7.Which type of collateral is typically associated with issues such

Get college assignment help at Smashing Essays Question 7.Which type of collateral is typically associated with issues such as concentration, internal control, and invoicing?Select one:a. marketable securitiesb. inventoryc. receivablesd. plant and equipment

Door2DoorCo Are A Large Courier Company Who Have Just Received A Shipment Of X

Door2DoorCo are a large courier company who have just received a shipment of X new vans. They wish to lock in a tyre supply contract to keep these vans w ell shod over the Y months that they intend to keep the vans. The vans come with low quality tyres that will need to be replaced in 2 months. Two suppliers, ThriftyTread and WiserWheels have expressed interest at supplying tyres at a fixed price for the duration. The offers are summarised below: Number of Vans, X 120 Corporation Discount Rate 120 Initial tyre life J1=12.68%p.a Keep vans for (Y) 2 months ThriftyTread 50 months Tyre price $100 Tyre life Four months Tyre replaced at 2,6,10,…,46,50 months WiserWheels Tyre price $148 Tyre life Six months Tyre replaced at 2,8,14,…,44,50 months For each of the two potential suppliers, illustrate Door2DoorCO’s tyre expenditure for the new vans as a fully labelled timeline diagram. (Remember that there are X new vans, and assume each van has 4 tyres.) Determine the value in period 2 dollars of the expenditure stream if Door2DoorCo decide to go with ThriftyTreads. [Hint, you will firstly need to find the j3 rate equivalent to the corporate discount rate, you will then need to find the PV of the expenditure stream in period 2 dollars] Thus determine the present value of the expenditure stream if Door2DoorCo decide to go with ThriftyTreads. [NB this is a bit tricky and is aimed at stronger students] d)Determine the value in period 2 dollars of the expenditure stream if Door2DoorCo decide to go with WiserWheels. e)Thus determine the present value of the expenditure stream if Door2DoorCo decide to go with WiserWheels f) Comparing your answers for part (b) with part (d), OR part (c) with part (e), explain which tyre supplier Door2DoorCo should choose. g)Suggest three legitimate business considerations which a manager may take into account that might influence or even change the recommendation from part of (f). NB “These tyres are prettier”, “This company will bribe me with a kickback”, or “My wife works for that company” are NOT legitimate business reasons. (Write around20~30 words explaining/justifying each consideration.)

James’s tireland makes a product that sells for $75 per

Question James’s tireland makes a product that sells for $75 per unit and has $47 per unit in variable costs. Annual Fixed cost are $24,000. If Bubble’s sells 10 units less than breakeven, how much lost would the company recognize on its income statement?

Lease versus purchase JLB Corporation is attempting to determine whether

Question Lease versus purchase JLB Corporation is attempting to determine whether to lease or purchase research equipment. The firm is in the 21% tax bracket, and its after-tax cost of debt is currently 8%. The terms of the lease and of the purchase are as follows: Lease Annual end-of-year lease payments of $25,200 are required over the 3-year life of the lease. All maintenance costs will be paid by the lessor; insurance and other costs will be borne by the lessee. The lessee will exercise its option to purchase the asset for $5,000 at termination of the lease. Purchase The research equipment, costing $60,000, can be financed entirely with a 14% loan requiring annual end-of-year payments of $25,844 for 3 years. The firm in this case will depreciate the equipment under MACRS using a 3-year recovery period. (See Table 4.2 for the applicable depreciation percentages.) The firm will pay $1,800 per year for a service contract that covers all maintenance costs; insurance and other costs will be borne by the firm. The firm plans to keep the equipment and use it beyond its 3-year recovery period. Table 4.2 Percentage by Recovery YearRecovery Year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45 32 25 18 3 15 19 18 14 4 7 12 12 12 5 12 9 9 a) Calculate the after-tax cash outflows associated with each alternativeb) Calculate the present value of each outflow stream, using the after tax cost of debt.c) Which alternative-lease or purchase-would you recommend? Why?

ØYou own a 5% bond maturing in two years and

Question ØYou own a 5% bond maturing in two years and priced at 87%. style=”color:rgb(1,0,0);”>Suppose that there is a 10% chance that at maturity the bond will default and you will receive only 40% of the promised payment. ØWhat is the bond’s promised yield to maturity? ØWhat is its expected yield?

This question was created from Chapter_09 https://www.coursehero.com/file/6306849/Chapter-09/ how do you

Question This question was created from Chapter_09 https://www..com/file/6306849/Chapter-09/ how do you calculate the fractional year? What is the excel formula used to calculate the .22 ATTACHMENT PREVIEW Download attachment 6306849-332863.jpeg

The FACTS Company uses cost-plus pricing with a 0.42 mark

Question The FACTS Company uses cost-plus pricing with a 0.42 mark up. The company is currently selling 100,000 units. Each unit has a variable cost of $3.20. In addition, the company incurs $193,400 in fixed costs annually. If demand falls to 84,000 units and the company wants to continue to earn a 0.42 return, what price should the company charge? 

ØDebt Information:oOutstanding debt in the form of bonds with a

Question ØDebt Information:oOutstanding debt in the form of bonds with a face value = $1 bn.oCurrent quote = 110oCoupon rate = 9%, Semiannual coupons, 15 years to maturityØEquity Information:o50 million shares, $80 per shareoBeta = 1.15oMarket risk premium  = 9%oRisk-free rate = 5%oThe firm’s tax rate is 40%ØWhat is the cost of debt?with steps please use formulasØWhat is the cost of equity?with steps please use ØWhat are the capital structure weights?ØCompute the Weighted Average Cost of Capital

# Part 1: Variables, Hypothesis, Designs*Title:* Offshore outsourcing: Its advantages,

Question # Part 1: Variables, Hypothesis, Designs*Title:* Offshore outsourcing: Its advantages, disadvantages, and effect on the American economy*Abstract*: The United States has trained some of the world’s best computer programmers and technology experts. Despite all of this training, many businesses do not have a full understanding of information technology. As the importance of technology in the business world grows, many companies are wasting money on extensive technology projects. When problems arise, they expect that further investment will solve these issues. To prevent such problems, many companies have begun to outsource these functions in an effort to reduce costs and improve performance. The majority of these outsourced information technology and call center jobs are going to low-wage countries, such as India and China where English-speaking college graduates are being hired at substantially lower wages. The purpose of this study is to evaluate the positive and negative aspects of offshore outsourcing with a focus on the outsourcing markets in India and China, arguably the two most popular destinations for outsourcers. The cost savings associated with offshore outsourcing will be evaluated in relation to the security risks and other weakness of offshore outsourcing. In addition, an analysis of the number of jobs sent overseas versus the number of jobs created in the United States will be used to assess the effects that outsourcing is having on the American economy and job market. Finally, the value of jobs lost from the American economy will be compared to the value of jobs created. Answer the following questions about the abstract above:1) What is a potential hypothesis of the researchers?2) What is one of the independent variables?  a. What type of variable is the independent variable?3) What is one of the dependent variables?  a. What type of variable is the dependent variable?   4) What might cause some measurement error in this experiment?5) What type of research design is the experiment?  a. Why?6) How might you measure the reliability of your dependent variable?7) Is this study ecologically valid?8) Can this study claim cause and effect?  a. Why/why not?9) What type of data collection did the researchers use (please note that #5 is a different question)?# Part 2: Use the assessment scores dataset (03_lab.csv) to answer these questions.The provided dataset includes the following information created to match the abstract:- Jobs: the percent of outsourced jobs for a call center.- Cost: one calculation of the cost savings for the business.- Cost2: a separate way to calculate cost savings for the business.- Business: an ID number for each business.- Where: where the jobs were outsourced to. Calculate the following information:1) Make a frequency table of the percent of outsourced jobs.“`{r}“`2) Create histograms of the two types of cost savings. You will want to add the breaks argument to the hist() function. This argument adds more bars to the histogram, which makes it easier to answer the following questions:`hist(dataset$column, breaks = 15)` 15 is a great number to pick, but it can be any number. For this assignment, try 15 to see a medium number of bars. “`{r}“`3) Examine these histograms to answer the following questions:  a. Which cost savings appears the most normal?     b. Which cost savings data is multimodal?     c. Which cost savings data looks the most skewed (and in which direction positive or negative)?      d. Which cost savings data looks the most kurtotic?   4) Calculate the z-scores for each cost savings, so they are all on the same scale.“`{r}“`6) How many of the cost saving scores were more extreme than 95% of the data (i.e., number of z-scores at a *p* < .05)?“`{r}“`  a. Cost Savings 1:      c. Cost Savings 2:    7) Which business had:  a. the highest cost savings?     b. the the lowest cost savings?     c. Use both cost savings columns and find the ID number of the business with the lowest and highest z-score.

Predict the method for performing price analysis that the US

Question Predict the method for performing price analysis that the US Govt will want from VectorCal.

Good Afternoon,Under the Increased Compliance Savings area of this financial

Get college assignment help at Smashing Essays Question Good Afternoon,Under the Increased Compliance Savings area of this financial model, there is a line item for Likelihood of Compliance Violation with SAFE. I was wondering the methodology behind this number being $60, as opposed to a potential 40% to net out the Likelihood of Compliance Violation Without Safe. Thanks!

Which statement correctly describes the relationship between loan repayment source

Question Which statement correctly describes the relationship between loan repayment source and loan structure?Select one:a. the source of repayment determines the loan structureb. the source of repayment determination comes after the loan has been properly structuredc. the loan structure and source of repayment are unrelatedd. the loan structure is not important if a loan is fully collateralized with liquid assetsWhich option presents the primary source of repayment for most commercial loans?Select one:a. the liquidation of fixed assets provided as collateralb. the willingness and capacity of the borrowerc. the rental income from non-owner-occupied propertyd. the liquidation of current assets provided by the borrowerWhich option typically is the secondary source of repayment for a mortgage loan?Select one:a. conversion of current assetsb. liquidation of fixed assetsc. liquidation of current assetsd. conversion to construction loanWhich aspect of collateral viability relates to the fact that some assets lose value more rapidly than others?Select one:a. liquidityb. cost to liquidatec. dependabilityd. marketabilityIn which situation is a personal guarantee typically classified as a secondary source of repayment?Select one:a. the guarantor appears to have more financial strength than the collateral of the borrowerb. the collateral of the borrower appears to have more value than the financial strength of the guarantorc. the primary source of repayment is excess operating cash flow from multiple operating cycles of the businessd. the guarantor appears to have more financial strength than the operating cash flow of the borrowerWhich characteristic of collateral is defined as the ease with which the collateral can be converted to cash?Select one:a. dependability of valueb. marketabilityc. liquidityd. controlabilityWhich type of collateral is typically associated with issues such as concentration, internal control, and invoicing?Select one:a. marketable securitiesb. inventoryc. receivablesd. plant and equipmentWhich intangible asset can be reported on a firm’s balance sheet strictly because, or as a result of, a merger or acquisition involving that firm?Select one:a. patentsb. goodwillc. trademarksd. copyrightWhich viability and valuation factor is represented by the ability of the borrowing business to track its inventory?Select one:a. seasonal productsb. internal controlsc. ownershipd. obsolescenceHow does a business banker measure the willingness of the guarantor to support a borrowing business?Select one:a. by accurate tax returnsb. by previous examplesc. by dependence of personal financial condition on the financial condition of the borrowing businessd. by the likelihood of legal challenges

Under what condition is a lessor’s agreement always justified as

Question Under what condition is a lessor’s agreement always justified as part of the documentation to support a loan?Select one:a. when the loan is secured by equipment owned by the lessorb. when the loan is secured by real estatec. when the bank is named as a loss payee on the collaterald. when the borrower rents the space where the business is locatedWhat is the earliest recommended point during the loan process at which a business banker should review and reaffirm the terms of the loan, amount, rate, collateral, and guarantees?Select one:a. at the pre-loan closing meetingb. at loan signing and closingc. during follow-up after the loan has closedd. during financial statement spreadingWhich action is a benefit of follow-up after the loan closes?Select one:a. allowing the borrower to ask questions in advanceb. making sure that all the documents are complete and correctc. updating the customer’s filed. conducting additional customer-bank negotiationsWhich of the following options would be an appropriate primary source of repayment for a construction loan from a commercial bank?Select one:a. conversation of construction loan to a mortgage loanb. liquidation of commercial property provided as collateralc. personal guarantees of the property ownersd. liquidation of current assetsAssuming the number of periods and future value are unchanged, what happens to the present value (PV) of the loan or dollar amount as the interest rate increases?Select one:a. the present value (PV) increasesb. the present value (PV) decreasesc. the present value (PV) remains unchangedd. The present value (PV) increases at the same rate as the interestIn the context of time value of money, which term describes the amount of money that is disbursed after a typical commercial loan has been approved by the bank?Select one:a. present valueb. future valuec. periodic paymentsd. number of periodsAs a genera rule, to achieve comparable returns, what should be the relationship of a taxable interest rate to a tax-exempt interest rate?Select one:a. the taxable interest rate needs to be higher than the tax-exempt interest rateb. the taxable interest rate needs to be lower than the tax-exempt interest ratec. the taxable interest rate needs to be the same as a tax-exempt interest rated. the taxable interest rate needs to be adjusted by the same percentage as the tax-exempt interest rateWhich item is a key consideration regarding the role of a business banker in the customer-bank negotiation?Select one:a. a business banker must keep in mind the goals and needs of both the bank and the customerb. a business banker is responsible for negotiating terms that enhance the customer’s profitabilityc. a business banker should focus exclusively on what the bank wants in order to represent the interests of its depositors and investorsd. a business banker is responsible for negotiating terms that yield to the customer’s risk appetiteWhich lending philosophy generally allows higher loan authorities for individual business bankers so that they may approve or reject most requests, subject to later review?Select one:a. legal lending limitb. supervisory loan-to-value (LTV)c. decentralized approachd. centralized approachWhich option is a common example of a “nice” term (negotiable) in a customer-bank negotiation?Select one:a. “will accept” positionb. loan support issuec. type of interest rated. many available financing alternatives perceived by borrower

Which factor tends to help or improve a bank’s negotiating

Question Which factor tends to help or improve a bank’s negotiating leverage?Select one:a. involvement of multiple financial service providersb. customer with a strong financial positionc. a mature business with managers experienced in borrowingd. better locations and superior productsAt which point in the negotiation process should the business banker be fully aware of the customer’s objectives and position?Select one:a. setting an agendab. opening the negotiationc. presenting the proposal, listening to counterproposald. reaching an agreementIn an attempt to lower the loan pricing, a customer falsely states that another bank has made a better offer. This is an example of which negotiating tactic?Select one:a. misleadingb. bad-faith negotiationc. threatsd. escalating demandsWhich cost of problem loans can be described as “unproductive time spent monitoring problem loans”?Select one:a. increased administrative expenseb. lowered employee moralec. damaged reputationd. increased regulatory expenseWhich option would be correctly classified as a third-party early-warning signal of a problem loan?Select one:a. deterioration in borrower’s cash positionb. significant changes in balance sheet structurec. change in supplier’s credit termsd. loss of any major customersWhich cost can result from an excessive number of problem loans that damage a bank’s reputation?Select one:a. regulatory examination time and expenses increaseb. legal expenses increasec. capital raising effort and expenses increased. administrative and overhead costs increaseWhich situation is a bank cause of problem loans?Select one:a. loan origination to industries that are not understoodb. inadequate analysis of guarantorsc. improper loan structuring, support, and documentationd. poor product or serviceWhich adverse external development is exemplified by a firm’s inability to cope with natural disasters, such as fires, droughts, floods, and hurricanes?Select one:a. competitive factorsb. economic factorsc. technological factorsd. environmental factorsWhich financial early-warning signal directly involves the borrower’s income statement?Select one:a. deteriorating cash positionb. adverse economic conditionsc. poor management of plant and equipmentd. major gap between gross and net salesWhich lender action that can lead to the early detection of a problem loan is exemplified by obtaining and reviewing financial information, calling on the business in person or by telephone, and regularly assessing the credit risk of a borrower after a loan is closed?Select one:a. initial financial analysisb. loan structuring, support, and documentationc. ongoing loan monitoringd. analysis of guarantors

2.Which option presents the primary source of repayment for most

Question 2.Which option presents the primary source of repayment for most commercial loans?Select one:a. the liquidation of fixed assets provided as collateralb. the willingness and capacity of the borrowerc. the rental income from non-owner-occupied propertyd. the liquidation of current assets provided by the borrower

PART 1 The manager of the West Division of Beach

Question PART 1 The manager of the West Division of Beach Clothing Company is evaluating the acquisition of a new embroidery machine. The budgeted operating income of the West Division was $4,000,000 with total assets of $22,000,000 and noninterest-bearing current liabilities of $1,000,000. The proposed investment would add $750,000 to operating income and would require an additional investment of $3,500,000. The targeted rate of return for the West Division is 14 percent and the cost of capital is 9 percent. Ignoring taxes, how much is the residual income of the West division if the embroidery machine is not purchased?A. $202,000B. $1,930,000C. $2,110,000D. $1,060,000PART 2 The manager of the West Division of Beach Clothing Company is evaluating the acquisition of a new embroidery machine. The budgeted operating income of the West Division was $4,000,000 with total assets of $22,000,000 and noninterest-bearing current liabilities of $1,000,000. The proposed investment would add $750,000 to operating income and would require an additional investment of $3,500,000. The targeted rate of return for the West Division is 14 percent and the cost of capital is 9 percent. Ignoring taxes, how much is the residual income of the West division if the embroidery machine is purchased?A. $2,545,000B. $1,320,000C. $2.860,000D. $4,456,000PART 3 If a manager is evaluated using the return on investment, the manager may be reluctant to invest in new equipment because the additional investmentA. may reduce profit by the cost of the investment.B. will decrease the level of assets.C. may decrease the return on investment.D. may increase investment turnover.PART 4 A manager is evaluated based on return on investment. The corporate minimum required return is 11 percent and the manager runs a division that has attained a 14 percent return on investment. Which of the following statements is true?A. The manager will most likely not invest in a project that has a return on investment of 13 percent.B. The manager will invest in all projects that increase operating income.C. The manager will not consider projects that exceed 14 percent.D. The manager may prefer to invest in projects that have a return on investment that is very close 11 percent to stay in line with corporate expectations.PART 5 Evaluating segments based on the segment’s return on investment willA. encourage each segment’s manager to select only projects that are above the company’s current return on investment.B. encourage each segment’s manager to only select projects that are above the individual segment’s current return on investment.C. encourage each segment’s manager to select only projects below the company’s required rate of return.D. encourage managers to select only projects below the segment’s cost of capital.PART 6 Economic value added isA. essentially the same as residual income except that adjustments are made to liabilities and assets to eliminate “accounting distortions” caused by interest expense.B. essentially the same as residual income except that adjustments are made to income and assets to eliminate “accounting distortions” that arise from following generally accepted accounting principles.C. the use of qualitative and quantitative measures to evaluate performance.D. essentially the same as residual income except that adjustments are made to income and assets to eliminate “accounting distortions” caused by noninterest-bearing current liabilities.

3.Which option typically is the secondary source of repayment for

Question 3.Which option typically is the secondary source of repayment for a mortgage loan?Select one:a. conversion of current assetsb. liquidation of fixed assetsc. liquidation of current assetsd. conversion to construction loan

4.Which aspect of collateral viability relates to the fact that

Question 4.Which aspect of collateral viability relates to the fact that some assets lose value more rapidly than others?Select one:a. liquidityb. cost to liquidatec. dependabilityd. marketability

5.In which situation is a personal guarantee typically classified as

Question 5.In which situation is a personal guarantee typically classified as a secondary source of repayment?Select one:a. the guarantor appears to have more financial strength than the collateral of the borrowerb. the collateral of the borrower appears to have more value than the financial strength of the guarantorc. the primary source of repayment is excess operating cash flow from multiple operating cycles of the businessd. the guarantor appears to have more financial strength than the operating cash flow of the borrower

6.Which characteristic of collateral is defined as the ease with

Question 6.Which characteristic of collateral is defined as the ease with which the collateral can be converted to cash?Select one:a. dependability of valueb. marketabilityc. liquidityd. controlability

Question 1Which of the following is true concerning Crummey powers.Allows

Question Question 1Which of the following is true concerning Crummey powers.Allows a gift to qualify for the annual exclusion.Typically found within revocable trusts.Is a provision found within an irrevocable life insurance trust.Question 1 options:A – I and IIB – II onlyC – I and IIID – III onlyQuestion 2 Which of the following is not true with respect to a net gift?A – The gross amount of the gift is reduced by the amount of the gift tax which the donee agrees to payB – A net gift may be treated as a part sale/part gift for income tax purposesC – In computing the donee’s gift tax liability, the unified credit of the donor cannot be usedD – For estate tax purposes, only the amount of the net gift is treated as an adjusted taxable gift.Question 3  What is the similarity between an UGMA/UTMA accounts?A – Both are regulated by federal lawB – Neither allow for annual exclusion transfersC – Neither are regulated by state lawD – Both are custodial accountsQuestion 4 Mark creates a custodial account for his daughter, Patty, under the Uniform Transfers to Minors Act. Under all but which of the following circumstances would the custodial property be included in Mark’s estate for estate tax purposes?A – Mark appoints himself custodian and dies while custodianB – Mark becomes custodian after his sister, Ellen, ceases to be custodian, and Mark dies while custodianC – The custodial property can be used to satisfy Mark’s obligation to support PattyD – Mark appoints his wife, Monica, as custodian and Mark dies while Monica is custodianQuestion 5 Which statement best describes the difference between the QTIP trust and the power of appointment trust?A – Both qualify for the marital deductionB – Only the QTIP trust qualifies for the marital deduction; the power of appointment trust may notC – The surviving spouse receives all income from the QTIP trust; the surviving spouse may only receive principal distributions from a power of appointment trustD – The surviving spouse does not direct the ultimate distribution of assets from a QTIP; the surviving spouse does direct the ultimate distribution of assets from a power of appointment trustQuestion 6  Under what circumstances is it appropriate to limit the application of the marital deduction?Property has significant appreciation potential.Decedent is angry with spouse.Maximize the utilization of the unified credit.A – II onlyB – II and IIIC – I and IIID – I, II and IIIQuestion 7 Under what circumstances would a donor initiate a 2503(b) trust?Utilization of annual exclusion.Income tax shifting from a high tax bracket to a lower tax bracket.Remove appreciating assets from estate.A – I and IIB – II and IIIC – I and IIID – I, II, and IIIQuestion 8 When should the use of a QSST be considered?A – Whenever a trust is createdB – Whenever a gift of publicly-traded company stock is made into a trustC – Whenever a gift of S corporation stock is made into a trustD – Whenever a trust is required to make a distribution to more than 1 beneficiaryQuestion 9  Which of the following is not an example of a grantor retained interest trust?A – GRATB – QPRTC – ILITD – GRUTQuestion 10  For gift tax purposes, upon the creation of a grantor retained interest trust, the interest retained by the grantor must be a qualified interest. A qualified interest reduces the value of the taxable gift made to the remainder beneficiaries of such a trust. All of the following are qualified interests except:A – Annuity InterestB – Unitrust InterestC – QTIP InterestD – Remainder Interest

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