Quiz 1

Which of the statement is FALSE in financial decision making?      A. Large size of business needs a large capital   B. Large firms may obtain their fixed assets on the lease.   C. Large firms would need to construct their own building and assemble their own plant

) Liquidity analysis. b) Solvency analysis. c) Any other financial analysis that you think can help in making your decision.

Task 1 The Board is considering replacing or redeveloping the leading product you have chosen. This will require considerable new investment. a) Use TWO investment appraisal techniques to describe TWO alternative sources of finance that would support the board's strategy. b) Contrast the usefulness of the two investment appraisal techniques you have selected c) Analyse two international aspects of financial risk management that could impact on the board's strategy. d) Analyse and explain the cost involved in managing these two aspects. SFM - LO 1 (pcs 1.1, 1.3) SGF - LO5 (pcs 5.1, 5.2, 5.3)

13) What did Jim Brown at DuPont use to compare the efficiency of vastly different projects? Select an answer: operating efficiency return on investment sales profitability return on equity   14) Why would competitors want to see another company's financial statements? Select an answer: to help determine the strengths and weaknesses of the company's finances to determine whether the company is eligible for a loan to decide whether or not to make an investment in the company's stock to provide background information on a competitor's market 15) What is the primary asset of any bank? Select an answer: checking and savings accounts investments accounts receivable real estate

Which of the following statements is CORRECT? Group of answer choices Since debt capital can cause a company to go bankrupt but equity capital cannot, debt is riskier than equity, and thus the after-tax cost of debt is always greater than the cost of equity. The tax-adjusted cost of debt is always greater than the interest rate on debt, provided the company does in fact pay taxes. If a company assigns the same cost of capital to all of its projects regardless of each project’s risk, then the company is likely to reject some safe projects that it actually should accept and to accept some risky projects that it should reject. Because no flotation costs are required to obtain capital as retained earnings, the cost of retained earnings is generally lower than the after-tax cost of debt. Higher flotation costs tend to reduce the cost of equity capital.

Question 1 (a) Explain how the Fisher separation theory shows that, under certain conditions, shareholders can delegate to managers the task of choosing which physical investment projects to undertake. What specific conditions must hold for this to be true? (b) PJP, an industrial manufacturer, is considering a new capital investment project to make and produce and sell a new type of electrical generator. The first stage of the project requires an investment of $8,000 now for the initial design and market research. There is a 40% probability that this phase will be successful. If it is not successful (probability 60%), the project will be abandoned with zero salvage value. If the first stage is successful, a further investment of $300,000 will be required one year from now to make and test prototype generators. If this second stage is not successful (probability 55%), the prototypes could be sold for $40,000. If it is successful (probability 45%), PJP would go ahead and produce the…

Travellers Inn (Millions of Dollars) Cash $ 10 Accounts payable $ 10 Accounts 20 Accruals 15 receivable Inventories 20 Short-term debt Current assets $ 50 Current liabilities $ 25 Net fixed assets 50 Long-term debt 30 Preferred stock (50,000 shares) 5 Common equity Common stock (3,800,000 shares) $ 10 Retained earnings 30 Total common equity $ 40 Total assets $100 Total liabilities and equity $100 The following facts also apply to TII: 1. The long-term debt consists of 29,412 bonds, each having a 20-year maturity, semiannual payments, a coupon rate of 7.8%, and a face value of $1,000. Currently, these bonds provide investors with a yield to maturity of 11.8%. If new bonds were sold, they would have an 11.8% yield to maturity. 2. TII's perpetual preferred stock has a $100 par value, pays a quarterly dividend per share of $2, and has a yield to investors of 8%. New perpetual preferred stock would have to provide the same yield to investors, and the company would incur a 3.55% flotation…

Bansi Breken is a financial institution that provides loans to businesses. It rejects an iron ore company's request for a loan after it reviews the value of the company's assets, liabilities, and owners' equity and finds them to be unsatisfactory. In this scenario, Bansi Breken most likely analyzed the company's _____ to assess its financial condition. Group of answer choices balance sheet operating budget income statement statement of cash flows

When determining the estimated useful life of an intangible asset which factor is NOT important to consider?   Q24 Select one: a. The initial costs incurred in developing the intangible asset. b. The purpose for which the asset will be used and for how long the usage will last. c. Will competitors’ ability to enter the market have an impact on the estimated future demand for the products or the asset? d. With change in management teams, will the new management team be able to manage the asset effectively?

could you please help with attached question?

1. A newly set up dot-com entity has engaged you as its financial advisor. The entity has recently completed one of its highly publicized research and development projects and seeks your advice on the accuracy of the following statements made by one of its stakeholders. Which one is it? (a) Costs incurred during the “research phase” can be capitalized. (b) Costs incurred during the “development phase” can be capitalized if criteria such as technical feasibility of the project being established are met. (c) Training costs of technicians used in research can be capitalized. (d) Designing of jigs and tools qualify as research activities. 2. Which item listed below does not qualify as an intangible asset? (a) Computer software. (b) Registered patent. (c) Copyrights that are protected. (d) Notebook computer. 3. Which of the following items qualify as an intangible asset under IAS 38? (a) Advertising and promotion on the launch of a huge product. (b) College tuition fees paid to employees…

Identify whether the statement is True or False.  Replacement value is an estimate of the cost of reproducing, creating, developing, or manufacturing a similar asset. * The replacement value method is superior to book value as it gives an indication of the true value of the firm as of the valuation date. * Borrowings that are contracted to be paid after 24 months are classified as current liabilities. * Brownfield investment is the term used to describe businesses that are starting from scratch. * Replacement cost is the cost of similar assets that have the nearest equivalent value as of the valuation date. * An asset has been defined by the industry as transactions that would yield future economic benefits as a result of past transactions. * Equipment is classified as non-current assets. *

1. Which of the following are potential explanations that have been proposed for the January Effect? Select all that apply.   A. Tax loss selling   B. IRS wash sale rule   C. Psychological drivers, completely unrelated to the market   D. Window dressing   2.   If a certain asset commands a liquidity premium, what does this imply?   A. It has a higher expected return than less liquid similar assets   B. It is more sensitive to liquidity shocks than similar assets   C. It is more difficult to trade than similar assets   D. It has a higher price than less liquid similar assets '   dont copy other's answer, Select all that apply

Question 2 A private limited company is seeking to raise a large amount of finance to invest in a new project. Which of the following options would you recommend? A. Selling shares directly to the public B. Negotiating an overdraft C. An interest bearing bank loan D. All the above

True or False:  If a company already owns the land on which it plans to build a factory, the land should be treated as having no cost for purposes of evaluating the project because there is no cash outlay for the asset. Group of answer choices True False

Director of your company, you have been tasked to present a proposal to the Board of Directors of your company for consideration. Your proposal must address the following; i. The negative impact of the COVID 19 pandemic on the operations of your firm, justifying why your firm needs such a stimulus package? Your arguments should be situated within the industry within which you operate. ii. With your understanding of lessons on capital structure, which other four (4) factors should your firm consider before choosing this source of debt finance? iii. Discuss four (4) risks that your company is likely to be exposed to if it goes ahead with this source of debt finance. iv. Explain how this decision will affect the return to the equity holders or shareholders of your company following the arguments of M&M proposition 2.

Bradley Co. is expanding its operations and is in the process of selecting the method of financing this program. After some investigation, the company determines that it may (1) issue bonds and with the proceeds purchase the needed assets or (2) lease the assets on a long-term basis. Without knowing the comparative costs involved, answer these questions: a. What might be the advantages of leasing the assets instead of owning them? b. What might be the disadvantages of leasing the assets instead of owning them? c. In what ways will the Statement of Financial Position be differently affected by leasing the assets as opposed to issuing bonds and purchasing the assets?

QUESTION 5 1. Investor A is seeking to invest in commercial real estate (CRE). While Investor A employs talented individuals they lack the depth necessary to invest directly in the asset class. Investor A has a moderate risk tolerance, and desires income stability with the opportunity to realize meaningful property appreciation. Which answer choice best describes the investment quadrant and investment vehicle Investor A would most likely select to invest in CRE? a. Private Debt, Commingled Funds b. Public Debt, CMBS c. Public Equity, Individual Assets d. Public Equity, REITS

please do not provide solution in image format thank you!