax Liability: If tax paid is less than tax considered on the income statement , Deferred ...
Q: Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constan...
A: Here, Yield of T-bills is 7% Inflation Rate is 4.70%
Q: A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What...
A:
Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation...
A: As you have asked a question with multiple parts, we will solve the first 3 parts as per policy of B...
Q: What is the return on equity?
A: Return on Equity: It is the return made by the shareholders of the company. ROE is computed from th...
Q: How primary and secondary markets work.
A: Hi, Thanks for the Question. Since you asked multiple questions, we will answer first question for y...
Q: Inadequacies of the existing system of financial ratio signify a need for a different approach to mo...
A: Financial ratios helps in the interpretation of any company’s finances’ raw data and get inputs on i...
Q: ive at the amount of IRR? can someone please explain how to
A: Internal rate of return or IRR is the rate at which present value of cash inflows is equal to presen...
Q: What is the added value of the multi-period models of discounted cash-flows over the constant-growth...
A: Discounted cash flow models are used to value a stock of a company paying dividends. There are two t...
Q: The weed killer company uses 30 gallons (demand rate) of weed kill per day. The supply of weed kill ...
A: Data given:: Daily demand = 30 gallons Re order point = 170 gallons Average lead time = 4 days Safet...
Q: Book value versus market value components. The CFO of DMI is trying to determine the company's WACC....
A: WACC =Cost of equity×Weight of equity +After tax cost of debt × Weight of debt +Cost of preferred st...
Q: (a) How much should an investor pay for a $1,000 ARA Corporation bond? (b) Discuss reasons why an...
A: Bond: It is a debt instrument issued by the company for raising debt capital. Hence the bond holder...
Question 2.
Based on the following information, prepare the statement of sources and uses of funds in the zakat and charity funds for the year 2020. Note that the undistributed Zakat and charity on 1st January is RM910,000.
Paid RM70,000 as Zakat for the poor and the needy, Zakat due from the bank RM4,400,000; wayfarer received RM110,000; new converts to Islam received RM245,000; Zakat collection and distribution to staff RM155,000; Donations RM3,700,000; RM330,000 for the heavily indebted and freedom of slaves; Zakat due from accountholders RM990,000.
Step by step
Solved in 2 steps
- Below is the complete set of Financial Statements of Take-Home University (THU), a PublicUniversity of Ghana, issued on 1st May 2020.Statement of Financial Performance for the Year Ended 31 December, 2018Revenue NotesGOG grant 1,540,000,000Internally Generated Funds 2 14,427,492,000Donations and other income 9,278,258,00025,245,750,000ExpenditureCompensation for employees 3 8,385,270,000Goods and services 4 2,238,083,000Social benefit 1,720,000Interest 1,720,000Capital expenditure (CAPEX) 5 25,542,515,000Other expenses 6 79,100,00036,248,408,000Net Operating Result – Deficit (11,002,658,000)Statement of Financial Position as at 31 December 2018NotesCurrent AssetsCash and cash equivalent 294,233,000Receivable (468,050 -10,000) 458,050,000Inventory 155,254,000907,537,000Liabilities and FundPayable 7 696,325,00020% Loan 8,600,000704,925,000Accumulated fund 8 202,612,000907,537,0004Cash Flow Statement for the Year ended 31st December 2018Cash InflowsGOG grant 1,540,000,000Internally…Below is the complete set of Financial Statements of Take-Home University (THU), a PublicUniversity of Ghana, issued on 1st May 2020.Statement of Financial Performance for the Year Ended 31 December, 2018Revenue NotesGOG grant 1,540,000,000Internally Generated Funds 2 14,427,492,000Donations and other income 9,278,258,00025,245,750,000ExpenditureCompensation for employees 3 8,385,270,000Goods and services 4 2,238,083,000Social benefit 1,720,000Interest 1,720,000Capital expenditure (CAPEX) 5 25,542,515,000Other expenses 6 79,100,00036,248,408,000Net Operating Result – Deficit (11,002,658,000)Statement of Financial Position as at 31 December 2018NotesCurrent AssetsCash and cash equivalent 294,233,000Receivable (468,050 -10,000) 458,050,000Inventory 155,254,000907,537,000Liabilities and FundPayable 7 696,325,00020% Loan 8,600,000704,925,000Accumulated fund 8 202,612,000907,537,0004Cash Flow Statement for the Year ended 31st December 2018Cash InflowsGOG grant 1,540,000,000Internally…4. As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two (2) clients based on their respective financial situations Betty Kay has a contract in which she will receive the following payment for the next 5 year: $1,000, $2,000, $3,000, $4,000 and $5,000. She will then receive an annuity of $8,500 a year for the end of the 6th through the end of the 15th year. She is offered a $30,000 to cancel the contract. If the payments are discounted at 14 percent should she cancel the contract? Showallworkings.
- Question You are provided with the following information relating to the Consolidated Fund for the year ended 31st December, 2019. Debit Credit GHC'000 GHc'000 Corporate taxes 200,000 Personal income taxes 120,000 Capital gain taxes and sundries 50,000 Taxes on general goods and services 180,000 Fees, fines and penalties 80,000 Investment income 20,000 Custom duties 250,000 Grants 150,000 Communication service taxes 100,000 Royalties 40,000 Established post 240,000 Casual labour 60,000 Travel and transport 70,000 Repairs and maintenance 50,000 13% Social security contribution 26,000 Gratuity and end of service benefit 168,000 State protocol 180,000 Independence Day celebration 205,000 Seminar and conferences 30,000 Probation 25,000 Property plant and equipment (at cost) 300,000 Infrastructure (at…Question You are provided with the following information relating to the Consolidated Fund for the year ended 31st December, 2019. Debit Credit GHC'000 GHc'000 Corporate taxes 200,000 Personal income taxes 120,000 Capital gain taxes and sundries 50,000 Taxes on general goods and services 180,000 Fees, fines and penalties 80,000 Investment income 20,000 Custom duties 250,000 Grants 150,000 Communication service taxes 100,000 Royalties 40,000 Established post 240,000 Casual labour 60,000 Travel and transport 70,000 Repairs and maintenance 50,000 13% Social security contribution 26,000 Gratuity and end of service benefit 168,000 State protocol 180,000 Independence Day celebration 205,000 Seminar and conferences 30,000 Probation 25,000 Property plant and equipment (at cost) 300,000 Infrastructure (at…1. As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise this client based on their respective financial situations. a) Betty Kay has a contract in which she will receive the following payment for the next 5 year: $1,000, $2,000, $3,000, $4,000 and $5,000. She will then receive an annuity of $8,500 a year for the end of the 6th through the end of the 15th year. She is offered a $30,000 to cancel the contract. If the payments are discounted at 14 percent should she cancel the contract? Show all workings.
- Problem #11: Suppose that on January 1, 2021 the balance on a fund is $14940. Suppose that there are contributions to the fund of $5920, $2954, and $5916 made, respectively, on the first day of March, September, and November 2021. In addition, suppose that there are withdrawals from the fund of $5099 and $9068 made, respectively, on the first day of May and September. Finally, suppose that the balance of the fund on the last day of February, April, August, October, and December 2021 is, respectively, $28739, $36236, $32115, $30305, and $16445. (a) Find the dollar-weighted rate of return for the year. (b) Find the time-weighted rate of return for the year. (A) 5.2% (B) 5.59% (C) 5.33% (D) 5.72% (E) 5.46% Problem #11(a): Select v (A) 9.64% (B) 9.77% (C) 9.25% (D) 9.51% (E) 9.38% Problem #11(b): Select v4. The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund. Accounts payable Accounts receivable Accrued interest payable Accumulated depreciation Administrative and selling expenses Allowance for uncollectible accounts Capital assets Cash Charges for sales and services Cost of sales and services Depreciation expense Due from General Fund Interest expense Interest revenue Transfer in from General Fund Bank note payable Supplies inventory Totals Debits $32,000 47,000 712,000 89,000 479,000 45,000 17,000 40,000 18,000 $1,479,000 Credits $ 96,000 28,000 45,000 12,000 550,000 4,000 119,000 625,000 $1,479,000 Required: a. Prepare the closing entries for December 31. b. Prepare the Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31. c. Prepare the Net Position section of the…LGI Pte Ltd is a company incorporated in Singapore. During the year ended 31 December 2023, the company made the following donations: – Cash to Singapore Red Cross Society re: China earthquake $3,000 – Cheque to Handicaps Welfare Association $1,000 for the purchase of wheelchairs – Cash to Home Nursing Foundation $500 – Christmas gifts for the patients at Assisi Hospice $500 All the above are approved institutions of a public character. What is the amount of approved donations that can be deducted against the statutory income for the year of assessment 2024? A. $3,750 B. $4,500 C. $13,500 D. $15,000
- In July 2022, a donor promises to donate $100,000 in cash to an NFP organization if the local NFP can raise the same amount ($100,000) from other donors by December 2022. How much revenue (if any) should the NFP recognize in July 2022? (do not use $ signs, commas or decimals in your answer) In July 2022, a donor promises to donate $100,000 in cash to an NFP organization on December 1, 2022. How much revenue (if any) should the NFP recognize in July 2022? (do not use $ signs, commas or decimals in your answer)Edwards Center for GNP Accounting, a nonprofit organization, receives a letter from a donor that includes a promise to donate $100,000 in the next fiscal year provided the Center raise an equal amount of cash from other donors. What journal entry will be recorded when the letter is received? No journal entry would be recorded. Debit cash $100,000; credit refundable advance $100,000 Debit pledge receivable $100,000; credit contribution revenue with donor restrictions $100,000 Debit pledge receivable $100,000; credit contribution revenue without donor restrictions $100,000 Debit pledge receivable $100,000; credit refundable advance $100,000The following information relates to transactions of the Consolidated Fund for the year ended 31st December, 2019. GHc’000 Tax revenues 200,000 Non tax revenues 98,500 Grants 67,000 Purchase of goods 41,000 Purchase of Furniture and Fittings 34,000 Construction of Roads 85,000 Domestic borrowing 40,000 External bilateral borrowing 70,000 Eurobonds issued 92,000 Repayment of domestic borrowing 22,000 Purchase of motor vehicle 21,000 Repayment of Eurobond 33,400 Interest paid 25,000 Sale proceeds from disposal of Equity Investment 43,500 Consultancy services paid 15,500 Consumption of fixed capital 50,000 Bank and cash balance ( 1/1/19) (80,000) Bank balance and cash (31/12/19) 254,100 Required: Prepare Cash Flow Statement for the Consolidated Fund for the year ended 31st December 2019 in accordance with the IPSAS 2: Cash Flow Statement.