15- If you invest $34,000 at 8% interest, how much
Get college assignment help at Smashing Essays Question 15- If you invest $34,000 at 8% interest, how much will you have in 15 years? Use Appendix A to calculate the answer.$162,620$107,848$10,710$44,710 Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.52.06 PM.png ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.52.13 PM.png
What are the risks of investing in U.S. Treasury bills?
Question What are the risks of investing in U.S. Treasury bills? Select all that apply.Interest rate riskLiquidity riskInflation riskDefault risk0.5 points QUESTION 2Why do interest rates spread? Select all that apply.Inflation risk differencesDefault risk differencesLiquidity risk differencesInterest rate risk differences0.5 points QUESTION 3Why is the 4-week U.S. T-bill yield different from the 10-year U.S. T-note yield? Select all that apply.Inflation risk differencesDefault risk differencesLiquidity risk differencesInterest rate risk differences0.5 points
The FASB defines financial lease as leases that meet the
Question The FASB defines financial lease as leases that meet the following:The lease agreement transfers ownership to the lessee before the lease expires, or the lessee can purchase the asset for a bargain price when the lease expires.The lease agreement transfers ownership to the lessee before the lease expires or the lessee can purchase the asset for a bargain price when the lease expires, or the lease lasts for at least 75 percent of the asset’s estimated economic life.The lease agreement transfers ownership to the lessee before the lease expires, or the lessee can purchase the asset for a bargain price when the lease expires, or the lease lasts for at least 75 percent of the asset’s estimated economic life, or the present value of the lease payments is at least 90 percent of the asset’s value.The lessee can purchase the asset for a bargain price when the lease expires, or the lease lasts for at least 75 percent of the asset’s estimated economic life, or the present value of the lease payments is at least 90 percent of the asset’s value.
/>a. Calculate the year−by−year book and economic profitability for investment
Question />a. Calculate the year−by−year book and economic profitability for investment in polyzone production. Assume straight−line depreciation over 10 years and a cost of capital of 9%. (Negative answers should be indicated by a minus sign. Leave no cells blank − be certain to enter “0” wherever required. Do not round intermediate calculations. Enter your income answers in millions rounded to 2 decimal places and enter the rate of return as a percent rounded to 2 decimal places.) Attachment 1 Attachment 2 Attachment 3 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 6.32.25 PM.png Use the cash flows and competitive spreads shown in the table below. ($ millions ) Year 0 Year 1 Investment Year 2 Years 3-10 150 Production (millions of pounds per year) 0 0 56 96 Spread ( $ per pound) 1. 11 1 . 11 1. 11 1. 11 Net revenues 0 62. 16 Production costs 106.56 46.00 46.00 Transport 0 0 Other costs 0 36 36 36 Cash flow -150 -36 -19. 84 24.56 NPV (at r = 93 ) = 0 Assume the dividend payout ratio each year is 100%. ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 6.32.40 PM.png Economic Period Book income ($ in | Book rate of return millions) (%) income ($ in millions) 0 0 2 3 5 6 8 10 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 6.32.52 PM.png h—1. What is the economic rate of return? {Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Economic rate of return h-2. Now compute the steady—state book rate of return (ROI) for a mature company producing polyzone. Assume no grown-I and competitive spreads. {Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
How do Central banks in principle respond to a domestic
Question How do Central banks in principle respond to a domestic shock associated with increased confidence if the central bank choosing to stabilize the exchange rate but allows output to be destabilized?
8- The Burma Hat Company’s warrant is trading for $10.20.
Question 8- The Burma Hat Company’s warrant is trading for $10.20. The warrant carries the option to purchase two shares of common stock for $48. What is the speculative premium if the stock price is $51.30?
9- How much must you invest today at 10% interest
Question 9- How much must you invest today at 10% interest in order to see your investment grow to $12,000 in 3 years?
10- Firm X has a tax rate of 29%. The
Question 10- Firm X has a tax rate of 29%. The price of its new preferred stock is $65 and its flotation cost is $2.00. The cost of new preferred stock is 12%. What is the firm’s dividend? (Round your answer to 2 decimal places.)
11- Ambrin Corp. expects to receive $5,000 per year for
Question 11- Ambrin Corp. expects to receive $5,000 per year for 13 years and $6,500 per year for the next 13 years. What is the present value of this 26 year cash flow? Use an 9% discount rate. Use Appendix D and Appendix B to calculate the answer. (Round your intermediate calculations to the nearest dollar value.)$53,300$86,101none of these$64,531 Attachment 1 Attachment 2 Attachment 3 Attachment 4 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.05.17 PM.png ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.05.27 PM.png ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.05.49 PM.png Appendix D Present value of an annuity of $1, PV FA PVA = A (1 1) Percent Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 11% 12% 0.990 0.980 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 1.970 1.942 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.487 2.444 2.402 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.696 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 6.728 6.472 6.230 6.002 5.786 5.582 5.206 5.033 4.868 4.712 4.564 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.535 5.335 5.146 4.968 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 5.759 5.537 5.328 10 9.471 8.983 8.530 8.11 1 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 1 1.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 6.8 14 6.492 6.194 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 14 13.004 12.106 1 1.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 15 mmmmmm 13.865 12.849 1 1.938 1 1. 1 18 10.380 9.712 8.559 7.606 7.191 6.811 16 14.7 18 13.578 12.561 1 1.652 10.838 10. 106 9.447 8.851 8.313 7.824 7.379 6.974 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.022 7.549 7.120 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 17.226 15.678 13.134 12.085 11. 158 10.336 9.604 8.950 8.365 7.839 7.366 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 1 1.258 10.274 9.427 8.694 8.055 40 32.835 27.355 23.1 15 19.793 17.159 15.046 13.332 1 1.925 10.757 9.779 8.244 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 9.042 8.304Read more ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.05.59 PM.png Appendix D (concluded) Present value of an annuity of $1 Percent Period 13% 14% 15% 16% 17% 18% 19% 25% 30% 35% 40% 50% 0.885 0.877 0.870 0.862 0.855 0.840 0.769 0.741 0.667 1.668 1.647 1.605 1.585 1.547 1.528 1.440 1.361 1.1 11 2.361 2.322 2.283 2.246 2.2 10 2.174 2.140 2.106 1.952 1.696 1.589 1.407 2.974 2.914 2.855 2.798 2.690 2.639 2.589 2.362 2.166 1.605 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.689 2.436 2.220 2.035 1.737 3.998 3.889 3.784 3.685 3.589 3.498 3.4 10 3.326 2.951 2.643 2.385 2. 168 1.824 4.423 4.288 4.160 4.039 3.922 3.8 12 3.706 3.605 3.161 2.802 2.508 2.263 1.883 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.329 2.925 2.598 2.331 1.922 9 5.132 4.946 4.772 4.607 4.451 4.303 4.031 3.463 3.019 2.665 2.379 1.948 10 5.426 5.2 16 5.019 4.659 4.494 4.339 4.192 3.571 3.092 2.715 2.414 1.965 5.687 5.453 5.234 5.029 4.836 4.656 4.327 3.656 2.752 2.438 1.977 5.918 5.660 5.421 4.988 4.611 4.439 3.725 3.190 2.779 1.985 13 6.122 5.842 5.583 5.342 5.1 18 4.910 4.715 4.533 3.780 3.223 2.469 1.990 14 6.302 6.002 5.468 5.229 5.008 4.611 3.824 2.814 2.478 1.993 15 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 3.859 3.268 2.825 2.484 16 6.604 6.265 5.954 5.668 5.405 5.162 4.938 3.887 3.283 2.834 2.489 1.997 17 6.373 6.047 5.749 5.475 5.222 4.988 4.775 3.910 3.295 2.840 2.492 1.998 18 mummum 6.840 6.467 6.128 5.8 18 5.534 5.273 5.033 4.812 3.928 3.304 2.844 2.494 19 6.938 6.550 6.198 5.877 5.584 5.070 3.31 1 2.496 1.999 20 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 3.954 3.316 2.850 2.497 1.999 25 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 3.985 3.329 2.856 2.000 30 7.496 7.003 5.5 17 5.235 4.979 3.332 2.000 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 3.999 3.333 2.857 2.500 2.000 7.675 7.133 6.661 5.880 5.554 5.262 4.999 4.000 3.333 2.857 2.500 2.000Read more
12- The “floor” or pure bond value of a convertible
Question 12- The “floor” or pure bond value of a convertible bond is found by
13- Which of the following characteristics are drawbacks of convertible
Get college assignment help at Smashing Essays Question 13- Which of the following characteristics are drawbacks of convertible bonds?Conversion may be forced on the bondholder by call provisions on the convertible bond.
14- Which of the following is true?
Question 14- Which of the following is true?
15- A firm’s preferred stock pays an annual dividend of
Question 15- A firm’s preferred stock pays an annual dividend of $2, and the stock sells for $71. Flotation costs for new issuances of preferred stock are 7% of the stock value. What is the after-tax cost of preferred stock if the firm’s tax rate is 35%? (Round your answer to 2 decimal places.)
16- To save for her newborn son’s college education, Lea
Question 16- To save for her newborn son’s college education, Lea Wilson will invest $22,000 at the beginning of each year for the next 18 years. The interest rate is 8 percent. What is the future value? Use Appendix C to calculate the answer.
17- Jacobs Company has warrants outstanding, which are selling at
Question 17- Jacobs Company has warrants outstanding, which are selling at a $2.00 premium above intrinsic value. Each warrant allows its owner to purchase one share of common stock at $25. If the common stock currently sells for $28, what is the warrant price? (Round your answer to 2 decimal places.)
18- Vickrey Technology has had net income of $1,500,000 in
Question 18- Vickrey Technology has had net income of $1,500,000 in the current fiscal year. There are 1,000,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $8 million. The $8 million is represented by 5,000 different $1,000 bonds. Each $1,000 bond owes and pays 4% interest. The conversion ratio is 30. The firm is in a 21% tax bracket. What is Vickrey’s “diluted earnings per share?”
19- The Burma Hat Company’s warrant is trading for $10.20.
Question 19- The Burma Hat Company’s warrant is trading for $10.20. The warrant carries the option to purchase two shares of common stock for $48. What is the speculative premium if the stock price is $51.30?
20- Sen Corporation warrants carry the right to buy 8
Question 20- Sen Corporation warrants carry the right to buy 8 shares of Sen common stock at $10.00 per share. The common stock has a current market price of $11.50 per share. The intrinsic or minimum value of one Sen warrant is ________. (Round your answer to 2 decimal places.)
21- Expectations of a significant increase in the price of
Question 21- Expectations of a significant increase in the price of a firm’s common stock will result in
please answer detail src=”/qa/attachment/8319016/” alt=”02.png” /> Attachment 1 Attachment 2
Question please answer detail src=”/qa/attachment/8319016/” alt=”02.png” /> Attachment 1 Attachment 2 Attachment 3 ATTACHMENT PREVIEW Download attachment 01.png Assume that a parent company acquired a subsidiary on January 1, 2010. The purchase price was $500,000 million in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following AAP assets: Original Original Useful AAP Asset Amount Life (years) Property, plant and equipment (PPE), net $100,000 20 Customer list 180,000 10 Royalty agreement 120,000 10 Goodwill 100,000 indefinite $500,000 The AAP assets with a definite useful life have been amortized as part of the parent’s equity method accounting. The Goodwill asset has been tested annually for impairment, and has not been found to be impaired. Assume that the parent company sells inventory to its wholly owned subsidiary. The subsidiary, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2012 and 2013: Gross Profit Remaining Inventory in Unsold Receivable Sales Inventory (Payable) 2013 $68,000 $19,280 $27,100 2012 $43,700 $12,497 $13,137 The inventory not remaining at the end of the year has been sold to unaffiliated entities outside of the consolidated group. The parent uses the equity method to account for its Equity Investment. The financial statements of the parent and its subsidiary for the year ended December 31, 2013, follow in part d. below. a. Show the computation to yield the pre-consolidation $70,837 Income (loss) from subsidiary reported by the parent during 2013. Hint: Use negative signs with answers when appropriate. Plus: Less: Income (loss) from subsidiary b. Show the computation to yield the Equity Investment balance of $961,089 reported by the parent at December 31, 2013. Hint: Use negative signs with answers when appropriate. Common stock APIC Retained earnings BOY unamortized AAP BOY deferred profit Income (loss) from subsidiary Dividends Equity investmentRead more ATTACHMENT PREVIEW Download attachment 02.png c. Prepare the consolidation journal entries for the year ended December 31, 2013. Consolidation Worksheet Description Debit Credit [C] Dividends [E] Common stock APIC [A] PPE net Customer list Royalty agreement [D] PPE net Customer list [ cogs] [Isales] [lcogs] [Ipay] ATTACHMENT PREVIEW Download attachment 03.png d. Prepare the consolidation spreadsheet for the year ended December 31, 2013. Hint: Use negative signs with answers when appropriate. Elimination Entries Parent Sub Dr Cr Consolidated Income statement: Sales $4,370,000 $786,000 [Isales] Cost of goods sold 3,059,000) (469,800) [lcogs] [lcogs] [lsales] Gross profit 1,311,000 316,200 $ Income (loss) from subsidiary 70,837 [C] Operating expenses 830,300) (203,580) [D] Net income $551,537 $1 12,620 $ Statement of retained earnings: BOY retained earnings $2,195,488 $404,550 [E] Net income 551,537 112,620 Dividends (129,164) (14,251) [C] EOY retained earnings $2,617,861 $502,919 $ Balance sheet: Assets Cash $650,639 $256,087 $ Accounts receivable 559,360 181,656 [pay Inventory 847,780 233,334 [lcogs] PPE, net 4,078,084 431,694 [A] [D] Customer List [A] [D] Royalty agreement [A] [D] Goodwill [A] Equity investment [lcogs] [C] [E] [A] $ $ $ Liabilities and stockholders’ equity Accounts payable $327,313 $93,459 [pay] $ Other currentliabilities 403,228 127,943 Long-term liabilities 2,500,000 261,000 Common stock 714,495 52,200 [E] APIC 534,055 65,250 [E] Retained earnings 2,617,861 502,919 $7,096,952 $1,102,771 $ $ $Read more
4 Carol Thomas will pay out $8,000 at the end
Question 4 Carol Thomas will pay out $8,000 at the end of the year 2, $10,000 at the end of year 3, and receive $12,000 at the end of year 4. With an interest rate of 11 percent, what is the net value of the payments vs. receipts in today’s dollars? Use Appendix B to calculate the answer.($5,898)($13,806)($9,112)($21,714) Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.05.17 PM.png ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-01 at 7.05.27 PM.png
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