Q: 1. Walmart stock price for 10 years Year Average Stock Price 2020 120.8603 2019 108.4054 2...
A: The mean, variance, and the standard deviation of security’s annual rate of return are statistical m...
Q: Sohar Metal Company is considering three proposals for long term investment. Due to limitation on ca...
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If y...
Q: Explain an accredited investors?
A: An accredited investor is a person or entity who is allowed to deal, trade and invest in financial s...
Q: Describe some of the motives and mistakes made by the investors?
A: Investors are driven by different motives when taking decision to make investment in specific securi...
Q: Use the following information:Debt: $79,000,000 book value outstanding. The debt is trading at 94% o...
A: Weighted average cost of capital (WACC) is the summation of cost of common stock, cost of preferred ...
Q: What are the two primary reasons for using preemptive rights?
A: The right of the shareholders of a company to buy additional shares in any future issue of the compa...
Q: Define stock option
A: Stock Option, in simple terms, is a Financial instrument that gives the holder of the instrument the...
Q: Suppose that you are working as a capital budgeting analyst in a finance department of a firm and yo...
A: a) The cross-over rate is the capital cost, the equivalent of the NPV of the two projects. It is whe...
Q: You are the financial manager of a competitive investment company in South Africa. You have been pre...
A: Dividend can be defined as the amount paid by an entity to its shareholders for bearing the risk by ...
Q: The WACC is a weighted average of the costs of debt, preferred stock, and common equity. How should ...
A: When assessing the efficacy of a corporate financing strategy, analysts use a calculation called Wei...
Q: If all ratios are expected to remain constant, an equation can beused to forecast AFN. Write out the...
A: INTRODUCTION:- Additional funds needed (AFN) is the amount of money a company must raise from extern...
Q: Calculate the present value of the following cash flows discounted at 14 percent.a. $10,000 received...
A: Given information: Discounted interest rate is 14%, Future value $10,000, $5,000 and $4,000 received...
Q: Net Present Value versus Profitability Index Consider the following two mutually exclusive projects ...
A: The PI index is the profitability index of the project. The shows the profitability of the project u...
Q: What is meant by partitioning the internal rate of return? Why is this procedure meaningful?
A: Internal rate of return is defined as the annual rate of earnings on an investment and unlike income...
Q: What do the following ratios reveal about the financial health of a company? And how do I calculate ...
A: Long Term Debt Paying Ability Ratios are also known as Leverage or Capital Structure Ratios. These r...
Q: What do the following ratios reveal about the financial health of a company? And how do I calculate ...
A: Liquidity Ratios: These ratios play an important role in measuring or analyzing the short term finan...
Q: Define each of the following terms:a. Cash discounts
A: The discount is an amount that is deducted from the selling price of the product or service.
Q: Identify and explain the six financial ratios used to evaluate liquidity as part of the firm’s busin...
A: Introduction: Analysing the potential value of the company is typically a crucial activity, because ...
Q: 4- Bank America offers a stated annual interest rate of 5.0 percent, compounded quarterly, whileBank...
A: To understand in which bank you should deposit your money, we need to calculate Effective interest r...
Q: Donna makes annual end of year payments of $5,043.71 on a four year loan with an interest rate of 13...
A: The original principal amount here is the present value of annuity which is calculated by using the ...
Q: A firm has net income of $5 million. Assuming that depreciation of$1 million is its only noncash exp...
A: It is defined as the total amount of money created or lost over a particular timeframe, for the most...
Q: Donna makes annual end of year payments of $5,043.71 on a four year loan with an interest rate of 13...
A: Present Value = Annuity * {1- 1/ [(1+rate)^year] } / rate where, rate = 13% or say 0.13 year = 4 yea...
Q: Hi, my name is Titus Harmon. I am really having trouble understanding this question. I don't know ho...
A: INTRODUCTION This refers to the present value of annuity of $6000. To find it we will multiply the...
Q: Solve this early I upvote
A: There are two types of cash flow can be occur from a capital project. 1.Even cash flow: Even cash fl...
Q: Jane begins a savings program to have $4000 after 7 years. She makes a regular deposit every month i...
A: The placing of cash in a financial institution such as bank is known as deposit. There are different...
Q: Why is it important for a firm to minimize the length of its cash conversion cycle (CCC)? How can th...
A: Cash conversion cycle is a metric that the company uses to measure the time that it would take to co...
Q: 2. Two remediation options are being considered for a contaminated land area formerly used for indus...
A: (a) Cash flow diagram for each of the two options are as follows:
Q: What is a private placement?
A: A company needs funds(or money) to finance its operations. A company can either issue debt or equity...
Q: Differentiate between independent and mutually exclusive projects.
A: Mutually exclusive projects: If two projects are termed to be mutually exclusive, when the acceptanc...
Q: The Steinhoff saga, possibly the biggest case of corporate fraud in South African business history,h...
A: The Steinhoff saga is one of the classic example of how a well-established company can face a major ...
Q: Explain portfolio companies (in VC fund)
A: The portfolio company is the company in which the owner of the company an investor. The investor pur...
Q: Define each of the following terms:d. Operating merger; financial merger
A: Merger refers to the process whereby two or more companies come together to form a single entity. In...
Q: Kindly solve the last three questions: iv, v, vi only
A: Profitability Index (PI) and the Internal Rate of Return (IRR) are methods that are used for analysi...
Q: Explain the Sharing of Cash Flow from Sale?
A: Operating cash flows (OCF) is a calculation of the cash generated from the ordinary operations of th...
Q: Define Capital Market Line (CML)
A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on investme...
Q: Define Expected rate of return
A: Introduction: Usually return is a kind of profit that comes from your investment. Example, an amount...
Q: Capital 1 January 2019 350 000 Drawings 20 000 Sales (70% on credit) ...
A:
Q: 3. You are planning to get a home loan which will pay the cost for your home purchase of 6,000,000 t...
A: Given Loan amount = 6.000.000 , Interest rate = 4% compounded monthly...
Q: Why do options typically sell at prices higher than their exercise values?
A: An asset produced by stock exchanges is a financial option. These are sold by investors and purchase...
Q: why a firm should consider hedging net payables and recivables with currency options rather than for...
A: Hedging is the process by which risk can be reduced. Options are the derivative instruments that giv...
Q: What are spontaneous liabilities?
A: spontanous liabilities
Q: A local branch of Gamestop, Inc., deposited $12,500 in a savings account on July 3 and then deposite...
A: Number of day from 3 July to 1 October = 28+ 31+30 = 90 Number of days from 5 August to 1 October = ...
Q: What is the present value of end-of-year cash flows of $1,000 per year, with the first cashflow rece...
A: Given information: Cash flow of $1,000 received end of the year Interest rate is 12% per annum,
Q: Eakins Inc.’s common stock currently sells for $50.00 per share, the company expects to earn $2.75 p...
A: Retained earnings are the revenues or profits that an organization has produced to date, less any di...
Q: Define credit union
A: Credit Union is a not for profit entity that provides financial services to its members.
Q: Define each of the following terms:b. Independent projects; mutually exclusive projects
A: The Project evaluation and selection are one of the key components in Capital Budgetting decisions i...
Q: “Cash Is King” for all businesses You can determine a company’s cash situation by analyzing the cash...
A: Cash Flow Statement is a financial statement that shows the cash position of the business or in othe...
The accounts on the balance sheet are generally carried at _____, not _____. Although the book value of the current assets and the liabilities may closely approximate market values, the same cannot be said for the rest of the balance sheet accounts.
Step by step
Solved in 2 steps
- Which of the following statements would be consideredtrue regarding the balance sheet?a. One cannot determine the true current value of a company by reviewing just its balance sheet.b. The balance sheet reports assets only if they have beenacquired through identifiable transactions.c. A balance sheet shows only the ending balances, in asummarized format, of balance sheet accounts in theaccounting system as of a particular date.d. All of the above.What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changesIt is referred to as: Distinguishing current and non-current items on the balance sheet and providing a subtotal for current assets and liabilities. B. a balance sheet that is unclassifi ed
- Which of the following numerators does NOT include assets: a. Traffic speed of receivables b. Traffic speed of fixed assets c. Traffic speed of suppliers d. Traffic speed of stocks e. all of the aboveWhich of the following best describes the proper presentation of accounts receivable in the financial statements?a. Accounts Receivable plus the Allowance for DoubtfulAccounts in the asset section of the balance sheet.b. Accounts Receivable in the asset section of the balancesheet and the Allowance for Doubtful Accounts in theexpense section of the income statement.c. Accounts Receivable less Bad Debt Expense in theasset section of the balance sheet.d. Accounts Receivable less the Allowance for DoubtfulAccounts in the asset section of the balance sheet.Which of the following is not a correct statement? Accounts receivable represents credit sale, and thus, cannot be collected until maturity. Accounts receivable mainly consists of promissory notes and credit sales. Accounts receivable is part of the current assets. Accounts payable mainly consists of purchase of inventory on credit and notes payable. Accounts payable is part of the current liabilities.
- When Balance Sheets are being prepared, Assets and Liabilities are recorded at the current values, not at their original values. True or False Net Borrowing occurs when Changes in Net Worth due to Saving and Capital Transfers exceed the investment in Non-Financial Assets. True or FalseDoes Derecognition only apply to the balance sheet? If so, Why? Why are other statements not used? Explain please.‘Is it possible to prepare the profit and loss account and the balance sheetfrom the incomplete book of accounts kept by a trader’? Do you agree? Explain.
- Which of the following statements would be consideredtrue regarding debits and credits?a. In any given transaction, the total dollar amount of the debitsand the total dollar amount of the credits must be equal.b. Debits decrease certain accounts and credits decreasecertain accounts.c. Liabilities and stockholders’ equity accounts usually end incredit balances, while assets usually end in debit balances.d. All of the above.Known liabilities of estimated amounts are ignored. (Record them when paid.) reported on the balance sheet. reported on the income statement. reported only in the notes to the financial statements.Accounts that normally have a credit balance are… lag stion © A. Expenses, capital & liabilities B. Revenues assets & drawings C. Revenue, liabilities & capital D. Expenses, assets & drawings
