Q: Why does a manager expect a higher number of days in accounts payable? a. It provides an…
A: The answer is option. a It provides an opportunity to pay later and to use available funds for more…
Q: You are considering an investment opportunity that requires an initial investment of $148 million in…
A: IRR is an important capital budgeting tool. IRR is that rate at which NPV (net present value) is…
Q: 20. Which of the following does not represent compensation income? * a. Honorarium as a guest…
A: In this question, we have two sub-questions, (20) Detailing the types of compensation income &…
Q: Suppose that an 8% 10-year bond has the following call stru First callable in 3 years at 1040$ First…
A: Yield to maturity of bond is the rate of return realized if the bond is held till the maturity of…
Q: Consider the performance of a stock fund and a bond fund, based on the state of the economy.…
A: To Find: Mean of portfolio Variance of portfolio Standard deviation of portfolio
Q: A stock that pays no dividends is worth So = 50 curos today. The risk-free interest rate with…
A: The binomial options pricing model is used to find the price of the option when there is no clarity…
Q: Aisyah is a new investor; she approached RHB Securities and the firm has provided her with the…
A: Hi, in order to answer part "f", d also needs to be calculated. d) Expected Return of Stock X:
Q: A retail coffee company is planning to open 105 new coffee outlets that are expected to generate…
A: For the calculation of NPV of this expansion we will use the below formula NPV of expansion =…
Q: if you were to invest your money which term will you use to compute for the interest in your…
A: Exact and Approximate times are two interest calculation times that take into two time periods. One…
Q: 9. Calculate the annual payment for a 20-year mortgage on a P3.5 million building at a 7.5% interest…
A: Solution:- When an equal amount is paid each period at end of period, it is called ordinary annuity.…
Q: A man invests in a project that requires a fixed capital of P 2.5 M with no salvage, and life of 12…
A: Initial Investment = P2,500,000 Salvage Value = 0 Time Period = 12 years Annual Maintenance Cost =…
Q: Which of the following parties would perform an external financial analysis on a firm? The…
A: External analysis is the analysis done by the people who are outside the firm. These people cannot…
Q: If the MARR is 12% per year, look for the best alternative with the method: a. Net Present Value b.…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: A honda generator (2KVA) has a list of price of P45,000 but can be purchased for either alternative…
A: List price is P 45,000 Alternative-1 Cash price of P40,000 Alternative -2 Down payment of P 5,000…
Q: 3. If Esmeralda paid $740.00 in interest of 16% for 2 years, how much money did she borrow?
A: Simple Interest may be defined as Interest that is calculated as a simple percentage of the…
Q: 9. Which of the following statements is FALSE? A) A conclusion of the CAPM is that investors should…
A: CAPM assumes that all investors can buy and sell all securities at competitive market prices where…
Q: analyze the risk management of the company BMW. Do you have any suggestions for the improvement of…
A: Management is the process of planning, organizing, staffing, directing, and managing a collection of…
Q: Calculate the cost of goods available for sale using the following data: Purchase Transportation In…
A: Answer - Computation of Cost of Goods Sold - Cost of Goods Sold = Opening inventory + Purchases…
Q: Which of the following statement regarding ratio analysis is incorrect? Select one: a. Ratios…
A: Financial ratios are an important concept in the world of finance. We use financial ratios like…
Q: Using your iphone, you noticed that IBM was trading at a bargain price, so you decided to purchase…
A: Financial security market is the market were, both private and public securities are traded. Primary…
Q: Use the Black-Scholes formula to find the value of the put option using the next data: Stock price:…
A: Stock Price S $ 5.03 Strike Price K…
Q: An investment costs $100 and it promises $50 in 3, 4, 5, 6 and 7 years. What is the return of this…
A: The return on investment is a financial metric used to find out whether the investment will give a…
Q: Suppose the term structure of annualized interest rate is flat at 5%. Consider the following three…
A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…
Q: 1. Identify whether each of the following bonds is trading at a discount, at par value, or at a…
A: Bond price is referred as the present discounted cash flow that are generated through the bond. It…
Q: please show a clearer solution
A: Here, Investment Amount (PV) is P100 Value of Investment Amount after one year (FV) is P112.55…
Q: Given an annuity-immediate of 100 payable semi-annually for 10 years. Find the value after 18 years…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Compare and contrast key role and functions of the capital markets with those of the money markets.
A: Capital markets are defined as the financial markets, which provides the platform for the buyers as…
Q: You invest 2000 into a fund at time 0 and an additional 1000 at time 1. The investment period is 2…
A: As we know, Future value : It is the value of an investment or asset in the future on a specific…
Q: Tangshan Mining Company must choose its optimal capital structure. Currently, the firm has a 40…
A: Answer - (a) Calculation of value per share for Tangshan Mining under the current capital structure…
Q: If you put up GHC1,250 in a one-year investment and get back GHC1,350. What rate is this investment…
A: Investment is referred as an asset that are invested or acquired for building the wealth as well as…
Q: He is getting worried about his debt and is determined to pay it off completely.
A: Loan Payments: These payments are made to the lender by the borrower for the purpose of amortizing…
Q: 3f. Whyis NPV the most accurate capital budgeting technique compared to the payback period and IRR?…
A: 1. Net Present Value is the excess of Present value of Cash Inflow over Present Value of Cash…
Q: Suppose a business takes out a GHC5000, 5-year loan at 9%. If the loan agreement calls for the…
A: Here, Loan Amount = GHC 5,000 Term of loan = 5 years Interest rate = 9% Principal payment each year…
Q: Design a salary slip for the month of December 2021 with information given below. Fixed vs variable…
A: Gross salary : It is the amount paid by an employer without any tax deductions. Net salary : The…
Q: Is share repurchase always a positive move? explain
A: Repurchase of shares-Under this transaction, a company buys back its own shares directly from the…
Q: A man wishes his son to receive P632.147 fifteen years from now at three different interest rates.…
A: Present value, in case of multiple interest rates, can be calculated as: = Future Value/…
Q: oney in GoldFinger (currently $15/share nd the remainder in Venture Associates a Moosehead stock…
A: The phrase "portfolio analysis" refers to the process of calculating the future risk and return of…
Q: The company LLC Corp needs additional funds to expand its production capacities. Therefore it issues…
A: Face Value € 10,00,00,000.00 Price of Bond 99.87% Time Period of Bond 5 Coupon Payment…
Q: if P20,879 is deposited each year for 8 years at an interest rate of 10.257% compounded bi-monthly,…
A: The concept of the time value of money states that the same amount of money is worth more today than…
Q: The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Satellite-radio firm Sirius XM posted earnings and showed some signs of improvement over last year.…
A: Sirius XM Revenue = $629.6 million Loss in previous year = $217 million Loss in current year =…
Q: You invest R100 in a risky asset with an expected rate of return of 15% and a standard deviation of…
A: Given, The amount invested is R100. The expected return on risky asset is 15% and rate of return on…
Q: At 10% per year interest, how much does he have to invest each year (starting in year 1) to reach…
A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity due…
Q: An example of an ‘intermediate good’ would be: the petrol purchased by consumers for their…
A: Intermediate goods are goods that are used as a factor of production to create goods that can…
Q: 3,On September 26, the spot price of wheat was $3.5225 per bushel and the price of a December wheat…
A: Answer - Part A - Calculation of expected price of wheat on the spot market in December- In a…
Q: The following table shows the sensitivity of four stocks to the three Fama–French factors. Estimate…
A: According to Fama Fench model there are more factors to be considered other than market premium and…
Q: Is the following statement correct, wrong or partially correc? Why? "If the volatility of Stock A is…
A: This statement is CORRECT.
Q: when should they pay, assuming that they wish to stay on good terms with the supplier
A: 1/10 net 30 means discount = 1% total amount due = 30 days bill due = 10 days
Q: JOM Co. reported the following information at year-end: Ordinary shares outstanding 360,000 300,000…
A: Earnings per share (EPS) refers to the amount of profit distributed based on the number of…
Q: Most managers try to "smooth" their dividends over time - they try to increase the dividend, but…
A: The dividends is the distribution of surplus profit by a company to its shareholders. It is given as…
A weakness of the percent-of-sales method to preparing a pro forma income statement is
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following items in the balance sheet does NOT have a constant relationship with sales in general when we use the percent of sale method to construct pro forma financial statements? Retained earnings Inventory Accounts receivables Accounts payablesWhat types of liabilities, assets, and equity are not assumed to vary directly with sales?The primary advantage of the single-step income statement format lies in the simplicity of presentation and the absence of any implication that one type of revenue or expense item has priority over another. * True False
- Management does not usually like to tie comprehensive income closely with the income statement. Comment.Which of the following is not an element of the financial statements? A. future potential sales price of inventory B. assets C. liabilities D. equityWhich of the following is not a disadvantage of the LIFO inventory cost flow assumption? a. The impact of LIFO liquidation profits b. It does not match the most recent costs with revenue c. The possibility of income manipulation by management d. It impairs comparability between companies using LIFO
- The use of alternative accounting methods: A. is not a problem in ratio analysis because the footnotes disclose the method used. B. may be a problem in ratio analysis even if disclosed. C. is not a problem in ratio analysis since eventually all methods will lead to the same end. D. is only a problem in ratio analysis with respect to inventory.Which income statement account(s) would be affected by a policy choice at the same time as the inventory balance sheet account. a. Bad debts expense b. Cost of goods sold expense c. Depreciation or amortisation expense d. Sales revenueQUESTION How much shall be presented as profit/loss on the face of the income statement? USE NEGATIVE SIGN IF LOSS
- Which of the following assumptions is assumed in the percent of sales forecasting method? All balance sheet assets accounts are tied directly to sales. Accounts receivables and inventory are tied directly to sales. Preferred stock and long-term debt are tied directly to sales. Fixed assets, but not current assets, are tied directly to sales.What are three limitations of the income statement thatoften lead to misconceptions?Income can be distorted by factors other than inflation. The most important causes of distortion for inter-industry comparisons are: A. timing of revenue receipts and nonrecurring losses. B. tax write-off policy and different inventory methods. C. A and B D. answer not given
